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Komodo Coin Review: The Swiss Army Knife of Crypto
There are hundreds of coins in cryptocurrency and discerning one from the other is no easy task. Fortunately for you, you have the Total Crypto team here to help. With our Komodo coin review, you’ll know much more about the coin. We’ll tell you what it is, what it does, and why it’s good for cryptocurrency overall.
Before we get too far into our review, we want to remind you that investing in cryptocurrencies is can be risky, so it’s important that you do your research prior to purchasing any digital coins. Additionally, this review is not meant as investment advice.
With that out of the way, let’s jump into Komodo.
What is Komodo Coin (KMD)?
Komodo coin, which is traded as KMD, is an open-sourced and decentralized cryptocurrency. Developed by the same team as BitcoinDark (BTCD), Komodo launched in the third quarter of 2016. The underlying software itself is a fork of Zcash. Additionally, Komodo runs on a platform referred to as “SuperNet.” We’ll talk more about SuperNet later. For now, just know that Komodo uses its software applications and infrastructure.
With its open-source Komodo coin, the Komodo blockchain platform performs anonymous, private, and fungible transactions. These transactions are given additional security by using Bitcoin’s blockchain. This is done through a delayed Proof-of-Work (dPoW) protocol.
There is one item of importance to remember when dealing with Komodo’s blockchain: cryptocurrencies which choose to make use of the Komodo platform will benefit from transaction fees which are much lower than those on the Bitcoin blockchain.
Who is Komodo?
Komodo is a project which leans heavily towards anonymity, so it wasn’t surprising when many of the team members chose not to use their true identities. The lead developer and founder of Komodo refers to themselves as James Lee and goes by the moniker JL777.
Kadan Stadelmann is the current CTO and general manager. Stadelmann, along with many other members of the Komodo team, remained anonymous until recently. With the growth and added investors in the Komodo platform, team members felt it wise to increase transparency and establish trust with those participating in the project.
Komodo had its Initial Coin Offering in October 2016. During its ICO, Komodo only accepted Bitcoin as a form of payment. The rate of one KMD was 0.00012908222 Bitcoin. At the time of the ICO, one BTC was worth 7,747 KMD. The Komodo ICO closed on November 20, 2016.
During its ICO, Komodo issued one hundred million tokens. Over 90% of the tokens were sold to Komodo investors, while the remainder was kept for Komodo’s marketing and development teams as working capital. The Komodo ICO brought in a grand total of 2,639. Using the Bitcoin price at the time, the Komodo coin raised nearly $2 million USD.
What does Komodo Do?
A better question might be what doesn’t Komodo do? Komodo manages its own secure blockchain. It gives users a way to perform private transactions. It offers developers a platform with the ability to build their own digital infrastructure. Doing so means they can take their private transactions to an even more evolved and complex level.
While Komodo offers a cryptocurrency of its own, the platform wants to provide a way for startups to create their own digital currency or blockchain. Komodo plans to do this by giving them everything they need in order to succeed, including a development platform, decentralized ICO capabilities, and an exchange solution.
The Komodo Platform
Komodo’s development platform uses Bitcoin’s smart contract functionality. Many people aren’t aware such a feature exists, however, Komodo makes good use of this utility. But Komodo doesn’t stop there. In addition to offering Bitcoin’s smart contracts, the platform also offers smart contracts based on varying protocols. This allows developers the option to bring their own decentralized applications (dApps) to a secured and private blockchain.
The ability to create decentralized applications which reside on a private blockchain creates additional use cases for startups. Additionally, Komodo is a more developer friendly platform due to its development language agnosticism. A new developer on the Komodo platform doesn’t have to learn a new language in order to create decentralized apps for the blockchain.
Crowdfunding with Komodo
Komodo also gives its users a crowdfunding environment through which to raise funds. This fundraising option is built right into the Komodo blockchain. Therefore, developers with dApps can discover ways to fund their ideas. Just like the rest of the Komodo environment, its crowdfunding platform relies on decentralization.
The fundraising process is one hundred percent autonomous and once its put into motion, will operate with the assistance of any third-party software. The crowdfunding platform is backed by the privacy that is often associated with the blockchain. As a result, users know their identities are protected and won’t be released to the public.
All of this means Komodo uses can create and launch their own ICO and tokens right from the Komodo platform. It also means users can trust the environment from which the tokens are issued, providing anonymity to those investing and using the platform.
One great solution which is part of the Komodo platform is Jumblr. This solution is a decentralized and open-source cryptocurrency anonymizer. You can significantly enhance your privacy and security by using it on the Komodo system.
