Bitcoin is often considered a anonymous cryptocurrency, and it is done mostly due to its connections with the deepweb markets, and although this a misinformed assumption it’s also a very popular one. Bitcoin is, at its core, a pseudonymous cryptocurrency that allows you to register a random name (wallet address) instead of a bank account with your real name and to transfer value between this pseudonyms. However, since most of the Bitcoin mining is done by large mining operations acquiring Bitcoin often requires users to register an account with a KYC & AML complient platform that can leak your information. Studies have also shown that experts can discover the identity of a specific wallet owner by analyzing patterns and movements via blockchain.
Third party Bitcoin mixers can be used to help keep your transactions private, but they require you to trust a middleman that charges unnecessary fees and can easily be corrupted. Bitcoin blenders can also be analyzed and often pose a fungibility problem, since the coins you’ll take out can often come from dubious sources.
Privacy-centric cryptocurrencies like Dash and Monero, which was recently implemented as an accepted cryptocurrency on the biggest dark market in existence, Alphabay have always strived to come up with solutions to make transactions untraceable like ring signatures and built in shuffling systems, but these have shown to be flawed and can be easily misused.
ZCash, however, does not give you the tools to mix your coins with others’, it simply encrypts all the information about your transactions with Zero Knowledge proofs that ensure no double-spending has occurred but do not reveal any information about the transaction I.e. sender, amount, receiver.
Although ZCash technology is at the forefront of privacy, it can be considered a fragile system that, once it emerges, will depend on the its adoption to survive as a secure and “unhackable” blockchain. Like Bitcoin, ZCash relies on a Proof of Work consensus mechanism that despite being safe (once secured by thousands of miners) is extremely wasteful.
That’s where Komodo comes in. Komodo, a platform built from scratch by the same team that has brought your Bitcoin Dark (BTCD) and will bring you the best of cryptocurrency technology in a all-new system that features the real anonymity provided by ZCash, secured by Bitcoin’s computing power. How will Komodo achieve this? Through the its biggest innovation, delayed Proof of Work.
When a block is created in the Komodo blockchain, it is done so through a Proof of Stake system based on NXT (a tested and proven system that has been running for years) and it’s blockhash is sent to a notary node. This notary node system is based on Bitshares/Steemit witness program which allows nodes to be voted on by the community. The notary node will then introduce said blockhash, along with others in a custom Bitcoin transaction. The information about the Bitcoin block is then reintroduced in the Komodo blockchain, making any time of an attack on its blockchain noticeable to all of the notary nodes that are constantly connected to both blockchains and must agree that the information matches out between both blockchains.
In order to fund these nodes, which are required to make constant transactions on the Bitcoin Network, an ICO has been announced that will take place from the 15th of October until the 20th of November
Like Bitcoin didn’t invent new technology but combined existing ones to create a new tech that is unique. Komodo will not reinvent the wheel but build on proven technologies a stack that is completely unique but there is no uncertainty because all technology is already existing.
Not only will Komodo serve its users by providing them with the safest environment for anonymous transactions possible, but it will also serve all of the cryptocurrency ecosystem by making recycling Bitcoin’s wasted energy and using it for itself and for any other cryptocurrency that may choose to adopt the delayed Proof of Work/Proof of Stake consensus mechanism.
In this sense, Komodo does not compete with Bitcoin and adds value to it, allowing each cryptocurrency-based system to take advantage of the security provided by BTC, making it an even more vital part of the cryptocurrency scene.
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