Komodo, a modular, multi-blockchain ecosystem has announced a partnership with Coinbene, one of the world’s largest cryptocurrency exchanges, with more than 170 digital assets listed for trading and over $330 million in daily trading volume. The strategic technical partnership between the two will explore solutions to support Coinbene’s 2019 security initiative.
As part of the strategic technology partnership, Coinbene is officially endorsing Komodo’s Blockchain Security Service as a verified third-party security service. Coinbene will recommend Komodo’s Blockchain Security Service to at-risk cryptocurrencies currently listed on its exchange as well as new coins and tokens listed for trading in the future.
Komodo’s Blockchain Security Service is a third-party solution to the rising problem of 51% attacks, protecting both blockchains and exchanges from financial losses. Available to any UTXO-based blockchain, Komodo’s solution has already been adopted by six projects— GAME Credits, Kreds, Einsteinium, HUSH, SUQA, and GIN Coin.
Komodo’s solution leverages the power of the Bitcoin network to give every integrated chain BTC-level security. This is made possible with Komodo’s delayed Proof of Work (dPoW) mechanism, which periodically notarizes a block hash from every integrated chain to the KMD chain, then notarizes a block hash from the KMD chain onto the BTC chain every ten minutes. In this way, no blocks or transactions can be altered after a notarization is made.
Also, Coinbene will soon list Komodo’s native token KMD to become available for trading on the Coinbene exchange with BTC, ETH, and USDT.
“Coinbene is excited to be entering this strategic partnership with Komodo,” said Yhangbing Zhang, Founder of Coinbene. “We have reviewed the technical aspects of Komodo’s security service and it is by far the best third-party security solution being offered right now. We’re pleased to help promote Komodo to the cryptocurrencies listed on Coinbene and to help make the blockchain industry more secure.”
“Komodo, as an industry leader in innovation, is happy to be partnering with Coinbene to help support their strategic security initiative. Right now, many blockchains are vulnerable to attack, which threatens developers, investors, exchanges, as well as the credibility of the industry as a whole. Komodo’s Blockchain Security Service aims to make the blockchain industry more secure and promote mass adoption by building trust with those who do not yet use the technology.”
Moreover, the strategic technology partnership between Coinbene and Komodo will begin exploration into Komodo’s atomic swap technology. Atomic swaps are peer-to-peer swaps of digital assets in which both parties retain control of their private keys throughout the entire trading process. This method of trading provides maximum security, promotes decentralization with fully peer-to-peer exchanges, and fosters blockchain interoperability by creating more direct trading pairs between different coins and tokens.
“Komodo has long been a pioneer and innovator in atomic swaps, and has been working on evolving the technology since 2014. Version 2.0 of our atomic swap engine has just entered the alpha stage, which will bring support for all coins along with enhancements that allow it to become fully mobile-ready. Our shared liquidity pool model allows us to integrate with exchanges, wallet providers, and liquidity providers, while giving users and developers more options to utilize atomic swap DEX technology.”
“Komodo has demonstrated clear leadership and technical innovation around atomic swap decentralized exchange technology. Coinbene is excited to work with Komodo to explore a joint solution that aligns to our DEX and atomic swap strategy. Our goal is to integrate innovative technologies that will offer the highest levels of security while also providing an excellent user experience to our customers.”
Thefts and Hacks
In 2018, the blockchain space saw a number of successful 51% attacks, with several of them leading to seven-figure losses. Verge (XVG), for instance, was attacked twice last year, once in April and again in May, for losses of nearly $3 million USD.
In a particularly brutal attack, over $18 million USD in Bitcoin Gold (BTG) was double-spent on the Bittrex exchange. After a dispute over who was responsible for the massive loss, Bitcoin Gold refused to reimburse Bittrex and Bittrex retaliated by de-listing BTG from its exchange.
The first month of 2019 has already seen two high-profile attacks with Ethereum Classic losing $1 million through a 51% attack, and Cryptopia, a New-Zealand-based exchange, losing an estimated $16 million in assets after a hack. With the rising threat and frequency of both 51% attacks and digital asset exchange hacks, Coinbene has entered a Strategic Technology Partnership with Komodo to drive a 2019 security initiative and demonstrate a clear focus on protecting their partners and customers.