The actual process of anonymizing your funds is simple and straightforward. Jumblr accepts your KMD tokens which you send from your non-private address. It sends these tokens through a group of zk-SNARK addresses. These address cannot be traced and remove any trail from the tokens you sent.
At this point, Jumblr distributes your tokens to a new address, which you specify. Now, your tokens are 100% anonymous. There is a 0.3% fee associated with the transaction, but you can pay it with KMD tokens.
Jumblr is connected to the BarterDex, which means you have the ability to anonymize any of the other tokens you trade as well. As of right now, this is done through a manual action, however, the Komodo team is working to automate this feature once the platform has more user adoption.
Not only does Komodo offers the two services mentioned previously, but it also gives its users a decentralized exchange option. Users have access to Komodo’s BarterDex, which is a powerful exchange which utilizes the capabilities of atomic swaps. This is not a feature commonly found in other Dex services.
Why should you care about atomic swaps? Because you’ll have the ability to trade between Ethereum and Bitcoin, along with their network coins and forks. This is all done through a decentralized platform. Atomic swaps give each user the ability to perform cross chain transactions. These transactions can be done amongst themselves and from the privacy of their own wallet.
This means users don’t have to use a third-party platform to perform these types of exchanges. Additionally, atomic swaps protect each party involved through the use of hash-time locked contracts. These locked contracts ensure that both parties perform their part of the deal in the exchange of cryptocurrencies. Komodo is attempting to push the envelope with atomic swaps by providing an easier process for their users.
Freedom to Exchange
With Komodo’s platform, a user does not need to download each blockchain for the cryptocurrency they want to trade. Now, an individual can go through the BarterDex decentralized platform, already integrated into the solution. With this process in place, Komodo’s BarterDex has helped to facilitate over 100,000 transactions using atomic swap.
Komodo makes use of HyperDex as its GUI for the BarterDex code. This gives developers the option to easily differentiate between the GUI and the codebase engine. Komodo’s Dex solution offers the same privacy that separates the platform from its competitors. It also gives its users an excellent source to use for buying and selling cryptocurrencies while remaining anonymous.
With BarterDex, users not only have access to atomic swaps. The exchange provides liquidity, decentralized ordering, and lightweight swaps as well. Additionally, users will experience much lower fees when using the Komodo decentralized exchange.
These three features are the primary services offered by Komodo. The platform sets itself apart by providing a built-in exchange, along with the HyperDex GUI built on the BarterDex engine. Komodo sits head and shoulders above its competitors with these development-based solutions. Few others – if any – in the blockchain and cryptocurrency space can match what Komodo has to offer.
Additionally, Komodo also gives its users its own consensus algorithm. Instead of relying on Bitcoin or Zcash to do the work, Komodo provides its own alternative. This consensus mechanism is referred to by Komodo as delayed Proof-of-Work or dPOW.
Understanding Delayed Proof of Work
Everyone wants fast and secure transactions on their blockchain. Komodo’s answer to this is its delayed Proof-of-Work (dPOW) mechanism. This mechanism uses the security features inherent to Proof-of-Work technology, but with a twist provided by Komodo.
Bitcoin’s Proof-of-Work, along with all the consensus algorithms that followed, all specifically address flaws in the security from prior encryption protocols. This included a behavior which included regularly duplicating information. Komodo takes this to the next step.
Komodo addresses and changes the “longest chain rule” which occurs in Proof-of-Work. This happens when a conflict arises within the blockchain miners. Most networks resolve this problem by giving the block to the chain which currently runs the longest.
While the longest chain rule is effective and has its place in blockchain mining, it does have its drawbacks. For example, if a 51% attack were to occur by manipulating the blockchain and thus earning control, the value of the blockchain can be destroyed based on the longest chain rule.
Additionally, Proof-of-Work blockchains tend to run on the expensive side in regards to maintenance. The costs to mine Ethereum and Bitcoin are astronomical. This gives way to the ASIC equipment used for mining which benefits more from blockchain than it does from those who work on them.
One of the core problems with Proof-of-Work is the problem of quickly processing each chain. This causes an issue with overall growth and scalability. Cryptocurrencies which use PoW are quickly discovering that it is challenging to expand rapidly when using this type of methodology. Komodo attempts to address these issues with its delayed Proof-of-Work mechanism.
PoW vs. dPoW
Komodo maintains the security aspects of PoW but completely gets rid of the longest chain rule. Alternatively, Komodo creates backup copies of each transaction on the blockchain, then records them and stores them in a space separate from the current chain. This means the operating blockchain isn’t impacted and continues to optimally and effectively run for its users.
This does not mean, however, that Komodo completely does away with the security that the PoW algorithm provides. Komodo wants to ensure that its users are secure, so it goes to great lengths to provide safety and anonymity through its dPoW design.
