Public blockchains enjoy a open and decentralized chain where strength lies in the numbers of nodes and users. Sadly this comes with drawbacks as most public blockchains are either very expensive or slow, usually they try to make up for this by sacrificing security. Private blockchains are highly scalable and offers high speed, but lacks decentralization. How does Klaytn aim to bridge this gap?
Klaytn is an open blockchain that went live during the summer of 2019. The company behind the development of Klaytn is Groundx and its CEO Jaesun Han. Groundx is a subsidiary company of Kakao, which is one of the largest mobile platforms in South Korea. The idea behind Klaytn was to combine the features of the decentralized public blockchains and private blockchains. It was listed very shortly after release on the Upbit exchange where users could get some Klaytn airdropped along with the creation of the BTC/KLAY trading pair. This coin's history isn't very long or eventful. The time since its release can basically be summarized with it working on the ecosystem and securing partners for the blockchain.
The two most common form of blockchains are public and private. Public ones are the most common and what people think about when they hear the word "blockchain", private blockchains are more akin to controlled blockchains that have higher speed and finality, such as XRP (altho they are moving towards being a public chain). There are benefits and negatives with both forms of blockchains, Klaytn aims to be a hybrid bringing the best of the two variations.
Klaytn functions using a BFT (Byzantine Fault Tolerance) method which functions very similar to a proof-of-stake, the consensus they are using is called the Istanbul BFT. The smart contracts that can be run on chain are ran using solidity (same language that Ethereum uses), these can deployed on your own local chain or to be run on Klaytn as a whole. That being said, you can be a part of the chain as a whole or run your own local chain that can freely connect back.
Changes or updates to the chain is decided by the governance council which consists of several multinational businesses and enterprises. Users can submit proposals and if the proposed change receives support they can get rewarded. The reward comes from the same pool that staking rewards and developer grants come from, the Klaytn Improvement Reserve (KIR). This reserve is funded from the fees from doing transactions or running smart contracts.
Klaytn was built to allow for easy integration to the network which makes the access to smart contracts alot easier. The main focus is for businesses that wish to make use of a blockchain to power and automate their business, the way that Klaytn is built makes this very easy to perform. As it functions as both a private and public blockchain, users can enjoy the Dapps (or Bapps as Klaytn calls them) that exists on the chain while businesses can automate their business and store information and run securely on chain.
Ethereum exists for investors, traders and users that enjoy DEFI. XRP was created to complete settlement between banks in a secure and fast manner. Klaytn aims for both under the security of one chain while requiring as little technical knowledge as possible.
During spring of this year Klaytn saw the height of its popularity. After that it's been struggling to get back to its ATH, even staying above the top 50 margin in marketcap. The technology behind it is good, and it has partnered with several enterprises and businesses that give it a stable spot in the crypto market. The biggest reason why it is where it is today, is thanks to its founder company which is very popular in Korea. I believe that Klaytn will stay, but where it'll stay is still uncertain.
- Easy to use
- High speed and low cost
- Strong competition
- +/- Caters to businesses