If we would have to describe Komodo in one sentence it would be:
“Komodo is a Zcash fork that adds the dPoW consensus on top of it and integrates into the SuperNET ecosystem.”
Komodo is a Zcash fork, so it will have all the same privacy features. This includes having both transparent and private transactions that are protected by zero knowledge proofs. We will also use the same trusted setup as they do.
What is Zcash?
Zcash is an implementation of the “Zerocash” protocol. Based on Bitcoin’s code, it intends to offer a far higher standard of privacy and anonymity through a sophisticated zero-knowledge proving scheme which preserves confidentiality of transaction metadata.
Relationship with Zcash
Komodo is not involved with the Zcash project in any way. However our lead developer jl777 was involved with discussions about Zcash protocol design.
- Trusted setup
Some people have criticized Zcash because there is no way to verify whatever they did successfully destroyed the “toxic waste”. This question is highly relevant for us too, because we will use the same parameters. It should be noted though, that it is enough if just one person from their team manages to successfully destroy their private key.
Here are is what jl777 said about the trustworthiness of Zcash team:
Knowing the zcash devs, I put zero probability that ALL of them are govt operatives. And it would require all of them to be cooperating. So, what is required is that all of their systems are compromised without their knowing about it. Now there are not just the average joe computer users, they are arguably the most skilled in the field
However if they all would collude and not destroy the toxic waste it would grant them the power to counterfeit more Zcash as well as KMD coins. Even in this case the Zcash or Komodo wouldn’t lose its privacy features.
In another post jl777 continues:
And if there is such a collusion and it is used to inflate the currency supply, it will be discovered and ALL the participants would be found out that they colluded. Also, market value of zcash will plummet, so it seems that smart people wouldnt collude together to be exposed as a colluding group, even if they were unethical and open to stealing.
More info can be found from the Zcash blog posts generating Zcash parameters and the design of the ceremony.
MiningOur initial consensus will have the same equihash PoW mining as Zcash has. However the mining aspects are not the same because we add the delayed Proof of Work (dPoW) consensus mechanism on top of the PoW mining. See dPoW section for more information.
- Competition with Zcash
We don’t see ourselves competing with Zcash as we are simply the first fork of many Zcash forks we expect to see. Zcash’s open source code allows any project to integrate a privacy technology to their platform. The open source model allows developers to borrow ideas and features from each other in order to advance the ecosystem as a whole. – just like we are doing
Our lead developer jl777 has written a lot about this frequently asked question.
2. Delayed Proof of Work (dPoW)dPoW is a brand new consensus mechanism that provides bitcoin security to all other dPoW chains. Only Komodo has to attach itself to the Bitcoin blockchain, as it would be more economical for others to attach themselves to the Komodo blockchain since Komodo has lower tx fees than bitcoin.
Why dPoW?We developed dPoW so that 1) we can get better security for Komodo, 2) third party blockchains can use Komodo as an additional security layer, 3) SuperNET can achieve its own vision of independent assetchains.
Notary Nodes64 notary nodes will handle the bitcoin blockchain notarization. Notary nodes are elected by Komodo coin holders.
Elections and running a notary nodeIf you want to run a notary node we highly recommend you to start one on our testnet. Join #notarynode channel on SuperNET slack. For more info:
Komodo Elections & Candidates
Guide: Setup Komodo Notary Node
Steemit Article: Notary Node Elections
Q&A: Can you give me information about the notary nodes election process?
Notary nodes will do the majority of the mining because they will have a lower difficulty. The other ‘normal nodes’ can also mine, but it won’t be that profitable or even economical if the notary nodes are also online.
Round robin mining will ensure that there won’t be notary node mining wars and that Komodo tx fees will stay low. Round robin mining means that each notary node will be able to mine with lower difficulty on their own turn. For more info see our development blog ‘Notary mining wars – and how to avoid them’
- 5% APR
Every KMD holder will get 5% annual percentage rate (APR) automatically. No other action is required than moving the funds between wallets once a year. Once the funds get moved the new address will be credited with new KMD coins based on how long they were in the previous address. The process has nothing to do with mining or notary nodes. For more info see our development blog ‘How to Implement 5% APR’.
Komodo’s block hashes are recorded to Bitcoin blockchain through group signed transactions. The Komodo blockhain history cannot be changed without also changing bitcoin’s blockchain history. Thus if you make a komodo transaction and wait for it to get notarized, then that transaction will be secured by Bitcoin’s hashrate.
- Value Proposition
Third party blockchains can use Komodo to achieve Bitcoin level security. The dPoW consensus can be thought as an additional security layer or a two-factor authentication method for blockchains. We believe that we will continue to see more and more blockchain projects that will require a way to secure themselves. By using Komodo they pay tx fees to our network, and additionally they can choose to use our high capacity notary nodes.
We will make it as easy as possible for other blockchains to get the bitcoin security through Komodo. For instance, the Stratis Platform is already interested in using dPoW to secure their private chains. See their complete answer once asked about it in a Stratis Investor Q&A session.
- Seamless transition
If all the notary nodes would suddenly disappear, the Komodo blockchain could continue to function as it would through a seamless transition into equihash PoW mining. In other words the ‘normal nodes’ would find all the blocks. However, without notary nodes the system would lose the bitcoin protection.
- More Info
The picture below illustrates the dPoW consensus mechanism. The most important thing is to understand that there are two blockchains: 1) dPoW (komodo) blockchain, and 2) PoW (Bitcoin) blockchain. There are also two types of nodes: 1) Notary Nodes, and 2) normal nodes. Notary nodes are elected by the community, but normal nodes can be ran by anyone.