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Komodo (KMD)

Algorithm:  Equihash

Market Cap:  $109,703,741

ATH:  $12.89

Current Price:  $1.00

Hashrate:  10.99 MSol/s

Difficulty:  38243719.34

What is Komodo?

The Komodo Blockchain is a fork of the ZCASH blockchain.  It includes the zk-snark technology that Zcash was built upon, and adds a delayed proof of work consensus algorithm to make Komodo more robust and secure.  The ultimate goal of Komodo is to create an ecosystem comprised of diverse partnerships that will send the platform forward into the future. Because it was designed to be used by developers of any level.

The Team

Go figure that a coin based on anonymity that the top 2 guys would be anonymous .  The Lead Developer and Founder goes by JL777 and the CTO goes by ca333.  You can see the entire team here.

How does it work?

Develpoers working on the Komodo platform are not building onto the blockchain, but are instead building their own standalone blockchains. It’s not a fork or sidechain, and the Komodo platform doesn’t act as a parent to the new blockchain. Each project is independent and connects to the Komodo ecosystem. This is crucial because the fact that each blockchain is independent means that future development won’t be limited by Komodo itself.  Komodo was designed  as a modular ecosystem. This allows developers to choose which technologies they wish to use in their own projects and not the entirety of the Komodo ecosystem.  Komodo was developed with security as top priority. In addition to using the Zcash zk-snark protocols for anonymity and privacy, Komodo uses a delayed proof of work (dPoW) protocol to provide Bitcoin level security to even the smallest blockchains and projects.

Delayed Proof of Work

This is a very in depth topic.  I will try to summarize it but will also link the white paper at the end.  These are quoted from the whitepaper.  At its core the dPoW blockchain could be either a Proof of Stake (PoS) or Proof of Work (PoW). Furthermore, the dPoW consensus method can attach itself to any PoW blockchain, but because Bitcoin has the highest hashrate it is an obvious choice.  No matter what the initial consensus method is, other cryptocurrencies can use the dPoW blockchain to secure their network. Because the dPoW blockchain is secured by the Bitcoin hashrate, the other cryptocurrencies attached to dPoW blockchain are secured by Bitcoin’s hashrate. In other words, coin X will send dPoW transactions to dPoW blockchain and the dPoW blockchain will send transactions to the Bitcoin blockchain.

Notary nodes are needed to record data to the Bitcoin blockchain. Thus the dPoW consensus method will end up with two different nodes: notary nodes and the other ‘normal nodes’. Notary nodes have to be elected where as normal nodes can be run by anyone.  Notary nodes are elected by stakeholders and since those notary nodes will earn block rewards, it is expected that the financial interests of the stakeholders is to be voting for notary nodes that they are in control of, or at least comfortable with. This system isn’t fully decentralized from a purists standpoint, but with 64 notary nodes up for election by stake combined with the large scale distribution it is expected to have a very good representation that will make any type of 51% attack highly improbable.

Since dPoW utilizes notary nodes for its security, there is little reason to require all the end user nodes to do any PoS staking. By using a ledger snapshot that is taken every 1000 blocks, the balance of all addresses can be known. By sorting this ledger based on the pubkey, each address will obtain the same index on all nodes. For each block, each notary calculates the best PoS hit value for 1/N’th of the addresses and this is shared with all the other notary nodes, which allows an efficient search of the winning address. The notary responsible for that address creates the block and signs it, awarding the 5% APR staking reward to the winning address and a block reward to itself. This process encourages consolidation of accounts to maximize the staking rewards and this in turn is expected to prevent a massive increase in addresses so that the computation required per block stays manageable.

You can read the whitepaper in it’s entirety here.

Platform Projects

BarterDex

BarterDex is a decentralized exchange utilizing atomic swaps, and more recently etomic swaps, which bridge the gap between Bitcoin and Ethereum based blockchains.  The use of atomic swaps and etomic swaps lowers risk, transaction fees and speeds the transfer of assets. BarterDEX can support trading of any cryptocurrency, and will also support fiat in the future. The DEX is online but it is in it’s very early stages.

Jumblr

Jumblr is a cryptocurrency anonymizer developed by Komodo which is decentralized and open-source and is used to increase privacy when using the Komodo platform.  The Jumblr will take KMD tokens from a non-private address and send them through a number of zk-snark addresses.  Once these untraceable addresses have processed the coin,s they are sent to a new address where they are completely anonymous. The fee for using the Jumblr service is 0.3%, which is payable in KMD tokens.  The Jumblr service is even connected to BarterDEX, allowing you to create anonymity for any tokens traded on that exchange.

Conclusion

The Komodo project is a very ambitious project.  Tackling decentralized exchanges and atomic swaps, multiple options for anonymity and a unique proof of work consensus algorithm that promises enhanced security.  If the Komodo team delivers, it could make a a huge impact on the cryptocurrency space. In any event it is certainly a project I am now watching.

More information about Komodo can be found here

If you would like to mine Komodo here is a great how to

I hope you enjoyed this review if you would like to see more of these please contact me on

Twitter @Cryptochrisw
Also check out my Mining and Altcoin channel:  Walken on the Moon  There is a link inside to my group chat.


Also published on Medium.