Generation, Mining, and Distribution of New Coins on the Komodo Platform

All a user has to do to generate a new blockchain on the Komodo platform is specify its name and the total supply of coins. Once this happens, the platform will check whether there is such as coin in the ecosystem already and if the answer is negative, the platform will automatically generate the code for the new asset chain.

However, the platform will not create the coin supply because the founders of Komodo believe that the essence of the blockchain technology lies in the principle of decentralization. For this reason, they’ve programmed Komodo to wait for a signal from another device, a device that did not send the command for the creation of the new chain. Once the network receives such a signal, it will form a new asset-chain network and only then create and distribute the entire coin supply in the Genesis Block of the new asset chain. The code of the Komodo network treats the entire supply of the new coin as a reward for the creation of the first block. This is the reason why first blocks of the new chains are different from all the subsequent blocks on the chains, just like the first block of the Bitcoin blockchain, the genesis block, is different from all the other blocks of the Bitcoin blockchain.

Komodo platform recommends that entrepreneurs create new chains in the Komodo ecosystem using Virtual Private Servers (VPS) to prevent hackers from accessing the new chains and mining the first blocks of the chains. If this were to happen, the attackers would get the entire supply of coins for the new chains.

Once the entrepreneurs have the IP addresses of two devices, they can connect the devices and the mining of the coins would begin. The new coin is now officially in existence and new machines can connect to the new network in a similar way they connect to the Bitcoin network and other blockchains: by downloading the software and becoming miners, nodes or users of the new network.

The new networks also can get all the security features and protections of the main Komodo network. For this to happen, all creators of new networks have to do is specify the nodes that will be performing the notary functions in the same way notaries on the main Komodo network operate.

Notarization services do have a fee that enables the network to cover the costs associated with the process. The first partner of Komodo to successfully back up its chain onto the main network is called Monaize. Monaize allows businesses and entrepreneurs to manage their finances using an app from the App Store or Google Play on their phones.

The platform opens a current business account with a UK IBAN Number and sends a debit card for the account to the user within 5 business days. In the future, Monaize plans to add an array of products and services for entrepreneurs and businesses that will make management of finances easy, convenient and hassle-free.

Backup of the Monaize blockchain onto the main Komodo chain means that the Monaize network will survive even if only one copy of the Monaize chain remains on the Komodo network.

 

Distribution of new coins on the Komodo Platform. Advantages of Komodo.

Komodo doesn’t just simplify the process of the creation of a new chain. It also makes the process of new coin distribution easier and much more secure compared to options that have existed previously.

Before Komodo, entrepreneurs had to collect funds in cryptocurrencies to certain addresses and personally hold the funds in escrow.

The biggest flaw of this approach is its vulnerability. During and after a successful ICO, hackers are likely to try and steal the funds from the entrepreneurs and the more successful an ICO, the higher the risks. Also, since cryptocurrency transactions are irreversible, all it would take for a project to collapse is one dishonest or incompetent employee pressing several wrong buttons and the funds would either be stolen or lost and the company won’t be able to do anything about it.

When it came to coin distributions, new projects had two main options available to them. The first one would be to create their own wallets capable of holding new coins. This meant that in addition to the coding of a new blockchain the entrepreneurs would also have to create other software, making implementation of blockchain projects long and complicated. Once the entrepreneurs collect the funds, they can send the funds to the wallet addresses that investors have specified during an ICO.

The second option would be to hire a service that would run the described above process for the company. This option comes with even more risks because now the venture that is going through an initial coin offering has to deal not just with its own employees, but also with people working for the third-party vendor. On top of this, the third party will want to get paid, so now there is also a negotiation process about payments and their structure. If the negotiation is successful, the project has to comply with the rules of the third party and function within its framework, which in a way is very ironic because most blockchain projects are born to promote the idea of decentralization and absence of intermediaries and third parties.