Komodo Coin is a promising fusion of Bitcoin and Zcash
Komodo Coin is a cryptocurrency that combines the best features of Zcash and Bitcoin. It is based on a completely new algorithm created by the project team. The approval mechanism, referred to as delayed proof-of-work (dPoW), makes it possible to certify transaction blocks with the Bitcoin blockchain.
The basis of the Komodo Coin token is the Equihash protocol. Thanks to the fact that the platform uses a zero-knowledge proof, the coin guarantees unusually high anonymity. Komodo Coin is the world’s first cryptocurrency to use the delayed proof-of-work protocol.
This mechanism is based on the so-called notarial node, which is selected by a vote. It brings the information from the Komodo proof-of-work blockchain into the chain of Bitcoin, which increases the resilience of the service against a variety of hacker attacks. Note that the fees and funds received from the blocks and the transactions made are used to support notarized node technology.
Such a reliable security system allows you to perform fully anonymous cash transfers that are protected by the Zcash zero-knowledge proof protocol and validated by Bitcoin’s blockchain. A crash of the system is only possible if both of the above-mentioned platforms are compromised.
Another interesting feature of the resource is the ability to swap their tokens for coins from another project of the Komodo team; the BitcoinDark cryptocurrency. To simplify this process, a fixed BTCD rate of 0.00532074 Bitcoin has been set.
The positive and negative sides of Komodo Coin
The advantages of this digital currency are:
- Security: The improved Zcash code and the revolutionary delayed proof-of-work protocol make the coin almost invulnerable to the most demanding hacker attacks.
- Stability: Although this cryptocurrency did not gain the same high popularity as Bitcoin, it was able to attract a significant number of loyal followers willing to support and mine it.
- Productivity: Due to the still relatively new project, all transactions are settled relatively fast.
- Versatility: You can work with currencies both on stationary computers and on different mobile devices.
- Independence: While Bitcoin distances itself from the ideas of decentralization and the free market, Komodo has remained faithful to the principles of autonomy. Changes to the platform can only be made with the consent of the entire community.
- Future: Despite the fact that the coin is still relatively young, it has good potential for the future. If the project team can choose the right development vector, Komodo Coin will reach high altitudes.
However, the platform also has some disadvantages:
- Uncertainty: Due to some features, the cryptographic money is not based on anything and it is therefore very difficult to predict the changes in the rate of exchange. The price of coins can rise slightly or fall fast.
- Hacking: Even the most reliable security system cannot guarantee 100 percent protection. There is always the possibility of losing your savings through a targeted hacker attack.
- High costs of equipment: As the complexity of currency mining increases, so does the price of the necessary equipment. A small farm made up of multiple graphics cards will no longer return a tangible income today. Besides, it often cannot even recover the money invested.
It should be noted, however, that such disadvantages are not only characteristic of Komodo Coin, but also of many other types of digital money.
The Komodo concept
The concept of the platform includes three key points:
- Improved Zcash code
- Unprecedented security log with delayed proof of work
- Distributed virtual network SuperNET.
The Komodo project is a fork of Zcash and therefore has a similar level of confidentiality. The network has both fully open and anonymous payments, the protection of which is guaranteed by the zero-knowledge proof protocol. In addition, “Trusted Setup” is introduced here.
The Zcash currency was repeatedly criticized because it was impossible to remove parts of the personal keys. This issue is also relevant to Komodo because it uses the same code. However, the resource team was able to achieve some success by correcting certain vulnerabilities in the system. To date, the removal of a private key precludes its appearance in plain text.
The use of the Zcash code also affected the mining method. First, the classical algorithm of the PoWs is included in the network. Somewhat later, the dPoW protocol created by the coin developers will be introduced.
Features of the delayed proof-of-work mechanism
According to the developers of the platform, dPoW was developed for the following reasons:
- To increase reliability and safety
- To provide the ability to use the Komodo network with other cryptocurrencies
- Integration of the SuperNET technology.
The confirmation of the operations in the blockchain is carried out by means of 64 notary nodes. Each of them is selected by the coin owner of the resource. They also take up most of the coin mining, as their complexity is much lower.
The cyclic nature of mining rules out too much competition among users. The commission fees for transactions are also the lowest in the cryptocurrency world.
Important! All owners of Komodo Tokens will receive 5 percent per annum on their savings in Komodo Coin. For this, you have to move your savings at least once a year between wallets. Immediately after transferring the currency to a new account, the promised coins will be credited.
Komodo Coin is not an ineffectual fork of Zcash, but rather a real breakthrough in decentralization and privacy.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.