Komodo cryptocurrency (KMD) - what it is and why is it needed in simple words

The cryptoindustry is developing at a tremendous speed, in particular, due to the widespread use of altcoins in various spheres of the economy and public life. Since the value of Bitcoin is showing constant growth, other cryptocurrencies are also riveting the attention of investors .

There are many altcoins today that have become firmly established in the overall cryptocurrency ecosystem. Almost every day, the cryptocurrency market is replenished with a new type of virtual money. Many of them have unique properties and functions that distinguish them favorably from bitcoin. It is sometimes quite difficult to say exactly which of the currencies will take the leading positions in the future and bring their owners the desired profit. One such cryptocurrency with a rather promising roadmap is the Komodo Token (KMD). 

Komodo is a decentralized blockchain platform similar to Zcash and Bitcoin , but with some additional features. This virtual currency provides outstanding profits to depositors, and many analysts predict its value will rise in the near future. The Komodo Project is an open source crypto platform that allows for private, fungible, confidential and transparent transactions.

Through the decentralized ICO platform (DICO), project creators can issue tokens completely transparently, while guaranteeing complete confidentiality of depositors through the integrated Komodo security system.

For the first time in the history of the cryptoindustry, cryptocurrencies can be issued and distributed without the assistance of intermediaries. The difference between DICO and other ICOs lies not only in decentralization, but also in the fact that DICO uses the Jumblr technology of the Komodo system, which ensures complete confidentiality for all project investors.

The Komodo project was founded and is managed by a team of competent specialists, whose main idea was the complete inviolability and protection of the privacy of users. For this reason, the project uses aliases instead of the real names of the participants. Because of this, some people have formed a judgment about the company as a kind of shadow project, but this is not true. Anyone can join the platform and become one of the investors. The company is open to new participants, business proposals and ideas for improving the project.

The Komodo blockchain project is a cryptocurrency platform, the main priority of which is to maintain complete confidentiality through the implementation of Zero Knowledge Proofs, an innovative interactive protocol that allows one of the parties to obtain certification of any action or approval without additional information from the other participant.

The Komodo project is guided by the goal of providing systemic end-to-end solutions for developers in all areas and areas of activity. The Komodo blockchain is easy to use and can be customized to meet the specific needs of any user. The creators of the platform were able to create a reliable environment in which the developers and partners of the company can interact in a single field, contributing to the early promotion and widespread adoption of blockchain technology.

Komodo History (KMD)

The Komodo project was developed by the team behind another platform called Bitcoin Dark. Since the beginning of 2018, support for Bitcoin Dark has been discontinued. Holders of BTCD tokens can exchange them for KMD at the rate of 1 BTCD = 50 KMD. Basically, we can say that Komodo is a rebranding of Bitcoin Dark.

The head of the Komodo project is a user under the pseudonym jl777. He recently changed his nickname to James JL777 Lee.

The token appeared in October 2016. Like most blockchain projects, Komodo kicked off with an initial token offering (ICO) that lasted from October 15 to November 16, 2016. The project received enough investment, especially given the fact that until 2017, investments in projects of this kind in the amount of several million were a novelty. Komodo raised nearly US $ 2 million.

It should be said that Komodo is one of the constituent parts of a worldwide ecosystem called SuperNET, created by the same developers and launched in 2014. It will be discussed below. The global SuperNET ecosystem includes the following elements:

1. Komodo platform and KMD virtual currency.
2. Agama multicurrency wallet.
3. Decentralized cryptocurrency exchange BarterDEX, integrated with Agama;
4. The Iguana codebase, which is part of the Komodo project.

Distinctive features of Komodo

The priority of the Komodo project is to create and offer blockchain system solutions for developers in many areas. The Komodo network itself has a very simple structure. At the same time, it is a powerful blockchain tool that can be used to meet various user needs. Komodo developers strive to create a reliable platform for their own community, an overall structure that contributes to the acceleration and improvement of integration processes in the world of blockchain technologies.

