A Beginner´s Guide to Buying, Selling, Using, and Mining Komodo:
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The rapid rise in the popularity of crypto coins has led to rapid growth in their functionality. Blockchain based companies are continuing to roll out incredible products, challenging the centralized incumbents which have dominated broad swaths of the marketplace for years. With increasing practicality, blockchain-driven platforms are revolutionizing the way technology is employed.
A crucial aspect of these blockchain platforms is their tokens, or coins. These coins are used on the platforms themselves, often as the primary way that participants utilize the platform. Additionally, many coins are sold on popular blockchain exchanges, allowing them to function similarly to more popular coins like Bitcoin or Ethereum.
One coin garnering attention is Komodo. Komodo (KMD) is the cryptocurrency used to power Komodo’s proprietary decentralized ICO platform. It also enjoys the typical functions of other cryptocoins, giving it greater flexibility than many of its peers.
Like its cryptocurrency competitors, Komodo is a blockchain. Blockchains are defined as auditable databases or ledgers that maintain a history of all transactions that occur on the platform. Hundreds, if not thousands of users each have access to the blockchain, allowing them to research and verify the ledger’s transactional history. This means interactions are clear and secure.
Komodo has similar characteristics to other cryptocurrencies. It is fully verifiable, transparent, and decentralized. However, what makes it different is its function within Komodo’s decentralized ICO platform. As the platform’s token, it can be used to conduct operations therein.
Further definitions and explanations about Komodo can be found online via websites like Reddit. The academic world has generally been skeptical of the rise of blockchain technology, so independent research must be conducted largely on the internet.
Currently, there is no way for users to directly purchase KMD with cash. Users must find an exchange that allows other cryptocoins like BTC or ETH to be traded for KMD. Examples are Bittrex, Cryptopia, and CoinExchange.
Therefore, in order to buy Komodo, one must first create a cryptocurrency wallet--a digital "bank account" that houses crypto assets--and register an account with an exchange. The account can be funded with cash or credit card, and once the funds are transferred, Bitcoin or Ethereum must be purchased on the exchange. Then KMD can be purchased on a compatible exchange by exchanging KMD for another crypto coin.
To turn KMD into cash, users should follow the reverse of the process described above. As with purchasing KMD, there is no way to convert it directly to fiat currencies like USD, GBP, or Euros. To cash out a KMD position, KMD must be turned into BTC or ETH, then exchanged again for a fiat currency.
The money in the account registered with an exchange can then be transferred back to a traditional bank account, where the funds can be withdrawn directly out of an ATM. Though it takes a few extra steps, the conversion process is simple and can be done in a small amount of time.
Komodo can be used in two primary ways. First, it can function as an investment vehicle, similar to other cryptocurrencies. To trade KMD, all a potential investor has to do is fund an exchange account with their wallet, convert BTC or ETH into KMD, and begin investing. KMD investors can expect their proceeds to increase in value, though past performance is no guarantee of future returns.
Additionally, because KMD is a decentralized cryptocurrency, it is free from government regulation and central bank policy. In this sense, KMD can be used for purchases or any other activity that a currency is capable of - even Komodo poker! Thus KMD investors, though taking on standard investment risk, don’t have to deal with the exchange rate risk that often plagues currency traders in traditional financial markets.
Second, KMD can be used as a token on Komodo’s proprietary decentralized ICO platform. The technology allows coin developers to launch a coin offering while maintaining investor privacy through its built-in features.
Thus, for the first time in blockchain’s history, it is possible to run an ICO without a trusted third party involved. This will cut down on ICO costs like underwriting. KMD tokens can be used be issuing companies to pay all transactions fees associated with their decentralized ICO. Participation in ICOs can be done through investing KMD.
Komodo mining is the activity of validating transactions that transpire on the platform and adding them to the blockchain. Komodo miners discover new transaction bundles--called blocks--and add them to the ledger. This process helps smooth out the database, adding increased verification and accountability.
Miners are rewarded with KMD or other coins like BTC. Miners use mining calculators to determine their ability to complete a set of tasks and whether the mining projects yield an adequate return.
Komodo differs from traditional blockchain mining in that it follows the delayed proof of work consensus method, something which Komodo is pioneering. In this method, Komodo blocks can be notarized by using the Bitcoin blockchain. Thus, in order to hack Komodo, one would need to rewrite both chains. Delayed proof of work mining combines the efficiency of proof of stake mining with the security of Bitcoin proof of work.
Despite the delayed proof of work consensus method described above, Komodo mining is a straightforward endeavor. Miners must download the appropriate wallet and mining software and double check that their GPU or CPU can handle the required processing power. Miners must then choose whether they want to mine solo or in a mining pool. Mining solo yields higher profitability, but mining in a pool typically guarantees higher computing power and quicker mining time. After a block is validated and included on the blockchain, the miner or miners are compensated with crypto coins. Komodo’s market cap will increase as more transactions are verified--thus miners benefit by receiving coins and watching those coins appreciate in price.
One of the hottest topics in the blockchain industry is whether blockchains can scale. Attempts to scale platforms have been met with varying degrees of success. Komodo's platform boasts of "scalable payment solutions" by using advanced sidechains--blockchain extensions--but further details aren't clear. More than likely, Komodo needs to further develop its scalable features and see them in action before giving a more definitive update.
Komodo’s investment promise and its use as the decentralized ICO platform’s token bolsters its potential. KMD is a flexible coin that perfectly blends investment and functional capabilities.