What is Kava (KAVA)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Kava is a blockchain that runs a Cosmos-based chain and an Ethereum-compatible execution environment side by side within the same network, with the two connected to each other. That lets it host applications written for Ethereum while also connecting to other chains through Cosmos' IBC standard. KAVA is used for staking and governance.
Key points
- Built with the Cosmos SDK and running a Tendermint-style consensus
- Hosts an EVM-compatible chain alongside it, with assets moving between the two
- Connects directly to other Cosmos chains via IBC
- Originally launched as a collateralised lending and stablecoin platform
Definition
A layer 1 blockchain that runs a Cosmos-based chain and an EVM-compatible chain together and links them.
Chain developers have generally had to choose between the depth of assets and tooling around Ethereum's EVM and the interoperability and design freedom of Cosmos. Kava's answer was to put both in the same network rather than pick one.
Concretely, a Cosmos SDK chain and an EVM chain run together, with a mechanism for moving assets between them. Contracts written for Ethereum run largely unchanged, while assets can arrive from other Cosmos chains over IBC.
Kava began in 2019 as a lending platform where users deposited crypto as collateral to mint a stablecoin, and later broadened into a general application platform. The native KAVA asset is staked to validators and used to vote on parameter changes.
Supply-side design changes, including a decision to stop new issuance, have been made through governance. Those votes are on the record, so checking primary sources is the reliable way to confirm current parameters.
Watch out for
- · With two execution environments, it is easy to send to the wrong side if you mistake where an asset sits
- · Supply and reward parameters have been changed by governance, so older explanations may not match current behaviour
- · Moving assets over IBC or bridges carries risk specific to each route used