A more detailed study of the Komodo project allows us to note several distinctive characteristics that distinguish it favorably from competitors:

1. Flexibility. The creators of the Komodo project provide the opportunity to use their development, without limiting or imposing any obligations on users. Project partners receive complete independence from the main network and can, at will, apply the proposals and solutions that the platform provides.
2. Safety. The platform was created based on the ideas of security and complete privacy of users. The innovative dPoW protocol from Komodo developers allows you to achieve the desired level of security. The protocol forms backup copies of information and notarizes them. In addition, the project has an additional security system that works through integration with Zero-Knowledge Proofs.
3. Simplicity. The main aspiration of developers is to encourage the implementation of blockchain technologies in partner projects. The Komodo platform provides technology, services and support to quickly and easily start and grow partnerships.

How Komodo works

The concept of the platforms functioning includes three key aspects that are the basis for the Komodo blockchain:

1. Zcash source code with enhanced properties. The Komodo platform is a fork of Zcash. Consequently, the level of privacy provided by both platforms is roughly similar. All calculations are divided into completely transparent and confidential, which are protected by Zero-Knowledge Proofs.

In addition, the project has a Trusted Setup system. In the past, the ZEC platform has often been attacked due to the lack of an option to remove private keys. The Komodo platform also has this problem, as it uses the same code. Currently, the remote private key does not appear in clear text.

1. Delayed Proof of Work (dPOW). The innovative protocol was created by the development team. Thanks to it, the platform has a high level of security. The Delayed Proof-of-Work protocol is a hybrid consensus-building algorithm by which one blockchain can take advantage of the security benefits provided by the hashing power of another blockchain. This opportunity appears through a group of notary nodes that add information from the first chain of blocks to the second. Therefore, in order to crack the first chain, it is necessary to crack the second. The Komodo Bitcoin compatible project was the first blockchain to use this algorithm. 

The dPoW secured platform can apply PoW and PoS consensus algorithms. It can join any network that uses PoW protocol . However, the highest level of protection for projects using dPoW is currently provided by the Bitcoin hash .

There are two types of nodes in the dPoW system - normal and notary. DPoW platform investors select 64 notary nodes. These nodes notarize the verified blocks in the dPoW chain and add them to the connected PoW chain. After the block is formed, its hash is attached to the Bitcoin transaction , which was signed by 33 notary nodes. A record of hashes of the dPoW block is formed in the Bitcoin chain , which have been notarized by most of the notary nodes of the blockchain.

In order to prevent a confrontation between the nodes, reducing the productivity of the network, the Komodo development team created a cyclical method of mining , operating in two modes. In the "No Notaries" mode, all nodes of the blockchain can perform mining by analogy with the classic PoW consensus algorithm. In the "Notaries are active" mode, the level of mining difficulty for notary nodes is lower. Within this algorithm, each notary mines one block with its actual difficulty level. At the same time, other notary nodes mine at a difficulty level 10 times higher than the specified one. Normal nodes are constantly mining at a difficulty level that exceeds the level of notary nodes a hundred times.

This state of affairs can cause a number of problems. In particular, because of this, the difference in hash rates between normal and notary nodes can grow dramatically.

The dPoW protocol is designed to enable the network to work without notary miners. In this case, the dPoW blockchain can operate on the basis of the original consensus algorithm. However, it will not have the increased level of security provided by the connected network.

In addition, dPoW makes it possible to increase the level of protection and reduce the energy consumption of the network using this consensus algorithm. For example, since Komodo uses the Equihash hashing mechanism to protect against mining with Asic devices, and also uses a cyclical mining method for notary miners, the incentive system works in such a way as to reduce the possibility of a situation in which competition between miners will provoke maximum consumption energy or processing power of the network.

In addition, the Komodo blockchain, through the use of dPoW, can add value to other platforms. Komodo can indirectly protect Bitcoin without paying for Bitcoin transactions. At the same time, the third network using the dPoW protocol can connect to Komodo, which will then join Bitcoin . In this way, platforms using the dPoW protocol can benefit from the high hashrate of Bitcoin without directly joining the Bitcoin network.

In addition to all that has been said, since the functions are distributed between normal and notary nodes, in the event that the notary nodes fail, the original consensus algorithm can continue to work in the system.

1. SuperNET is a project that develops applications based on the Nextcoin (NXT) platform. Its goal is not to develop another cryptocurrency that will compete with the tokens operating in the market. SuperNET strives to simplify and streamline virtual venue tools and applications.

