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Kakao, LG, Others Form Asian Coalition Like Facebook’s Libra Consortium

South Korean mobile platform, Kakao, is spearheading a body comprising of Asian corporate organizations to form a coalition that is somewhat similar to Facebook’s Libra consortium. Kakao on Thursday June 27 announced the launch of Cypress, the mainnet of its Klaytn service-centric blockchain platform aimed at millions of users across the world. With the launch comes its unveiling of an initial group of 23 members under the aegis of the Klaytn Governance Council that are committed “to providing a stable foundation for the Klaytn ecosystem”.

The Council, which includes two economic entities – service providers like LG, UnionBank of the Philippines and PUBG (online multiplayer battle royale game) and end users – will be responsible for the ecosystem’s governance, consensus node operation and growth. Service providers will create supply of services to satisfy end users, act as channels of new user acquisition and engage users. End users will be “the fundamental driving force behind economic growth as the primary demand-side entities, creating valuable market signals by carefully selecting and using services and sharing reviews with each other”.

Ahead of the blockchain platform launch, Kakao had raised $90 million through a private coin offering from venture capital and private equity funds including IDG Capital and Cresendo Equity Partners. The assembled alliance is expected to usher in a new era of blockchain through Klaytn, the platform notes. It will take advantage of the region’s “…booming market with its strong drive towards blockchain implementation for new business models and the wider audience eager to embrace new technologies…”

Klaytn uses a Proof of Contribution (PoC) consensus to assess the contribution level of all economic entities within its ecosystem and provides rewards in KLAY in a manner that corresponds with each entity’s level of contribution. It seeks to – based on a suggested concept of digital fortune – contribute to proffering a fairly-based solution to modern society’s big problem of distribution. This it hopes to achieve by experimenting with its new compensation system for digital fortune using a decentralized service.

One of the dApps that have shown interest in the Klaytn from across the region is Boltt, the mobile health and wearable-tech app from India which recently took on one of the country’s top cricketers, Ravindra Jadeja, as a stakeholder. Though the coalition has Japan, Hong Kong, Korea represented, and HashKey, the strategic partner of China’s ‘Wanxiang Blockchain Labs’ in it, major Chinese organizations and South East Asian players are still missing. The platform notes that they plan to invite competent service providers to become potential members of the Council with time.

Unlike the Facebook alliance which stands to reach out to about two billion people through one platform, the overall estimated outreach of the Klaytn platform may not be determined as at yet. However, since it is a collection of companies that already have millions of existing users, the Klatyn alliance promises to spark much interest from many fronts. Not much has also been said about the Klaytn native asset which some insiders say could be a stablecoin.

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