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Klaytn (KLAY) is a public blockchain platform that focuses on the metaverse, gaming, and the creator economy. It was launched in June 2019 and has gained a significant market share in South Korea. The platform is expanding globally and is supported by the Klaytn Growth Fund which is managed by the Klaytn Foundation, a non-profit organization based in Singapore.
Klaytn is a blockchain platform developed by Ground X, a subsidiary of South Korean internet giant Kakao.
KLAY uses a hybrid consensus of both PoW and PoS to secure the network. It also features a governance system that allows for community-based decision making for network upgrades.
Klaytn aims to bring blockchain to real-world use cases: digital identity, gaming, and content distribution.
Klaytn is a platform that supports the implementation of metaverse solutions that work efficiently in real-time. To understand more about this distinctive blockchain platform and evaluate if investing in KLAY could be a suitable choice for you, continue reading.
How does KLAY work?
Klaytn, a public blockchain platform, boasts a range of distinctive features, including a comprehensive metaverse package. This package includes tailored layer-2 solutions, smart contract libraries, blockchain explorers, cryptocurrency wallets, bridges, and oracles, as well as a variety of supporting services such as NFT marketplaces and stablecoin integration.
KLAY provides a comprehensive solution for individuals or organizations looking to construct projects within the metaverse, such as crypto-based games that offer play-to-earn mechanics. Additionally, the Klaytn protocol utilizes Istanbul Byzantine Fault Tolerance (IBFT) as its consensus algorithm. This enables the network to process transactions in under a second. This feature makes KLAY suitable for use cases where quick confirmation of transactions is important. An example of this is creating non-fungible tokens (NFTs) in real-time as rewards in video games.
Klaytn, a public blockchain designed for the metaverse, gaming, and the creator economy, utilizes the Ethereum Virtual Machine (EVM) as part of its efforts in developing the Web3 and metaverse. The network achieves compatibility with EVM by making its technical infrastructure equivalent to Ethereum’s, building on top of existing Ethereum clients, and allowing for both Ethereum Improvement Proposals (EIPs) and Klaytn Improvement Proposals (KIPs) to contribute to both ecosystems.
The Governance Council
Klaytn cryptocurrency has an exceptional governance system known as Governance Council (GC). It comprises enterprises and decentralized autonomous organizations (DAOs) from all over the world. The members of GC form a validator network that can provide the advantages of a decentralized public blockchain while maintaining the efficiency of a centralized, permissioned blockchain. Klaytn aims to increase decentralization in the future by adding more DAOs.
Klaytn’s BApp Ecosystem
KLAY has a unique feature where it allows for the hosting of blockchain applications, called BApps, on their Service Chains by their ISPs. Unlike other platforms, Klaytn’s network allows for both decentralized and centralized BApps to interact with its public mainnet and take advantage of its blockchain-enabled transparency and security features, regardless of their deployment method. This is why they use the term “BApp” instead of the common “dApp” or “decentralized application.”
In June 2019, Klaytn launched the first set of BApps on its mainnet alongside various initiatives to bolster the growth of its BApp ecosystem. This included the Klaytn Hackathon, a virtual hackathon that enabled developers to create functional projects on Klaytn’s public testnet, and Klaytn Horizon which invited developers around the world to build applications on the network. These programs evaluated applicants on their ability to create usable services and a user-friendly blockchain experience. As part of the Klaytn Horizon competition, the winners received a portion of a $1 million USD prize pool.
By 2020, a significant number of BApps ran on the Klaytn mainnet. These BApps mainly focus on entertainment, and they also offer additional features such as NFTs which can be collected. To use these BApps and pay for their services, the native token KLAY acts as a medium of exchange.
KLAY coins are also rewarded to top-performing BApp developers at the discretion of the Klaytn Governance Council. This council consists of high-profile strategic partners such as LG Electronics and Celltrion. This provides developers with an additional income stream in addition to their profits from operating a successful BApp on the network.
The origin of KLAY traces back to KaKao, a well-known publicly-traded technology company based in South Korea. The company’s leadership is under Yeo Min-Soo, who serves as CEO, and is recognized for a range of services. One of its most notable services is the deployment of the mobile messaging application, ‘KaTalk’, specifically designed for smartphones operated by Kakao.
Kakao, a company with a diverse business portfolio, became interested in the cryptocurrency industry in 2017 when Bitcoin and other altcoins were experiencing a bull market. Seeing the growing interest from major companies like Facebook, Kakao decided to participate by developing its own cryptocurrency, KLAY.
Despite the numerous issues and challenges they faced from the nation’s financial regulators, Kakao still managed to launch their blockchain-based network in mid-2019. This remarkable success largely attributed to their subsidiary company, GroundX. GroundX is a leading firm in blockchain technology research, development, and engineering. It was this expertise that allowed the launch of KLAY to go ahead without any major difficulties. Today, the network is undergoing global business expansion and ecosystem growth.
Frequently asked questions about KLAY.
Who are the founders of KLAY?
The Klaytn blockchain, created by GroundX – the blockchain subsidiary of Kakao, one of the largest mobile platforms in Korea, was launched in June 2019. The blockchain was able to achieve success in Korea within two years, leading to the formation of the Klaytn Foundation, a non-profit organization focused on promoting the growth of the Klaytn network and ecosystem globally.
The foundation manages the Klaytn Growth Fund (KGF) and the Klaytn Improvement Reserve (KIR). It works closely with Krust, a subsidiary of Kakao Corp. They’re responsible for investing in projects that build on the KLAY blockchain.
What are KLAY’s main use cases?
KLAY has several main use cases, including:
DApps: Decentralized apps (or DApps) are applications that run on a blockchain platform. DApps on the network range from exchange platforms (such as KLAYswap) to singing content platforms (such as Somesing).
DeFi: Common services include earning interest, borrowing, lending, and trading. DeFi enables trustless, permissionless, and fast transactions. Platforms also use KLAY for DeFi. For example, BINANCE Staking and Kai Protocol operate on it.
NFTs: On Klaytn, NFTs are often gaming NFTs. Meta Toy DragonZ is an example of a KLAY NFT.
Where do I buy Klaytn?
To buy KLAY, visit the exchanges that support its trading: Binance, OKX and KuCoin. The market cap and circulating supply of KLAY determines its price as you can see on the Klaytn price chart.