The SuperNET team of creators focuses on the fragmentation of the cryptocurrency sphere and the complexity of interaction and unification of various blockchain projects. SuperNET aims to evolve into a platform that will provide customers with the ability to use any existing tools and tools. According to a number of experts, this concept is similar to the work of the Internet, only for blockchain platforms.

The project combines a number of technologies directly related to the development of the Komodo platform. Users can use the following tools:

• Iguana multicurrency wallet.
• The system of notary nodes described above, increasing the degree of protection of any blockchain to the level
• PAX exchanger , with which users can work with real assets through virtual currency.
• Decentralized crypto-exchange EasyDEX, on which a single-tier trading platform operates for trading cryptocurrencies with high liquidity and exchange rate.

One of the hallmarks of SuperNET is its strong focus on the privacy of blockchain work. Mixing technology is widely used, preventing the determination of the relationship between sender and receiver. The highest confidentiality is ensured by the SuperNET project and when working on the EasyDEX exchange. The technologies used make it possible to carry out transactions without being tied to an IP address or other identifying data, which ensures the confidentiality of all transactions and contributes to the financial independence of users.

The creators of SuperNET note the high urgency of improving their project, given that more and more people are showing interest in the crypto industry and digital technologies. With the increase in activity and the number of users, the need for the tools that SuperNET offers will also increase, which will positively affect its future.

According to experts, the SuperNET project has great prospects. Particularly attention is drawn to its comprehensive improvement, the purpose of which is to improve the quality of interaction between users and optimize the use of virtual technologies.

In addition, a positive factor in the development of the project is its systematic enlargement and expansion, integration with other new projects and crypto networks, such as Komodo and Syscoin. Great attention is paid by the SuperNET team to cooperation with partners, joint projects and general development of new technologies.

Komodo advantages and disadvantages

Among the key advantages of the Komodo platform, it is necessary to highlight the following characteristics:

1. High level of security. The improved Zcash source code and the use of the innovative dPoW algorithm are able to withstand the most powerful hacker attacks and attempts to break.
2. High stability of functioning. Although cryptocurrency is relatively new to the market, it already has a large community.
3. Great power. All transactions on the platform are processed as soon as possible. The reason is the high network bandwidth.
4. Support for various devices and operating systems. You can work with cryptocurrency both from a personal computer and from mobile devices.
5. Decentralization and independence. Unlike the well-known Bitcoin, which gradually ceases to comply with its own concept of decentralization and independence, the Komodo platform continues to follow the principles of cryptocurrency that distinguish it from fiat assets. Any changes in the functioning of the platform can only occur with the consent of all network users.
6. Great development prospects. Many analysts agree that the project has a great future (we wrote about the future of cryptocurrencies here ). If the developers continue to take reasonable steps in the development of the platform, the cryptocurrency can take high positions in the ratings of the players in the crypto industry.

Despite the impressive list of advantages, cryptocurrency has some disadvantages:

1. Komodo lacks any collateral. Tokens are not backed by anything other than the attention of contributors and potential users. As a result, the value of a coin is very volatile and unpredictable. However, this fact is the weak side of almost all electronic currencies.
2. Hacking risk. Although Komodos security system is very strong, no defense can give a complete guarantee against hacker attacks.
3. Expensive equipment for mining. The level of complexity of the blockchain is constantly growing. In parallel with this, the requirements for computing equipment are increasing. Farms on personal computers equipped with several graphic processors are currently losing their relevance and very often cannot even cover the expended resources.

Mining Komodo (KMD)

Until 2018, it was quite profitable to mine Komodo cryptocurrency on a regular personal computer, provided that it had sufficient power. Starting in 2018, solo mining began to lose relevance due to mining with ASIC devices for the Equihash algorithm used by the Komodo platform.

Currently, mining coins require a very high hashrate. The most effective solution for individuals was joining mining pools in order to mine cryptocurrency jointly. This option does not give the full reward for discovering the block, since it will have to be shared with other participants. However, unlike solo mining, this method provides a certain profit.

