Komodo’s technology vision is anchored to the 4 Pillars of Blockchain Technology: security, scalability, interoperability, and adaptability. This post will explain how Komodo’s innovative Delayed Proof of Work (dPoW) security mechanism works and announce the new Blockchain Security Service that’s available to any UTXO-based blockchain project.
Komodo’s Security Mechanism: Delayed Proof of Work (dPoW)
In the blockchain industry, security is the most important aspect of any project. If a coin or token isn’t secure, it’s simply a matter of time before it gets hacked.
There have been a number of successful attacks recently that demonstrate this point. NEM tokens, Verge, Bitcoin Gold and ZenCash, just to name a few, have all fallen victim to hackers in 2018. Now, more than ever, blockchain projects need to focus on security.
Komodo Platform uses a unique security mechanism to protect the KMD chain. In essence, it leverages the hashrate of the Bitcoin network to protect Komodo. This is made possible by storing backups of the KMD blockchain onto the Bitcoin ledger.
Here’s how it works. Every ten minutes, a block hash from a block in the KMD chain is written into a block on the Bitcoin blockchain. This process is called notarization and it is the backbone of Komodo’s security mechanism. Komodo Platform’s notary nodes carry out the technical work required to successfully complete notarizations.
The notarization process is crucial because it protects Komodo with the same level of security as the Bitcoin network. After a notarization is completed, the KMD chain cannot be re-orged back past the block that was notarized. Every transaction completed before that point is protected with the power of the BTC hash rate. As such, hackers would need to overpower the Bitcoin network in order to destroy the notarized block hashes before they could disrupt or alter the KMD chain.
Newly-formed blockchains are normally vulnerable to outside attacks because they have little hashrate to protect themselves. Komodo Platform negates this risk with our new Blockchain Security Service.
Komodo’s delayed Proof of Work (dPoW) as a Service
As we look to the second half of 2018, Komodo is prepared to offer delayed Proof of Work (dPoW) security to any projects that would like to improve their security. This service is available to any UTXO-based blockchains.
In fact, Komodo’s Blockchain Security Service is already demonstrating its functionality and efficacy. We are proud to announce that we are already providing this invaluable service to five different blockchains: GAME Credits, Kreds, Einsteinium, HUSH, and SUQA. Several more projects have also signed up to receive Komodo’s Blockchain Security Service.
There are many small- and mid-sized blockchain projects with plenty of potential, but also plenty of vulnerability. We hope to provide the protection necessary for these new projects—and the blockchain industry as a whole—to grow and prosper. Every project deserves the opportunity to succeed or fail on its own merit, without outside interference from malevolent actors.
However, it’s difficult for small blockchain projects to develop a network powerful enough to ward off attackers. Mining new coins is a risky allocation of resources, so many crypto miners prefer to put their machines to work on established blockchains. That way, they are more likely to see a return on their investment.
As more and more miners choose to mine reputable blockchains, like Bitcoin, larger networks are developing an insurmountable lead on hashrate. And a large hash rate is what ensures the security of a blockchain. Bitcoin, of course, remains the world’s strongest network.
The gargantuan power of the Bitcoin network is perhaps best understood by the amount of electricity it consumes. A study published by Dutch researcher Alex de Vries in May 2018 found that Bitcoin mining uses roughly the same amount of electricity as the entire nation of Ireland— that’s about 24 Terawatt hours of electricity per year. This means that every single hour, Bitcoin mining consumes 2.55 gigawatts of electricity.
While the environmental concerns surrounding this quantity of energy usage are important, we won’t get into that discussion here. The point is that the Bitcoin network is insanely powerful and will not be surpassed at any point in the foreseeable future.
So rather than dedicating resources to increasing the hash rate of your own blockchain, why not simply recycle the enormous hashrate that the Bitcoin network already has?
That’s exactly what Komodo’s Delayed Proof of Work consensus mechanism does.
With Komodo’s security services, you can have your blockchain protected by with the power of the entire Bitcoin network. Global Bitcoin mining costs a staggering $400,000 USD per hour. But with Komodo’s Blockchain Security Service, you can have the same level of security for a tiny fraction of a single percentage point of the cost.
If you’re interested in partnering with Komodo to secure your blockchain with dPoW services, please contact us at [email protected].
Join us as we continue to protect the blockchain industry and accelerate the global adoption of blockchain technology.