Kira Network is a blockchain-based system that employs multi-bonded proof of stake (MBPoS) to power cross-chain interactions such as the ability to stake any virtual asset and earn rewards.
Proof of stake (PoS) platforms have removed the speed and scalability limitations inherent to proof of work (PoW) networks. However, many PoS-based assets are locked in centralized platforms, dampening the decentralization aspect in the process. Additionally, PoS systems work in isolation, giving investors a hard time moving an asset from one platform to another.
Kira Network is among the few platforms enabling its users to interact with tokens across blockchains and earn rewards in the process. Below, we explore the Kira ecosystem with a special focus on what it brings to the decentralized finance (DeFi) world.
Table of Contents
Background
The network is developed in conjunction with key figures in the blockchain space such as NGC Ventures, Math Wallet, Orion, Origin Capital, Ascensive Asset Management, and Certik. Its advisors come from key startups such as Tendermint, while its core development team features top minds in blockchain development, electronic engineering, among other fields.
Kira Network’s team has vast experience in the decentralized world. For example, its CEO and co-founder, Milana Valmont, has been a Binance Angel, a blockchain consultant, and a strategy advisor at KNOKS.
What is Kira Network?
Kira Network is a blockchain-based system that employs multi-bonded proof of stake (MBPoS) to power cross-chain interactions such as the ability to stake any virtual asset and earn rewards. One of the network’s salient features is an inter-chain exchange protocol that allows fast transfer of assets without a central authority.
Coupled with sharding capabilities, this feature provides an unparalleled system in the DeFi ecosystem. The sharding aspect takes the form of trading layers where each layer handles a distinct asset class.
For instance, layer one deals with cryptocurrencies, while layer 2 and 3 deal with non-fungible tokens and fiat currencies, respectively. Each acts independently to determine the fees and security.
MBPoS uses the platform’s assets to enhance security. Notably, the consensus mechanism removes the cap on the type of asset up for staked or used to improve safety. This makes Kira’s security approach better than other PoS systems.
Other Kira Network Features
Enough Liquidity
The protocol has enough liquidity to provide a 1:1 peg on staked tokens. As such, it offers chances for running derivative-based products in the DeFi ecosystem. Note that staking derivatives are accessible within and without the network.
Access to Decentralized Exchanges
Earlier, we saw that an inter-chain exchange protocol (IXP) is among the notable features on the platform. We didn’t mention that IXP is a decentralized exchange deployed on Kira. IXP allows a permissionless exchange of tokens in and outside the Kira walls.
Additionally, the DEX allows delegators to stake, maintain incentives, and be exposed to the market all at the same time. Kira’s mission through IXP is to maximize possibilities in the DeFi and PoS-enabled economy. The exchange protocol improves system accessibility, ownership, scalability, legal compliance, and liquidity.
Accessibility, for example, is enabled through a careful architecture design that eliminates the inefficiencies of decentralized legacy exchanges.
Largely Independent Shards
Sharding divides a network into almost separate sections. Consequently, the platform is capable of reaching high speeds. In the process, Kira ensures that the staked value used in each shard is lower than the total staked amount.
Upgrades Without Coordination
Although coordinated blockchain upgrades are good, they have been the source of contention among developers. Kira shifts from this approach to a more convenient but equally transparent process.
The method uses an on-chain contracting system in combination with CosmWasm (a Cosmos-based smart contracting platform) smart contracts. This mix caters for developers, general users, and auditors but eliminates the hurdles of coordinated upgrades.
Initial Validator Offering (IVO)
This is Kira’s way to drive fresh capital to new projects. Here, investors stake their tokens with validators, who then interact with the projects. In return, investors earn a commission from mined blocks.
IVO’s advantage is that it affords investors not to give up control of their virtual wealth and neither do they suffer from negative liquidity in case the acquired token is from an external decentralized platform.
IVO differs significantly from initial coin offering in that it thrives on cross-chain mining instead of directly trading crypto or fiat for another token. With IVO, Kira makes crowdfunding easier for new projects while attracting new capital in the digital currency world.
Kira Token (KEX)
KEX is Kira’s native currency for staking and governance purposes. Additionally, KEX provides a reference when calculating the value of other tokens on the platform.
To prevent spamming, network interactions are charged in the native token. KEX draws the line between active and dormant project participants. Note that active participants, also known as validators, ensure the project is maintained, accessible, and secure.
Therefore, there has to be an elaborate incentives program. Interestingly, unlike in other PoS systems, the native token doesn’t guarantee a high influence on the project’s security when investors hold huge amounts.
Kira Network incentivizes active participants using a layered design. For example, KEX holders enjoy the lowest possible network and exchange fees when interacting with the native tokens. On the other hand, delegators earn a maximum of 99 percent of all block rewards while validators take home half of the fees charged on the system.
Governance
Apart from staking and reference, the token has governance powers allowing its holders to raise and vote on proposals, such as upgrading the protocol or making changes to key system parameters.
Some of the parameters that require the attention of the network’s decentralized community include, but are not limited to, KEX’s inflation rate and the percent of rewards paid to stakers.
Although it started as a centralized offering module, Kira continues to improve its decentralization and efficiency. The efficiency aspect improves with incentives that enable consensus-building among a decentralized team of users.
Notably, the module is governed by only two rules; verified participants submit transactions, and network permissions are individually granted to whitelisted actors. The permissions determine the nature of on-chain activities an actor can issue.
Critical Components of Kira Network
Due to Kira’s massive swipe on the cryptocurrency world, it has vital components that provide a seamless interaction to users. Inside Kira Network, we have:
- Kira Hub – This layer interacts with governance, settlement, and security functionalities on the network. Also, it facilitates linking with other connected distributed systems.
- Kira Zones – Connect to Kira Hub and are made up of independent sub-chains and have their own validators.
- Kira Bridges – Provide a connection between the Kira protocol and off-chain platforms that aren’t compatible with internet blockchain communications (IBC). Kira bridges entities such as e-money issuers and wrapped tokens. This layer can connect to proof of authority (PoA) and PoS-powered systems.
- Hunters – To keep everyone in check, Hunters monitor Kira Zones and report any misbehavior to Kira Hub.
Conclusion
The vast Kira network has a place for everyone in the cryptocurrency space. Its unique governance module ensures that the protocol’s parameters are changed through community consensus. In addition, through permissioned access to critical functions such as transaction processing, the platform guarantees reliability.
Kira hub, zones, bridges, and hunters work together to provide unlimited connections to the decentralized and traditional worlds while monitoring any mischievous behaviors from participants. Consequently, it opens the DeFi ecosystem to more possibilities while instilling trust and providing rewards to users.
