- This shift aims to improve business opportunities, profit-sharing structures and network security while ensuring openness, transparency and resistance to censorship
- The consensus algorithm will be improved to allow the participation of as many validators as possible without compromising Klaytn’s performance
Klaytn Foundation, the non-profit organization overseeing the growth of the Klaytn ecosystem, has announced the transition to a permissionless validation structure. In time, anyone will be able to join the Klaytn ecosystem as a block validator alongside the existing Governance Council (GC) node operators, as long as they meet the minimum qualifications currently being finalized. With network incentives now provided at the protocol level, the move to a permissionless validator structure will allow greater ability to participate in the block validation process, paving the way for greater decentralization of the Klaytn ecosystem.
Klaytn’s consensus algorithm will be improved to allow as many validators to participate without compromising network performance. There are also plans to establish qualifications, fees and penalties for block validators to ensure network stability. In addition to maximizing network effects, increased validator participation will also result in improved security and resistance to censorship. By increasing the number of KLAY transactions and diversifying the depositor network, Klaytn’s permissionless validation structure will make it more difficult for malicious attacks, such as hacking or censorship attempts.
A critical part of the Klaytn ecosystem, validators function as Core Cell Operators (CCO) serving both consensus and proxy nodes: they verify the accuracy of data in new blocks and ensure that blocks are efficiently processed across the network. As Klaytn transitions to a permissionless system, it will grant end users a wider range of privileges, such as block validation rewards and node privileges, that can be used to create new business opportunities. Node authority on the Klaytn network can be used to create decentralized financial (DeFi) services, including public staking services, or by integrating tokenomics into new business structures and operations.
“Permissionless systems, such as those used by well-known blockchain projects such as Bitcoin and Ethereum, are essential to Klaytn as we strive for decentralization, transparency and openness,” said Sangmin SeoRepresentative Director at the Klaytn Foundation. “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 marketplace and ultimately share our successes with all participants.”
Klaytn’s block validator compensation system will be based on two factors: block validation performance and the amount of KLAY deployed. Those who show strong validation performance and have deployed a higher amount of KLAY will receive a higher compensation. This is intended to encourage positive behavior and influence on the platform and to improve the profit sharing structure.
Submitted to the Klaytn Governance Council on November 4, 2022Klaytn’s proposal to change the validator structure was approved by a vote, which ended on December 19, 2022. 18 GC members took part in the vote, with 6 abstentions, 3 votes against and 9 votes in favour, including those from Kakao, Ground X and Netmarble.
After the transition, Klaytn will retain its current governance structure, with members of the Governance Council – an alliance of multinational companies and organizations – who remain committed to platform governance, the operation of consensus nodes and the growth of ecosystems.
About Klaytn:
Klaytn is a public blockchain focused on the metaverse, gamefi, and the creator economy. Officially launched in June 2019it is the dominant blockchain platform in South Korea and is now undergoing global business expansion from its international base in Singaporeled by the Klaytn Foundation.
Since revealing its metaverse roadmap in early 2022, the Ethereum-equivalent L1 chain has seen many well-known companies come aboard its metaverse, including game developers and publishers: Netmarble and Neowiz. It recently ramped up efforts to lay the groundwork for the metaverse and expand use cases.
Learn more: https://klaytn.foundation/
