Last week, we announced our plans to unveil the 5 latest features being added to Komodo Platform. Each of the 5 features will improve one important attribute of Komodo’s tech: security, scalability, interoperability, privacy, and simplicity.
In this post, we will explain our new Cross-Chain Smart Contracts, which will allow complete blockchain interoperability.
The Necessity of Interoperability
As the blockchain industry continues to grow and progress, interoperability will become an essential feature for any project to survive. It doesn’t make sense to have hundreds of blockchains completely separated from one another, competing for market share and value.
Without interoperability, the blockchain industry is like a giant chain of islands with neither boats nor bridges. It’s possible to exist on one small island and live with the community on that island, but you can’t hop to another island without an enormous amount of effort. In fact, to move to a new island, you need to abandon your previous community altogether and swim to a different piece of dry land.
When there are major innovations on one island, they are confined to the island on which they were developed. This is true even if those same innovations would be beneficial for every other community in the island chain. This stifles progress, as the peoples of various islands are prevented from collaborating and using one another’s ideas to promote the betterment of the island chain as a whole.
Komodo Platform is building bridges. We believe it is not only beneficial but absolutely imperative that blockchain projects connect with one another and establish interoperability. We have always believed in maintaining a collaborative, rather than a competitive, spirit. We believe there’s plenty of room for many crypto projects to succeed and we’re working hard to unite the blockchain industry.
Komodo’s Existing Interoperability Features
It is for these reasons that Komodo pioneered atomic swap technology and built BarterDEX, the world’s most advanced decentralized exchange. Atomic swaps are peer-to-peer cryptocurrency trades that exchange two different coins directly from one user to another, wallet to wallet.
This method of trading eliminates the need for proxy tokens, centralized exchanges, escrow services, or other third parties. As a result, atomic swaps are much cheaper and far more secure than trades performed on centralized exchanges.
At present, over 110,000 atomic swaps have been performed on Komodo’s decentralized exchange, BarterDEX. Atomic swaps represent a huge step forward in interoperability.
Komodo Platform was also the first project to bridge the gap between Bitcoin-protocol-based coins and Ethereum-based ERC-20 tokens. Prior to this development, a trade from a BTC-based coin to an ERC-20 token required extra steps in the trading process, thus increasing the transactions costs. A user would have had to trade BTC-based altcoin—>Bitcoin—>Ether—>ERC-20 token.
Now, with Komodo’s atomic swap tech on BarterDEX, a user can go directly BTC-based altcoin—>ERC-20 token (or vice versa). BarterDEX currently supports atomic swaps for over 95% of all coins and tokens in existence. No other exchange or platform can claim this degree of interoperability.
Komodo’s New Interoperability Technology
We here at Komodo are pleased to announce that we are developing yet another interoperability-enhancing technology. We call it Cross-Chain Smart Contracts. In short, this feature allows inter-blockchain transfers of value without performing a swap or trade. This made possible through a combination of notarized Merkle proofs and a burn protocol that keeps coin supply constant.
This new technology creates blockchain interoperability, providing two main benefits. First, if a project launches a blockchain on Komodo and one chain is no longer sufficient to handle that project’s needs, additional chains can be created and synchronized with the first. This is possible because Cross-Chain Smart Contracts allow several (or many) blockchains to communicate with one another and function as a single chain.
This means all projects within the Komodo ecosystem can scale on-demand and grow with their business. As a project’s demands increase, more chains can always be added so that performance never falls behind. If one chain isn’t cutting it, add a second. If two chains aren’t enough, create a third. And so on. There is no limit to the number of chains that can exist in a single assetchain cluster. This tech is available to all projects within the Komodo ecosystem.
Second, as a result of Komodo’s MoMoM scaling solution technology, any chain on Komodo Platform can verify transactions that have occurred on any other chain in the ecosystem. In addition, Cross-Chain Smart Contracts allow a seamless transfer of value between chains without the need for a trade or swap. To put it very simply, coins on one chain are burned while the value is allowed to appear on a separate chain within the ecosystem. In other words, it is complete blockchain interoperability.
Here at Komodo, we strive to accelerate the adoption of blockchain technologies around the globe and to lead the world in blockchain interoperability. Our Cross-Chain Smart Contracts are another huge step towards achieving these goals.
Join us as we continue to innovate end-to-end blockchain solutions.