Imagine a blockchain ecosystem that you could launch your own stablecoin at the click of a few commands. The possibilities of a decentralized multi-chain blockchain that enables third party creation and customization. Komodo is making this possible and for that reason; Released its beta net for creating stablecoins through bitcoin protocol based cryptocurrencies.
Komodo came to birth after a team from SuperNET forked Zcash. The platform is more an ecosystem than a blockchain that provides end to end blockchain solutions for launching independent chains and Initial Coin Offerings. Furthermore, the multi chain platform also includes a cryptocurrency anonymizer and a decentralized exchange for boosting privacy of transactions.
Users have the ability to create a blockchain that is independent of Komodo. In fact, the resulting blockchains are verified on the Bitcoin Network which makes them secure and customizable via a couple of decentralized modules.
Komodo ingeniously allows coders with some level of experience to design and deploy their bitcoin protocol-based cryptocurrencies. A blockchain development web application platform called Komodo’s Antara makes all of these possible.
The Komodo Stablecoin composer’s alpha version tests a Price and Pegs feature. This feature is for the deployment of commodities and stocks backed by stablecoins and digital currencies. Additionally, it will work in sync with the prices module to keep track of asset pricing in the real world. Then provide metadata to the overall Komodo Smart Chain.
The platform will have the value of any Bitcoin lock fund protocol in the form of stablecoin and withdraw a limit of 90 percent. In turn, the user can exchange the value through an atomic swap for other assets on the network.
Atomic swap is a smart contract module for exchanging cryptocurrencies for another by eliminating intermediaries. Once a stablecoin is deployed on the Komodo Smart Chain, creators can list it on the native AtomicDEX. The Chief Technology Office at Komodo, Kadan Stadelmann said
“If you wanted to create a chain, you could do that right now, alone at your computer, without any external support, without any funds—without anything—and you can just like spin up your own blockchain”
Creators can back bitcoin, Komodo native cryptocurrency (KMD), or several other digital currencies to their Komodo Stablecoins. Once deployed, creators anchor it into the Bitcoin network to boost safety and efficiency. The entire process will be decentralized and centered in the Komodo Smart Chain: Stadelman added that:
“There is full transparency, the biggest problem with [certain] stablecoins is the lack of transparency. We believe that our technology, and the way that we implemented the stablecoin module, provides 100% transparency.”
Komodo is finding potential partnerships for its stablecoin services with financial firms that could be interested in building and securely deploying their very own stablecoins. The CTO noted that :
“This feature would allow financial firms and investment firms to spin up a stablecoin within minutes,”
Enterprises that build their own stablecoins will enjoy loyalty program integration, branding opportunities, and secondary market liquidity. Furthermore, they could also lower transaction costs, streamline loyalty programs and benefit stable interest income from traditional fiat reserves. Stadelman pointed out that:
“If you are from the fintech sector, you could basically build up a derivative trading platform in a decentralized fashion,”
The CTO believes that the applications of blockchain are endless and present a future of possibilities.