Klaytn is a business-oriented blockchain-based project. Today, there are thousands of cryptos existing in the market. Thus, the challenges of understanding the underlying technologies that are associated with each of these cryptocurrencies are unavoidable.
There are significant diversities like cryptos since the innovation of each of them serves different purposes. Although all of the cryptos resemble each other, most of them have diverse uses and purposes due to the different underlying technologies. In its design, Klaytn (KLAY) functions like Facebook’s Libra network, but it comes with more advanced features as explained by its founders.
This emerging blockchain project seeks to integrate the exclusive functionality of a private and public blockchain. More specifically, Klaytn is a blockchain network that offers a friendly user experience and development space. In the meantime, it communicates the essence and value of blockchain technology to every user including institutions and retailers.
The Klaytn foundation was formed from a business-oriented basis. In that context, it was designed to mainly integrate business frameworks with blockchain solutions. It can accommodate all types of users with the integrated features of private and public specs that it possesses.
Eventually, it has gained the interest of most people including reputable brands within a few years after its launch.
Klaytn Overview
The origination of Klaytn started through South Korea’s largest publicly traded tech firm, Kakao. This highly reputable firm in South Korea is renowned for its diverse services and the many users in the country.
Kakao decided to venture into the crypto sector after the 2017 bull run caught its eye being a multi-service firm. In that context, the firm was inspired to create a cryptocurrency, which resulted in the innovation of Klaytn.
The efforts to actualize the Klaytn initiative were nearly altered as the firm encountered many backlashes from the nation’s financial regulators, which is similar to the system used in Facebook’s Libra.
Nonetheless, the crypto vision of the company’s CEO, Yeo Minsoo, was in the end actualized in mid-2019. The firm dived its way through multiple restrictions and hindrances with the assistance of its blockchain-based subsidiary known as Ground X. Later on, it successfully unveiled the Klaytn blockchain.
Core Technology Of Klaytn
The blockchain utilizes an enhanced version of an Instanbul BFT that substitutes for other blockchain’s Proof-of-Stake (PoS) and Proof-of-Work (PoW). With that in mind, the network implements Practical Byzantine Fault Tolerance (PBFT) with the modifications to operate with the integrated blockchain performances it has.
Nonetheless, it allows beginners to use a Proof-of-Stake (PoS) consensus mechanism. Hence, it powers a limited number of validators. This blockchain network is a business-oriented network that functions nearly like the Ethereum (ETH) network.
It takes up an unaltered clone of the Ethereum Virtual Machine (EVM) for its smart contracts that quicken transactions with a high speed. In its uniqueness, the blockchain can process 4000 transactions per second.
Blockchain Apps
The blockchain platform offers excellent services for all types of users mainly enterprises. It owns and hosts over 50 blockchain applications. The applications have many functionalities since they have diverse duties to perform on the blockchain network.
Klaytn also extends its hostage to diverse crypto gaming networks and a variety of staking services. To name several of these blockchain applications that are hosted on the platform, there are Quotabook, Tessa, Orbit Bridge, Makestar, and many others.
It also hosts several gaming apps including Games Knight Story, Crypto Sword, Crypto dragon, and many others.
The Governance Council
Being an enterprise-oriented blockchain platform, Klaytn has delegated most of the operations about the improvement and activities within the ecosystem to several multinational organizations and businesses.
The governing council members comprise multinational enterprises and organizations. Therefore, the council members have the right to vote and propose any adjustments about the performances of the platform and its node network.
More particularly, the council members are now responsible for guaranteeing the growth and development of the platform’s thriving ecosystem.
Klaytn Improvement Reserve (KIR)
By description, Klaytn Improvement Reserve (KIR) is a mechanism the project adopts to provide reward services to the users that contribute to the growth and enhancement of its entire ecosystem.
Whenever the qualified users submit proposals on activities for example community incentives, making adjustments on the platform, and enhancing its user, they can get subsidies or rewards for their contribution to the ecosystem via the KIR program.
Klaytn Improvement Reserve enables partner developers to innovate, deploy and execute smart contract-based applications with excellent speeds alongside the extremely cheap fees. That is because the platform had incurred some fee policy which implies that Klaytn will be fully responsible for all the transaction fees that the developers are subjected to.
