What is Klaytn (KLAY)? Your ultimate guide

Klaytn is on a mission to make blockchain more accessible to businesses worldwide

Graphic of KLAY logo                                 
Klaytn is currently ranked 45 on the Coin Gecko platform - Photo: Shutterstock
                                

Contents

Launched in 2019, Klaytn claims to fuse the best features of private blockchains and public blockchains to create a hybrid design, exploiting the high scalability and low latency of the former with the distributed governance and decentralised data of the latter. 

Klaytn, which says it is targeting all business sizes from start-ups to corporates, wants to develop a blockchain that is user-friendly, accessible and versatile. This, the company argues, means businesses can use the infrastructure of blockchain without requiring in-depth knowledge of the technology.

With impressive partnerships, and a solid market cap of more than $3.5bn, Klaytn appears to be an exciting crypto, but how does Klaytn work? And who are the founders?

Founders of Klaytn

GroundX, the company responsible for the technology belonging to Klaytn blockchain, was founded by Jaesun Han.

Ground X is the blockchain subsidiary of Kakao Corp, Korea's largest internet messaging firm. Initially spearheaded by Kakao, Klaytn is now led and managed bythe  Klaytn foundation, based in Singapore.

Han has a PhD in computer science and electrical engineering from the Korea Advanced Institute. After graduating he worked as a researcher for KAIST in the distributed competing field before founding NexR, a cloud computing startup in Korea. In 2011, Han became chief technology officer at KT cloudware, a cloud service support company. In 2014, Han co-founded FuturePlay Inc, a tech-focused investment company in South Korea.

Ground X, founded in March 2018, is developing other crypto-related businesses alongside Klaytn. These include Klip, a digital asset wallet, and KAS, a Klaytn API services for developers in the blockchain space.

Key features

The Klaytn (KLAY) ecosystem has a variety of interesting features to create what the company says is the optimum environment for blockchain applications to thrive in their ecosystem. These include low-latency network responsiveness, robust transaction throughput, scalability enabled through service chain and transaction fee subsidization for end-users.

Another key feature of Klaytn is its interoperability with legacy technology. This means, according to the company’s official literature, companies can easily transition over to using the Klaytn blockchain technology.

Klaytn says user experience is “key” to the offering of the crypto platform. From account management support for end users to readable account names to private keys, the project tries to ensure that its blockchain technology is usable and indifferentiable from legacy technologies.. In simple terms, Klaytn (KLAY) wants to create a system where the back workings are powered by blockchain, while the front end, the one which users interact with, is indistinguishable from non-blockchain technology.

As part of its offering, Klaytn is developing a way in which data can be collected and analysed more effectively. While sophisticated analytics have evolved for legacy businesses, these processes are not suitable for decentralized systems. Klaytn's advanced analytics have features exclusively for blockchain technology including account type profiling, network congestion monitoring and token distribution tracking.

What about KLAY, the native token of Klaytn?

What is Klaytn coin used for?

The KLAY coin powers and secures the Klaytn ecosystem. It has several functions. It can be used to pay transaction fees, as a medium of exchange and as a collateral for secondary tokens.

Holders can keep their KLAY coins in Kaikas, a non-custodial, decentralised wallet, or Klip, a digital asset wallet for use on smart phones.

There is a currently undefined maximum supply of KLAY coins and a current circulating supply of 2.6 billion KLAY coins.

With a market cap of $3.583bn, the KLAY coin is currently ranked number 47 on Coin Gecko platform. The coin has gained 152% over the past year as of 12 January 2022.

The project is secured by a modified version of an Istanbul Byzantine Fault Tolerance. This means KLAY cannot be mined or staked. This is in part because the the platform wants to remain enterprise-centric and service-centric. The project introduced a proof-of-contribution (PoC) model, designed to more fairly and equally compensate all members involved in the ecosystem.

The Klaytn governance Ccouncil, made up of major global organisations and businesses, supports the operation of the network. These businesses include Sinhan Bank, Kakao Space, Binance and World Pay.

Key partners include Wemade Tree, a gaming crypto start-up ;  Hintchain, a food data marketplace; and humanscape, a health data marketplace.

The project recently announced a partnership with GMO Group, a large Japanese technology company.

Final thoughts

A well-established project, Klaytn is unique in the way it is attempting to seamlessly insert its technology into mainstream corporates. Its strength lies in its partnerships with some large businesses However, it is worth noting that no major companies, have announced they will begin using the Klaytn technology, aside from Kakao.

As impressive as the market cap and offering may appear, the ambitions of Klaytn and companies like Klaytn, namely of being the infrastructure of the future, remain so far entirely unrealized. The likelihood of it occurring remains far from a certainty. It is thus worth reviewing coins like Klaytn, and in fact all crypto coins, with a healthy degree of scepticism. Differentiating true utility from speculation is always important when it comes to coins that are highly valued but currently unrealized in terms of genuine present-day value to society

There is a current circulating supply of 2.6 billion KLAY coins.

Jaesun Han created Klaytn. 

The project is secured by a modified version of an Istanbul Byzantine Fault Tolerance. This means the KLAY coin cannot be mined or staked. 

Further reading

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