What is the Komodo Platform?
The Komodo Platform is an end-to-end blockchain solution you can use to launch your own independent blockchain or initial coin offering (ICO).
However, the project expands far beyond that. Komodo also includes a decentralized exchange and a cryptocurrency anonymizer to improve the privacy of your transactions.
In this Komodo Platform guide, we’re going to cover:
- How does Komodo work?
- Komodo team & progress
- KMD (Komodo) token trading
- Where to buy KMD
- Where to store KMD
- Additional Komodo resources
How does Komodo work?
The Komodo Platform is more of an ecosystem than it is an individual coin or platform. The project has four separate whitepapers that outline the main parts of the ecosystem:
- Delayed Proof-of-Work (dPoW)
- Decentralized Fiat Currencies (DFCs)
The BarterDEX is an atomic-swap powered decentralized exchange. By using atomic swaps instead of proxy tokens, the primary method of other decentralized exchanges, Komodo lowers the counterparty risk.
Decentralized exchanges also commonly have problems with low liquidity. To prevent this, the BarterDEX produces Liquidity Provider Nodes (LP nodes). The LP nodes help to stabilize the market price by buying and selling assets across the spread in the order books.
The BarterDEX can support the trading of any coin so long as the coin’s developer connects it to the exchange using the correct protocol.
The Jumblr is an open-source and decentralized cryptocurrency anonymizer. You have the option to use it to enhance your privacy when using the Komodo Platform.
The overall process to anonymize your funds is fairly simple. The Jumblr takes the KMD tokens from your non-private address and sends them through a batch of zk-SNARK addresses. These untraceable addresses remove any currency trail from your tokens.
From there, the Jumblr sends your tokens to a new address of your choosing. Your tokens are now completely anonymous. There’s a 0.3% fee (payable in KMD tokens) to use the Jumblr.
The Jumblr is also connected to the BarterDEX, so you can add anonymity to any of the tokens you trade with as well.
Delayed Proof-of-Work (dPoW)
The Komodo Platform uses a dPoW consensus algorithm to maintain the network. Interestingly, the dPoW consensus is built on top of an initial consensus algorithm with no restriction on what that algorithm needs to be. The initial algorithm can be Proof-of-Work, Proof-of-Stake, or any other algorithm available.
The Komodo team chose to attach their dPoW system to the Bitcoin PoW algorithm because it currently has the highest hashrate. The higher the hashrate, the more security a network usually has.
The dPoW method uses two types of nodes:
- Notary nodes
- Normal nodes
Similar to a delegated Proof-of-Stake system, stakeholders elect notary nodes. There are 64 notary spots up for grabs. The job of these nodes is to notarize the blocks from the dPoW chain onto the Bitcoin blockchain.
Although the notary nodes provide an extra layer of security, a dPoW blockchain can operate without them. Without the notaries, transactions can’t be published on the initial consensus chain, but normal nodes can still read and validate them on the dPoW chain.
A dPoW network attached to Bitcoin is advantageous because it gives any chain using it (no matter how weak) the security of the robust Bitcoin network. Even better, these third-party chains don’t have to pay the Bitcoin transaction fees associated with the notarization. They only need to pay fees to the initial dPoW blockchain.
Decentralized Fiat Currencies (DFCs)
DFCs are cryptocurrencies that are tied to local, fiat currency. The DFC technology utilizes atomic cross-chain swaps from the BarterDEX and the dPoW consensus algorithm outlined earlier.
The DFCs primarily use the European Central Bank to reach consensus on the price of the different currencies. The system uses the price points of BTC-USD, KMD-BTC, and BTC-CNY to determine the conversion rate of any currency to KMD.
The notary nodes record the DFC prices on the Komodo blockchain and the dPoW algorithm adds security to the network.
Using this method, the platform only needs to have a liquid BTC-KMD market to perform the exchanges. This means that your conversions are automatic and, for the most part, guaranteed.
You can convert 32 fiat currencies to KMD tokens and vice versa.
Decentralized Initial Coin Offerings (ICOs)
The Komodo team has also begun offering decentralized ICO services. You can use the Komodo Platform to launch your own blockchain and crowdfund your ICO.
You also get access to Komodo’s marketing channels, underlying technology, and consultants.
They only host one decentralized ICO at a time, though, so the partnerships are highly selective. The first ICO is with Monaize, an e-banking platform.
