What Is Klaytn (KLAY)?

Klaytn klay

Updated: April 12, 2022

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    Klaytn (KLAY) is a public blockchain designed for the metaverse, gaming, and the creator economy. It was launched in June 2019 and has a large share of the South Korean blockchain market.

    The business is expanding globally and is supported by the Klaytn Growth Fund. This fund is managed by the Klayn Foundation, a non-profit organization based in Singapore.

    As of April 2, 2022, KLAY crypto (the native coin of the Klaytn network) is the 47th largest crypto by market cap. The KLAY network uses a unique combination of three blockchains in one, theoretically allowing it to scale easily.

    Klaytn is designed to be a launching platform for real-world metaverse solutions that can function in real-time. Keep reading to learn more about this unique blockchain platform and whether or not investing in KLAY could be right for you.

    How Does Klaytn (KLAY) Work?

    Klaytn crypto has a variety of unique features. The network offers a metaverse package that comes complete with customized layer-2 solutions, smart contract libraries, blockchain explorers, crypto wallets, bridges and oracles, in addition to an ecosystem of supporting services like NFT marketplaces, stablecoin integration, and more.

    These tools make Klaytn a sort of one-stop-shop for those looking to build something in the metaverse, like play-to-earn crypto games, for example.

    Klaytn uses something called Istanbul Byzantine Fault Tolerance (IBFT) as its consensus algorithm, allowing transactions on the network to be completed within one second. This allows for use cases where near-instant finality of transactions can be helpful, like minting NFTs in real time for item drops inside video games.

    Klaytn supports the Ethereum Virtual Machine (EVM) as part of its work in developing the metaverse and Web3. The network adopts the EVM specification by making its technical stack equivalent to the Etherem stack, building on top of existing Ethereum clients, and enabling Ethereum Improvement Proposals (EIPs) and Klaytn Improvement Proposals (KIPs) to contribute to both ecosystems.

    Klaytn crypto has a unique governance structure called a Governance Council (GC). Made up of enterprises and decentralized autonomous organizations (DAOs) from around the world, members of the GC form a validator network that can provide the benefits of a decentralized public blockchain while also sustaining the performance of a centralized, permissioned blockchain. Klaytn has plans to become more decentralized by adding additional DAOs in the future.

    Advantages and Disadvantages of Klaytn (KLAY)

    Let’s look at some of the benefits and drawbacks to the Klaytn crypto network, and consider it in the context of other types of crypto.

    Advantages

    Klaytn could make it possible for people to build things like play-to-earn crypto games at scale. These games could involve item drops that could be minted as NFTs in real-time. Players could perform all blockchain-related actions in the game without delay and with little to no fees.

    KLAY is Ethereum Virtual Machine (EVM) compatible. This makes it easy for Ethereum developers to build on KLAY.

    KLAY could lead to increased adoption of many developments inside the metaverse, leading to new innovations.

    Disadvantages

    Klaytn is still relatively small and faces a lot of competition.

    At this time, most metaverse-related activities are being built on more well-known networks like Enjin or Decentraland.

    While Klaytn’s compatibility with the Ethereum Virtual Machine is intended to help speed up adoption, it remains to be seen whether or not that will be the case.

    Advantages

    Disadvantages

    • Could enable play-to-earn games to scale.

    • Small network facing competition.

    • Is EVM compatible.

    • Most metaverse apps are currently built on other networks.

    • Could increase adoption of the metaverse

    • EVM compatibility may or may not help adoption and scalability.

    Who Created Klaytn (KLAY)?

    The Klaytn blockchain has been developed, launched, and managed by several organizations that are tied to a single business entity.

    KLAY crypto was created by GroundX, a subsidiary of Kakao, which is the largest mobile platform in South Korea. After several years of successful operations in Korea, the Klayn Foundation was started to aid in the global expansion of the Klaytn blockchain.

    The Klaytn Foundation is a non-profit organization created with the goal of accelerating the worldwide adoption of Klaytn and the development of its ecosystem. The foundation oversees the Klaytn Growth Fund and works with Krust, a subsidiary of Kakao Corp, a large internet company in Korea.

    Why Does Klaytn (KLAY) Have Value?

    What is Klaytn crypto and what is its real-world value? If the metaverse continues to grow, developers could find the tools provided by Klaytn to be useful, increasing the adoption of Klaytn and KLAY crypto.

