CryptoSlate recently sat down with Kadan Stadelmann, the Chief Technology Officer (CTO) at the Komodo Platform, to explore how atomic swaps are poised to transform the landscape of cryptocurrency trading. Our discussion also delved into how the Komodo team is navigating the current bear market, along with Stadelmann's forward-looking predictions for the future of crypto and blockchain technology.
Our interviewee has applied his extensive software development and ethical hacking expertise in various roles. Before joining the Komodo team, Kadan Stadelmann co-founded SatoshiHack in December 2011, focusing on organizing blockchain-focused hackathons and developer recruitment. He later sold SatoshiHack and transitioned to other ventures.
From April 2013 to April 2014, Stadelmann led the IT security division of a major African holding company. In the subsequent two years, he held similar positions on several IT-related security projects for the same group.
Stadelmann first defined Komodo as "an open, multi-chain platform offering blockchain technology solutions to meet virtually any use case." He then introduced CryptoSlate to the Komodo blockchain infrastructure kit, the platform's flagship product. The CTO further explained that this solution includes "a customizable, independent blockchain with its own decentralized network." This empowers users to launch their own blockchains tailored with specific features.
Stadelmann added that Komodo's innovative delayed proof-of-work (dPoW) consensus mechanism guarantees "Bitcoin-level" security. Komodo leverages the Bitcoin network to secure its own blockchain by having its nodes periodically backup records of the Komodo blockchain onto the Bitcoin blockchain—the network with the highest hashrate in the industry.
The dPoW security model makes 51 percent attacks on Komodo-connected chains as difficult as an attack on the blockchain it notarizes. This renders an attack on the Komodo blockchain as improbable as one on the Bitcoin network itself.
According to Stadelmann, the Komodo Software Development Kit (SDK) equips developers with multi-coin wallets, a decentralized crowdfunding module, an open-source atomic swap decentralized exchange (DEX), and a robust security layer. He describes the Komodo platform and its features as an "all-in-one solution" or "launchpad" for third-party projects.
Stadelmann described the fundamental nature of atomic swaps:
"Atomic swaps are peer-to-peer trades of digital assets without any central entity between the trading partners. A trade occurs directly from one user to another—with a direct communication line, routed through a decentralized network and triggered by cryptographic (mathematically verifiable and unforgeable) conditions and events."
As a result of the direct exchange enabled by atomic swaps, Stadelmann considers such trades significantly more secure than those executed on centralized cryptocurrency exchanges. According to the seasoned developer, atomic swaps are inherently "secure and trustless." He attributes this to the fact that it is technically impossible for even malicious actors to defraud the other party in an atomic swap transaction.
Stadelmann used the Komodo atomic swap protocol to illustrate how this technology will impact crypto exchanges and wallets. He highlighted that atomic swaps bring about greater liquidity across all exchanges. Since atomic swaps facilitate cross-chain trades, a lack of liquidity on one specific exchange or blockchain can be offset by liquidity on other chains.
The entire cryptocurrency market benefits from this increased liquidity, as atomic swaps are not confined to a single trading platform. For instance, as more traders adopt the Komodo Atomic DEX, buyers gain access to a larger pool of sellers, and vice versa.
Wallet developers also benefit from Komodo's open-source atomic swap protocol by integrating its API free of charge. Stadelmann noted that wallet developers can leverage Komodo's atomic swap technology to enable their users to perform atomic swaps directly from their wallets.
He further emphasized the security of atomic swaps. The risk of losing funds is minimal because users retain complete control over their private keys throughout the entire swap execution process.
Stadelmann admitted that predicting the exact level of adoption blockchain technology will achieve in the next five to ten years is challenging. However, he is confident that mainstream technology sectors will adopt elements of blockchain. For example, the developer anticipates the use of trustless technology in critical systems and workflows within the government, energy, medical, and logistics industries.
In Stadelmann's view, blockchain projects with real-world use cases have been on the rise, marking a shift in focus from short-term price speculation to long-term technological development.
Stadelmann revealed that approximately 99 percent of all digital assets in existence can be supported by the Komodo DEX. Each integrated asset can have a direct trading pair with every other integrated asset, creating a deeply interconnected market.
In line with the open standards philosophy of the Komodo DEX, there are no listing fees involved with integrating new cryptocurrencies or tokens. Additionally, trading fees on the DEX are exceptionally low, at just 0.15 percent per trade. It's important to note that only one party in a swap pays the trading fee.
CryptoSlate was also informed about the Komodo mobile DEX application, which is currently in private alpha testing. The mobile app is said to feature the full capabilities and functionalities of the desktop DEX.
Many cryptocurrency businesses have been forced to shut down or downsize in the current market due to financial constraints. This is reportedly not the case for Komodo, as they have recently made new additions to both their development and marketing teams.
According to Stadelmann, the Komodo team has been operating with high efficiency. The team has historically been more focused on core software development than aggressive marketing, allowing them to remain lean. As a result, the CTO is confident that his team can continue operating for the next five to ten years without any financial issues.
Most conclusively, the Komodo CTO stated that the platform is "making significant progress in delivering on its promises and services."
