Klaytn (KLAY): How It Works

Blockchain technology has never been bigger. Every cryptocurrency has an infrastructure that’s based on its blockchain protocol. Currently, there are four types of protocols: public, private, hybrid and consortium. Typically, the use cases of a cryptocurrency are determined by the type of blockchain upon which it’s built.

In this article, we’ll discuss Klaytn (KLAY), a hybrid emerging blockchain project that combines the strengths of public and private protocols. Here’s everything you need to know.

What Is the Klaytn Blockchain?

Klaytn was developed by Ground X, the blockchain subsidiary of South Korean tech giant Kakao Corporation. With a market cap of over $40 billion, Kakao is one of the largest publicly traded tech companies in Korea. Over 93% of South Korea’s population uses Kakao’s instant messaging app, KakaoTalk (usually shortened to “KaTalk” in South Korea). Having recently launched South Korea’s first-ever internet-only bank, KakaoBank, the company is also a pioneer in the fintech industry. Currently, Kakao manages around 30 services in various sectors: Kakao Music, Kakao Games, Kakao T Bike and Taxi, and more.

Fueled by 2017’s crypto bull run, Kakao made its venture into the crypto space in 2018. After launching the KLAY token in a successful ICO, Kakao went on to build blockchain network Klaytn, which they hope will become the technological backbone for all South Korean businesses.