- Klaytn to evolve into open blockchain ecosystem where anyone can act as a block validator if they meet certain qualifications, while maintaining existing Governance Council structure and roles
- This shift aims to enhance business opportunities, profit-sharing structures, and network security, while ensuring openness, transparency and censorship resistance
- Consensus algorithm will be improved to allow for the participation of as many validators as possible without compromising Klaytn’s performance
The Klaytn Foundation, the non-profit organization managing the Klaytn ecosystem’s development, has announced the transition to a permissionless validator structure. Anyone, as long as they meet minimum qualifications that are currently being finalized, will be able to participate in the Klaytn ecosystem as a block validator alongside existing Governance Council (GC) node operators in the future.
The transition to a permissionless validator structure will allow more people to participate in the block validation process, paving the way for greater decentralisation of the Klaytn ecosystem.
Klaytn is a public blockchain with an emphasis on the metaverse, gamefi, and the creator economy. It was officially launched in June 2019 and is now the dominant blockchain platform in South Korea, with the Klaytn Foundation leading the global business expansion from its international base in Singapore.
Since revealing its metaverse roadmap in early 2022, the Ethereum-equivalent L1 chain has attracted a number of well-known companies, including game developer and publishing powerhouses Netmarble and Neowiz. It recently ramped up efforts to lay the foundation for the metaverse and to expand use cases.
Klaytn’s consensus algorithm will be improved so that as many validators as possible can participate without negatively impacting network performance. In order to ensure network stability, plans are also being developed to establish qualifications, compensation, and penalties for block validators. In addition to maximising network effects, increased validator participation will improve security and censorship resistance. Klaytn’s permissionless validator structure will make it more difficult for malicious attacks, such as hacking or censorship attempts, to occur by increasing KLAY transactions and diversifying the network of depositors.
Validators, a critical component of the Klaytn ecosystem, operate both consensus and proxy nodes, verifying the accuracy of data contained in new blocks and ensuring that blocks are processed efficiently across the network.
As Klaytn moves toward a permissionless system, it will grant end users more privileges such as block validation rewards and node rights, which can be used to create new business opportunities. The Klaytn network’s node authority can be used to create decentralised finance (DeFi) services, such as public staking, or by incorporating tokenomics into new business structures and operations.
Sangmin Seo, Representative Director at Klaytn Foundation, said: “Permissionless systems, like those used by well-known blockchain projects such as Bitcoin and Ethereum, are essential for Klaytn as we strive for decentralization, transparency, and openness.”
“With the shift to a permissionless validator structure and through future strategic business activities, we hope to create a more competitive Klaytn ecosystem in the global market and ultimately share our successes with all participants,” Sangmin Seo added
Klaytn’s compensation system for block validators will be based on two factors: block validation performance and the amount of KLAY staked. Those who demonstrate strong validation performance and have more KLAY staked will be compensated more. This is meant to encourage positive behaviour and influence on the platform while also improving the profit distribution structure.
The proposal to change Klaytn’s validator structure, which was presented to the Klaytn Governance Council on November 4, 2022, was approved by voting, which concluded on December 19, 2022. The vote was attended by 18 GC members, with 6 abstentions, 3 votes against, and 9 votes in favour, including those from Kakao, Ground X, and Netmarble.
Klaytn will retain its current governance structure after the transition, with members of the Governance Council – an alliance of multinational businesses and organizations – remaining committed to platform governance, consensus node operation, and ecosystem growth.
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