Pools for mining any cryptocurrency have similar features. Komodo is no different from other tokens in this sense. A short list of the key parameters that must be considered when choosing a pool for mining coins should be given:

1. Commissions. The volume of commission for mining cryptocurrency can range from 0 to 2 percent. Naturally, the lower cost of the commission brings the miner more income, all other things being equal.
2. Server location. You should choose a pool that has servers in the region where the miner is located. The closer the server is, the higher the hash rate and the greater the profit.
3. Reliability. Before choosing a specific pool, you should make sure of its positive reputation. If a pool has been operating successfully for several years, it is usually reliable.
4. Payment scheme. They are different. Some are oriented towards luck, others are based on an even distribution of the reward. This choice depends only on the wishes of the miner himself.
5. Pool uptime. The most preferred schedule is around the clock, since mining is carried out only when the pool servers are running.
6. Minimum payout. Typically, the minimum payout is small enough for everyone to receive it every day. Nevertheless, you should clarify what the limit is set in the selected pool, otherwise you may find yourself in a situation where you have to wait a month for payments.
7. Hashrate. Of course, everyone wants to mine with the highest hash rate, as this allows more blocks to be discovered. However, it should be borne in mind that when a miner chooses a pool with a hash rate in excess of 25% of the total capacity, it helps to centralize the network. Therefore, in the interests of decentralization, it is better to choose a pool with an average hash rate.

There are not very many mining pools for Komodo, but their number still provides a choice. Below are five cryptocurrency mining pools that are currently popular.

Mining pool Komodo. This pool is the oldest and one of the largest pools for KMD mining. Its hashing power is constantly maintained at over 40%. In other words, for those who are concerned about the decentralization and security of the Komodo network, this pool is not suitable.

The commission in this pool is 1 percent. The minimum withdrawal amount is half the KMD token. This pool is used by miners from all over the world, and it does not require registration.

Suprnova.cc . This pool is known to everyone who has been mining for a certain time. This option is considered one of the best for mining dozens of tokens. This solution has a significant advantage - a single login that can be used in all pools. Accordingly, the user does not need to invent and remember a lot of logins and other data for different tokens. The pool commission is one percent, the minimum payout is a tenth of KMD. The hash power is around 15-20 percent, which makes Suprnova.cc a good choice.

Luckpool.org. Canadian pool. Due to the geographical location of the servers, it is more applicable for use in North America. Has some differences from most pools. The commission on it is half a percent. In addition, the miner who actually discovers the block receives an additional payout of 0.24 KMD here. In total, this amounts to 2.76 KMD plus the transaction reward - the pool fee for all participants. In addition, this pool has a Pay Per Loyal Time (PPLTS) payment system. The minimum payout is equal to one tenth of the KMD. Luckpool is a private pool. Registration is not required, as well as the provision of any data about yourself. All you need is a Komodo address. The hash power is only 10 percent.

Coinblockers. This pool has been operating for several years, but it is one of the smallest mining pools for Komodo. The hashing power here is about a percent. The commission is also equal to one percent, and the minimum payments are one hundredth of KMD. The pool is completely confidential, does not require any registration, therefore it best complies with the privacy principles maintained by Komodo itself.

Zpool Zpool.ca. This pool is very large; more than a hundred different cryptocurrencies are mined on it. Although it is possible to receive payments in KMD, and the minimum payment amount is 0.05 KMD, it may take some time to receive funds. This is because the pool makes payments after the Komodo block is found. Currently, you can receive payment in bitcoins by mining Komodo. It should be noted that with Zpool, the miner chooses the algorithm. In the case of Komodo, the Equihash algorithm. The pool determines which token is more profitable to mine in this algorithm. In other words, you wont be able to constantly mine Komodo. It also means that the hash power in a given pool can change unpredictably.

How to buy or sell Komodo (KMD)?

Those wishing to purchase Komodo are currently forced to initially buy BTC or another cryptocurrency, and only after that buy Komodo for it. The developers promise to solve this problem soon and provide the opportunity for network users to buy tokens for real currency. You can buy Komodo on cryptocurrency exchanges such as Binance, HitBTC, Bittrex.

The Komodo course represents one of the main advantages of the platform, since the value of the coin has never been critically reduced since its inception. Despite the presence of both an increase and a decrease in value in the chart, the general upward trend has accompanied the cryptocurrency from the very beginning.

Komodos value has increased by approximately 2,200% since the project was launched. A figure of this order speaks volumes and indicates the success of the project.

