Komodo (KMD) – All you need to know

What is Komodo?

Komodo is a system that lets blockchains and cryptocurrencies talk to each other. Early generation blockchains have been like isolated islands, and Komodo creates shipping lanes between them, facilitating trade and pooling their resources to create much stronger security.

The Komodo system is run by its KMD token. While KMD doesn’t have as many practical uses as some competitor coins, there is a reward scheme for holders and it plays a role in its decentralised exchange. That exchange lets users swap cryptocurrencies directly, rather than using Bitcoin as an intermediary.

Komodo was formed in 2016 as a spin off of the Zcash platform, which itself was a spin off from Bitcoin. In each case, the developers wanted to create a platform with more decentralisation and privacy than what came before. Komodo’s leaders have tended to keep their identities secret and operate under pseudonyms.

How does Komodo work?

Komodo works by creating a master blockchain that syncs together all the projects on the system. Each project that builds on Komodo can have its own coin and rules, and store its transactions on its own public blockchain. Komodo combines these all together and adds them to its own chain.

With this ‘multi-chain’ system, every project built on Komodo can talk to and trade with any other. It also means they all share security, that Komodo achieves by backing itself up onto the Bitcoin blockchain every ten minutes. To compromise Komodo, a hacker would have to break into both Bitcoin and Komodo’s chains at the same time. That’s virtually impossible with existing technology.


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