Klaytn: Aiming for a less regulated environment
By Rayna Ishihara | Crescent City Capital Market Analyst Intern
What is Klaytn:
Klaytn is a business- oriented public blockchain platform developed by Kakao Corp., aimed at providing an easy-to-use blockchain service for mass adoption. Its key design goals include enterprise-grade reliability, immediate finality, high transactions per second, and lower costs for running blockchain applications. Klaytn aims to lower barriers to entry for end-user adoption and make the technology adoption process easier for the industry. Recently, Klaytn passed a governance proposal to burn nearly 50% of its token supply, which contributes towards making its token more valuable in the future.
The Klaytn history began with a company known as KAKAO, a large publicly traded company in South Korea, with a market cap of 41.85 billion USD, offers widely-used services such as KakaoTalk and Kakao T (KakaoTaxi). It launched South Korea’s first internet-only banks in 2017. Despite facing regulatory resistance, Kakao aimed to create its own cryptocurrency and worked around the restrictions by using subsidiary companies in foreign countries. “Korea needs to build an environment of negative regulations just like other tech-savvy countries such as the United States and Singapore. Developers can try new projects more freely in a less regulated environment,” Klaytn Foundation Director Sam Seo said in a recent interview.
Klaytn combines the strengths of public and private blockchains to offer a user-friendly blockchain experience through its hybrid infrastructure. It uses a modular network that allows businesses to create and operate their own customized service chains, which run as subnetworks on the Klaytn architecture. These service chains are flexible and easy to customize and can accommodate any web service except for gambling and financial speculations.
Klaytn Tech
Klaytn refers to its service chains as Blockchain Applications (BApps) instead of decentralized applications (dApps) like other blockchain systems. BApps are not obligated to run decentralized web services, allowing both centralized and decentralized BApps to benefit from Klaytn’s public mainnet, security, and transparency. Klaytn partners with various firms and businesses to build a stable blockchain ecosystem and improve the platform, aiming to provide an optimal blockchain experience for users.
Klaytn, which is designed for enterprise use, uses an improved version of Istanbul Byzantine Fault Tolerance (IBFT) as its primary consensus mechanism instead of the more commonly used Proof-of-Work (POW) and Proof-of-Stake (POS) mechanisms, allowing for a hybrid infrastructure that combines the benefits of private and public blockchains. It also allows beginners to employ the Proof-of-Stake (POS) consensus mechanism. Klaytn uses the same virtual machine as Ethereum but processes transactions much faster and has lower gas rates. Its adoption of BFT addresses scalability concerns, particularly at the enterprise level. Klaytn has DX offerings for interoperability and an integrated development environment. Klaytn transactions are fixed, making transaction fees predictable, which addresses a major concern for blockchain adoption at the enterprise level.
Klaytn Token
KLAY is the native utility token used on the Klaytn Network, serving as the fuel for smart contracts. It has three main use cases: network utilization, yield farming on KLAYswap, and minting Klaytn-based NFTs. KLAY has a total supply capped at 10 billion tokens, with an inflation rate of 300 million KLAY per year for block rewards. It is primarily used for all platform transactions and blockchain applications on the network, with approximately two billion KLAY in circulation as of Q1 2021.
Klaytn aims to provide a scaling solution for enterprise-level adoption of blockchain technology. The views and opinions expressed should not be considered as financial advice.
Recent Updates
The live Klaytn price on May 28th is $0.1876 USD with a 24-hour trading volume of $13,282,785 USD. It has a circulating supply of 3,096,628,454 Kalytn tokens.
Summary
Klaytn is a business-oriented public blockchain platform developed by Kakao Corp. It uses a hybrid infrastructure that combines the benefits of public and private blockchains to offer a user-friendly blockchain experience. Klaytn employs an enhanced version of Istanbul Byzantine Fault Tolerance (IBFT) as its primary consensus mechanism, allowing for a hybrid infrastructure that combines the benefits of private and public blockchains. KLAY is the native utility token used on the Klaytn Network, serving as the fuel for smart contracts. It has three main use cases: network utilization, yield farming on KLAYswap, and minting Klaytn-based NFTs. Klaytn aims to provide a scaling solution for enterprise-level adoption of blockchain technology.
References
https://www.koreatimes.co.kr/www/nation/2023/05/602_347957.html
https://coinrivet.com/guides/altcoins/what-is-klaytn-and-how-does-it-work/
https://golden.com/wiki/Klaytn-8ABKWW8#The-KLAY-Token