Komodo can compete with many of its peers. It does not consider itself merely a rival, but rather a complementary addition to the entire crypto market.
The project’s emphasis is on technology, and Komodo has already implemented several innovations that we will outline in this article. We first introduced Komodo in November 2017; learn more about the Komodo platform on its original coverage.
Decentralized Initial Coin Offerings
Komodo is a decentralized platform that enables blockchain projects to launch their own secure, scalable, and independent blockchains. ICOs are not developed centrally on the Komodo chain itself, but instead run on parallel, independent chains. BlocNATION, Utrum, and Equaliser are examples of decentralized ICOs already launched on Komodo, with additional projects in the pipeline.
New scaling technology delivers record performance
Scalability remains one of the industry’s biggest challenges. Bitcoin currently handles about 7 transactions per second (TPS), Ethereum roughly 30 TPS, and Ripple around 1,500 TPS. Outside the blockchain space, PayPal processes about 200 TPS while Visa reaches up to roughly 24,000 TPS.
Komodo’s most recent scaling test achieved an unprecedented 45,000 transactions per second. Komodo’s scalability technology is theoretically capable of handling up to 1,000,000 TPS.
To validate performance at that scale, the team is negotiating to procure the specialized hardware required for large-scale testing.
Secured by Bitcoin’s hash power
Blockchains built on Komodo, as well as the Komodo chain itself, benefit from protection backed by Bitcoin’s hash power. Komodo’s delayed Proof of Work (dPoW) technology adds value to other blockchains by anchoring their security to Bitcoin without transferring the full cost of Bitcoin-level security to those chains.
Decentralized exchange BarterDEX and atomic swap technology
The original vision of blockchain and cryptocurrency emphasized decentralization. While most exchanges are centralized, Komodo’s BarterDEX and its GUI HyperDEX operate as decentralized, peer-to-peer exchanges.
A key feature of BarterDEX is its implementation of atomic swap technology, enabling direct swaps for about 95% of coins without converting to fiat. Komodo’s founders describe the platform as a global leader in atomic swaps on the official Komodo website.
Many claims in the blockchain industry can sound bold, but Komodo’s technology and results are publicly verifiable.
The KMD cryptocurrency
KMD is the native currency of the Komodo ecosystem. As Komodo develops new technologies, KMD is designed to find additional utility within the platform. Komodo rewards KMD holders through the official Agama wallet with an annual interest rate of 5.1%. Other benefits of KMD include:
- KMD is required to operate the platform’s delayed proof of work security mechanism
- KMD can be used to anonymize payments on the DEX via JUMBLR (a token privacy mixer) and zero-knowledge privacy features
- Fees are returned to a liquidity pool to help increase market depth
- KMD is intended to serve a role similar to GAS in the Ethereum network and will act as fuel for smart contracts over time
Compared with some other blockchains, Komodo has flown under the radar in terms of price action. At the time of writing, the KMD price is approximately €1.19. With a market capitalization of €129 million, Komodo ranks around 62nd among the largest cryptocurrencies by market cap.
This article is a guest contribution by André Setz.