- 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 nonprofit organization overseeing the growth of the Klaytn ecosystem, has announced its transition to a permissionless validator structure. Over time, anyone will be able to participate in the Klaytn ecosystem as a block validator alongside existing Governance Council (GC) node operators, as long as they meet the minimum qualifications currently being finalized. With network incentives provided at the protocol level, the transition to a permissionless validator structure will allow more people 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 as possible without compromising network performance. Plans are also in the works to establish qualifications, compensation and penalties for block validators to ensure network stability. In addition to maximizing network effects, greater validator participation will also result in improved security and resistance to censorship. By increasing the number of KLAY transactions and diversifying the network of depositors, Klaytn’s permissionless validator structure will make it more difficult for malicious attacks, such as hacking or censorship attempts.
Validators are a crucial part of the Klaytn ecosystem, functioning as Core Cell Operators (CCO) operating both consensus and proxy nodes: they verify the accuracy of data in new blocks and ensure that blocks are processed efficiently across the network. As Klaytn transitions to a permissionless system, it will grant a broader range of privileges to end users, such as block validation rewards and node permissions, which can be used to create new business opportunities. Node authority on the Klaytn network can be used to create decentralized financial services (DeFi), 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 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 compensation system for block validators will be based on two factors: block validation performance and the amount of KLAY deployed. Those who demonstrate strong validation performance and have staked a greater amount of KLAY will receive a higher compensation. This is intended to encourage positive behavior and influence on the platform, as well as improve the profit distribution structure.
Submitted to the Klaytn Governance Council November 4, 2022the proposal to change Klaytn’s validator structure was approved by a vote, which ended on December 19, 2022. 18 GC members participated in the vote, with 6 abstentions, 3 votes against and 9 votes in favor, including those from Kakao, Ground X and Netmarble.
Following the transition, Klaytn will maintain its current governance structure, with members of the Governance Council – an alliance of multinational companies and organizations – remaining committed to platform governance, consensus node operation and ecosystem growth.
About Klaytn:
Klaytn is a public blockchain focused on the metaverse, gaming and the maker economy. Officially launched in June 2019it is the dominant blockchain platform in South Korea and is now undergoing a global business expansion from its international base in Singaporeled by the Klaytn Foundation.
Since unveiling its metaverse roadmap in early 2022, the Ethereum equivalent L1 chain has seen many well-known companies come on board its metaverse, including game developers and publishers: Netmarble and Neowiz. Recently, efforts have been stepped up to lay the foundation for the metaverse and expand use cases.
Learn more: https://klaytn.foundation/