What is Klaytn (& KLAY)? – Briefly Definition

Klaytn is a blockchain project whose main goal is to create a transformative deployment crypto space for dApps, enabling the mass adoption and distribution of Web3 to everyone. To realize this idea, the klaytn blockchain developers introduced innovative technologies that led to the emergence of the 3rd generation of blockchain technology. Ultimately, it began to gain momentum in the crypto industry.

Klaytn is the development of the South Korean company Kakao, which also developed the messaging application Kakao Talk. The launch of the main network took place in 2019. At that time, the project’s goal was to develop technologies in the field of cryptocurrencies to attract as many people as possible to this industry.

If we talk about the klaytn blockchain, it was designed primarily for enterprises and businesses, earning trust and becoming practical. But, in addition to business, the klaytn architecture is also essential for the qualitative change it can bring to people in the Web3 era. The Klaytn Foundation, responsible for the ecosystem’s development, maintains a roadmap to make Klaytn the main platform for deploying dApps or Blockchain applications. As part of this critical milestone, Klaytn 2.0 was launched in early 2022. It is a blockchain focused on dApps and integration with NFT ecosystems and metaverses under construction.

How does Klaytn work?

Klaytn is a platform for deploying decentralized applications. To realize this, the klaytn network offers a framework for its smart contracts derived from the world-famous Ethereum Virtual Machine (EVM). Thus, offering a widely recognized development space in the klaytn ecosystem. Thanks to this, Klaytn can deploy dApps like DeFi, NFT, DEX, and everything that can be created using the Solidity programming language.

If this is not enough, the klaytn network fully supports the JSON-RPC interoperability needed to interact with Web3 wallets like Dappradar. This greatly facilitates the interaction between users and applications deployed on this blockchain. Furthermore, the latest development of Klaytn 2.0 allows you to extend the layer 1 core with different 2 layers aimed at meeting the needs of various blockchain applications, including information processing needs. Thus, the Klaytn core can adapt to the growing needs of certain applications.

In other words, Klaytn is a modular development platform designed to meet the needs of mainly enterprises and firms that want to use its limitless possibilities. These include DeFi applications, NFTs, Metaverses, DAOs, and more.

Services Chain and scalability in Klaytn blockchain network

The Services Chain on the web are auxiliary blockchains tailored for individual BApps requiring different settings. These settings may include other host configurations, custom security levels, or ultra-high performance. Such special conditions make deploying a BApp on the main Klaytn chain impractical, inconvenient and unprofitable. So, especially for those situations, there are service chains.

Having fully decentralized scaling blockchain solutions may only sometimes help due to the complex interface, making them difficult to deploy and integrate. Therefore, Klaytn has chosen an approach in its service chain that achieves a compromise between multiple links in complete decentralization, better usability, instant finality, and high network performance.

Where can such subchains be used? First of all, they find their application in various service-specific purposes. However, they can also be connected to the main chain for multiple purposes. Such purposes may include data anchoring (storing hashes of utility chain blocks on the main chain to compensate for security degradation due to fewer nodes) and value transfer, which includes transfers between token chains (Klaytn native token and Klaytn tokens issued by BApps). Additionally, subchains can help when it comes to controlling Klaytn’s mainchain storage growth. So, for example, it can keep its records off the main chain to leave only cryptographic evidence of its work to verify operations.

Solidity Smart Contracts

Klaytn blockchain, using the Klaytn Virtual Machine, can process smart contracts written in the Solidity language. This feature makes life easier for developers by allowing dApps to be deployed on top of blockchain technology. In addition, developers can use various resources for blockchain development and testing their applications.

In the future, Klaytn plans to use smart contracts written in other programming languages. This will expand support to a wider range of potential developers and allow them to start the development experience they are most familiar with.

Klaytn token (KLAY)

The KLAY token is a native of Klaytn, and its main purpose is to pay transaction fees within Klaytn or transfer value within the network. For this reason, KLAY is a utility token used to pay for many features and benefits. However, if there are not enough tokens to meet the growing demand, the issue can be increased by the decision of the decentralized klaytn governance council of the project. Hence, KLAY token is an inflationary type of token.

This token is very important for funding the project. About 300 million KLAY tokens are minted annually, equivalent to 3% annual inflation. Rewards and commissions are distributed based on a predetermined ratio: 34% goes to the Klaytn governing council members, 54% to the Klaytn Growth Fund (KGF), and 12% to the Klaytn Enhancement Reserve.

This distribution of finance allows the community to develop, encouraging any means of developing the blockchain network. For example, creating a Klaytn node requires you to pay 5 million KLAY tokens, equivalent to $5.1 million.

Governance in the Klaytn blockchain

Klaytn Governance Council is the highest governing body, with the right to decide on various governance issues. The first members of the council were limited to trusted organizations, meaning it was not completely decentralized. However, this guarantees its reliability. This decision was made for safety and efficiency reasons during the development and stabilization phase of the platform. Currently, the number of members of the Management Board is more than 31 people, and the main network of Klaytn is running smoothly.

Such management should lead to the growth and development of the entire network in the changing world. One of the innovative and promising transitions in the world is associated with the growth of the metaverse, which in recent years has managed to gain the trust of many people. Recently, technological advances have given way to a more metaverse world. Thus, we are seeing the growing influence of non-traditional organizations such as decentralized autonomous organizations (DAOs) and builders. DAO works on contracts and does not have a centralized structure, so it may soon become the central object in the metaverse. In turn, the builders will have a huge impact, contributing to the functioning and growth of the metaverse.

Klaytn allows you to shape the blockchain according to your preferences. Those who can make the right decision in a metaversified world will have a greater influence on governance.

What is the future of Klaytn?

One of the latest updates to the Klaytn blockchain was aimed at the booming NFT market and the metaverse. The ability to adapt services to the needs of dApps is an ideal solution to many problems. Service chains can adapt to the realities of development, providing scalability and consensus rules that help improve the dApp experience. In addition, service chains can reduce the cost of implementation and interaction, which allows companies and communities to support development at a minimal cost. Therefore, the Klaytn blockchain is great for businesses and firms that want low-cost, high-speed blockchain technology to implement their solutions. Many applications already rely on the Klaytn’s ecosystem, and this list will only grow shortly.

FAQ

Is Klaytn proof of work?

Klaytn is mainly focused on enterprises, so it replaces the commonly used Proof-of-Work (POW) and Proof-of-Stake (POS) consensus mechanisms with an improved version of Instabul Byzantine Fault Tolerance (IBFT).

Is Klaytn a layer 1?

Klaytn is a public layer 1 blockchain focused on the Metaverse, GameFi, and creator economy. Blockchain has a block time of 1 second.

How do you earn Klay tokens?

The native KLAY token can be earned in several ways: lending, staking, and profitable farming. The easiest way to generate income is through an exchange or digital asset lending platform.

How do you withdraw from Klay?

There are different ways to infer depending on the platform you want to use. You can read about all of them on the Internet since the specifics of a particular exchange affect the withdrawal process.