Klaytn vs Ethereum – The Main Differences

Creating a new blockchain network is a difficult task. Only a team of professionals can cope with it. Therefore, many web services, faced with certain inconveniences when using existing peer-to-peer blockchain networks, prefer to wait to launch their blockchain and work the old-fashioned way. But progress cannot be stopped.

The Korean Internet giant Kakao decided to correct this state of affairs and launched the Klaytn cryptocurrency project for anyone who wants to build, work or play in the metaverse. However, before we talk about the main differences between Klaytn and Ethereum, let’s take a closer look at the Korean project.

Klaytn – New Player in the Blockchain Ecosystem

Klaytn is a public network focused on the Metaverse, GameFi, and creator economy. Officially launched in June 2019, it is the dominant blockchain platform in South Korea. In addition, the developers actively promote global business expansion from their international base in Singapore.

7 official communication channels (Facebook, Twitter, Telegram, Reddit, LinkedIn, Medium, and YouTube) have been created to cover events related to the company’s activities, and a support service works in different languages. In addition, the official website provides detailed documentation about the platform with a description of technical features, a team, and a roadmap.

The target audience of the Klaytn cryptocurrency project is entrepreneurs and dApps developers. The team positions Klaytn as a public blockchain network whose main priorities are transparency, security, and high performance. This project combines the decentralization of traditional ecosystems with enterprise blockchains’ high throughput and scalability.

This network is aimed primarily at entrepreneurs and private consumers who develop decentralized applications. Representatives of the team position their project as an open blockchain, where the main priority is transparency, security, and high performance.

Staking and Farming

Staking allows you to run the network using frozen wallet funds and receive rewards. To participate, opening a deposit of at least 5,000,000 KLAY is necessary. Profit results are displayed to participants every 84,600 blocks issued. To withdraw your assets, you must wait a week from the date of application.

Given the high growth in the popularity of the project, farming can be used as a good way to earn money. To do this, you need to open an account on the exchanges where it is available and deposit tokens into the account. The exchange pays interest to investors for attracting and using tokens. After the listing, the popularity of the digital assets may grow, allowing you to earn not only on interest but also on price growth. Farming also helps the company move into cryptocurrency, making it popular.

Application Difference

The Klaytn ecosystem offers the implementation of blockchain in all areas of business. The emphasis is on efficiency and scalability of work. Within the system, the KLAY token operates, which allows mutual settlements within the network.

At the same time, Ethereum offers a wider range of applications and is not limited to the blockchain system. The Ethereum platform is flexible, meaning it can run applications of any level of complexity. Ethereum categories:

• Blockchain
• Crypto Lending (DeFi)
• Crypto Staking
• DeFi Projects
• Layer 1 Protocols
• Smart contracts

Ethereum is the “world computer.” The platform can run almost any blockchain application for various economic and social purposes.

Klaytn Smart Contracts

Klaytn architecture supports several methods for writing and executing smart contracts that can be programmed to implement various business processes or manage any automated process. To encourage the development of the ecosystem, Klaytn caters to developers familiar with Ethereum, which supports the Solidity programming language. This should support interoperability with Ethereum development tools such as Remix and Truffle. In the future, Klaytn intends to use smart contracts with more programming languages ​​to attract a wider range of potential developers.

Klaytn Nodes vs. Ethereum

There are three types of nodes in Klaytn:

• CN (Consensus Node);
• PN (Proxy Node);
• EN (Endpoint Node).

Consensus nodes are responsible for creating blocks that are verified by all nodes in the network. Due to the need for full review and consensus, chain forks are eliminated. Finally, the Committee decides on the problem of increasing communication volume in the BFT algorithm.

The CNS collectively form a Board, and each time a block is generated, a subset of them is selected as a member of the Board using a VRF (Verifiable Random Function). Since only the members of the elected committee exchange consistent messages among themselves, the communication volume is within a given level, even if the total number of CNS increases.

More than 50 nodes can participate in a Consensus, Proxy, and Endpoint Node Network. After the Klaytn developers upgrade the network security algorithm, the number of consensus nodes will be doubled.

Ethereum has the following types of nodes:

• Full
• Partial
• Archived.

The first two are similar to nodes in BTC, and archive nodes are full nodes that store an archive of the historical states of the blockchain. With the help of archive nodes, you can find information on any block generation in the chain at any time. Full nodes store all the information on the blockchain but do not record historical states.

With the transition to Eth 2.0, validator nodes will appear on the network – these are nodes into which ETH tokens will be placed and will act as a verification of transactions according to the Proof-of-Stake consensus mechanism. True, to “raise” such a node, you will need 32 Eth – a rather big amount.

Klaytn Outlook and Forecasts

The company has developed a road map, and plans are written in it and are being implemented according to the specified deadlines. Based on this approach, the following changes can be expected soon:

• Popularization of the Klaytn project by actively listing tokens on new exchanges and introducing them into their messengers;
• Increase in companies using hybrid Blockchain technologies;
• Adding new applications to the Blockchain App (BApp);
• Bringing the Klaytn ecosystem into new areas.

The project is very promising, and many companies are working on it. KLAY coin is a profitable investment and should be added to your crypto portfolio. However, remember risk diversification.

But the absolute difference between Klaytn and Ethereum is the competition. Ethereum is a serious competitor in the field of blockchain technology and cryptocurrencies. It is very difficult for such a player to provide something since such a project has already established itself and created the basis for creating new ones. Klaytn is a great example of how you can enter the market and grow despite a weak marketing policy.

Despite all the advantages of the project, one should remember the risks associated with owning digital assets. It often happens that a successful project at the start, for various reasons, needs to implement its plans. Therefore, choosing the Klaytn network as an investment object, one should adhere to the rules of investment and diversification.

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