October 15, 2021 - Komodo - a blockchain and DEX technology provider - announced today that it has joined the UTXO Alliance.
The UTXO Alliance is an organization that helps kick start collaboration with individuals and organizations to make the UTXO (unspent transaction output) model more scalable, secure, and interoperable.
Bitcoin, the world’s largest blockchain network and cryptocurrency by market cap, is the pioneer of UTXO technology. In contrast, blockchain platforms like Ethereum use an account-based model for keeping track of transactions on their blockchains.
What Is UTXO?
Each UTXO (unspent transaction output) is similar to a banknote. For example, a user pays for something that costs $35. The only way to complete the transaction is to pay in set unit increments (e.g. one $20 bill and three $5 bills OR three $10 bills and one $5 bill). The only time a UTXO can be assembled or disassembled into larger or smaller sizes is at the moment when it is involved in a transaction on the public blockchain. After each transaction is complete, the previous UTXO is spent. In its place, a new UTXO or multiple UTXOs are created and remain unspent until used for a new transaction.
In contrast, account-based blockchains are like each individual wallet having a ledger of its own, much like an ATM/debit card account. Using basic arithmetic, coins and tokens are added and subtracted from each wallet to provide a final balance after every transaction. With this model, $35 would just be deducted directly without having to split the components of a blockchain transaction.
The UTXO model has started to gain a resurgence in popularity among blockchain projects in recent years - offering a variety of advantages over the account-based model. Increased privacy, scalability, interoperability, and consistently lower, more predictable transaction costs are considered major benefits of UTXO technology.
Komodo's Commitment to Advancing UTXO Technology
Komodo joins Cardano, IOHK, Ergo, Nervos, and Topl as the newest member of the UTXO Alliance, with each project in the organization bringing a unique contribution to UTXO technology innovation.
Komodo CTO Kadan Stadlemann said,
“UTXO blockchains lay the basis and undisputed foundation of today's blockchain industry. UTXO technology reflects Satoshi Nakamoto’s core vision of ultimate (financial) liberty. On behalf of Komodo Platform and the AtomicDEX team I am honored to join the UTXO Alliance to uphold and advance this vision. I am certain that together with the other alliance members we will bring this technology to the next level. All for one and one for all!”
Komodo is a blockchain project that is providing several cutting-edge UTXO technologies.
First and foremost, Komodo is working towards native blockchain interoperability with AtomicDEX - a non-custodial wallet and cross-protocol decentralized exchange rolled into one application. AtomicDEX supports 99% of cryptocurrencies in existence.
Komodo’s AtomicDEX is the blockchain industry’s most decentralized cross-chain, cross-protocol bridge. UTXO-based blockchain networks already supported by AtomicDEX include Bitcoin, Dogecoin, Litecoin, Bitcoin Cash, Qtum, among others.
Second, Komodo has an innovative multi-chain platform in which new projects can launch their own Komodo Smart Chain (independent blockchain network) and native cryptocurrency with unlimited scalability and zero gas fees. Most recently, in August 2021, Tokel launched a Komodo Smart Chain and conducted the first ever peer-to-peer initial DEX offering (IDO) on AtomicDEX.
Komodo also offers a built-in library of UTXO smart contracts that are utilized by Komodo Smart Chains for developing applications such as lending/borrowing, stablecoins, and oracles.
Finally, Komodo’s delayed Proof of Work (dPoW) is widely regarded as a blockchain security as a service solution that uses cross-chain notarizations of the UTXO-based Litecoin network. delayed Proof of Work (dPoW) protects billions of dollars in cryptocurrencies and has actively thwarted live 51% attacks, including a $1.23 million double spend attempt on a third-party blockchain network in 2020.
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