| Klaytn CEO Sam Seo speaks during an interview with The Korea Times at the Seoul office. Courtesy of Klaytn |
The crypto winter ends in the second half
By Lee Min-hyung
Klaytn, an open-source public blockchain developed by Korea’s largest mobile platform operator Kakao, seeks to become a more versatile public mainnet used in areas that include gaming, non-fungible tokens (NFTs) and the metaverse, Klaytn Foundation director Sam Seo said in a recent interview.
“Our primary goal is to continue to refine our blockchain network in a more sustainable way, so that more people can use our platform with fast response speed and low commission,” said Seo.
Klaytn debuted in 2019 and was powered by Kakao’s blockchain subsidiary Ground X in its infancy. Earlier last year, the business was transferred to Kakao’s Singapore subsidiary ― Krust ― before the Klaytn Foundation recently secured management rights for Klaytn.
The blockchain network has raised its profile, especially in Asia in the last four years thanks to its practical use. But Klaytn is still less known in America and Europe.
“We started our business as a project from Kakao, and it has since grown into a large blockchain that is widely used here and abroad,” he said. “Klaytn is not only used for cryptocurrencies, but other future financial companies 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 powering the CBDC system.
“Few global teams run such a project with a central bank, but BOK has been testing CBDC operations with Klaytn,” said Seo.
Seo also shared his views on the blockchain regulatory environment in Korea.
“Korea needs to build an environment with negative regulations just like other tech-savvy countries like the US 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 thinking will be limited.”
However, he pointed out that Korean financial authorities are also catching up with the global paradigm, as shown by their recent attempt to allow security token transactions.
“Korean regulators are also earnestly discussing such issues as the issuance of security tokens and the adoption of a Basic Law on Digital Assets – which industry players are talking about loudly,” he said.
Road map for Klaytn
Seo went on to say that the blockchain will continue to expand its foothold into gaming, NFT and metaverse applications and expand its use for more technical players.
“There are a number of game publishers that work with the Klaytn Governance Council, which includes Netmarble and Neoply,” he said. “As for NFTs, we expect more companies to use Klaytn in people’s daily activities. NFT artwork was all the rage recently, but NFTs can be used much more well, for example for issuing 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 operates Another World, a metaverse platform powered by the Klaytn blockchain. Seo said it plans to open a social platform used for communication between Klaytn users sometime in the latter half of 2023.
| Partners of Klaytn Governance Council / Courtesy of Klaytn |
Klaytn also expressed his confidence in overcoming the ongoing crypto winter.
“We expect the overall crypto market to bounce back sometime as early as the second half of this year,” he said. “Given the macroeconomic cycle, monetary authorities here and abroad typically go into the cycle of rate hikes for about two years, and vice versa for the next two years.”
The remark reflected growing hopes that the US Federal Reserve will soon end its cycle of monetary tightening.
“It is difficult for blockchain projects or teams to overcome the crypto winter unless they show clear vision,” he said.
Klaytn issues its own cryptocurrency – KLAY – which showed weak price performance after rising to an all-time 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 use of KLAY to expand the way with our clear blockchain roadmap.”