At the time of this writing, the Komodo rate against the US dollar was $ 0.651355 per 1 KMD. The exchange rate against the euro is 0.591598 euros per token, against the Russian ruble - 43.37 rubles. The market cap of the cryptocurrency is $ 75,366,801. 

Where to store Komodo

There are several options for storing cryptocurrency. Each of them has both advantages and disadvantages.

The first way is an online wallet . This option is very simple and understandable to any user. Each user can have not one but several wallets. This method is best suited for small amounts or for long-term storage.

The second option is storage on an exchange. This method is the most unsafe, but very popular among traders. If the user is constantly playing on the exchange, it is very troublesome to deal with deposits and withdrawals every day , as well as pay commissions for each transaction.

The third way is a hardware wallet. A number of these applications allow you to store multiple currencies. These include Trezor Wallet and Ledger Nano S, which allow you to store more than 20 types of tokens with a very significant level of protection.

Through wallets, each user can store, transfer or receive funds in KMD currency. Komodo offers desktop and paper wallets providing a high degree of privacy:

Agama wallet. The Komodo team has created this official wallet for their cryptocurrency. It has privacy enhancement options called Jumblr. In addition to Komodo, this wallet is also suitable for storing other cryptocurrencies. It supports most of the popular operating systems like Windows, macOS and Linux.

Swing Wallet is another official wallet from the Komodo development team. This wallet is the easiest to use and is recommended by the creators of the Komodo project themselves. Supports Windows, MacOS and Linux operating systems.

The paper wallet is an encrypted, independent wallet. It is the safest method of keeping your savings. For complete information on this method, you can read the guide on the official Komodo blockchain website.

The developers are constantly working on improving, optimizing and increasing the security of wallets. At the same time, hackers do not sit still. The choice of a particular option depends on the preferences of the direct user.

Emission Komodo (KMD)

A total of 200 million Komodo tokens were issued. Half of this amount was distributed during the initial coin offering. 90 million of them were divided among investors, the remaining 10 million are intended to ensure the development and promotion of the Komodo project on the market. The remaining one hundred million must be mined. It is assumed that the last token will be received around 2031. By this time, when all coins in the network are issued, each token holder whose address begins with the letter "R" will have to receive an additional payment equal to 5% per annum on their own funds.

The future of Komodo

The Komodo project is officially part of the SuperNET ecosystem. This entity is developing several independent projects that are planned to be united around the Komodo platform. These projects are intended to optimize and improve both Komodo itself and the entire SuperNET ecosystem in general.

Among the developments is the Iguana codebase. This project is the embodiment of a GUI in which each user can have access to any supported virtual currency and, in particular, to Komodo. Through this solution, users will have the ability to access all key platform options. In addition, a number of advanced options will be provided such as private transactions. It should be said that other locks that are not implemented in the GUI can also use the Iguana codebase.

Iguana provides two decentralized exchanges - PAX and EasyDEX.

PAX provides users with the ability to exchange national currencies in the form of assets that have been issued on the Komodo platform. These assets are protected by the same means that apply to the Komodo platform as a whole. In other words, the conversion and transfer of these assets can be carried out in a completely confidential mode.

EasyDEX is a fully decentralized exchange for virtual currencies. It provides users with the ability to convert cryptocurrencies without involving any intermediaries or third parties. Trading takes place directly through tokens. EasyDEX compares favorably with other similar solutions as it provides great liquidity and speed. These are two main aspects that were not represented in almost any of the centralized exchangers .

In addition, users have access to a decentralized token mixing service for other virtual currencies through EasyDEX. You can exchange them on the platform completely privately, and then transfer them to the required point in the original currency. This feature is called Jumblr.

The crypto community tends to evaluate the Komodo project rather positively. Among the key advantages are a high level of security, stable operation, excellent resistance to network loads and hacking attempts. In particular, attention is drawn to the faithful adherence to the principles of cryptocurrency, from which the recognized leader of the cryptoindustry, Bitcoin, has been moving further and further.

The weak points of the coin are its low price and the absence of really promising, promising proposals at the present time. If the platform development team surprises the community with any interesting initiative in the near future, the value of tokens will definitely increase. Whatever the Komodo project as a whole and its cryptocurrency deserve the utmost attention.