Komodo CTO: AtomicDEX to drop beta tag in 2022 after audit and hardware wallets

Ashton Addison: What makes Komodo unique, and what has the team been working on since we last spoke?▶ 00:22

Kadan Stadelmann: Komodo is an open-source blockchain technology provider. We offer a variety of open-source technologies, mainly targeting blockchain interoperability, and our technology supports the majority of existing blockchain protocols. Since we last met, our focus has remained the same. We've kept working on AtomicDEX, which has had one huge iteration, and the technology is out now. For end-user products, we have both a mobile and a desktop application. Our next, bigger iteration shifts the entire technology towards Web 3.0 support, and we're already natively supporting the web environment.

Ashton: For people who trade on centralized exchanges or have used a DEX but never AtomicDEX, what makes it special?▶ 01:56

Kadan: AtomicDEX is a third-generation cross-chain, cross-protocol decentralized exchange. It provides an open-source, permissionless, peer-to-peer network and technology layer for trustless cryptocurrency exchange. That means I could exchange cryptocurrencies or tokens with you or any other third party without an intermediary in between. This is going a step further now, because we're reaching an era where this technology will also support the exchange of data. Look at NFTs, for example. Technically, you could exchange anything, even knowledge, with this type of technology. By shifting purely to the web environment, we make sure we provide the technology to any operating system and any platform. It's permissionless from an access perspective, and we thought it should also be widely interoperable with all the available platforms and operating systems.

Ashton: It's in a public testing phase right now. Can anyone use it?▶ 03:30

Kadan: The application has been around for quite a while. We had a closed beta and have now shifted to a totally open beta, so anyone can join the program. Technically, it is production ready. We haven't had additional third-party validations yet, but those steps are taking place right now. Anyone is welcome to download the application and use it as a wallet as well as a DEX.

Ashton: Unlike Uniswap, which moves ERC-20 tokens, AtomicDEX works across blockchains. How far does that go?▶ 04:18

Kadan: There are different benefits. One is giving traders and users the ability to move native coins across different protocols and chains. It also provides a bridging solution. Tokens have representations on different protocols, so you could have a representation of Bitcoin or Ethereum on Cosmos, for example. We try to provide one global, interoperable bridging solution between all the major protocols. As of today, the major blockchain protocols are all supported, including Ethereum and BSC. We also have a new protocol integration rolling out shortly that will extend interoperability to additional protocols, Solana being one of them.

Ashton: Why did Komodo partner with DigiByte for the testing program?▶ 06:37

Kadan: Komodo and the AtomicDEX vision have been around for quite a while. This dates back to around 2013 and 2014, the early blockchain days, just before the first ICO bubble. DigiByte was an OG coin from that time, and we still have some community-level connection with them. So our marketing and tech teams decided to involve third-party communities in what was an almost completed beta stage. We asked DigiByte if they'd like to run this usability campaign with us. It's an open testing session, and we invited communities to tell their members about a decentralized, cross-chain, cross-protocol DEX with an integrated multi-coin wallet. More features are coming, including Lightning Network support, hardware wallet support and web environment support. DigiByte is already natively supported on both the mobile and desktop applications, which made it an optimal candidate. Our vision wasn't just to connect the tech and the protocols. It's also about bridging the communities, with the technology as an underlying bridge builder.

Ashton: On Ethereum DEXs like Uniswap, high fees keep newcomers with little capital out. Is that a problem on AtomicDEX?▶ 08:57

Kadan: It's a very good question, and a realistic problem we face every day. With many cross-chain atomic swaps, you rely on the native protocol you're using. If I exchange a native ERC token with you for Litecoin or Bitcoin, I probably have to pay a very high fee on the Ethereum side, at least recently. But nearly all ERC tokens and native cryptocurrencies have representations on other platforms. You can use such a wrapped asset for a cross-chain atomic swap and trade multiple times a minute without paying as much as the native transaction fee. We're also implementing enhancements such as Lightning Network support and other layer-two solutions, which are designed to address these scalability problems and exorbitant fees. We think they're a real problem and a blocker for the average, everyday user.

Ashton: What is the key to bringing AtomicDEX closer to mainstream adoption?▶ 11:19

Kadan: It's a balance of usability and security enhancements. A few core features are still missing before I'd consider it ready for mainstream adoption. One is hardware wallet support, which is the ultimate security, so even if your device were infiltrated you couldn't suffer any damage. We're actively developing and integrating it, and we're well past the prototyping and proof-of-concept level. We also have protocol enhancements, hardening and making it more robust, on the roadmap, with the majority rolling out around the second quarter. That's also when we'll seek an external secure code review and audit of the entire AtomicDEX, so people don't have to rely on our own explanations and presentation of the protocol. I think 2022 is a huge year for us because we're finally removing the beta and testing tags from the software. Reaching that stage also means third parties, such as wallet providers and cloud services, can integrate AtomicDEX. We have a fully featured, trustless, permissionless API. If you have a wallet, you can offer your users trading through it, and you could even add a margin on top to generate revenue.

Ashton: Why does hardware wallet support and non-custodial trading matter so much?▶ 14:56

Kadan: The custody users give to centralized exchanges is a huge risk. I think many users aren't aware of that counterparty risk and what could happen to their funds. There's the famous, or infamous, quote "not your keys, not your coins", and that's something we all have to keep in mind. That's what we're targeting with AtomicDEX: a totally trustless, non-custodial wallet.