What is Klaytn

Klaytn is an open public blockchain platform developed by Kakao, a major South Korean mobile platform. It is committed to demonstrating the value and utility of blockchain technology by delivering a blockchain service for mass adoption. It offers a simple development environment and a dedicated user experience. Klaytn seeks to continue advancing the platform to provide blockchain services to millions of users. Klaytn Blockchain will use the Istanbul Byzantine fault tolerant (IBFT) consensus algorithm based on proof of stake (PoS).

A Brief History of Klaytn

Officially established in June 2019, Klaytn is a robust blockchain platform in South Korea and is currently expanding globally from its international headquarters in Singapore. Three large investors fund Klaytn: Crescendo Equity Partners, Translink Capital, and IDG Capital.

Kakao, a multi-service company, entered the crypto market after the 2017 bull run piqued its curiosity. As a result, the company was motivated to develop its cryptocurrency, which resulted in the innovation of Klaytn. Efforts to actualise the Klaytn idea nearly derailed when the company received various backlashes from the country's banking regulations, similar to Facebook's Libra. With the support of a blockchain-based subsidiary, Ground X, the company swam its way past a slew of regulations and roadblocks.

The Klaytn protocol is powered and secured by KLAY, its native digital asset. Some of the many uses for KLAY are transaction fees, a medium of exchange, staking, and collateral for secondary tokens.

How Klaytn Works

Klaytn blockchain is for organisations with high data transaction volumes. Therefore, a traditional consensus mechanism such as proof of work (PoW) or proof of stake (PoS) is unlikely to suffice. Klaytn is delivered using an advanced consensus mechanism called IBFT (Istanbul Byzantine fault tolerance).

Although Klaytn's present architecture cannot work entirely by PoS or PoW consensus, it enables a PoS consensus to accommodate a restricted number of beginning validators while maintaining IBFT as its primary consensus mechanism.

However, on this blockchain network, everything revolves around speed and ease. To put things into perspective, Ethereum can handle roughly ten transactions per second; nevertheless, Klaytn's transaction fees are more than ten times cheaper than those on Ethereum. As a result, Klaytn has been able to spearhead the mainstream adoption of blockchain among institutions, as scalability no longer poses a difficulty.

Klaytn's digital and business expertise promotes interoperability across existing services and gives blockchain developers a unified environment to construct new protocols. Klaytn also focuses on fixed transactions and ensures transaction fees are transparent and predictable.

What is Klaytn Used for

Klaytn provides a broad development avenue that enables multiple degrees of blockchain development for a wide range of use cases. The Klaytn blockchain is primarily concerned with delivering blockchain to businesses.

One of the essential difficulties that Klaytn developers attempted to address was a developer and user misunderstanding. Businesses must overcome traditional technical barriers to integrate blockchain services into their existing business systems. Klaytn, using a simple interface, eliminates all friction points from the equation.

Centralisation is another critical problem that Klaytn seeks to solve. The platform was designed from the bottom up with decentralisation as a key network feature.

Klaytn caters to businesses of all enterprises, from small to large. The primary goal is to provide them with the opportunity to link their technological infrastructure with a blockchain network.

Furthermore, the supported businesses enjoy using a public and private blockchain through Klaytn's ecosystem. Many people favour this platform because the network's private blockchain functionality ensures anonymity. In addition to that, it guarantees the maximum security of sensitive data, boosting the network's scalability.