ZCash, the much-awaited anonymous cryptocurrency protected by Zero Knowledge proofs, is eight days away from launch. The development of Zcash’s ZK-SNARK technology has opened the doors for other alternative cryptocurrencies to provide anonymous transactions as well.
That’s what Komodo is doing, but on top of zero knowledge proofs, Komodo will bring much more to the table. Tackling Bitcoin’s old scalability and efficiency issues, Komodo will not require thousands of nodes and millions of dollars in computational power and electricity to secure its blockchain. Instead it will use Bitcoin’s blockchain to do so.
How? Komodo’s major breakthrough will be the introduction of the delayed Proof of Work mechanism. A system that takes the best from Bitcoin, its security, and makes it available for grabs to any cryptocurrency that is willing to improve it’s security mechanisms. Komodo’s dPoW is powered by notary nodes, pre voted on special nodes that are selected according to their reputation, past performance on the testnet, and hardware quality. These nodes take the information from Komodo’s blockchain and pass it on to Bitcoin’s through special transactions. The information is then moved back to KMD again, completing the circle and making any attack attempts to replace the blockchain futile, since notary nodes have access to both chains and can verify that the information on Komodo has not changed by checking it from the Bitcoin blockchain.
Any cryptocurrency can use this system to secure its own blockchain, being able to deal with Komodo as an intermediary between them and Bitcoin, reducing the tx fee costs for the third coin.
Komodo will start of as a Proof of Work cryptocurrency secured by its novel dPoW mechanism. Mining is pretty much the same as with zcash, meaning that the same algorithm (Equihash) will be used. PoW mining allows the network to safely transition from a dPoW secured currency to a decentralized PoW one, in the case of a malfunction with the notary nodes.
Mining Wars are also mitigated in this system:
“We have also thought a way to avoid the mining wars by making them uneconomic, thus we are able to keep the tx fees as low as in PoS blockchain. This is achieved by giving a chance for each notary node to mine at the current difficulty, and that will rotate in a round-robin so each notary node gets 1/64th of the current difficulty blocks. The rest of the notary nodes get to mine at 10x the current difficulty. Everyone else gets to mine at 100x the current difficulty.” Komodo Steemit
Komodo will not only become the new standard for altcoin safety, it will also make Bitcoin safer as a bigger group of developers will depend on the success of Bitcoin and it well-being for the purpose of their own projects.