Klaytn (KLAY) is a public blockchain designed for the metaverse, gaming and content creation economies. The platform was launched in June 2019 and currently has a significant share of the South Korean blockchain market. Developed by the Kakao company, the ecosystem provides a platform with low latency, high efficiency, and ease of use. It also develops a range of products to meet the needs of Dapp developers and users.
Initially, a Dapp platform that offered only high efficiency, Klaytn is now focusing on the metaverse, identifying itself as the “metaverse blockchain for everyone.” In addition to the metaverse, the platform hosts various GameFi and content economy products, allowing users to earn returns through blockchain products. This makes the project more popular, and currently, the ecosystem is one of the largest platforms in the market. In this article on Zatrun.com, we have compiled everything you need to know about KLAY.
What is Klaytn?
Klaytn blockchain was developed and launched by GroundX, Kakao’s blockchain subsidiary, in June 2019. After two successful years in Korea, a non-profit Foundation was established, dedicated to the network and its ecosystem. The foundation is managing a ‘Growth Fund’ to launch the global expansion of the blockchain. The fund is used to help projects built on the blockchain, among other purposes.
Klaytn is a public blockchain that focuses on the creative economy, GameFi, and metaverse. Currently, the platform is expanding its global presence. These business expansions are supported by the Growth Fund, which aims to grow the ecosystem built on Klaytn.
The fund is managed and paid by Klaytn Foundation, a non-profit organization based in Singapore, as of August 2021. The ecosystem offers many products to developers and content creators, including the end-to-end Metaverse Development Package.
How Does Klaytn Work?
Klaytn is a blockchain network with various features. The network provides custom layer-2 solutions, smart contract libraries, blockchain explorers, crypto wallets, bridges, and oracles. It also offers a Metaverse Development Kit with an ecosystem of supporting services such as NFT marketplaces, stablecoin integration, and more. These tools make the platform a sort of one-stop-shop for anyone looking to build something in the metaverse. The ecosystem uses a consensus algorithm called Istanbul Byzantine Fault Tolerance (IBFT).
This allows for transactions on the network to be completed in one second. Additionally, it allows for use cases such as real-time minting of NFTs for in-game item drops, which could benefit from almost instantaneous transaction completion.
As part of its efforts to develop the metaverse and Web3, Klaytn also supports the Ethereum Virtual Machine (EVM). The network achieves interoperability by making its technical index equivalent to the Ethereum index and building on top of existing Ethereum clients. The ecosystem also has a unique governance structure called the Governance Council (GC).
What is KLAY? Is It a Good Investment?
KLAY coin is the native token of the project, primarily used for transferring value within the network or paying transaction fees within Klaytn. Cryptocurrency allows us to pay for the advantages and power offered by blockchain.
On the other hand, the KLAY coin is also essential for the project’s funding plan. 9.6 KLAY is minted in each new block. Therefore, 300 million KLAY will be in circulation each year. This is equivalent to a 3% annual inflation rate. KLAY coin is also used for purposes such as accessing and purchasing NFT and Dapp markets on the blockchain.
Klaytn is a blockchain network introduced by a well-known telecom company, which focuses on enterprise solutions rather than sticking firmly to decentralisation. Klaytn’s strategy of adapting blockchain solutions to modern usage has already been successful with comprehensive collaborations with established businesses.
The promising blockchain now aims to achieve seamless global blockchain adoption and provide lasting value to all members of its ecosystem. Additionally, the project allows its users to create decentralised platforms such as Dapps, NFTs, and metaverse. All of these could contribute to the platform’s future growth. Currently, KLAY is the 65th largest cryptocurrency in terms of market capitalization.