The importance of blockchain technology has never been greater. Every cryptocurrency has its own blockchain protocol-based infrastructure. There are four types of protocols currently available: public, private, hybrid, and consortium. The type of blockchain on which a cryptocurrency is constructed typically determines its use cases. Klaytn (KLAY), a hybrid emerging blockchain project that blends the strengths of public and private protocols, will be discussed in this article. Everything you need to know is right here.
What is Klaytn?
Klaytn (KLAY) is a decentralized ecosystem with a high-performance public blockchain. The protocol was created to assist businesses and entrepreneurs in developing and using blockchain technologies. As a result, the network offers a number of useful features aimed at removing roadblocks to blockchain adoption and expediting the onboarding process.
Klaytn is a “hybrid” blockchain that incorporates the greatest aspects of both public and private blockchains. It benefits from the low latency and high scalability of private blockchain while maintaining the decentralized data/control and distributed governance of public blockchain. The model will be detailed farther down this page.
KLAY, being the Klaytn blockchain’s native utility token, has a variety of applications within the Klaytn ecosystem. All transactions on the platform can be paid in KLAY, which is also useful for the other blockchain applications that run on the Klaytn network.
Klaytn’s origins can be traced back to KaKao, a well-known publicly traded technology business based in South Korea.
Kakao is recognized for a range of services, one of which is the deployment of a mobile messaging program generally known as ‘KaTalk,’ exclusively for cellphones run by the Kakao corporation. It is led by Yeo Min-Soo, who also serves as CEO.
Kakao’s attention was pulled to the cryptocurrency market in 2017, around the time Bitcoin and other cryptocurrencies were undergoing a huge bullish race, due to its diversified business structure.
Kakao couldn’t resist the impulse to participate, especially in light of the growing interest from companies like Facebook and others. As a result, the corporation moved on to create its own cryptocurrency, which it called Klaytn.
Along the way, Kakao, like most other companies that have dabbled in cryptocurrency, has experienced a slew of criticism and setbacks, the most serious of which came from the country’s financial regulators. Facebook, for example, faced a slew of regulatory obstacles during the key stage of its LIBRA project.
After overcoming a number of obstacles, Kakao was finally able to realize its crypto ambitions when Klaytn was released in mid-2019. The majority of the company’s success, however, was made possible by its blockchain-based subsidiary, GroundX, which played a key part in the Klaytn blockchain’s final debut.
How it Works
Due to its unique technical properties and functionalities, Klaytn is able to give a user-friendly blockchain experience. A custom-built blockchain, cryptocurrency, community governance, and much more are all part of the network. The Klaytn blockchain is a public blockchain based on Byzantine Fault Tolerant (BFT). It gives enterprises and start-ups with a scalable, secure, and user-friendly platform. Klaytn’s block delay is one second, and its finality is near real-time.
Klaytn validates the state of the blockchain using a Proof-of-Stake (PoS) consensus mechanism. Because PoS networks do not require miners, they are more energy efficient than Proof-of-Work networks. Instead of staking their tokens in a network wallet, normal users secure the network by staking their tokens in a network wallet. Users are rewarded for their efforts based on the amount of time and money they staked.
Blockchain Applications (BApps) are critical to the network’s success. Users engage with the Klaytn blockchain through these applications. Many of the most popular Bapp features have been simplified by the creators. Account type profiling, base calculation, retention analysis, and funnel analysis are all simple possibilities. They also offer functionality unique to the blockchain, such as network congestion monitoring, token distribution tracking, and token economy health diagnosis.
Klaytn has a community governance system to ensure that each user’s voice is heard. The network’s governance is notable in that it is made up of a mixture of users and well-known organizations. Binance, for example, has recently joined the governance council. Regular KLAY token holders can participate by staking their tokens.
What Makes It Unique
Klaytn is distinguished from other blockchains by its BApp, or blockchain application. If you use DeFi, you’re probably aware with the word Dapp, which stands for “decentralized application.” Many blockchain platforms are attempting to create an ecosystem of diverse Dapps.
Klaytn, on the other hand, claims that decentralization is simply one of many use cases for blockchain applications, and that people are so fixated on Dapps that they overlook other useful and usable elements of the technology. Transparency, traceability, immutability, and anonymity are some of the other benefits that blockchains can provide, and they can be used effectively even if they are not decentralized.
For example, a centralized startup can use blockchain technology to maintain internal documents such that no one has the authority to change the data and documents can be readily traced back when needed. Another example is NFT trading, which demonstrates that an original copy of digital things stored on blockchain may be safely traded over the Internet.
As a result, Klaytn considers Dapp to be a subset of Bapp and utilizes the name Bapp to refer to all of its blockchain apps in order to realize the full potential of blockchain technology.
Klaytn’s network has proven to be a strong backbone for businesses looking to enter the field with the bare minimum of technological knowledge. It is now expected that the domain of decentralized finance (DeFi) will attain widespread adoption fast, thanks to the enterprises that are integrating with blockchain technologies.
For most respected institutional firms, Klaytn (KLAY) is the finest option. The blockchain network has seen a steady increase in interest.