What Is Komodo (KMD)?
KMD is the native token of Komodo, which is an open-source blockchain infrastructure that provides developers with blockchain solutions allowing them to build various DeFi applications, as well as parallel chains. Komodo originated as a fork of Zcash (ZEC). If you’re curious about the KMD price, check out the Komodo price chart above.
Komodo employs a multi-chain blockchain network structure, which allows developers to create independent blockchains on top of the Komodo network. These chains are referred to as Komodo Smart Chains (KSCs). The development of KSCs is based on the concept of parallel chains. In essence, developers are able to create a separate copy of Komodo and write the code for their own chains while staying unaffected by the events on the main chain. Every KSC deployed on Komodo has its own fully-customizable gas-free token. Besides, Komodo allows developers to build advanced dApps on top of KSCs through Komodo Custom Contracts (CCs).
Additionally, Komodo has developed its own consensus mechanism called the delayed Proof-of-Work (dPoW). dPoW is referred to as the leading consensus mechanism for protecting networks against 51% attacks. It secures the Komodo network, KSCs, and many other blockchains. How does it work? dPoW is a hybrid consensus algorithm that enables one blockchain to benefit from the security offered by the strength of a second blockchain's hashing. In order to compromise the security of the first blockchain, it would be necessary to breach both blockchains. The security is accomplished by a group of notary nodes who add data from the first blockchain onto the second.
To give you an example, Komodo relies on the security of the Bitcoin network. It stores its block hashes onto the Bitcoin ledger every ten minutes. Thus, if someone wanted to compromise the Komodo network, they would also have to compromise the Bitcoin network, which definitely would be really complicated and practically impossible.
AtomicDEX
One of the most popular DeFi applications developed by Komodo is AtomicDEX. It’s a crypto wallet and a decentralized exchange in one place. AtomicDEX allows users to trade, send, and receive a variety of crypto assets across different chains in addition to providing them with a non-custodial crypto wallet.
A peer-to-peer (P2P) atomic swap system with decentralized order books is the foundation of AtomicDEX. The atomic swap technology concept was first put into practice by Komodo in 2016. Essentially, an atomic swap is an exchange of crypto assets between different blockchains without relying on third parties. AtomicDEX employs the third version of Komodo's atomic swap technology.
Besides that, Komodo developed the ShibaDEX, which is the first cross-chain DEX made for Shiba Inu tokens. It’s powered by AtomicDEX.
The Purpose of KMD Tokens
As mentioned before, KMD is the native token of the Komodo crypto project. The following are the main use cases of KMD tokens:
- Means of exchange. KMD tokens can be used to make fast and secure transactions. Besides, KMD is one of the most popular trading pairs on AtomicDEX.
- Payment method. KMD tokens are used to pay transaction fees within the platform.
- Rewards. KMD holders who have more than 10 tokens in their wallets are able to generate up to 5.1% APR as the Komodo Active User Reward.
- Discounts. Market takers who use KMD tokens for their orders on AtomicDEX are able to get a 10% trading fee discount.
- Mining. KMD token can be mined both on CPU and GPU. Miners receive KMD tokens as block rewards.
Besides, don’t forget to take a look at the live KMD price that is featured on the Komodo price chart above.
Tokenomics of KMD
The max supply of Komodo coins is 200 million. The coins are created through mining using the Equihash algorithm. In 2016, Komodo held an initial coin offering (ICO) for KMO tokens during which around $2 million worth of BTC was raised.
If you plan to invest in KMD tokens, make sure to analyze the Komodo price chart that was mentioned before. Given that the KMD price fluctuates significantly, much like the prices of the majority of other crypto assets do, it is beneficial to do that in order to identify the key trends in the fluctuations of the KMD value.
