Binance joins one of the committees of internet giant Kakao

The blockchain project Klaytn, led by the internet giant Kakao, announced that the cryptocurrency exchange Binance will join its governance council.

According to a joint press release shared with Cointelegraph on 10/22, Binance announced its participation in the governance council of Klaytn, a service-centric blockchain project, to further drive the mass adoption of blockchain technology.

The goal of Klaytn is to "achieve mass adoption of blockchain services and prove the value and practicality of blockchain technology." To provide a slightly technical explanation:

According to its whitepaper, Klaytn's blockchain adopts a hybrid approach, utilizing the concepts of Consensus Node (CN) and Ranger Node (RN) to achieve scalability and transparency.

The document states that CNs are invited to be partners in their network, forming a private blockchain, which batches and confirms transactions by running the Byzantine Fault Tolerance (BFT) consensus algorithm. Anyone from any node can connect to the network and participate as an RN, assigned the responsibility of propagating double-check blocks by CNs.

Kakao's blockchain division, Ground X, further adds that to incentivize service providers to maintain a stable network, Klaytn has a transparent evaluation and reward mechanism known as Proof of Contribution (PoC) and Klaytn Improvement Reserve (KIR). PoC assesses the level of contribution of all economic entities within the Klaytn ecosystem and provides KLAY tokens corresponding to each entity's contribution level. On the other hand, KIR is allocated to anyone committed to sustaining ecosystem growth through various activities.

The council is responsible for making key decisions regarding the business and technical development of Klaytn, dedicated to network governance.

Currently, other 24 member companies, including LG Electronics, Union Bank of the Philippines, and Celltrion, have announced their participation in Kakao's council. Binance's significance lies in being the first blockchain company to join this council, and it will also participate in the operation of consensus nodes.

These companies come from various industries such as IT, telecommunications, gaming, and finance, responsible for providing users with widely popular services. The council currently consists of key business departments of some of the largest companies in Asia.

As the largest car manufacturer in Korea, Hyundai's blockchain subsidiary, Hdac Technology, is seeking partnerships with local blockchain businesses like Ground X, emphasizing the importance of discovering and nurturing promising small blockchain companies to maintain market momentum. Platforms like Klaytn, which are application-oriented, are essential.

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