Klaytn

What is Klaytn?

Klaytn, developed by South Korean internet provider Kakao, is an enterprise blockchain platform. Its architecture is designed to allow businesses to easily customize and operate their own service-oriented blockchains using the Klaytn framework. These customized subnetworks, known as Service Chains, form the foundation of Klaytn's enterprise-focused ecosystem. The versatility and adaptability of these Service Chains make it possible for any type of web service to be built on Klaytn, with the exception of projects focused on gambling or financial speculation.

Since its launch, the Klaytn mainnet has rapidly attracted over 40 Initial Service Partners (ISPs) from various industries and use cases. These ISPs come from more than a dozen countries and were selected based on the quality of their blockchain-based services and the size of their existing user bases. Some notable ISPs include Humanscape, a data marketplace for patient-generated health data; Atlas, a blockchain-based travel content and transaction platform developed by Zanadu, a Chinese luxury travel company; and REDi, a blockchain-based marketplace for new and renewable energy.

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Recent Video Interview

Main points of the interview:

• Representative Director at Klaytn Foundation discussed Project Dragon, a merger of Klaytn and Finia.
• Aims to create Asia's leading blockchain by combining strengths of both.
• Mass adoption of Web3 in Asia, leveraging a 250 million user base.
• Enhanced tokenomics, technology interoperability, and decentralized governance.

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What Makes Klaytn Unique?

Klaytn is a public blockchain that has been highly optimized and is based on the Byzantine Fault Tolerance (BFT) consensus algorithm. Its primary objective is to provide enterprise-grade reliability. The key design goals of Klaytn are as follows:

1. Immediate finality: Klaytn aims to achieve fast and definitive confirmation of transactions.
2. High TPS (Transactions Per Second): The blockchain is designed to handle a high volume of transactions that are relevant to real-world use cases.
3. Lower cost of running Blockchain Applications: Klaytn strives to reduce the expenses associated with operating blockchain applications.
4. Lower barriers to entry for end-users: The platform aims to simplify the user experience and make it more accessible for individuals to participate.
5. Ease of technology adoption for the industry: Klaytn endeavors to facilitate the adoption of blockchain technology by industries.

Klaytn’s mainnet, Cypress, offers:

1. Block generation and confirmation time of 1 second.
2. Capability to process 4,000 transactions per second.
3. Gas price that is nearly one-tenth of Ethereum, resulting in lower transaction costs.
4. Compatibility with the Ethereum Virtual Machine (EVM) and support for executing Solidity contracts.

Klaytn’s native Currency: KLAY

KLAY is the native digital asset that serves as the fuel and security mechanism for the Klaytn protocol. During the launch of Klaytn, 10 billion KLAY coins were issued, and currently, there are 2.6 billion KLAY coins in circulation.

With the creation of each new block, 9.6 KLAY coins will be minted. The newly minted KLAY coins, along with the total transaction fees accumulated in the block (referred to as the "block reward"), will be collected and distributed to three designated accounts based on a predetermined ratio:

• Klaytn Governance Council Reward: This account receives 34% of the block reward. It serves as a reward for the members of the Klaytn Governance Council, who contribute to the operation and governance of the Klaytn protocol.
• Klaytn Growth Fund (KGF): The KGF account receives 54% of the block reward. This fund is dedicated to supporting the growth and development of the Klaytn ecosystem, which includes initiatives such as partnerships, investments, and strategic projects.
• Klaytn Improvement Reserve (KIR): The KIR account receives 12% of the block reward. The purpose of this reserve is to fund ongoing improvements, research, and development efforts related to enhancing the Klaytn protocol and its associated technologies. By distributing the block reward among these three accounts, Klaytn aims to incentivize governance participation, foster ecosystem growth, and continuously improve the protocol for the benefit of its users and stakeholders.

Klaytn Team Background

The Klaytn blockchain was created and launched in June 2019 by GroundX, which is the blockchain subsidiary of Kakao, Korea's largest mobile platform. Jaesun Han serves as both the founder and CEO of GroundX. He holds a Ph.D. in electrical engineering and computer science from the Korea Advanced Institute of Science and Technology (KAIST). He began his career as a postdoctoral researcher at KAIST before venturing into entrepreneurship.

In 2007, Han established his first company, NexR, which was a pioneering tech startup in Korea specializing in big data and cloud computing. Subsequently, in 2008, he assumed the role of Chairman of the Board at the Consortium of Cloud Computing Research. Continuing his career trajectory, Han became the Chief Technology Officer (CTO) of KT Clodware in 2011. KT Clodware is a company dedicated to providing technical support for KT Ucloud services.

Klaytn Project Development

The Klaytn Foundation is focused on achieving mass adoption of the Klaytn ecosystem by implementing a sustainable tokenomics strategy and building a robust technological network. They have set specific goals and initiatives to accomplish this.

In terms of tokenomics, Klaytn aims to create intrinsic value for its ecosystem through a deflationary model. They plan to revise and update the token release schedule to ensure its relevance and establish realistic targets for the amount of demand needed to make their token, KLAY, deflationary. They will also support a balanced supply and demand model for KLAY among ecosystem providers.

To optimize the ecosystem treasury, Klaytn will implement a token circulation monitoring process and rebalance reserves and funds in response to tokenomics changes. They will merge and reorganize existing funds into the Klaytn Community Fund and the Klaytn Foundation Fund, with increased transparency and community involvement in fund spending decisions.

In terms of demand facilitation, Klaytn aims to identify and create infrastructure services where KLAY can be used, increasing its transactional utility. They also plan to strengthen liquidity through major exchange listings and launch flagship metaverse and gaming services on Klaytn to attract new users. Additionally, they aim to expand the number of on-chain services and enhance the user experience for Web3 users to appeal to a wider audience.

Overall, the Klaytn Foundation is actively working towards sustainable tokenomics, robust technological infrastructure, and attracting a diverse range of users to drive mass adoption of the Klaytn ecosystem.

Klaytn Price Analysis

As of October 11 2024 Klaytn has a marketcap of $739M. This is {{percentagefromath}} from its all time high of $4.34. In terms of its tokenomics, there's a total supply of 5.8B with 99% currently outstanding. Keep in mind Klaytn has a fully diluted value of $744M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.