To gain control of Komodo’s blockchain, a hacker would have to get control of both the larger consensus from the affected chain, as well as gain access to the backup data from the same chain and the Komodo main chain. This makes it much less likely that Komodo’s blockchain experiences a successful attack.
The immutability of the blockchain helps to make sure that it’s more difficult for someone to hack the network. Komodo’s dPoW and backup make it even more difficult, even if actions against the blockchain are done collectively. The dPoW provides a secure, blockchain for Komodo users while also ensuring faster transactions.
Even though Komodo is a fork of Zcash, it still makes use of their Zero Knowledge Proof technology. Through this technology, each transaction on the Komodo blockchain is entirely anonymous. Given the situation and the requirements for each transfer, transactions can be as transparent as needed.
Privacy is an essential part of cryptocurrency. With Komodo, users can hide the sender, receiver, and amount of each transaction. However, miners still have the ability to validate every transaction without running into double-spending. Additionally, transactions can remain candid, which would show the same information as if the transaction went through Bitcoin’s network.
Anonymity helps users to protect and secure their privacy. It also provides a more important financial function, preserving fungibility. This basic requirement for any currency means that it has the inherent ability to be exchanged for other goods and assets.
Since Komodo has its hands in so many different areas of the blockchain, it’s difficult to determine who should be considered a competition. However, the platform does have competitors from specific areas.
For example, there is significant growth in the decentralized exchanges arena. Komodo’s BarterDex exchange has direct competition from platforms such as Waves, EtherDelta, and BitShares. There are additional smaller exchanges as well that are starting to earn market share in this area.
From a privacy coin perspective, KMD is a competitor against the likes of larger cryptocurrencies like Monero and Dash. Of course, the coin from which it forked, Zcash, is also a competitor.
In the ICO filed, Komodo must deal with competition from Ethereum, Stellar, and other more established blockchains. They’ll also encounter competing networks like Waves and NEO as they all grapple for market share. Komodo does have the advantage in that it is the first decentralized ICO. However, more than likely that won’t last long.
Should You Invest in Komodo?
- Komodo offers stability when it comes to cryptocurrencies. Even though it doesn’t have the same appeal that Bitcoin provides, it does have a large number of users willing to mine and support it.
- Through the Komodo platform, users can work with their currencies on both mobile devices and desktop computers or laptops.
- With its delayed Proof-of-Work protocol which improves upon the Zcash code, Komodo is nearly invulnerable to even the most persistent hacker attacks.
- Even though other cryptocurrencies distance themselves from the ideals of decentralization, Komodo remains true to the principles associated with digital currencies. Changes within the Komodo platform can only occur when the entire community is on board.
- Since Komodo is a reasonably new cryptocurrency project, transactions on the platform complete in a short amount of time.
- Komodo has plenty of potential. The coin is young and has a bright future ahead of it. As long as the team makes the right choices in development, there’s no reason Komodo can’t reach great heights.
- It can be a challenge to get Komodo coin with fiat currency. Users have to go through an exchange like Coinbase to convert their fiat currency to Bitcoin or Ethereum, then find an exchange that supports KMD. It would be nice if there were a more manageable process in place.
- There are several projects in competition with the various aspects of the Komodo platform. Many of Komodo’s competitors are well-known in the cryptocurrency market and will make it a challenge for the coin to gain market share.
- The marketing for Komodo isn’t as strong as it is with other cryptocurrencies. Komodo could gain more traction and adoption in the market if it did a better job of marketing itself and the features it offers.
Komodo is an ambitious and extensive project which wants to solve many issues that plague the cryptocurrency industry. Primarily, the project wants to focus on centralization issues inherent to many digital currencies and blockchains today. Not only is Komodo its own coin and blockchain, but it also provides users with a decentralized ICO option, a place to exchange cryptocurrencies, and atomic swap capabilities.
Those using the Komodo platform will receive a unique delayed Proof-of-Work algorithm which promises to provide anonymity, privacy, and security. This applies to all blockchains based on the Komodo network.
It will be interesting to see if Komodo can handle its workload. The team has bitten off a big piece and taking care of business will be a challenge. However, the Komodo development team consistently delivers on-time in a world where missing deadlines by months is the norm. Komodo’s staff has shown the ability to quickly pivot based on what the community wants or needs.
This project is definitely worth keeping an eye on for the near term. If the team continues to provide on-time deliveries for the platform, it could create a long-lasting impact in the cryptocurrency market. It might be too early to tell yet, but it’s certainly worth watching.
Interested in learning more about Komodo? Why not jump into the official KMD whitepaper?