Interview with Komodo CTO Kadan Stadelmann at Cosmoverse 2022
Hosted in Colombia last month, Cosmoverse 2022 curated thought leaders in the nascent industry of blockchain interoperability. Among those speakers was industry veteran Kadan Stadelmann, who helped build Komodo, a technology that aims to facilitate a cross-chain future for blockchain networks.
Blockchain users cannot exchange bitcoin for dogecoin out of the box, as these cryptocurrencies live on distinct blockchains. Cross-chain bridges exist to transfer assets between chains, but these protocols lack the necessary security for mainstream adoption. Komodo offers another solution, outlined below.
First, Benzinga asked Stadelmann about the Cosmos software development kit, as the Cosmos SDK is now integrated with AtomicDEX. Built on Komodo, AtomicDEX offers a trustless solution for trading assets that live on separate blockchains.
BZ: What types of customizations does the Cosmos SDK offer that other blockchains cannot?
“Overall, I think the Cosmos SDK offers a foundation for creating independent blockchains with such a degree of customizability, without having to reinvent the wheel or get ultra-deep into the smart contract coding stack. This is a big difference that other chains don’t have. On Ethereum allows you to set up a custom token, but with the Cosmos ecosystem you have an extreme degree of customization across the network.For example, transaction fees for apps built on Cosmos can be paid in the app’s token, while all transactions on Ethereum are in Ether.- City man
BZ: Do you have any lofty goals for Atomic Swaps other than in DeFi?
“I think a big sector is data exchange. At the end of the day, when we exchange coins, we exchange data. There can be an open market for knowledge transfers, for example scientific reports we exchange. Anything that has value and a digital representation can be exchanged AtomicDEX in the future.” – Stadelman
BZ: What parts of the user experience are streamlined by having a wallet and decentralized exchange (DEX) integrated into one application?
“Technically they are still two different things because they use two different APIs but live within one product. If you look at the crypto wallet and the DEX alone, what do people end up doing with them? They have to send money from the wallet to the dex, then back to the wallet, using two different wallets from two different providers. We found that it made sense that it was served from one application. In fact, we realized that the user interfaces compliment each other. That’s one of the key factors that made us realize that it is time to unite these products.” – Stadelman
Multiple wallets are sometimes necessary when using different blockchains – trading crypto between chains is not an easy task. Since AtomicDEX is multi-chain, it made sense for it to create a one-stop shop for users to shop across chains.
BZ: Is this a product of being cross chained?
“Yes absolutely. It’s great that you mention that we have so many applications, because then this problem multiplies. It’s a complex matrix you’re in. That’s where AtomicDEX not only tries to streamline user interfaces, but also authentication layers for broader access. Our team is currently implementing Kepler and Metamask authentication capabilities. The end user should be able to use the technology without having to follow a predefined path. Instead, they can use what they are comfortable with.” – Stadelman
BZ: What advantages does AtomicDEX have over using a cross-chain bridge?
The main advantage here is that it is 100% trustless in that there is no custodial operation on our side or the AtomicDEX network. Each user who provides liquidity to the exchanges becomes an infrastructure provider at the same time. I think one of the big differences here that highlights the key factor for being trustless is that we don’t regulate control, liquidity or order book mechanisms. This is not always the case for other AMM (automated market maker) multi-chain setups. There have been critical problems that have ended up with the end user on some of these networks.
BZ: The liquidity providers are infrastructure providers?
“Each user using AtomicDEX also represents one instance in the network. It’s like a node that can forward data packets to other peers, that can help other peers find new peers. The end user is not just someone who trades. It’s someone who scales up the DEX network. This is the key difference between AtomicDEX and smart contract AMM. It’s a big difference in terms of the technology, but we’re trying to solve similar problems.” – Stadelman
BZ: A lot has changed since Komodo launched its token. How has it adapted to new technologies such as alternative layer 1s and NFTs?
“To this day, 7-8 years ago, we were the first to provide a multi-chain vision of smart chain platforms. That’s how we’ve described Komodo for quite some time. There’s only one technology stack we’ve focused on since the inception of Komodo: the exchange layer. Sometimes other technologies came out that were hype and we wanted to start some research, but it cost us too much resources. What we have been focused on is NFT support with AtomicDEX. Cross-chain NFT exchanges are not active yet, but they are under development. It’s similar technology to what AtomicDEX has now, but with different transaction types. By focusing on our DEX, it has allowed us to have the greatest support for 2nd and 3rd generation blockchain protocols.” – Stadelman
With over ten years of experience in blockchain technology, Stadelmann is a visionary who has built what could be the future of finance and beyond. As the industry is still in its infancy, there is still debate as to whether the future is multi-chain, or simply multi-layered, in the case of Ethereum. That said, if the future is multichain, then Komodo and AtomicDEX have cemented themselves at the forefront of the revolution.
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