The Klaytn Project (KLAY) is a blockchain project that seeks to create a highly scalable ecosystem linked to a virtual machine derived from the Ethereum Virtual Machine (EVM).
Klaytn is a project that seeks to build a transformative space for the deployment of dApps that promotes the massification of Web3. To do this, Klaytn has worked on a series of unique technologies that have given rise to a 3rd generation blockchain that has started to gain momentum in the crypto ecosystem.
Klaytn is a development of the well-known South Korean company, Kakao, which is responsible for the development of the Kakao Talk messaging application and its subsidiary, Ground X. The launch of the Klaytn mainnet network took place on June 27, 2019. Since then, the intention of the project has been to stay true to its mission of making a better world through people and technology. This blockchain is designed to be practical and trustworthy, focusing not only on technology and business, but also on the transformative change it can bring to individuals in the Web3 era. For this, the Klaytn Foundation, the entity in charge of its development and evolution, maintains a roadmap that seeks to transform Klaytn into the main platform for the deployment of dApps or Blockchain Applications.
As part of this evolution, Klaytn began a long development that in February 2022 ended with the launch of Klaytn 2.0, a blockchain focused on dApps and integration with the NFT ecosystems and metaverses under construction.
How does Klaytn work?
Klaytn is intended to be a powerful platform for the deployment of decentralized applications. To do this, Klaytn bases its smart contracts on a derivative of the reliable Ethereum Virtual Machine (EVM), thus offering a widely recognized development space in the blockchain ecosystem. In this way, Klaytn can deploy DeFi-type dApps, NFTs, DEXes and everything that can be created using the Solidity programming language.
In addition to this, Klaytn offers full support for the JSON-RPC interactions necessary for use with Web3 MetaMask-type wallets. Thus, the interaction between users and the applications deployed on this blockchain is facilitated.
Its most recent development Klaytn 2.0 allows its Layer 1 core to be easily extended by means of different Layer 2 aimed at meeting the needs of different blockchain applications and their particular processing needs. That way, the core of Klaytn (shown in the image below) can adapt to growing application needs.
In other words, Klaytn is a highly modular development platform designed to respond to the needs of communities or companies that wish to use its capabilities. This includes DeFi applications, NFTs, Metaverses, DAOs, Play2Earn/GameFi platforms, cross-chain bridges, and much more.
Smart contracts in Klaytn
Klaytn using the KLVM (Klaytn Virtual Machine, a derivative of the EVM) has the ability to process smart contracts written in the Solidity programming language. This feature makes it easy for developers to migrate or deploy dApps on top of their blockchain. Additionally, this means that developers can use widely known resources like Truffle for the development and testing of their applications.
In the future, Klaytn plans to accommodate smart contracts written in various programming languages to extend support to a wider range of potential developers and provide them with the opportunity to start the development experience they are most familiar with.
Services Chain, subchains and scalability in Klaytn
The Services Chain in the Klaytn network are auxiliary blockchains independent of the Klaytn mainchain, tailored for individual BApps that require special node configurations, custom security levels, or exceptionally high performance which makes deployment of the BApp on the Klaytn mainchain inconvenient or economically unfeasible.
Although there are fully decentralized scaling solutions, their difficult interfaces make their integration and deployment more complex. For that reason, Klaytn has chosen an approach to its Services Chain that has balanced a compromise between full decentralization and better usability, instant finality, high performance, and high availability.
Thus, these subchains can be used for various service-specific purposes and can be connected to the mainchain for multiple purposes, including data anchoring (periodic storage of service chain block hashes on the mainchain to compensate for decreased of security due to fewer nodes) and value transfer (transfer between token chains, including KLAY, the native Klaytn token, and Klaytn tokens issued by BApps). Additionally, these subchains help keep a check on the growth of Klaytn's total mainchain storage, keeping its records off the main chain, and leaving only cryptographic proof of its operation to verify operations.
KLAY Token
The KLAY token is the native token of Klaytn, and its main use is to pay transaction fees within Klaytn or to transfer value within the network. In this sense, KLAY is a utility token that opens the doors for us to pay for the power and benefits that Klaytns and its Services Chain have to offer us. At the moment, the issuance of KLAY is limited to 10.782.297.981 KLAY, which were issued in the genesis block. However, the emission can be increased if the decentralized governance of the project so decides. This means that KLAY is an inflation type token.
On the other hand, KLAY is vital to the financing structure of the project. With each new block, 9,6 KLAYs are minted, which means that approximately 300 million KLAYs will be created per year. This is equivalent to 3% annual inflation. These rewards and commissions are directed based on the following predetermined ratio:
- Bounty from Klaytn Ruling Council or Block Proponent: 34%.
- Klaytn Growth Fund (KGF): 54%.
- Klaytn Enhancement Reserve (KIR): 12%.
In this way, the development of the community is maintained and other means of growth are encouraged for the platform. Klaytn is a Proof of Stake system, so the creation of nodes is done through staking. To create a Klaytn node, you need 5 million KLAY tokens, which, at the time of writing, is equivalent to $5,1 million.
Governance in the Klaytn community
The Klaytn Governance Council is a council that has the right to decide various governance matters. To guarantee its reliability, the first members of the Governing Council have been limited to trusted organizations, which means that it is not entirely decentralized. This was chosen for the sake of efficiency at the platform development and stabilization stage. Klaytn has reached the stage where 31 Governance Council members have joined and the Klaytn Mainnet has been running smoothly.
Klaytn believes that Klaytn's governance must lead the growth of Klaytn in line with the transition of our world. One of the key transitions in the world comes from the growth of the metaverse. Technological advances are giving way to a more metaverse world. In particular, we are seeing the growing influence of non-traditional entities such as Decentralized Autonomous Organizations (DAOs) and builders. As an organization that operates smart contracts without a centralized structure, DAOs will be a pivotal entity in the metaverse. Builders will have more influence by contributing to the functioning and growth of the metaverse.
Klaytn allows governance participants who can gather more support from the Klaytn Communities to shape Klaytn according to their preferences. Entities that can make a proper decision in a metaversified world will have more influence on governance. We believe that DAOs and constructors will lead the scene in the future.
Future of Klaytn
Klaytn's most recent update has shifted the network's focus to a rapidly growing market: NFTs and the metaverse. Klaytn's ability to adapt its services to the needs of its dApps thanks to the Services Chain, is perfect for this type of function. First of all, because the Services Chain can adapt to the reality of development, providing scalability and consensus rules that help improve the dAppp experience.
In addition, the Services Chain greatly reduces the cost of implementation and interaction, which helps companies and communities to sustain developments with minimal operational cost. And finally, the developments can be open or closed, adjusting to the reality of community or private developments. Hence, Klaytn is an interesting option for companies that want to include low-cost, high-speed blockchain technology to implement their own solutions.
This reality can be clearly seen in the huge ecosystem of applications that rely on Klaytn's technology and with its new version it is very likely that the list will continue to grow.
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