Komodo (KMD) | Coin Review |
Komodo is one of those projects, that can’t be summarized in just one sentence. The Komodo platform is many things – a unique blockchain, a coin that pays interest, a decentralized exchange, a means to launch an ICO, and many additional features are being planned for the future. The team is aiming to build an ecosystem that empowers developers and businesses to create limitless, end-to-end blockchain solutions, with a focus on privacy and decentralized trades. The ultimate goal of Komodo is to create an entire ecosystem comprised of diverse partnerships that will send the platform forward into the future. The high number of different features are possible through a highly customizable and modular architecture. Komodo is, to say the least, versatile. According to their whitepaper and website, Komodo consists of five key components:
Komodo core: The native cryptocurrency of the network (KMD)
Assetchains: Tokenization and turnkey blockchain solutions
Jumblr: Coin mixer based on zero-knowledge proofs
BarterDEX: Decentralized exchange that is capable of performing atomic swaps and trading tokenized fiat-currencies
Agama: Multi Wallet
What problem does Komodo solve?
Komodo has its own private blockchain. Komodo provides private transactions to its users and gives its users a little more use as well. They offer a platform where users could build a digital infrastructure of their own and take the use of such private transactions to another level altogether. The platform includes powerful privacy features that allow both the investor to trade goods and services as well as the entrepreneur to release their product and crowdsource funds from audiences that wish to remain private. Taking a closer look at Komodo’s solutions, it becomes clear, that they are not as user-friendly as most of its counterparts services. The lack of an easy to use and overall user experience infrastructure makes it difficult for new users to utilize services such as its BarterDEX, which despite actually providing the functioning method of atomic swaps and is on a high level technologically, falls behind in the race of real-world adoption.
Product and Vision
The Komodo blockchain is a fork of the ZCash blockchain, so it leverages the same privacy features and the trusted setup. ZCash itself was forked from the Bitcoin blockchain, making Komodo a descendent of Bitcoin. 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. To do so, Komodo uses a consensus mechanism called delayed Proof-of-Work (dPoW), which is a hybrid algorithm where a blockchain can utilize the power and security of a second blockchain. This works through the use of “notary nodes” that add date from the first blockchain onto the second. It means that if some attacker wants to change a historical Komodo transaction, he first has to change the Bitcoin blockchain, which we already know, is close to being impossible. Besides its core privacy features, which we previously mentioned, I want to talk about three aspects of the platform, I personally find very interesting:
On the privacy front, Komodo uses its own privacy-based functionality, called Jumblr. The Jumblr technology ensures privacy by starting with non-private funds from a just as non-private address. The funds then go through a series of non-descript and non-traceable zero-knowledge proof, zk-SNARK addresses before having them available for a transaction in a publicly available yet non-traceable address.
Komodo team has developed a decentralized exchange powered by atomic swaps, and that’s why I see them a step ahead than other decentralized exchanges. Other decentralized exchanges use proxy tokens or concept of pegged assets to enable exchange on their platforms, but BarterDex bypasses those workarounds via atomic swaps. We’ve talked about the lack of UX before. A very easy to use exchange with enhanced UI is expected to be released this year. The exchange will feature:
Liquidity Multiplier – Place simultaneous multiple orders for many different coins using the same funds.
Light Weight Swaps – We use Electrum servers so that no blockchain download needed to use our exchange.
Decentralized Ordering – Place orders through a secure & decentralized order matching orderbook.
Atomic Swaps – Atomic Swaps allows you to trade crypto from right within your own private wallet.
Decentralized Initial Coin Offerings (dICOs)
dICO, as it looks from its name itself, is a decentralized version of ICOs or token sale powered by Komodo platform. The idea is to make the ICO process safer, more secure, and free of vulnerabilities that current centralized ICOs have that include whales, hackers and human error that corrupt the ICO process. The dICO model is provided through the BarterDex and atomic swap technologies which achieve complete anonymity and decentralized distribution of coins. Komodo also can be considered as more user-friendly or somewhat developer friendly due to the fact that it is language agnostic. Developers from different linguistic backgrounds can develop applications and not have to worry about learning a new programming language like Ethereum’s Solidity.
The Komodo project is based on anonymity and privacy, so it comes as no surprise that many of the Komodo team members initially chose not to reveal their identity. The founder and lead developer of Komodo goes by the name of JL777, who in 2016 started working on a project called SuperNET, which was one of the very first blockchains in the world at the time. However, Komodo is run by a highly talented team of professionals who believe in providing utmost protection to the privacy of people. For this reason, many people think that this operation is shady, but from all I’ve read about them, this is not at all true. The company welcomes anyone who is willing to participate and wants to get into their work. Anyone can freely join Komodo at any time and become a key contributor to its decentralized platform and bring in new ideas and work on new projects to achieve their goal.
Tokenomics: What is the KMD Token?
Komodo’s cryptocurrency (KMD) is of course first and foremost a privacy coin, but it also has its uses as the main means of transaction on the Komodo platform. Komodo has a total fixed supply of 200 million coins, out of which 100 million were pre-mined and distributed in the ICO. Out of this 100 million, 90 million were allocated to investors, and 10 million were kept aside for future development and marketing of the Komodo platform. The remaining 100 million coins are still being mined via the proof-of-work algorithm.
Growth potential and Roadmap
It seems like Komodo is on the right track as they are progressing and taking actions to create a better platform. They know that they have to cater to tech-savvy but also non-tech-savvy users as well to really make a difference and be useful to a vast majority of people. Simplicity and ease of use have translated into success for many ventures in the crypto space, and Komodo needs to do the same if they want to be successful in the long run.
When it comes to competition, Komodo might be very unique, but because the platform is involved in so many aspects of the blockchain industry, it is facing competition from many different directions. Decentralized exchanges are becoming increasingly popular, and the BarterDEX exchange is in competition with BitShares, EtherDelta, Waves, Binance as well as many other players. As a privacy coin, KMD competes against Dash, Monero, and of course against Zcash that it was forked from. Komodo faces stiff competition from Ethereum as the leader in the ICO field, but also from other established blockchains such as NEO, NXT and Waves. It will be interesting to see if this massive project will be able to become successful without really focusing on a specific niche or functionality.
Komodo is built for those who like to stay underground while still participating in transactions, ICOs, and trading, and it has a solid foundation of tech to appease its demographic. Tackling decentralized exchanges and atomic swaps, multiple options for anonymity and a unique proof of work consensus algorithm that promises enhanced security. All of this isn’t going to be an easy task but if the Komodo team delivers, it could make a significant impact on the cryptocurrency space. Anyway, it is certainly a project worth watching.
KMD scored 56 out of 76 Points in our evaluation program.