Updated: Dec 20, 2019
Komodo is an open source-based relatively young cryptocurrency platform that enables anonymous, transparent, fungible and private transactions. It has already made its way to the top 50 global cryptocurrencies. The cryptocurrency is traded under the symbol KMD and there is a total supply of 200 million KMD. Komodo is the result of a fork from the ZCash blockchain. However, it continues to retain the use of Zk-Snark technology.
This guide will talk about the reason Komodo is designed for, the creators behind it, the way it works, and various uses and applications.
What Is Komodo Designed For?
The Komodo platform was designed as an end-to-end blockchain solution, where users could launch their independent blockchain or have an initial coin offering (ICO). However, the Komodo ecosystem has bloomed far beyond the rudimentary basics. It employs a cryptocurrency anonymizer and includes a decentralized exchange, which improves the privacy of all user transactions.
Who Is the Team Behind Komodo?
The Komodo Platform is an integral part of the notable SuperNET umbrella, which was founded by a developer operating under the pseudonym JL777. SuperNET is a decentralized community of development teams focused on building cryptocurrencies. As with several other privacy-focused projects, the majority of Komodo team members have chosen to remain anonymous.
The 30+ team is led by JL777 who has also worked on the NXT project and is highly praised in the crypto space and blockchain community for notable development skills.
How Does Komodo Work?
Komodo employs a Delayed Proof-of-Work technology, which helps in offering Bitcoin-level security to its users and secures all transactions. The technology also allows users to elect backups of owned records, to insert them into the mainchain.
Komodo Platform is best described as an ecosystem, rather than an individual platform or coin. Initially, there were four separate whitepapers for the project, which have now been combined into one mega-whitepaper.
The five major parts of the Komodo ecosystem are:
BarterDEX – This is a decentralized exchange, which instead of using proxy tokens (commonly used in most decentralized exchanges), makes use of atomic swaps. To prevent low liquidity, the BarterDEX has Liquidity Provider nodes (LP nodes) to stabilize the market price.
Jumblr – This is a decentralized and open-source cryptocurrency anonymizer, which gives users the option to enhance their privacy. The Jumblr is connected to BarterDEX and has a 0.3% fee (payable in KMD tokens).
Delayed Proof-of-Work (dPoW) – This consensus algorithm is used to maintain the Komodo network. It is built on top of an initial or an original consensus algorithm, which can be Proof-of-Work, Proof-of-Stake, or any other algorithm available.
Decentralized Fiat Currencies (DFCs) – DFCs were a major part of the initial Komodo whitepapers. These are cryptocurrencies that are linked to local, fiat currencies. The current system employs price points of KMD-BTC, BTC-USD, and BTC-CNY to identify the conversion rate of currencies to KMD.
Decentralized Initial Coin Offerings (dICOs) – This is an expanded service of the initial platform, where anyone can launch their blockchain and crowdfund a new ICO with just two commands.
What are Current and Future Applications of Komodo?
KMD is the native money of the Komodo ecosystem, which is secured by Bitcoin itself. It can be used towards easy mobile payments and base trading pairs for Atomic Swaps. It can be purchased from various exchanges, like Bitcoin, Ethereum, and Litecoin where it is paired with BTC, ETH, fiat, and other assets.
Komodo has the following notable applications:
ChainZilla – This is Panama’s first country that is focused on the development of blockchain networks and their application. The group is also interested in Fintech consulting and has used Komodo blockchain tech to build Chameleon Pay, which is a hybrid payment processor and wallet.
Chainmakers – This is a blockchain consultancy firm with the business, legal, and technical expertise and knowledge to deliver advanced blockchain solutions. The organization includes advisors from within the Komodo ecosystem and various other corporations.
RedFOX Labs – This is a unique build-out incubator, which helps in enhancing proven business models by customizing, refining, and integrating Komodo’s blockchain technology to launch leading industry-specific companies, in emerging markets.
Komodo already comes with features that other projects would spend years developing. After the implementation of Etomic, the Komodo platform is expected to act as a bridge between Bitcoin and Ethereum.
Komodo can easily gain more investors with its transparency and an open source-based approach. This will help the crypto coin reach new heights. The community is especially expected to grow since multiple projects are in the pipeline.
The fact that it recently got listed in the Top 5 Blockchains of China, and received a rank and rating by the Chinese government ensures that investor trust will continue to build in the coin, and take KMD for a bull run.