What Is Klaytn (KLAY) How It Works & Where To Buy It?

Klaytn (KLAY) is a South-Korean-based blockchain project that serves to bridge blockchain and business. It primarily focuses on business development through blockchain technology.

The Klaytn blockchain allows businesses to benefit from its growing Klaytn ecosystem and innovative blockchain solutions.

Having launched in 2019, the project has already made significant strides in the crypto space.

KLAY token has grown to become the 46th largest cryptocurrency in the world by market capitalization.

How Klaytn (KLAY) Works

Klaytn blockchain was developed to assist businesses with the integration of blockchain technology. It’s positioned to serve enterprises that are both small and large-scale businesses.

It was founded by Kakao, which is South Korea’s leading internet company, and the developer of Korea’s largest social messaging platform KakaoTalk.

Essentially, the Klaytn blockchain aims to provide businesses with access to either a private and public blockchain which streamlines tedious business processes and adds additional security to these processes.

The Klaytn network hosts several businesses already, including the likes of the Korea Economic Daily, the country’s largest newspaper.

GroundX is the company behind the development and creation of the Klaytn public blockchain and other innovative blockchain technologies associated with the project.

Businesses can choose to integrate features such as private blockchain functionality which offers more discretion and security. Alternatively, they can transition their processes directly on a public blockchain.

What Is Klaytn (KLAY) Used For?

The Klaytn blockchain network acts as a bridge for traditional businesses to integrate blockchain technology for a variety of uses.

Every business is unique and therefore has unique needs – blockchain technology can cater to all these needs and improve existing business processing while bolstering network security at the same time.

The low transaction fees on the network also make Klaytn a very viable option for many businesses seeking to transition to or incorporate blockchain technology.

The Klaytn ecosystem already has a host of blockchain-based applications which streamline business processes – the application of these features essentially makes business processes more practical.

Additionally, users interact with applications in the ecosystem and can earn yields (revenue). KLAY tokens essentially power interactions on the network – much like ETH powers interactions on the Ethereum network.

Many individuals also trade KLAY tokens because like other cryptocurrencies, it experiences price fluctuations which make it favorable for arbitrage or swing trading.

Where To Buy Klaytn (KLAY)

KLAY tokens are available on most cryptocurrency exchanges. KLAY saw its highest trading volume to date in April 2021, with 24-hour trading volumes reaching $300 million.

Five of the most popular crypto exchanges used by US traders are:

1. Gate.io
2. Kraken
3. KuCoin
4. HTX
5. Crypto.com

About Klaytn (KLAY)

How long has Klaytn (KLAY) existed?

The Klaytn blockchain launched in June 2019. It was launched by GroundX which is the blockchain subsidiary of Kakao.

The KLAY cryptocurrency has seen significant price appreciation since it was listed, reaching an all-time high of $4.24 on the 30th of March, 2021.

What’s controversial about Klaytn (KLAY)?

There are always projects emerging in the crypto space. Unfortunately, not all projects are equal and transparent – it’s essential to do diligent research on a project, its founders, partners, history, and any other important factors associated with the project.

So with that in mind, let’s take a look at the biggest controversy surrounding Klaytn (KLAY):

• Klaytn Governance Council – The Klaytn Governance Council comprises 30 multinational businesses who are tasked with voting on proposals, securing the network, operating nodes, and expanding the project. However, the governing council members have a dangerously important role that could potentially put investors at risk.

  If certain key members are manipulated and critical changes are made to Klaytn, it could impact the entire project negatively. The governing council is essentially the DAO of the project but the main difference is that the select group of council members resemble a centralized central authority – opposing the decentralized ethos of crypto.

How many Klaytn (KLAY) tokens are there?

At the time of writing, Klaytn (KLAY) has a circulating supply of 2.79B KLAY.

The total supply of Klaytn (KLAY) is 10,782,297,981.

Can Klaytn (KLAY) be mined?

Klaytn (KLAY) is not a mineable cryptocurrency. Unlike Bitcoin and Ethereum which use proof of work consensus algorithms, Klaytn uses a proof of contribution consensus mechanism.

However, individuals can earn KLAY yields by staking KLAY tokens, securing the network as a node, or utilizing other profitable decentralized finance applications.

Some centralized exchanges also offer staking rewards for users who lock up their KLAY tokens for a duration.

