Komodo – How Does It Function and What Does It Do
What Is Komodo, A Hybrid Of Bitcoin And Zcash?
Komodo utilizes the innovation of Zcash and the power of Bitcoin, this privacy based cryptocurrency uses zk-SNARKS, which works by encrypting the transaction data.
The Komodo protocol also uses the Bitcoin Blockchain using the delayed proof of work algorithm (dPOW) to process transactions giving Komodo the same level of security as Bitcoin itself.
While using similar privacy features to Zcash, Komodo’s dPOW works by using the regular POW algorithm but with an added mechanism, which notifies the Bitcoin Blockchain of any transactions on the Komodo network.
Information from the Komodo network is sent to the Bitcoin network by using pre voted nodes, which then insert transactional information into the Bitcoin network, this adds additional security to the network making it harder for ‘bad actors’ to hack the network or compromise it.
Privacy In A World Of Regulations
With regulations increasing in the cryptocurrency space, this could be an opportunity for privacy-based coins to increase in popularity.
Exchanges are the primary target for authorities to enforce a handover of investor’s transactional history, while Bitcoin’s Blockchain displays the transactional history for every user on its network other cryptocurrencies such as Komodo, Zcash and Monero anonymize the information, making it impossible to trace to another wallet address, as long as no third party exchange is involved.
What an amazing 2017 for Komodo holders, the price at the moment of writing trades at $9.79, and unlike many other alternative cryptocurrencies it is performing well against BOTH fiat and in Bitcoin.
As stated above, with the innovative edge of Zcash and the herculean network power of Bitcoin, combined with regulations and the market needing alternative solutions to remain private, 2018 could prove to be another fantastic year for the Komodo.
Many cryptocurrencies only perform well against the dollar, with a select few managing to keep up with Bitcoin’s price rally (percentage wise).
Where To Buy Komodo
Where To Store Komodo Privately