Klaytn Blockchain Security – How Does It Work?

Despite the small age of the crypto industry, which is a little more than ten years old, it has witnessed the birth of thousands of different digital currencies. In this regard, learning the underlying infrastructure for each cryptocurrency is a very difficult task, especially for those who have become interested in it recently.

Each cryptocurrency’s infrastructure is based on one of the four main blockchain technology protocols: private, public, consortium, or hybrid. Depending on what blockchain protocol a cryptocurrency is based on, it can have different use cases, operating within the capabilities of the host blockchain.

Klaytn is a public blockchain platform focused primarily on businesses. It combines the advantages of a public blockchain, such as decentralized data and control, distributed control, low latency, and high scalability of private blockchains.

What is Klaytn?

As mentioned earlier, Klaytn blockchain is a business-oriented public blockchain project. It combines the benefits of public and private blockchains to provide a blockchain experience due to its hybrid infrastructure.

An example of a capability that enterprises need is the use of the Klaytn ecosystem of the modular network. This allows you to seamlessly interact, create, and manage your custom service-oriented blockchain based on the Klaytn architecture.

Such a service-oriented blockchain is also called a service chain network. This is because they can work autonomously as subnets, which makes it convenient for businesses in the Klaytn ecosystem. In addition, service chains are very convenient and easy to set up, so they can work seamlessly with almost any web service.

The official launch of Klaytn blockchain took place in 2019, after which Klaytn network was able to attract more than 40 initial service partners covering a wide range of industries with different use cases, from healthcare to entertainment and finance. So how does Klaytn network work?

How does Klaytn network work?

Since Klaytn primarily focuses on enterprises, it replaces the commonly used Proof-of-Work and Proof-of-Stake consensus mechanisms with an improved version of Instabul Byzantine Fault Tolerance (IBFT).

Klaytn uses a practical BFT that allows network users to manage hybrid infrastructure. In doing so, it combines the benefits of both a private and a public blockchain. For example, while Klaytn uses IBFT as its main consensus mechanism, newcomers can use the Proof-of-Stake consensus mechanism.

Klaytn uses the same virtual machine as the world-famous Ethereum and functions the same, albeit much faster. Thus, a Klaytn smart contract virtual machine can process at least 4,000 unique transactions in just one second and has transaction fees of less than 1/10 of ETH.

In addition, the issue of enterprise-level scalability has been partly addressed by the adoption of BFT. Klaytn also has DX offerings that enable interoperability between hosted services and provide a dedicated development environment for developers. However, the main advantage is that Klaytn transactions are fixed. This means that the transaction fee is known in advance.

Klaytn Blockchain App Ecosystem

The Klaytn platform, unlike other blockchain networks (which access their hosted services as decentralized applications), refers to their service chains as Blockchain Applications (BApps). If we talk about the official site of klaytn’s ecosystem, it says that BApps are called such because, unlike other host blockchains, they are not required to run decentralized web services in the service chain. By the way, thanks to this, the possibility of using the POS consensus mechanism is available. However, both centralized and decentralized applications can benefit from klaytn’s enterprise-friendly ecosystem.

Governance

Instead of using the most common method of governance, where token holders can participate in network governance, Klaytn has delegated governance to a council that includes various businesses and organizations. This is to be expected from an enterprise-focused blockchain. Klaytn governance council members are responsible for proposing and voting for or against any improvements and actions on the network. They can also manage the activities of the endpoint node network (in other words, service chains). Thus, the klaytn governance council is responsible for developing the entire platform.

Klaytn improvement reserve

The reward mechanism built into the platform through which developers and members who have made a significant contribution to the growth and development of the network can be compensated is called the Klaytn Improvement Reserve. Board members also receive input when they make suggestions to expand the network, improve user experience, and so on. In addition, this mechanism allows the seamless integration of innovative applications based on smart contracts. This helps the platform’s development and encourages users and developers to improve the blockchain ecosystem.

Klaytn token

Like most other popular blockchains, klaytn has its token called KLAY. It is usually used as a utility token suitable for all transactions and blockchain applications on the network. This means it is also used for payment and exchange for all applications running in the Klaytn blockchain. At the beginning of 2021, the number of KLAY tokens was estimated at 2 billion. At the same time, interest from users only continues to grow, as the blockchain has become a solution to problems with scaling at the enterprise level and has also accelerated the pace of adoption of blockchain technology in the sector.

History of Klaytn blockchain

The history of Klaytn originates from KaKao, one of the famous companies headquartered in South Korea. In addition to creating a blockchain for enterprises, the company is known for various services, one of which is the KaTalk mobile messaging app.

However, already in 2017, the attention of a large company was drawn to the cryptocurrency industry. At that time, bitcoins and altcoins competed for the top among cryptocurrencies. However, many of the largest companies (for example, Facebook), like Klaytn, did not stand aside and began developing their cryptocurrency. This led to the creation of Klaytn.

In addition to the unequivocally positive moments, there were also some negative ones that KaKao had to face. One of the serious problems was related to the legal side of the issue and came from the financial regulators of South Korea. However, at that time, many companies suffered from this. For example, Facebook also ran into several regulatory issues at a key stage in its LIBRA project.

In the end, after overcoming many obstacles, KaKao still succeeded in cryptocurrencies with the launch of Klaytn in mid-2019. Much of the success, however, has been made possible by blockchain-based subsidiary GroundX. This is because it played a crucial role in launching and developing the new blockchain.

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