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Klaytn – Explanation, Pros- and Cons, Buying Guide and Wallets

You might not have heard of Klaytn. It’s the new cryptocurrency platform being developed by Kakao, the giant South Korean internet conglomerate best known for KakaoTalk, KakaoPay, and KakaoTaxi.

So what is this crypto? Unlike other coins which were created to serve a particular purpose (e.g. Ripple, DASH, IOTA), Klaytn is a “territorial coin” – a coin created to serve the purpose of its home country.

In the case of Klaytn, that means it’s being developed specifically for South Korea. It’s meant to be an ecosystem where startups can build their ideas and ICOs can be launched in an environment that minimizes risks and maximizes rewards.

What is Klaytn?

Klaytn is a blockchain-based platform that supports a new cryptocurrency that’s designed specifically for the South Korean market. The coin users are paid in, which runs on the Klaytn blockchain, will be known as KNC.

One of Klaytn’s key goals is to encourage more startups and ICOs to launch within South Korea – arguably the world’s most fertile ground for blockchain innovation.

Why is Klaytn so important? South Korea is one of the world’s most innovative countries. The country has long been a powerhouse for mobile apps, with companies like Kakao and Naver revolutionizing the app world.

But South Korea also has some serious issues that startups need to consider before launching an ICO or a blockchain platform. As the US Department of Homeland Security notes: “The Republic of Korea (ROK) is considered by U.S. authorities to be under an elevated level of threat from North Korean cyber actors.”

By developing Klaytn as a platform for South Korea, Kakao hopes to make it easier for South Korean companies to launch their blockchain and ICO projects.

Kakao wants the Klaytn blockchain platform to solve the problems that plague most ICOs and blockchain startups.

How was it created?

Klaytn is being created by Kakao. The South Korean internet company is a giant with roots in the mobile phone sector. In addition to powering KakaoTalk and its other messaging products, Kakao has also developed its own web browser and mobile game platforms.

The company has over 50,000 employees and operates in over 150 countries – which makes it one of the biggest tech companies in the world.

But Kakao isn’t just a big tech company. It’s also a big player in the cryptocurrency world, which it entered by acquiring the Korea-based blockchain platform Ground X – formerly known as Iconic – back in July 2018.

Within a few months of acquiring Ground X, Kakao had rebranded it as “Klaytn” and was announcing that the new Klaytn blockchain platform would be launching later in 2018.

Advantages of Klaytn

  1. -Developed for the South Korean market
  2. -KNC runs on the Klaytn blockchain, which can process up to 1,000 transactions per second
  3. -Kakao has over 50,000 employees, which means it can reach more potential users than other blockchain platforms (e.g. EOS has less than 10 employees!)
  4. -Kakao has a huge customer base, which means that companies using the Klaytn blockchain are likely to reach potential customers more effectively
  5. -Kakao’s huge customer base might also lead to some interesting partnerships – e.g. KakaoPay might be used for payments in Klaytn-based apps and services
  6. -Kakao is developing a series of apps that have been designed specifically for Klaytn developers – see below for details!

Disadvantages of Klaytn

  1. -Kakao is the only company so far that has announced an intention to launch a project on the Klaytn blockchain. This might be problematic as it could limit the growth potential of Klaytn and its cryptocurrency.
  2. -Kakao is creating a series of apps that are designed specifically for use on the Klaytn blockchain. One of these apps, Peatix, is a ticketing service – which has its own built-in customer base. This could give Kakao’s other services an advantage over startups trying to compete with Kakao for users.
  3. -Once the Klaytn blockchain launches, Kakao is going to take a large fee off of every transaction. That’s on top of the gas fee that users will also need to pay. This could be problematic for startups launching ICOs on the Klaytn blockchain, as it will reduce their profits from token sales.
  4. -the communication is bad. The first two videos on the Klaytn YouTube channel are very basic and could be better explained. The developers also appear to be a bit confused about what they should be talking about in their video. The Twitter account wasn’t updated for a while.

Klaytn Team

The team behind Klaytn is largely made up of veterans from Kakao and Ground X. However, Klaytn does have some key players in other areas – e.g. some former employees of Google and Samsung.

The Klaytn team includes the following people:

Harrison Hines

– CEO of Ground X and co-founder of Iconic. Hines has helped to develop web browsers, smartphone platforms, mobile games and other products for companies like Google.

– CEO of Ground X and co-founder of Iconic. Hines has helped to develop web browsers, smartphone platforms, mobile games and other products for companies like Google. Jason Han – Head product manager of Klaytn. Previously worked on Kakao’s blockchain platform Ground X as its product manager – e.g. he led the development team behind the Klaytn Alpha version launched in March 2018.

– Head product manager of Klaytn. Previously worked on Kakao’s blockchain platform Ground X as its product manager – e.g. he led the development team behind the Klaytn Alpha version launched in March 2018.

