Key Findings from our experience in the blockchain industry
The Komodo Platform project initially started in 2014. Since then, much has been learned about where the fundamental problems in the blockchain industry lie.
Because the blockchain industry is so young and evolves so quickly, it is safe to say that the technology behind most blockchains will not remain the same for any meaningful period. Thus, an ideal platform is modular by design, meaning entrepreneurs and businesses can progress with the industry in real time. A platform that requires a third-party team, that could theoretically dictate the development direction or architectural choices of a blockchain, is not conducive to the global adoption of blockchain technology.
Instead, a platform should be compatible with the rest of the blockchain industry to take full advantage of all future technological advancements. For a blockchain platform to be sustainable in this rapidly-growing industry, outside competition must be welcomed with open arms rather than ignored and restricted. All businesses in an ecosystem should have a clear pathway to adopt and implement any new technologies the blockchain industry has to offer. Komodo Platform strives to be this kind of blockchain ecosystem.
Also, the blockchain industry is faced with rising transaction fees. Centralized cryptocurrency exchanges charge exorbitant fees and wield an enormous amount of power in an industry whose central purpose is to undermine the need for centralization, oversight, and third-party control. Komodo’s atomic swap technology, integrated into the ecosystem’s decentralized exchange, is the solution to this problem.
Komodo Platform aims to provide the highest degree of freedom and flexibility available anywhere in the blockchain industry.
Through our own experiences, we have concluded that projects will want to use a platform with the highest degree of freedom and flexibility. We might already be at that point as many projects face raising transaction fees on bloated blockchain platforms.
Let's cover some of the problems we need to understand and address for blockchain to go mainstream.
1. Shared Infrastructure
Sharing leads to politics - every project needs its sovereignty.
On most platforms, you have to deal with shared infrastructure. All projects have to rely on what the underlying platform develops, and at the end, they have no say on the decisions made on the core development level.
Sharing infrastructure with thousands of other projects creates scalability issues and endless debates regarding the best course of action.
2. Stagnant Development & Isolated Frameworks
A platform should be compatible with the rest of the blockchain industry to take advantage of all the latest technological achievements. Since the industry is moving fast, there are always new ideas and proposals each solving an issue.
The danger is that a business or project has locked itself into a platform that doesn't allow it to transition into a superior technology smoothly. Likely then, all technological progress has to come from the platform's developers themselves.
3. Lack of Scalability
It goes without saying, of course, that systems need to be built to scale; however, it's worth to note that there are two types of scalability.
- Making the ecosystem scale while maintaining interoperability
- Allowing each project to scale on their terms.
As of now, it seems these two things are lumped together as all projects operate under shared infrastructure, or then they operate in complete isolation from the other systems and lack interoperability.
4. Platform Lock-downs
A project might start developing on a platform, and then later realize that it is insufficient for their needs. Each project should be able to immigrate away from the infrastructure they got started with.
The bottom line is that things will keep evolving on a rapid phase, and projects without constant innovation will be left behind. I would say an ideal platform can give all of the following:
- Flexibility (no lock-downs)
- Sovereignty (independent infrastructure)
- Access (to latest innovation)
Can can we achieve all that without sacrificing security or decentralization?
Did I miss a crucial problem? I'm sure I did. Please share!