South Korean messaging giant Kakao Corp has established its blockchain subsidiary in Singapore with the aim to attract foreign investments with cryptocurrencies, industry website Cointelegraph has reported, citing information from the local press.
According to a recent report by South Korean news outlet News1, Kakao yesterday established its proprietary blockchain platform Klaytn in Singapore. The platform was developed by GroundX, the blockchain arm of Kakao. The report also suggests that Kakao is considering opening another subsidiary in Singapore to manage the investments.
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Kakao has been pushing Klaytn quite strongly in the past couple of months. GroundX launched a testnet of the platform in October and aims to have the official Klaytn launch in the first quarter of next year. The testnet is currently available to about 10 partners in Korea and around the world, including the blockchain-based payment system provider Terra, which was the most recent addition to the platform.
According to News1’s report, Kakao has chosen Singapore due to its investment-friendly environment and relaxed tax regime. The company expects to attract roughly $88 million worth of investment from venture capital and institutional investors through Klaytn in December.
GroundX describes Klaytn as a ‘hybrid blockchain’ that utilises the strengths of both private and public networks. The model employs a group of permissioned ‘Consensus nodes’ to run consensus algorithms on a private network and a permissionless, public network of ‘Ranger nodes’ to audit the blocks generated on the private network. GroundX believes that this approach would allow for the private network to have the security and transparency of a public blockchain “without sacrificing performance and reliability”.
In developing Klaytn, GroundX’s main focus has been on user and developer experience, the company said when it announced the testnet launch last month.