Klaytn’s Rapidly Expanding Service Ecosystem


Klaytn, a blockchain developed by Korean company Kakao, has a flexible modular network architecture that makes it an interesting enterprise blockchain option.

Summary

Klaytn is similar to Ethereum and EOS in that it aims to achieve mainstream blockchain adoption through the development of flexible, value-driven end-user services. While Klaytn began in South Korea and is now filled primarily with Asian-focused applications and online services, the project has managed to attract a diverse set of partners and ecosystem participants from around the world.

Contents

Klaytn’s Service Partners

Kakao, a South Korean internet provider, has launched Klaytn, a business blockchain platform. Its modular network architecture is designed to make it easy for enterprises to develop and run their own service-oriented blockchains based on the Klaytn architecture.

Service Chains are autonomously operated subnetworks that form the backbone of Klaytn’s enterprise-friendly environment.

Because of the flexibility and customizability of these Service Chains, any type of web service can be built on Klaytn, albeit initiatives focusing on gambling or financial speculation are not permitted.

Klaytn’s mainnet debuted in June 2019 and swiftly attracted more than 40 Initial Service Partners (ISPs) from a wide range of industries and use cases, including entertainment, e-commerce, healthcare, and finance.

These ISPs are from a variety of nations and were chosen for the quality of their blockchain-based services as well as the size of their existing user bases.

Humanscape, a data marketplace for patient-generated health data; Atlas, blockchain-based travel content and transaction platform established by Chinese luxury travel operator Zanadu; and REDi, a blockchain-based marketplace for innovative and sustainable energy, are all examples of ISPs so far.

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Klaytn’s BApp Ecosystem

On their separate Service Chains, several of Klaytn’s ISPs also host BApps, or blockchain applications. Because the platform does not require its app providers to operate decentralized web services on its Service Chains, Klaytn uses the term “BApp” rather than the more often used “dApp” or “decentralized application.”

Klaytn’s public mainnet allows centralized BApps to interface with it and benefit from its blockchain-enabled transparency and security.

In June 2019, the first batch of BApps was released on the Klaytn mainnet, coinciding with the start of numerous initiatives aimed at encouraging the development of Klaytn’s BApp ecosystem.

The Klaytn Hackathon, a virtual hackathon that allowed developers to create meaningful projects on Klaytn’s public testnet, and Klaytn Horizon, which welcomed developers from all over the world to build apps on Klaytn, were two of these initiatives.

Applicants were evaluated in both situations based on their capacity to provide practical services and a user-friendly blockchain experience. A $1 million USD prize pool was awarded to the champions of the Klaytn Horizon event in 2019.

On Klaytn’s mainnet in 2020, there were over two dozen BApps in use. The majority of these BApps are centered on entertainment, with blockchain-enabled features such as collecting non-fungible tokens (NFTs).

To function and charge for their services, every BApp employs Klaytn’s native KLAY coins as a medium of exchange. At the discretion of the Klaytn Governance Council, which is made up of high-profile strategic partners such as LG Electronics and Celltrion, KLAY coins are also awarded to top-performing BApp developers.

In addition to the earnings from running a successful BApp on Klaytn, this gives developers an extra revenue stream.

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Klaytn’s Far-Reaching External Partnerships

Klaytn has attracted a number of prominent enterprise partners who have taken a strategic decision to cooperate with Klaytn to extend its user base and reach, in addition to its ecosystem members.

While the majority of these Ecosystem Partners are blockchain-focused, some, like Woori Financial Group (a Korean financial services holding company) and BCW Group (a strategy consulting firm focused on traditional and digital payments), are more traditional businesses looking to benefit from Klaytn’s ecosystem.

Klaytn announced cooperation with Chainlink, a decentralized oracle network, in May 2020, in addition to cooperating with numerous cryptocurrency exchanges in an Ecosystem Partnership or Governance Council capacity.

This agreement will assist Klaytn in developing blockchain-powered applications that can interface with traditional off-chain enterprise infrastructures, allowing it to further its aim of mass adoption and integration with current economies.

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The Klaytn Improvement Reserve

Klaytn created the Klaytn Improvement Reserve (KIR) in June 2020 to reward Klaytn enterprise users and foster ecosystem growth.

This initiative recognizes significant partners and ecosystem contributors who have helped Klaytn improve its development environment or user experience. It will also support a variety of community projects as well as technology research and development. When a new block is made on Klaytn’s mainnet, the KIR receives a percentage of the KLAY coins generated automatically.

The Klaytn Governance Process determines how this money will be used.

Ozys, a Korean blockchain service firm that has designed a decentralized token swap platform on Klaytn called Klaytn Swap, was the first partner to receive funds from the KIR. Klaytnscope, a multifunctional block explorer that monitors block activity on the Klaytn platform, has recently received new capabilities.

Klaytn is actively researching ways to employ Proof-of-Contribution (PoC) to motivate and reward end users on its platform, in addition to rewarding enterprise ecosystem participants using KLAY’s Proof-of-Contribution (PoC) assessment process.

Klaytn delivers a unique concept in the blockchain ecosystem as a blockchain network built by an established telecoms firm targeted toward enterprise applications without a tight devotion to decentralization. Klaytn’s strategy of adapting its blockchain solutions to match today’s usability, as well as its large-scale relationships with legacy companies and support for enterprise blockchain technology, has already paid off.

Now, the promising blockchain is trying to provide long-term value to all members of its ecosystem and achieve its goal of worldwide blockchain adoption.

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