Basics and team. The mechanics of proof-of-work on blockchain networks.
Komodo KMD is a platform that offers end-to-end blockchain solutions, from concept to implementation. KMD is the platform coin. As of the beginning of 2018, the coin has a market capitalization of about USD$500 million.
The total supply of KMD is fixed at 200 million coins. Out of this amount, the creators of the platform have pre-mined 100 million coins and distributed 90 million during an initial coin offering that has occurred between October 15, 2016, and November 20, 2016. 10 million coins went into Komodo development fund. The remaining 100 million coins are being mined by miners on the Komodo network.
During the ICO, the founders of the platform have collected 2639 Bitcoins, which at the time were worth close to USD$2 million.
Every holder of the KDM token gets a bonus of 5%APR automatically. All KMD holders need to get the bonus is transferred their coins to a new address once a year. Once a user moves the funds, the address gets a credit of 5% of the amount based on how long the amount was stored at the previous address.
The basics of the Komodo platform
Komodo is a fork of ZCash and has the same privacy features as ZCash, including private transactions and transparent transactions. Just like ZCash, Komodo uses zk-SNARK algorithm to hide information about the sender of funds, the recipient and the amount.
Komodo is a part of a very ambitious project called SuperNET, which is a platform that serves as an intermediary between various other blockchain-based projects. The goals of the SuperNET are to allow anyone to create their blockchain and their own token, to enable people to perform atomic swaps directly on the platform and to create a multi-wallet that would allow users control their assets.
SuperNET conducted an ICO in 2014 and has created a MultiGateway exchange and a multi-wallet. The exchange closed in 2017.
The team behind Komodo
The team behind Komodo is anonymous. The lead developer of the project calls himself jl777. Jl777 was involved in SuperNET ICO and has worked on the SuperNET multiwallet. The code that jl777 created as a part of the SuperNET project is open-source and anyone can download and inspect it.
Because the lead developer does not reveal his real name, the entire team chose to stay anonymous and does not use real names or real photos on its website.
Trust in decentralized networks. The mechanics of proof-of-work
To reach consensus on the network, Komodo uses algorithm called delayed Proof of Work or dPoW.
Bitcoin was able to become a major successful digital currency because it was the first digital currency to solve the issue of trust on a network. The main problem with trust that the Bitcoin network solved was the issue of double spending. Double spending is when a user is able to send the same funds several times. At the core of the issue is the ability of computers to endlessly create and duplicate information.
With financial value, there are three main parameters that a network needs to record and maintain: the owner of the value, the time at which the user owns the value and the unique identifiable address for the value. Satoshi Nakamoto created the Bitcoin network in a way that allowed it to store and modify all these factors in a secure and trustworthy way so that when a user A sends money to a user B, A can’t send the same money to user C as if he didn’t send it to user B.
There are several reasons why proof of work consensus has been working so well on Bitcoin and other cryptocurrency networks. The first reason is the mechanics of the protocol, which include use of hashes and cryptography algorithms. A hash is a string of data that is shorter than the original data. A cryptography algorithm returns one and only one hash for one set of data. For example, if a set of data is (1, 1, 1, 3, 4) then its hash under some algorithm could be s3. Changing the data even slightly would return a very different hash. For example, if the set was (1, 1, 1, 3, 5), then the hash could be W999 instead of s3.
What’s important here is that it doesn’t matter who runs the data through the algorithm. Because the data can only have one hash when the algorithm is used, several parties will obtain the same hash. Because the hashes look so dramatically different even when the data is changed only slightly and one set of data can only have one hash, parties can also quickly compare if they have the same data without actually looking at data and comparing hashes instead. On the Bitcoin network, miners create hashes for sets of data that include information about transactions that occur on the network. Both the sets of data and hashes are much more complex than in the example above, but the principle stays the same. For example, block #510062 on the Bitcoin blockchain contains information about 2435 transactions on the Bitcoin network and the hash for the data about these transactions is 000000000000000000043dd19da37f77807f37b5dc0a6a5cabf2363114dfca21.