Komodo Video Q&A
In this Komodo Video, Ignacio Figueroa from Crypto Core Media interviews Audo at the event called Anarchaforko 2018 in Acapulco, Mexico and gets to know about Komodo Cryptocurrency and the different features that they provide to the end user. Audo explains about the decentralized exchanges and Atomic Swaps technology used to provide independent blockchain for the businesses.
Let’s find out more about it in this Komodo video Q&A with Audo.
Can you explain to the new people coming into the cryptocurrency space who may be watching this Komodo video Q&A about the platform? What it is offering to the community and how it is different from other Cryptocurrencies?
Komodo provides technology to the entire blockchain industry. If a business or project gets involved, they can be an independent chain, and you can launch their infrastructure, this eliminates restriction and limitation that they might have if they are on other business.
So, you mean to say that Komodo is a platform that will allow business to have their own blockchain?
Yes Exactly, If business comes into Komodo, it is easy for them to create a Native blockchain. This is not the case otherwise. They run their chain, and all transactions go through their chain. This is entirely independent of Komodo or any other businesses on the ecosystem. In case of the most popular platform like Ethereum, if a thousand businesses are running on it, they are all using the same blockchain, and this results in heavy traffic leading to high transaction fees.
In our platform, business will have their own blockchain with an alternate approach that allows the ecosystem to scale better and developers can do their development independently. Let’s take a scenario where the business happens to have so many transactions, and their blocks become full, In that case, they are free to raise their block limit and make their own rules for their blockchain.
Let’s talk about the history of Komodo, how did you start with the Idea? I understand that You began to with NXT platform and how did you arrive at this solution?
We have a colourful history that goes back to 2014, where we started with a process called SuperNET and also had a privacy coin called “Bitcoin Dark”. We were building on top of NXT platform, in addition to this, we were also working on third-party projects on top of NXT.Our values were always like collaborating with others rather than competing with them. We were looking for long-term horizon like ten years, instead of focusing on the present competition. In 2015 we realized that we would have problems if we depend on NXT and this is the case with other businesses as well using any other platform, and then we arrived at the idea of providing independent native blockchain, and now we are here as “Komodo Platform”.
One exciting thing is decentralized ICO’s, can you elaborate on that platform?
We have Crowd funding solution with native blockchain that constitutes the decentralized ICO, and it is not possible on any other platform. It is based on Atomic Swap technology. We have been pioneering Atomic Swaps, and it facilitates direct trade between two blockchains like Litecoin to Bitcoin or Bitcoin to Komoda, likewise, any other pair is also possible. Currently, we have made sixty thousand Atomic Swaps including some public stress test with our community. We have come a long way, and we are leaders in this space. Crowdfunding is based on this technology.
Can you tell us so people watching this Komodo Q&A can understand about Atomic Swaps?
Let’s say I have a coin; Bitcoin for instance, then I can trade to Komodo coin.Submit an order in a decentralized exchange, and if someone takes it at the other end, atomic swap process begins, and I trade my real bitcoin to real Komodo. It takes few minutes to complete the atomic swap.Real Bitcoin can be swapped to Komoda coin or any other coin without trusting any centralized system. It allows people to trade directly within a true decentralized market.
Can you tell us about the decentralized exchange that you are working on right now?
This project is called “Barterdex” and what we have done for decentralized exchanges apart from atomic swap is that they need to have their own order book. The first thing we need to do, after developing Atomic swap protocol, is that to develop a way to have a decentralized order book. And now we have developed an offline Decentralized order book which allows instant transaction – We place an order on a decentralized network and the order is withdrawn when another user at the other end takes it, and it is very fast and decentralized. After matching order, the atomic swap begins. We have GUI application ‘Barterdex’ which we use in our community to do public atomic swap stress test. We do a stress test to see the amount of load the exchanges can take, and we have seen some good positive results. Now we have everything running in the background online, and everything works fine without any issues so far.
We are working to provide secure user interface application and once ready we can start marketing it and provide an actual use-case for this decentralized exchange.It is entirely open software, any business can tap into the decentralized platform for free. And it provides more liquidity when more users use our exchange. Once we get users on board, then the third party can also use it. Later crypto community will also trust our technology that includes the centralized Exchanges as well which will also integrate with our Decentralized exchange to allow us to buy fiat like USD or EURO to any crypto, but the exchanges would be using our decentralized software on crypto side while fiat payments and KYC norms for banking purpose would be processed at their end. So, We can have both the worlds coming together, and that is the direction that we will be moving.