    One point in its favor: Klaytn relies on a hub-and-spoke model that is considered a leading scalability solution. Klaytn’s service chains, the spokes in this model, can be customized for specific dApp requirements, including high throughput, custom node configurations and custom security levels.

    In a best case scenario, support for nested service chains could provide the exponential scalability needed for metaverse-scale adoption.

    Price of Klaytn (KLAY)

    The price of KLAY is currently $1.17, as of March 31, 2022. The total market cap of KLAY is $3.24 billion, making it the #47 largest crypto by market cap, with a circulating supply of 2.64 billion tokens and 24-hour trading volume of $63.5 million.

    KLAY’s all-time high of $4.24 was reached in March 2021. The token traded as low as $0.06 in April 2020.

    Klaytn price history 2021

    Why Use Klaytn (KLAY)?

    What is Klaytn crypto in terms of its use cases? The token is mainly used for metaverse-related software.

    Developers can use Klaytn to build things in the metaverse. This can include marketplaces for virtual goods, virtual reality universes, play-to-earn crypto games, and other related activities.

    Traders may use their KLAY tokens to participate in governance of the Klaytn network and to earn interest on their KLAY.

    How Can I Buy KLAY?

    Not all crypto platforms enable you to trade KLAY, so you may have to do some research. Also, be sure to review how crypto exchanges work, as well as any fees that may apply.

    Step 1. Choose an exchange and fund your account.

    Once you find an exchange, set up a crypto trading account and fund your account with a secure wire transfer from your bank, or even with a credit or debit card transfer (but check with your bank in the case of restrictions). Fees may apply.

    Step 2. Set up a wallet to store your assets.

    Just as you might keep money in a physical wallet, cryptocurrencies are held in digital “wallets.” Be sure to select a crypto wallet that supports KLAY.

    Note that some crypto exchange accounts come with a custodial wallet, and there may be restrictions about moving your crypto off-platform.

    Step 3. Trade KLAY.

    Once you’ve executed the trade, you can transfer your holdings to your wallet. You may want to leave your holdings there if you plan to keep trading.

    Sharing Personal Data

    Different platforms may require different forms of identification. Some exchanges adhere to Know Your Customer (KYC) rules, a set of standards that require investors to disclose certain information. Others may allow anonymous or P2P transactions.

    Associated Costs

    Similar to trading securities, there always are fees to consider when trading crypto. Be sure to understand the costs that may come with trading crypto on one platform versus another, or using one form of payment versus another.

    How to Sell KLAY

    Once you’ve decided to sell your KLAY, then decide whether you plan to cash out for a fiat currency like U.S. dollars (USD) or trade another type of crypto.

    Step 1. Decide what to sell.

    If you’re exchanging KLAY for USD, the steps may be different than if you’re buying another form of crypto — or you may have to complete a more extensive KYC identification.

    Step 2. Find the best price.

    Crypto prices fluctuate by the minute, so do your research beforehand so you know a good offer when you see one.

    Step 3. Sell KLAY.

    Complete the trade and move your crypto (or cash) to your wallet, unless you plan to keep trading on the exchange.

    Step 4. Keep taxes in mind.

    Remember that crypto gains are subject to taxes. Be sure to consider the tax implications of selling KLAY coin, and consult a professional as needed.

    Does Klaytn (KLAY) Have Staking?

    KLAY can be staked on some large exchanges, like Binance, or by using a native platform called the Klaystation.

    Klaystation is the official tool used for staking on Klaytn. KLAY holders have the right to stake their tokens, earning a say in the network’s governance, as well as the ability to earn interest.

    Staking KLAY on an exchange is as simple as buying or depositing tokens, then locking them up for a set period of time. To stake using the Klaystation requires a series of steps that can be found on the official website.

    Recommended: What Is Staking Crypto?

    The Takeaway

    Launched in 2019, the Klatyn network has become a sort of one-stop-shop for users looking to build in the metaverse. This innovative network has become one of the largest of its kind, especially in South Korea. It offers a metaverse package that comes with customized layer-2 solutions, smart contract libraries, and an ecosystem designed to support NFT marketplaces – and more.

    Thanks to its use of a consensus mechanism called Istanbul Byzantine Fault Tolerance, the network supplies a near-instant finality of transactions. And the network is EVM compatible. With its various features combined, Klayn is aiming for widespread adoption and scalability.

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