Klaytn: What's This Crypto & Where Did it Come From?? 🤔

in LeoFinance3 years ago

Klaytn History📅

Klaytn’s history begins with a company called Kakao. Kakao is one of the largest publicly traded tech companies in South Korea with a market cap of roughly 40 billion US dollars

Whereas corporate crypto projects like Facebook’s Libra aka Diem were reigned in by regulators in the US, Kakao managed to work around these restrictions using subsidiary companies in foreign countries

👨‍🏫Klaytn Explained👨‍🏫

Klaytn intends to be the backbone blockchain for South Korean businesses, including Kakao. Unlike most enterprise blockchains, Klaytn is actually open source

In June 2020, the Klaytn blockchain became available on Kakaotalk via the Klip Wallet, which exists within the Kakaotalk app itself

It seems that Kakao intends the Klip wallet to be a way for businesses to reward Kakaotalk users with fungible or non-fungible tokens when they make in-app purchases or interact with sponsored content

The Klaytn blockchain is governed by the Klaytn Governance Council which consists of over 30 crypto and non-crypto companies including LG Electronics, Binance, Huobi, and even MakerDAO

💱Klaytn Blockchain Performance💱

Klatyn uses a permissioned proof of stake consensus mechanism which supports a limited number of validators
Klaytn has a 1 second block time, and can process around 4000 transactions per second, though its smart contract TPS could be as low as 12 due to its use of the EVM

Fees on the Klaytn blockchain are ‘almost 1/10th of Ethereum’ which is still quite a bit when you consider the cost of gas on Ethereum as of late, but luckily these fees can be delegated

⛓Klaytn Blockchain Architecture⛓

Klaytn’s validator nodes called core cell operators form the core cell network or CCN, which processes transactions on the Klaytn blockchain.
These validator nodes are run by the members of the Klaytn Governance Council, and each council member must stake a minimum of 5 million KLAY coins to become a core cell operator

The transactions that the CCN processes come from Endpoint Network Nodes or ENNs which do not need to stake any KLAY coins

Klaytn service chains are analogous to layer 2 scaling solutions on Ethereum except they rely on the Klaytn blockchain for security and use Endpoint Network Nodes to communicate with the Klaytn chain

💸KLAY Tokenomics 💸

The KLAY coin had an initial supply of 10 billion and has an inflation rate of 300 million KLAY per year to pay for all those block rewards

KLAY’s 2018 and 2019 ICOs saw 36% of its supply sold for around 138 million dollars to as little as 26 private investors. Coins sold during the ICO have vesting schedules though this could not be confirmed

📊KLAY Price Analysis📊

CoinMarketCap’s reporting of KLAY’s circulating supply supports the notion of a vesting schedule, which is actually not good when you combine it with KLAY’s inflation schedule

While KLAY has a 24-hour trading volume of nearly 400 million at the time of shooting, most of this trading volume is happening on the Klayswap DEX which is a bit concerning given its lack of users

🤨 Klaytn Potential🤨

Klaytn has given minimal attention to adoption, partnerships, and even basic communication. Its social media activity is remarkably low given its apparent size, and does not have a defined roadmap.

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