How do you fix the challenge of low liquidity on the exchanges?
This is a significant problem for any exchanges – Centralized or Decentralized. We allow anyone to become a liquidity provider on our platform. Anyone can provide liquidity using the GUI application and also make the profit while doing it. Everyone has cryptocurrency portfolio, and they can place it in the automated market making and put the capital to use and provide liquidity. And more liquidity gets added when more people place their capital on our platform. We also request each cryptocurrency community to provide liquidity for their coin. So they can buy their coin in our exchange and directly help in increasing the liquidity for their coin.
Is the Liquidity creating tool already working or under development?
I believe it is working using Barterdex GUI. There is a trading option, and you can leave it running, and it will automatically be buying and selling and balancing the portfolio. So we have it currently in working condition.
What brings you to Anarchaforko?
We have correspondents in the Anarchaforko event, three people from the team came here, and they were explaining about Komodo to the public. We had a small presentation in the event, and we were able to connect with a new group of people. They are not aware of Komodo, and so we thought of showing our presence here to teach people about Komodo. People were interested and asked a lot of questions about Komodo.
One of the specialties of your product is security and anonymity. Those are two main things that you have. Can you explain how this system works?
Security plays a vital role in this ecosystem. If we create a new blockchain. It has almost no hashing power. So we need to secure each chain. Small business will have low value for their blockchain, and something should secure it. Otherwise, even medium mining pools could attack the chain. That is what we call “Komodo security feature”. It is the second layer of security on top of initial POW consensus. Technically speaking, this is called as “Delayed proof of work”.
We use Bitcoin and recycle the bitcoin hash rate, and we make these group of transaction that record blocks to the Bitcoin blockchain like a backup and if something goes wrong in Komodo chain, we can restore a backup from Bitcoin blockchain. So if they want to destroy the record, they need to take down the Bitcoin blockchain as well, so this is very safe.Also, other blockchains can notarize their info and back it up to Komodo blockchain. It is cheaper due to lower transaction fees. They can restore their system from Komodo any time they want if someone attacks them. It is like Two-factor authentication providing extra security. If we disable the security nothing will happen, It is just an additional security for their chain. Overall, It is a beautiful architecture for the entire ecosystem,
Anonymity is essential these days, can you explain about the anonymity feature in Komodo, Since we have a lot of privacy coins attracting more people, What Komodo is offering to the community as far as anonymity?
We saw the Zero-Knowledge proof as the best anonymity feature which is the underlying technology in Zcash, and they are the core part of our whole platform. If a business come to Komodo and creates a blockchain, they are given an option to include this privacy features also. Let me explain how the privacy works. There are two types of addresses, and if transactions go through Z-address, it cannot be seen by anyone else. It removes the record completely. I can send Komodo coins through this private address and when it comes out on the receiving end the entire trail of the transaction is destroyed and using the atomic swap technology we provide the same technique for any other coins in Komodo platform. Say, for example, we can exchange Bitcoin Cash with Komodo using Atomic swap and then funnel the Komodo funds through the private address, and it swaps the Komodo coins back to Bitcoin Cash, and this process efficiently creates decentralized private technology.
I just remember that you approached Roger Ver and explained to him about Komodo, what did he say about it?
I had a chance to “Say Hello” and explained to him that we were doing the atomic swap between Bitcoin Cash and Komodo. I wanted him to know that it is there for their project also to use and benefit. Bitcoin Cash wallet also could use the decentralized exchange to buy Bitcoin cash using Bitcoin or any other coin. Also, they can use the security feature to secure their Bitcoin Cash blockchain with Bitcoin’s hash rate and get same security as Bitcoin.
Tell us about the coins that you have in the BarterDex exchange and any limitations for you to accept any coins that wanted to be listed on the exchange?
We accept any coins, there is no limitation to list any coin, and any coins can register in our exchange. Also, we are integrating Ethereum and ERC20 tokens also. We have also done one successful Atomic Swap between Ethereum and Dogecoin recently.
The Komodo Video Q&A Wrap Up:
It was a wonderful Komodo Video Q&A interview with Audo at the Anarchaforko event and Ignacio and all his viewers and readers learned a lot about Komodo platform and its use cases. It was fascinating to learn from the Komodo video interview how Komodo delivers decentralized exchanges using Atomic swaps and Barterdex and how it allows businesses to function as an independent blockchain.
Thats it for the Komodo Video Q&A, thank you Audo & Ignacio!