When I mention Kakao, you probably know right away that this is a popular messaging app in Korean. However, you may not hear of Klaytn - a blockchain platform developed by this household brand in Korea. In this article, let’s find out more about this notable project developed by one of the largest Korean mobile companies.
What is Klaytn?
Klaytn is a blockchain platform developed by Ground X, which is the blockchain subsidiary of Korea’s internet giant Kakao. The ultimate goal of Klaytn is blockchain’s mainstream adoption by providing a business-friendly platform for enterprises to deploy a wide range of innovative blockchain applications.
Klaytn has a “hybrid” design, which combines the best features of public and private blockchain. It has the decentralized data/ control and distributed governance of public blockchain while still benefiting from the low latency and high scalability of private blockchain. The model will be discussed below.
How does Klaytn work?
To allow the combination of both private and public blockchain, Klaytn’ structure includes three logical subnetworks:
- Core Cell Network (CCN): It is responsible for verifying and executing transactions submitted by Endpoint Nodes then distributing blocks across the network.
- Endpoint Node Network (ENN): It is in charge of creating transactions and processing data requests from service chains.
- Service Chain Network (SCN): They are Klaytn subnetworks that are run independently by blockchain applications (BApps). They are connected with the main chain through Endpoint Nodes. Blockchain applications can run on the Klaytn public chain (CCN + ENN) or private chain (SCN) through this structure with high transaction speed.
Why is Klaytn unique?
BApp or blockchain application is what differentiates Klaytn from other blockchains. If you are a DeFi user, you must be familiar with the term Dapp or decentralized application. Many blockchains are trying to implement an ecosystem of different Dapps on their platforms.
However, Klaytn states that decentralization is just one among many other use cases of blockchain applications, and people are too focused on Dapp that they forget other valuable and applicable features of blockchain. Other values that blockchains can offer are transparency, traceability, immutability, and anonymity and they can be applied effectively without being decentralized.
For instance, a centralized start-up can apply blockchain technology in internal documents’ management so that no one can have the right to adjust the information, and documents can be traced back easily when needed. Another example is the trading of NFT, which proves an original copy of digital items on blockchain can be safely traded on the Internet.
Therefore, Klaytn sees Dapp as a part of Bapp and uses the term Bapp for all of its applications on blockchain to unlock the full potential of blockchain applications.
The DeFi ecosystem in Klaytn is still really small compared to that in other blockchains like Binance Smart Chain, Polygon, Solana,... The most notable protocol is KLAYswap, an AMM DEX that captures the most TVL for the whole ecosystem. Other DeFi stacks (lending, stablecoin,...) on Klaytn are still missing and seem not to be the priority of Klaytn to build at the moment.
What is KLAY token?
KLAY is the native utility token of the Klaytn Network and acts as the fuel for conducting smart contracts on this chain. More use cases of KLAY will be discussed in the token use cases part.
Detailed information about KLAY token
KLAY Key Metrics
- Token Name: Klaytn
- Ticker: KLAY
- Blockchain: Klaytn
- Token Standard:
- Fungible Token Standard: KIP-7.
- Non-fungible Token Standard: KIP-17.
- Contract: Updating...
- Token type: Utility
- Circulating Supply: 2,510,000,000 KLAY
- Total Supply: 10,697,690,646 KLAY
KLAY Token Allocation
KLAY Token Sales
The price per KLAY of 2 private sales are:
- $ 0.03/ KLAY (December 2019 - January 2019)
- $ 0.08/ KLAY (April 2019 - May 2019)
KLAY Token Release Schedule
Note that the chart above does not include the estimated 3% annual inflation of KLAY tokens.
KLAY Token Use Cases
KLAY has 3 main use cases as follows:
- Network utilization: KLAY is paid for any transactions on Klayth Network.
- Yield Farming: You can use KLAY to provide liquidity on KLAYswap (native AMM DEX of Klaytn) and earn other Klaytn Compatible Tokens. Another way for you to earn profit is by staking KLAY on KlayFi or KLAYStation (Staking platform on Klaytn).
- Minting NFTs: You can use KLAY to mint Klaytn’s NFTs and sell them on Opensea, which partnered with Klaytn.
How to get KLAY token
You can get KLAY from the following exchanges:
- CEX: Binance.
- DEX: KLAYswap.
How to buy KLAY token on Coin98 Exchange
How to store KLAY token on Coin98 Wallet
Coin98 Wallet has supported Klaytn Network. You can create a Klaytn Wallet and receive KLAY token on Coin98 Wallet by the following steps:
Step 1: At the main screen of Coin98 Wallet, click Receive.
Step 2: Search for KLAY token.
Step 3: Copy your KLAY wallet address and send KLAY tokens to this address.
Team, Investors, and Partners
Klaytn is developed by GroundX, the blockchain arm of a leading mobile company in Korea - Kakao. The team includes:
- Jaesun Han (CEO): Details here.
- Myeongjin Jeong (CFO, Head of Operations Group).
- Sangeon Bae (Head of Wallet Group): Details here.
- Sangmin Seo (Head of Platform Group): Details here.
Klaytn is backed by Hashed, Sky Vision Capital, a41 Ventures, and a number of individual angels.
Is Klaytn (KLAY) a good investment?
I hope that from all the mentioned information, you can get a basic understanding of Klaytn to start researching more about this project. It is hard to tell firmly whether any project/ token is a good investment or not.
However, I will provide you with some key highlights of Klaytn so that you can do your own research and make your own investment decisions.
Klaytn has a Governance Council, which is an alliance of different businesses and organizations, responsible for platform governance to ensure the long-term growth of the blockchain. Klaytn Governance Council includes top-tier enterprises in different fields: Binance, LG Electronics, VNG,... just to name a few.
Klaytn is backed by Kakao, a messaging platform that has 50 million users around the globe, so Klaytn blockchain can make use of this huge customer base for the expansion of the ecosystem.
However, as of now, Klaytn growth rate is extremely low. Although the network plans for global expansion, many communication channels are still in Korean. This can hinder the scalability of the blockchain when missing the international community.
Moreover, Klaytn’s public communication seems to be really poor. The official channel on Twitter is not updated regularly, while the global telegram group is quite inactive.
Some similar projects:
- Terra: Other Korean project of blockchain.
- Others developing blockchains: Fantom, Avalanche,...
That is all you need to know about Klaytn Network. If you want to have more information about this project, feel free to comment down below.