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While we have seen a Metaverse boom in the year 2021, this year has been relatively quieter. It seems that right after the raging bull market stopped, the buzzwords such as Metaverse, gamification, DeFi, NFTs and many others, which are inherently connected to the cryptocurrency world, have since slowed down.
That however does not mean that there are no interesting projects working on the development of the above-mentioned sectors. And today’s coin, Klaytn (KLAY), wants to improve several of them at the same time.
Klaytn (KLAY) is a public blockchain that is aiming to improve the experience connected to the Metaverse, NFTs and gaming. First and foremost, it is designed to be working as a platform for real-world Metaverse solutions.
It mostly wants to serve developers, who are interested in creating new experiences in the Metaverse, but do not know how or where to start. This encompasses everything from virtual goods, virtual realities, play-to-earn crypto games or anything that is in any way related to the Metaverse.
Klaytn is able to provide these solutions thanks to usage of a protocol called Istanbul Byzantine Fault Tolerance (IBFT). Compared to Proof-of-Work or Proof-of-Stake consensus algorithms, IBFT allows all transactions on the network to be completed within one second. That means that the transactions are nearly instant and final, which is especially helpful for minting NFTs.
IBFT offers scaling solutions, thus addressing one of the biggest problems connected to decentralised ecosystems. However, Klaytn decided to still allow for employment of PoS consensus mechanisms mostly for beginners, via limited validators. This then leads to a hybrid infrastructure which this coin offers.
The combination of both these factors means that developers of any kind can be attracted to this project easily, as it allows options for different solutions to be deployed. Moreover, KLAY is also compatible with Ethereum Virtual Machine (EVM). This also means that the Ethereum developers can build and develop stuff on KLAY, yet again, allowing for more interaction and development on the network.
Klaytn also has some unique governance structure called Governance Council (GC). The Governance Council is made of different enterprises and decentralised autonomous organisations (DAOs) from all around the globe.
These then serve as validators for the whole network. This means that Klaytn wants to provide benefits of decentralized public blockchain, while also maintaining the performance of centralised-permissioned blockchains. In the future, the project wants to improve its decentralization even more thanks to adding more DAOs.
The story of how this project was founded differs significantly from the most common cryptocurrency stories. Klaytn, unlike most cryptocurrency projects, has a huge backing. It was created by a company called GroundX, which is a subsidiary of Kakao, one of the largest and most successful mobile platforms in South Korea.
GroundX has already built a portfolio of interesting and very successful projects in the country such as Klip, messenger built-in wallet, Klip Drops, an NFT marketplace for fine art, or Klaytn network itself.
With huge success of GroundX with Klaytn in South Korea, the company decided to develop Klaytn Foundation, a non-profit organisation that aims to help with the worldwide adoption of the cryptocurrency and to accelerate the development of the whole ecosystem. The Klaytn Foundation also oversees Klaytn Growth Fund as well as works with a Krust, which also has a goal to invigorating Klaytn onto a global scale and which is a subsidiary of Kakao.
The main members of the team around the Klaytn and its development are Sangmin Seo, Director of Klaytn Foundation, David Shin, Head of Global Adoption, Younho Lee, Klaytn Strategy and Treasury and Junghyun Kim, Core developer.
Except for incredible support in the form of subsidiary companies and backing by hugely successful corporations, Klaytn was able to secure some impressive partnerships. These include industry titans such as Japan’s GMO Internet Group, mobile gaming giants Netmarble and WeMade or Samlim Group. Additionally, the Bank of Korea decided to use Klaytn as an official blockchain partner for its central bank digital currency (CBDC).
Klaytn also uses its own token, KLAY, in its ecosystem. The token can be staked on different exchanges such as Binance or even on its platform called Klaystation, which is a native platform. It is the official platform and tool that was developed for staking Klaytn.
KLAY token is used on the platform and the tokens can be staked, earning not only an interest in the form of passive income, but also a say in the network’s governance.
Overall, there are currently about 3.06 billion KLAY tokens in the circulating supply, with the total supply being 10.7 billion KLAY tokens. The daily volume does not somehow shine with around 35 million dollars traded, however, in times like these, it is better than most other cryptocurrencies.
A first glance at the project might look very optimistic and positive, with numerous great features and appealing features, however, that does not mean that it is flawless. While there might not be crucial mistakes or bugs incorporated right in the Klaytn, the overall situation surrounding it does not necessarily shout success.
One of the disadvantages of the project is that it is in a very competitive field. Metaverse-related projects or cryptocurrencies concerned with NFTs are very popular fields with a huge number of projects working on its development. And as of now, Enjin, Decentraland and Sandbox seem to be way ahead of competition, which, in this case, includes also Klaytn.
Klaytn is very concerned with the adoption and development, there are not that many teams or projects that are actually working on Klaytn and its use cases. While there are some significant ones, overall, the competition in the names of Enjin, Decentraland or Sandbox has captured most of the development so far.
Moreover, considering how far ahead all of the above-mentioned projects are, Klaytn is still very small. While this brings an opportunity for a bigger and more explosive growth, it also means that it will be more difficult for Klaytn to establish itself in the Metaverse or NFT subsectors.
Klaytn project is aiming to become a go to place for developers who are trying to enter the world of Metaverse or NFTs on their own. Klaytn is building most of its success around well built infrastructure in South Korea, where many of its founding companies and members have previously built their success.
Thanks to that, Klaytn has a huge support from the beginning. However, it needs to establish itself in a pretty competitive cryptocurrency subsector, where the likes of Decentraland, Sandbox or Enjin have already grown significantly.
You can buy, sell and trade KLAY on BingX now.
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