KLAY Token
KLAY is the native token that powers the Klaytn blockchain. This token is used for all transactions that take place on the blockchain network and all other blockchain applications on the network.
It mainly works as a means of payment and exchange for app applications that run within the Klaytn ecosystem. Based on data acquired from the first quarter of 2021, more than 2 billion KLAY tokens were in circulation in the cryptocurrency market, gaining a growing rate of enthusiasm and increased recognition in the crypto sector.
Use Cases
This platform is designed to offer a gross development avenue that empowers various levels of blockchain development for a plethora of use cases. Klaytn blockchain is mainly bringing blockchain to businesses.
In simple terms, it serves enterprises, including small-scale and large-scale businesses. The main purpose was to provide them with a chance to integrate their technological infrastructure with a blockchain network.
Furthermore, the supported businesses enjoy the service of a public and private blockchain through Klaytn’s ecosystem. Many users prefer this platform since the private blockchain functionality of the network guarantees discreteness. Furthermore, it guarantees the maximum security of sensitive data which increases the scalability nature of the network.
In the meantime, the public blockchain within Klaytn’s network supports the decentralization of data and ensures the distribution of governance. It accommodates all the important mechanisms that can make the platform as scalable and user-friendly as possible.
Advantages Of Using Klaytn
This blockchain comes with several benefits for the institutional and retail clients that it serves. Some of them include:
- Low Cost – all of the services offered by the nascent platform have a fixed unit price. It means that each transaction is handled equally and always assured execution when its time comes. Furthermore, the users do not need to struggle to determine the right unit price and the blockchain helps users save the cost of gas fees by paying some of it.
- High Transactions Speed – the design of the blockchain ensures that transactions on the platform are completed quickly. Users say that they experience nearly instant transactions within a fraction of blockchain time. Klaytn’s main net handles up to 4 transactions per second.
- The platform is developer-friendly – the API services of the network have a variety of functions that developers can use to create some useful apps. Additionally, the platform is designed to support the solidity programming language and in that context, Ethereum developers can readily migrate to Klaytn without requiring to learn any new language.
- User-friendly – users report that they enjoyed engaging with this platform since it is designed in a manner that using it feels easy like sending and receiving text messages. The users can access their assets and wallets from smartphones through their Klaytn account. Every wallet is printed with an integrated QR code address that can be scanned with a phone camera. With that code, users can receive assets into their crypto/blockchain wallet. Thus, users do not have to memorize any private keys.
- Business development – another significant benefit of Klaytn is that it supports businesses’ technical operations that are a push forth for businesses. With the blockchain’s flexible scalable nature, it provides businesses and developers the ability to follow the fast-moving world of blockchain. Therefore, businesses can easily and readily venture into the blockchain sector and enjoy the benefits that come with it.
Disadvantages Of Klaytn
Although the blockchain platform has many advantages, some shortcomings plague its operations.
- Kakao is developing a series of apps that are designed mainly for use on the Klaytn blockchain. Among these apps is Peatix, which is a ticketing service that has a built-in customer base. It could give Kakao’s other services an advantage over startups aiming to compete with Kakao for users.
- Kakao is the only firm that has announced the intention to launch a project on the Klaytn blockchain. It might be problematic since it might limit the growth potential of the blockchain and its in-house cryptocurrency.
- Once the blockchain launches, Kakao is expected to take a huge fee off of each transaction. That adds to the gas fee that users will also have to pay. That might be a challenge for the startups launching on the blockchain since it will reduce the profits from token sales.
- The communication is quite bad. At first, developers seemed quite confused about what they needed to be talking about. Although the platform is thriving, there are a few operational challenges that still exist but developers are striving relentlessly to resolve them.
The Takeaway
Klaytn’s network has proven to be a strong backbone to the enterprises that aim to venture into the sector with the minimal technical expertise needed. With the firms that are integrating with blockchain technologies, it is now predictable that the space of decentralized finance (DeFi) would reach mainstream adoption quickly.
Klaytn (KLAY) is the best choice for most reputable institutional companies. Interest in the blockchain network has been on a constant rise.
