Klaytn $KLAY Wiki: Coin History, Techstack, and Crypto News

Klaytn is a hybrid project based on Blockchain technology. It is a service-centric and enterprise-grade distributed ledger technology platform that offers user-friendly blockchain experience. Klaytn offers a highly scalable, secure, and speedy blockchain that has features such as a one second block time, instant block finality, and an ability to handle up to 4000 transactions per second.

The main goal of Klaytn is to provide high transaction costs per second, immediate finality, and cheaper costs of running applications on the blockchain. The system also aims to be fully trustless. The native cryptocurrency of the Klaytn network is known as KLAY. The token is the fuel that facilitates and powers smart contracts on the blockchain.

Klaytn supports the EVM (Ethereum Virtual Machine) and execution of smart contracts written in the Solidity programming language.

History

Klaytn was started up by the South Korean company KAKAO. KAKAO is one of the largest messaging and ride-handling companies in South Korea. They launched South Korea’s first internet-only bank and later wanted to create a cryptocurrency on their own. The regulators in South Korea had an issue with this but KAKAO managed to work around the resistance.

Kakao partnered with the software company Dunamu in 2017. They proceeded to create a Japanese subsidy called Ground X which was responsible for the development of its cryptocurrency Klaytn. Ground X was responsible for the initial coin offering hence dodging the regulations that would have been caused by South Korean regulatory bodies as it was based in Japan.

Kakao expected $300 million in the initial coin offering but only got $90 million from it. The Klaytn mainnet was launched in June 2019.

Biggest Claim to Fame

All the participants of the Klaytn ecosystem are encouraged and incentivized to engage in economic activities on the platform. This is done through Klaytn’s proof of contribution protocol. By carrying out economic activities with each other on the platform, circulating wealth is built up which improves the stability of the platform and the value of the Klaytn token.

KLAY is compatible with the Ethereum Virtual Machine. This means developers on Ethereum can share their works and applications they have created on Klaytn and earn from them. Ethereum developers can also build their own apps centered on the Klaytn platform on Klaytn. This makes it easier for integration between the two platforms and encourages other cryptocurrencies to do the same if they can in order to cash out on the opportunities available to them.

Klaytn allows people to build and use play to earn crypto games. The games can be minted into NFTs. Klaytn is fast and not expensive so players could play and perform all of the blockchain-related activities on the games with little delay and very low fees. Game developers also have the opportunity to earn through the sale of NFTs and integration of payable levels on the various games.

Biggest Criticism

Klaytn is relatively small in comparison to other cryptocurrencies. The platform faces a lot of competition. Since it does not provide any revolutionary technology, the question investors ask themselves is why they should invest in Klaytn when they could invest in more stable crypto that offers the same services and the same opportunities that have better backing.

Klaytn’s communication is not well done. Their communication has been sporadic at best and not very well explained. This could be and is most likely due to the language barrier but it still makes investors wary of putting their money into Klaytn on the off chance that they do not actually have meaningful explanations of how the system works.

Kakao takes a fee from every transaction on Klaytn’s blockchain. This could become a problem for startups that would like to create on the blockchain that starts ICOs as the fee will take up their profits from the token sales.

Team

Ground X, the company that created the Klaytn blockchain, was founded by Jaesun Han. Jaesun Han has a PhD from the Korean Advanced Institute of Science and Technology in electrical engineering and computer Science. Han was the Chief Technical Officer of KT cloudware in 2011. Cloudware worked on providing technical support for Ucloud services. He is currently the CEO of GroundX.