*obligatory not financial advice*
What is Klaytn?
Klaytn is a smart contract blockchain with the goal to make mainstream blockchain adoption possible by making it easy for businesses and end users to build and use applications on it. It is a hybrid blockchain that makes it possible to build your own private side chains that are all still connected to a public main chain, this unites the efficiency of a private chain with the security of a public one.
Klaytn has a public main chain where anyone can build dApps, or blockchain apps (BApps). It is possible to write smart contracts with the Solidity programming language that is also used by Ethereum and it also supports similar token standards. This makes it possible for many blockchain developers to start building applications and tokens on Klaytn. Support for other popular languages will be added too.
Many businesses and enterprises could profit from trust less smart contracts, but they all have different needs. That’s why Klaytn gives them the option of building their own service chains where attributes like throughput speed and security can be customized to fit better for them. The side chains can be controlled by the businesses that own them and can feature much faster and cheaper transactions than a dApp on the main chain. This makes them more suited for applications within a business. Building such a side chain is allegedly so easy that anyone can do it. The founders of Klaytn claim that there is no need for a high technological expertise about blockchain technology or cryptography to build your own token ecosystem, which will make it easier to adopt the project.
Klaytn uses a modified version of the Byzantine Fault Tolerant consensus. BFT limits the number of nodes that can participate in consensus, which makes the network highly efficient and scalable, but this also makes the chain less decentralized. Klaytn uses "Istanbul BFT" where the consensus within a side chain is executed by a limited number of nodes while there is a larger main chain that can access and if necessary verify the block results. This allows chains on Klaytn to have the high throughput of a private chain while also having the security of a public chain.
The founders are also aiming to make it easier for end users to adopt blockchains and interact with BApps. One way of making the project more user friendly is to make it possible for users to choose the public address of their wallet. Current addresses are random numbers and letters that most humans can't recognize, leave alone remember. Being able to change it into something more recognizable will make it much more convenient to use your wallet.
The KLAY Coin
KLAY is the native currency of the Klaytn network. It is used to pay for fees and for governance.
There is no max supply and there is a constant inflation that is set by the governance. Currently more than 10,000,000,000 coins exist. With each new block, the collected transaction fees and newly mined coins are being distributed to 3 different types of entities. 34% goes to the Klaytn Governance Council, 54% to contributors in the network (service providers and end users) and 12% goes to the Improvement Reserve.
The Governance Council consists of investors that have at least 5 million KLAY staked. They are responsible for improving and maintaining the network to make sure that everything continues to run smoothly. The Governance Council Reward is used to incentivize council members to continue providing their input. The 54% that go to contributors are supposed to reward everyone who adds value to the ecosystem. Currently it is mostly focusing on service providers, like the developers of dApps, and their users. The parameters for the coin distribution can be changed by the Governance Council. Finally, the Improvement Reserve can be used to fund any changes or improvements that everyone can propose to the Council.
There will be more demand for KLAY if more users, developers and businesses adopt it. The blockchain is fast, cheap to use, uses a familiar programming language and offers the option to make your own side chain. It has a unique way of distributing block rewards, but it is also kinda centralized because becoming a council member requires an investment of more than 5 million dollars right now. Such a high stake makes sure that the council members want to improve the network, but it also makes it impossible for normal people to have a say in the development of the network.
If you choose to buy some KLAY coins, you can do that on Binance and MEXC. The best place to store your coins is the native Klaytn Wallet.
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