Claire Kwon

– Head of business development. She was previously an engineer at Google, in which she worked on the Google Maps app and various other projects.

– Head of business development. She was previously an engineer at Google, in which she worked on the Google Maps app and various other projects. Yoo Seongjun – Director of customer support & security officer for Ground X and co-founder of Iconic, a blockchain startup acquired by Kakao back in July 2018.

– Director of customer support & security officer for Ground X and co-founder of Iconic, a blockchain startup acquired by Kakao back in July 2018. Daniel Lim – Senior managing director of Ground X. This is the person who managed the supply chain financing loan project that Kakao worked on with South Korean banks.

– Senior managing director of Ground X. This is the person who managed the supply chain financing loan project that Kakao worked on with South Korean banks. Lee Hojun – Chief architect at Klaytn, he previously had technical roles at Google and Samsung.

– Chief architect at Klaytn, he previously had technical roles at Google and Samsung.

Partnership with Opensea

Klaytn is partnering with Opensea, a company that helps firms launch their own tokens on the Klaytn blockchain. This is the first platform of its kind, as the Klaytn blockchain makes it possible to issue tokens using a simple web interface.

Opensea has already created token development platforms for companies like Cosmochain and Theta Labs, two blockchain companies from Singapore and USA respectively.

As of January 2019, Opensea has helped build over 100 token projects and 40 exchanges, according to its website. These include NKN (NKN), ICON (ICX), Theta Labs (THETA), Crypto Lotus (PLYA) and Cosmochain (COSM).

Klaytn Wallets

Klaytn has its own wallets available for Mac and Windows users. You will need to download them from the official website once the platform launches.

As of January 2019, the company has held a beta testing period for its wallets and is saying it will release the wallets once the Mainnet is ready. The wallet system will be compatible with iPhones and Android devices.

Klaytn wallet users will be able to trade digital assets on those platforms through ERC-20 compliant wallets.

The platform facilitating Klaytn’s network was created by Cineplexa Technology Corp. In contrast to most others, it aims to combine ideology, technology and entertainment to create a virtual social community that will support cryptocurrencies. It wants users to interact with each other in an environment that’s free of hatred and division like in traditional social media sites.

You can find the official Klayton Wallet here: https://wallet.klaytn.com/

Klaytn buying guide – How can I invest in Klaytn?

Remember, you have to wait until the Klaytn Mainnet is launched before you can start trading!

  • Step 1: Register on Coinbase
  • Step 2: Transfer your BTC/ETH/LTC to your Coinbase account. If you don’t have any of the above currencies, you can purchase them through Coinbase as well.
  • Step 3: Open an exchange account on Binance. Transfer your BTC/ETH/LTC from Coinbase to Binance. Also, set up a Binance wallet by clicking here. This will be where you will store your Klaytn tokens after the mainnet launch – so make sure you remember what you write down as a backup phrase!
  • Step 4: You can now buy Klaytn tokens through Binance by trading your BTC/ETH/LTC for KNC coins.
  • Step 5: After you buy more than 500 KNC, you’ll be able to send them to split into their own wallets. So go ahead and split your KNC into smaller amounts and send it to different users for safe keeping. This will ensure that your coins are safe if something happens to the mainnet or a wallet hack – as happened with Binance in 2018.
  • Step 6: You can now use your new Klaytn tokens by installing them on an exchange and trading them for Bitcoin or Ethereum.

Conclusion – Does Klaytn have potential?

Klaytn looks like it could be an excellent product. It is a blockchain platform that has been launched by Kakao, which South Koreans trust and use. The Klaytn platform is also partnered with the main South Korean cryptocurrency exchange, Upbit.

Moreover, the Klaytn blockchain platform has been designed to be efficient for developing and launching new tokens. It also has a competitive user interface, which will bring a positive benefit to crypto investors in South Korea who need to find and build new projects on the platform.

The Klaytn blockchain platform also seems to have potential for creating stable coins, especially when it comes to transparent and stable cryptocurrencies. In the long term, this is a big deal, as it could potentially bring the stability crypto investors have been craving for years.

Additionally, Klaytn promises to be safe from a security perspective as well. We know that with most cryptocurrencies, the Blockchain has been an issue in terms of security and is often the target for hackers. And unfortunately, this is not limited to just coins but even entire Blockchain platforms.

On the other hand the communication of the Klaytn team is not very good.

References

  • Website: https://www.klaytn.com/
  • Github: https://github.com/klaytn/
  • Twitter: https://twitter.com/klaytn_official
  • Reddit: https://www.reddit.com/r/KlaytnPlatform/ (KakaoTalk) – see comments for comments on the Reddit page, as most of the team members are not active there.
  • Telegram: https://t.me/klaytn_official
  • Medium: https://medium.com/@klaytn
  • Youtube: https://www.youtube.com/channel/UC3M7fOHDZWvYjBvlXs6a4mA (current videos are only basic information)


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