In this whitepaper we discuss a completely new cryptocurrency consensus mechanism, that is as secure as the proof-of-work blockchain to which it attaches itself to (In this case: Bitcoin), but does not require computing power and energy to be wasted. This system is called Delayed Proof of Work (dPoW) and is achieved by notarizing blocks created in the initial blockchain on the Bitcoin blockchain, ensuring that once the information is engraved on the Bitcoin blockchain, it would be required both blockchains in question to be compromised.
In this whitepaper we describe the implementation of a decentralized exchange that would allow people to trade coins without a counterparty risk. A fully featured service would need to decentralize order matching, trade clearing, and settlement. The order matching would be done through low level pubkey to pubkey messaging protocol and the final settlement through an atomic cross chain protocol. Like any exchange, a decentralized alternative also needs liquidity providers to ensure it has enough liquidity.
A bridge between the old centralized and the new decentralized financial infrastructures will help accelerate blockchain adoption. It is possible to create decentralized fiat payments by creating a decentralized cryptocurrency that is pegged to local currency. The pegged fiat currency is automatically converted into another cryptocurrency that has market value. The prices are recorded on the Komodo blockchain, and all the nodes use the information to maintain a universal price consensus of each fiat currency.