| Klaytn Director Sam Seo speaks during an interview with The Korea Times at its office in Seoul. Courtesy of Klaytn |
Crypto winter will end in 2nd half
By Lee Min-hyung
Klaytn, an open-source public blockchain developed by Korea's largest mobile platform operator Kakao, is seeking to become a more versatile public mainnet used in areas encompassing games, non-fungible token (NFT) and metaverse, Klaytn Foundation Director Sam Seo said in a recent interview.
"Our primary goal is to keep sophisticating our blockchain network in a more sustainable manner, so as for more people to use our platform featured with fast response speed and low commission," Seo said.
Klaytn made its debut in 2019 and was operated by Kakao's blockchain subsidiary Ground X in its infancy. Earlier last year, the operation was transferred to Kakao's Singapore subsidiary ― Krust ― before Klaytn Foundation recently secured management rights for Klaytn.
The blockchain network has raised its profile, particularly in Asia over the past four years thanks to its practicality in use. But Klaytn is still lesser-known in America and Europe.
"We started our business as a project from Kakao, and it has since grown into a major blockchain widely used here and abroad," he said. "Klaytn is used not just for cryptocurrencies, but other future finance businesses and national projects ― such as central bank digital currency (CBDC)."
In 2021, the Bank of Korea (BOK) designated Ground X as its partner for the CBDC pilot test. Late last year, Klaytn proved its security as a backbone blockchain operating the CBDC system.
"Few global teams operate such a project with a central bank, but the BOK has been testing CBDC operations with Klaytn," Seo said.
Seo also shared his views on the blockchain regulatory environment in Korea.
"Korea needs to build an environment of negative regulations just like other tech-savvy countries such as the United States and Singapore," Seo said. "Developers can try new projects more freely in a less regulated environment, but this is not the case for Korea which adopts a positive regulatory system. Under the environment, our creative mindset will be restricted."
However, he pointed out that Korean financial authorities are also catching up with the global paradigm as shown by its recent effort to allow security token transactions.
"Korean regulators are also sincerely discussing such issues as security token issuance and enactment of a basic digital asset law ― which industry players speak highly of," he said.
| The logo of Klaytn |
Roadmap for Klaytn
Seo went on to say that the blockchain will keep expanding its footing into games, NFT and metaverse applications and widen its use for more tech players.
"There are a number of game publishers partnering with Klaytn Governance Council, which includes Netmarble and Neoply," he said. "Regarding NFTs, we expect more companies to use Klaytn in people's day-to-day activities. NFT artworks were all the rage recently, but NFTs can be used much more braodly, such as for the issuance of discount coupons or membership services. We do not target a specific NFT area, but want to catch up with the overall spectrum of the emerging market."
Klaytn is operating Another World, a metaverse platform powered by the Klaytn blockchain. Seo said it plans to open a social platform used for communication among Klaytn users sometime in the latter half of 2023.
| Partners of Klaytn Governance Council / Courtesy of Klaytn |
Klaytn also expressed its confidence in overcoming the ongoing crypto winter.
"We expect the overall crypto market to achieve rebound sometime as early as the second half of this year," he said. "Given the macroeconomic cycle, monetary authorities here and abroad typically enter the cycle of rate hikes for around two years, and vice versa for the next two years."
The remark reflected growing hopes for the U.S. Fed to end its cycle of monetary tightening soon.
"It is hard for any blockchain projects or teams to overcome the crypto winter unless they display clear vision," he said.
Klaytn is issuing its own cryptocurrency ― KLAY ― which showed weak price performance after soaring to a historic high of $4 in March 2021 when the market was in a bullish cycle.
"We will focus on building a 'sustainable' blockchain ecosystem by generating more sales," he said. "Klaytn expects the usage of KLAY to widen down the road with our clear blockchain roadmap."