Op-Ed: Komodo Coin (KMD Coin) – Private & Secure Diamond in the Rough
If you’ve been following the news at all recently then you will have noticed that the news coverage of cyptocurrencies has seen a significant increase in stories related to speculation and announcements regarding the implementation of government regulations.
It is a threat which has the potential to affect almost any country in the globe. As it stands most of news has come out of East Asian, non-Western countries such as China and South Korea.
This news has accumulated in FUD and bear-inducing speculations, as represented by the ongoing early 2018 market volatility issues. Much of coins (at the time of writing) are rubber banding between the mid $9,000s; and at best, only optimistically tipping the $11,000-per-coin boundary.
KMD Coin: Who is it good for?
We are currently living far from the decentralized utopia which many hoped that the likes of Bitcoin and other cryptocurrency leaders would heralded by now.
Thanks to many blockchain innovations however, we are progressing incrementally closer to a target of freeing finances and businesses, from their traditionally imposed restrictions and boundaries.
One such example of this is Komodo. It’s a Zcash forked token which aims to become a market leader, focusing on cutting edge security & privacy provision for both users and potential blockchain entrepreneurs.
Komodo offers businesses the ability to create their own forks from the its chain – branding its participants as ‘dICOs’ (which stands for Decentralized Initial Coin Offerings). This is arguably an effective way to market the technological benefits that are conducive to the ideal of full decentralization, as well as a strong challenger to the traditional concept of the ICO.
We aim to investigate the present and potential value of this coin overall, by looking the sum of its parts; both good and bad…
From Zcash to infinite: A Brief History of Komodo
Basing their tokenized platform on the infrastructure of Zcash was surely not a decision made idly by Komodo.
Zcash is a coin which has been recognised by many as a trailblazer in the provision of absolute anonymity for users of its transaction-based activities. They have contributed significantly to the development and widespread adoption of ‘zero knowledge cryptography’ – which is a concept created by many of the Komodo’s founding members.
The company has since established partnerships with the likes of Monaize: another platform which provides a competitively desirable banking solution which could be compared to the likes of Revolut or Wirex. They provide their users with a digital banking account which includes the ability to obtain a debit card; with compatibility for both crpyto and fiat.
Komodo itself has in fact alluded to the significance of privacy in their ethos themselves. They stated in a Medium post that “Originally, blockchain projects were not private; if a personal wallet was identified on a blockchain network, a simple data analysis could trace much, if not all, of the owner’s behavior” and that they “start[ed] as a privacy-based cryptocurrency fuelled our long-term aim to provide the tool of Privacy to entrepreneurs…” – before continuing to discuss the importance Zcash to them directly.
KMD Coin Tech Focus #1: Atomic Swaps + BarterDEX
One piece of recent and significant news to come out of the Komodo camp is the successful completion of the first ‘Atomic Swap’ between the highly popular Ethereum (ETH) token and, no pun intended, underdog Doge Coin (DOGE).
This landmark moment was achieved by utilising Komodo’s proprietary ‘BarterDEX’ system. It is a decentralized exchange platform which allows swaps between various currencies, with no need for an intermediary coin or holding account. The exchange platform confines fully with the previously discussed privacy / security principles – as espoused by the platform’s creators.
BarterDEX includes functions such as order-matching that help it to compete with prominent exchange trading platforms such as Binance or Kraken. Unlike those platforms however, the decentralized status of Komodo’s solution results in its users’ accounts not having to worry as much about serious threats such as hacks & thefts; delisting from exchanges; & regulations / seizures.
KMD Coin Tech Focus #2: API platform for innovators
The ability for business clients to create their own forks based on a unique decentralized blockchain (‘Peerchains’) is conducive towards the fully decentralized ‘dICO’ concept.
Furthermore, a large proportion of Komodo’s code is available for public viewing and adaptation via GitHub. Actions such as this exemplify a sense of transparency, which the company hopes to use to garner extra support and trust from their peers, pundits, and userbase.
They also provide Application Programming Interfaces (APIs) for their primary functions, to help their supporters and like-minded coders & tech experts both use and improve upon their code through co-operative / shared resource development.
KMD Coin Tech Focus #3: Comparison to other coins
When you get down to the meat of it, Komodo (if you can believe them) clearly surpasses many of their rivals clearly and outright when it comes to encryption technologies in several areas.
Like Zcash, Komodo employs the zK-SNARK methodology as a base for their so-called ‘Privacy Tech’. Unlike Zcash though, they also employ Jumblr: a proprietary anonymizer (or ‘Coin Tumbler’) which, presumably, works hand in hand with another of their in-house services – a multi-coin wallet named ‘Agama’.
For more information regarding the differences of Komodo, vs their perceived rivals in more detail, look at the chart below
Conclusion: Komodo, or Komodon’t?
Coverage so far speaks for itself for the most part, and there’s a lot of reasons to be positive about Komodo and their proprietary token (KMD). Their idea is solid and focused; with its execution proven through documentation and use-cases. It also helps that they don’t hold overtly strict reservations regarding its use as an investment commodity.
To speak subjectively for a moment, I would like to mention that the company could do well by appealing to the personal banking user as well as the businesses. This is due to the myriad of interesting services provided and the fact that such users might have business uses for the platform in their professional futures as the blockchain industry continues to grow. Not to say that they should put most of the efforts towards this secondary audience, rather that they should make sure not to pigeonhole themselves in ways that are not necessary.
The coin as an investment asset is arguably under-appreciated now, and subsequently it is cheap with a relatively low market cap and slower day-to-day market changes. Subsequently, it may be a slow mover in the short term but if you take advantage whilst it’s under-valued you stand a strong chance of winning big. Just don’t stake too much of your portfolio until you start to see the early signs of rapid gain!
On the topic of trading: Zcash hasn’t been the strongest recently, when compared to the top market cap listings – which has unfortunately affected the price valuation. This should be a serious consideration for investors.