Komodo team & progress
As is the trend with several privacy-focused projects, the majority of team members has chosen to remain anonymous. The 30+ person team is lead by a developer operating under the pseudonym JL777. JL777 previously worked on the NXT project and is highly praised in the blockchain community for his development skills.
In 2014, JL777 founded SuperNET, a decentralized community of cryptocurrency development teams. The goal of the community is to “create a united platform of technologies focusing on the establishment of decentralised delivery of previously centralised online services.”
The Komodo Platform is part of the SuperNET umbrella.
The project is a fork of Zcash (a previous fork of Bitcoin), but as described above, has expanded far beyond that. The main feature that Komodo takes from Zcash is the zk-SNARK privacy technology used in the Jumblr.
Regarding ICOs, Ethereum is the biggest competitor. Other coins such as Waves and NEO are also in this crowded space. JL777’s previous project, NXT, also specializes in ICO launches. Komodo is unique in that it’s the first to offer decentralized ICOs.
Lastly, decentralized exchanges (DEX) are increasingly becoming more competitive as well. EtherDelta and BitShares are two big players in this sector while Waves has a DEX as well.
KMD (Komodo) token trading
As a KMD token holder, you receive up to 5% interest on the tokens that you hold each year. Unlike a normal Proof-of-Stake system, there’s no need to keep your wallet online to get your interest. To claim your interest and reset the yearly maximum, all you need to do is transfer your tokens to another wallet address.
The interest rewards will disappear once the entire supply of 200 million KMD are mined. The team projects that this will occur sometime in 2031.
The Komodo Platform ICO occurred at the end of 2016, and the team raised just under $2 million. Through the ICO, 90 million KMD tokens were distributed to investors, and an additional 10 million were kept by the team for future development and marketing.
The remaining 100 million tokens are used to reward miners in the dPoW system.
The KMD price has jumped significantly three times in the coin’s history. The first increase happened in June 2017 and coincided with the first-ever Komodo presentation. This presentation was part of a SuperNET meet-up in Amsterdam where the team covered the overall vision of the platform.
The next price increase was at the beginning of September 2017. The marketing hype around a future announcement seemed to be what fueled this rise. After the announcement that Komodo would partner with Monaize for the first decentralized ICO (dICO), the price dropped and stabilized around $2.00 (~0.0005 BTC).
This month, KMD has experienced the price jump seen by most other alternative coins and has risen to an all-time high of $12.89.
Future dICO partnership announcements and development roadmap achievements could further improve the price.
Where to buy KMD
You can trade Bitcoin for KMD on either Bittrex or Binance. To trade on these platforms, you first need to have Bitcoin to trade. You can purchase Bitcoin on Gemini and then transfer your funds to get KMD.
Where to store KMD
You have numerous options for storing your KMD:
- Command Line Interface (CLI) wallet
- Agama wallet
- Komodo paper wallet
- Ledger Nano S
Out of the wallets that the Komodo team offers, the CLI wallet is the most stable. However, the stability comes at a price as it’s the most difficult to use from a technical perspective. The wallet is operated from the command line, so if you aren’t comfortable using this tool, you should choose a different option.
Komodo also offers the Agama wallet. Some users have previously reported issues with this wallet, but they seem to have been fixed in the most recent version. The Agama wallet is available on Windows, Mac, and Linux operating systems.
For additional security, you can store your KMD using a paper wallet. A paper wallet keeps your funds offline and out of reach of malicious hackers.
Another great wallet option is the Ledger Nano S. This is a hardware wallet that can store multiple different coins. Although more costly than other wallets, the Ledger is one of the most secure means of storage available.
The Komodo Platform is a large-scale project that includes decentralized ICOs, a unique consensus algorithm, and even a decentralized exchange. With such a large scope, it’s tough to predict how successful the project will be down the road.
The team is as solid as they come, though, and have consistently improved the Komodo ecosystem and hit impressive milestones.
If they can accomplish everything that they’ve set out to, it’s easy to see Komodo becoming a big name, all-in-one blockchain solution that people across industries will find valuable.
Additional Komodo resources
CoinCentral's owners, writers, and/or guest post authors may or may not have a vested interest in any of the above projects and businesses. None of the content on CoinCentral is investment advice nor is it a replacement for advice from a certified financial planner.