What is the market cap of Klaytn (KLAY)?

The market cap of any cryptocurrency can easily be calculated; it’s the total amount of coins in circulation times the current market price.

Klaytn (KLAY) Market Cap = 2.79B KLAY x $0,8388 = $2,34 billion. (46th largest cryptocurrency by market cap).

Of course, the market cap is continually fluctuating.

Biggest Competitors Of Klaytn Network And KLAY

The crypto space is extremely competitive and there is a substantial amount of new projects entering the market daily. Many of these projects have quickly garnered immense interest and attracted millions of dollars in investments.

Klaytn seeks to become an influential project that caters to enterprise solutions. However, there are already several significant projects, that have established themselves as credible, efficient, and secure enterprise solutions.

Some of the most notable competitors in the sector include XRP, Stellar, Fantom, and Chainlink.

XRP is currently the leading blockchain-based enterprise solutions provider. Ripple has amassed a tremendous following and the company’s blockchain technologies have been incorporated into multiple influential companies globally.

The distributed ledger software that Ripple uses allows companies to easily bridge their intricate and tedious business processes with blockchain technologies.

The market cap of XRP is also significantly larger than Klaytn’s market cap – XRP’s market cap is $31 billion.

Klaytn has however performed incredibly well since its launch and currently dominates the South-Korean enterprise market as a blockchain-based solutions provider.

Essentially, Klaytn will need to expand the project across multiple global companies and sectors if it plans to compete at the same level as the top projects that already dominate the enterprise solutions sector.

What Are The Future Plans of Klaytn Network and KLAY?

Klaytn has announced its intention to expand globally and become an influential player in the enterprise solutions sector.

There are already a significant number of companies utilizing Klaytn’s blockchain network and the continued expansion of the network relies on more companies joining.

Kakao is an incredibly influential company with major backing and dominance in the South-Korean market. The company’s influence will likely have a positive impact on the future of Klaytn.

Klaytn’s ecosystem is flourishing at the moment, with new decentralized finance applications being deployed the sentiment surrounding Klaytn looks very positive. As the ecosystem expands and more valuable applications are deployed, companies can utilize these applications to streamline their businesses.

Klaytn has also extended its utility by broadening its sphere of clients – most recently it has expanded into the gaming sector. The Klaytn improvement reserve (KIR) is also utilized to fund necessary upgrades.

The KLAY token has also seen positive price appreciation since it was listed, and its listing on Binance (the world’s largest cryptocurrency exchange) was indicative of the success and credibility of Klaytn.

KLAY tokens are frequently traded on most of the biggest cryptocurrency exchanges in the world.

Pros And Cons Of Klaytn Network And KLAY Token

Pros:

• Transactional capacity – Klaytn network is capable of processing 4,000 transactions per second. This is considerably better than the Ethereum or Bitcoin network which is only capable of around 15 transactions per second.
• Low transaction fees – The Klaytn network is much cheaper than popular blockchain networks like Ethereum.
• Klaytn Improvement Reserve – The fund is dedicated to improving the project, uplifting the community, and funding new initiatives. An emerging blockchain project could receive funding from the Klaytn Improvement Reserve. This Klaytn initiative seeks to develop an ecosystem filled with the most innovative blockchain applications, prioritizing blockchain development that helps business processes.
• Kakao is influential – The company behind Klaytn is Kakao – one of the leading internet companies in South Korea. The company’s user base is already huge and this will likely lead to Klaytn benefitting from Kakao’s influence and reach.
• Klaytn architecture – Blockchain is complex and Klaytn recognizes the need to simplify processes if mass adoption is the aim. Klaytn’s architecture makes blockchain integration a seamless process for businesses. It also allows businesses to select between using a public and private blockchain.

Cons:

• Centralization issues – Crypto is rooted in decentralization and most projects with a centralized structure are often surrounded by controversy. The issue with centralization is that it gives central authorities the power to make critical decisions that could affect token holders and the project negatively. Most projects incorporate a decentralized autonomous organization (DAO) to handle proposals and make key decisions.

  The structure of a DAO allows token holders to participate in governance decisions and vote on proposals. However, Klaytn has an exclusive governance council comprising 30 members for multinational enterprises. This is seen by many as a form of a central authority – many believe that projects that don’t have DAOs are risky and don’t uphold the true ethos of blockchain and crypto.