Ground X, a blockchain technology affiliate of Kakao, officially launched Clayton’s mainnet, a self-developed public blockchain platform in 2019, followed by Kakasu, a digital asset wallet for web browsers, and KakaoTalk-based wallet clip in 2020, cloud-based service type. Blockchain KAS was introduced. They are all tools that support companies contemplating introducing blockchain technology to make a soft landing in the Clayton ecosystem.
Ground X CEO Han Jae-sun was ranked second in 2020 after being selected as the third place in the 2019 blockchain “person of the year” in a year-end survey conducted by CoinDesk Korea. Except for cryptocurrency exchanges, he was considered the most famous person in the domestic blockchain industry.
On the 7th, CEO Han, who met with CoinDesk Korea at GroundX office in Samseong-dong, Gangnam-gu, Seoul, said, “In addition to virtual assets (cryptocurrency), digital assets must be used in various fields to advance to the data-driven era.” “It is necessary to show a forward-looking attitude.”
―What was the last year for Ground X and Clayton?
“We self-complain that we have achieved positive results in both the platform and digital assets.
In 2019, only Clayton and the surrounding ecosystem were unfinished. With Caikas, Clips, and Cass released in 2020, I think Clayton now has a sufficient environment for other businesses and services to be listed. So, I think this year will be the year of a leap forward to hit it with a foothold.
Looking back, we are the only team that does public blockchain around us. It has become an almost unrivaled public blockchain in Korea. I think Ground X was able to achieve good results thanks to walking one way without looking at the other.
Since the second half of last year, I have been talking hard about digital assets. From the beginning, we have been thinking about which BApp (BApp blockchain application) will become a killer service, but it seems that it is too early to find a killer with a single service item.
Even now, finance is most closely attached to the blockchain, and we see digital assets themselves as the killer service of the blockchain. So, we wanted to play a market leader by developing both platforms and wallets accordingly.”
―What is your main business strategy this year?
“More than anything else, we plan to focus on Clayton’s role as a platform. However, it is not necessary for Ground X to do what is necessary for this, from A to Z. We will allow various external cooperative partners to play their respective roles and follow the fruit of them.
First, it intends to increase the number of companies participating in the Governance Council that operate nodes. Since it has been proven over the past year and a half that 32 companies can operate their nodes stably, many companies from other industries such as finance, which have been hesitant to participate in the Clayton ecosystem, are also trying to bring in. It also plans to bring in a number of overseas companies based in Asia to become Asia’s number one public blockchain platform.
And expanding the Clayton-based community is also important. We are trying to help the self-sustaining community development through KIR (Klaytn Improvement Reserve), which pays KLAY tokens as rewards for contributing to platform and tool development and community activation.
Clayton-based DeFi service also plans to provide support for more active release. So far, Clayton-based DeFi services are mainly released in Korea, and we are discussing with external partners to make DeFi services suitable for each country’s regulatory environment all over Asia.
Lastly, we plan to invest in startups by establishing the Klaytn Growth Fund so that many Clayton-based services can be raised. Even if you don’t use blockchain right away, you can support any startup that has the potential to use blockchain or digital assets in the future. Since last year, I have been looking for such companies and discussing them, and I think this year will probably pay off.”
―It was said that the era of digital assets will come, but there is no clear use case of Clayton-based digital assets.
“Until last year, we have focused on stabilizing clip operations. Starting this year, we plan to aggressively increase new users and introduce new features.”
―New feature?
“So far, clips can contain only two types of digital assets: KLAY and Clayton-based KCT tokens and non-replaceable tokens (NFT) cards. Not limited to this, it allows other digital assets to be included in the clip, and ultimately, multiple parties. “We are trying to create a structure that enables inter-industrial exchange, that is, integrated management.”
―What is the plan to expand the scope of NFT use?
“It is true that the only thing that can be done with the NFT that can be put in a clip is just proof of ownership. Going further, the general public is thinking about a form that can be actually useful.
Last year, I had a strong experimental personality. When I tried it, just printing it with NFT doesn’t mean it’s worthwhile. In the end, NFT is packaged, and what it contains is the key.
If so, this year is the time to expand the scope of what to include. If the focus was on the game side last year, there are concerns about expanding to other industries including finance, or NFT with a structure that can be used without being a single service.
In Ethereum, there is an ERC-1155 standard that allows the issuance of multiple NFTs of the same type. We will also use the KIP-37 standard, which has a similar function, so that it can be used for services by utilizing the characteristics of both non-replaceable and replaceable tokens. There were many requests from customers that they needed such a thing.
Although it is difficult to reveal specific plans yet, we are discussing issuing digital assets that the public has already experienced, such as coupons and points, based on blockchain. We plan to conduct a pilot in the first half of this year.”
―Can Clayton-based DeFi services be used in the clip?
“That needs a little more consideration. DeFi related regulations have yet to be arranged in the Special Law.”
―What are you preparing for the special law?
“Regardless of whether Ground X is included in the scope of the Virtual Real Estate Service Provider (VASP), first of all, ISMS certification is deemed necessary and prepared.
Also, when it comes to the problem of putting different virtual assets in the clip, I’m looking into it one by one and pondering.
In addition, I plan to have a structure that allows me to do what I need at any time when the appropriate time comes later.”
―How do you think the domestic blockchain and cryptocurrency market will change after the enforcement of the Special Money Act?
“There will be both advantages and disadvantages. However, in an environment where regulations are uncertain, it is always difficult in terms of doing business. In that sense, the special law will have a positive effect in the long run.
No matter how much virtual assets are still outside the institutional sphere, it is a matter of money, especially the customer’s assets, so it should not be easily seen. It seems that the special law provided a basic guide to that.
Companies that can even worry about it will continue to survive, and companies that want to go easily and easily will naturally be eliminated.”
―What will be the biggest keyword of the blockchain and cryptocurrency industry this year?
“It’s a digital asset. I talked about digital assets last year, but I think I’ll repeat the same story for the next few years. The reason for repeating the story of digital assets is that although virtual assets (cryptocurrency) opened the door to this market, This is because I want to emphasize the importance of having a larger area as well.
In the end, there will be an era where data is important, and from now on, we must prepare together. To do this, it is necessary to keep open other than virtual assets among the various elements of the blockchain. It is in this context that we hope that the potential of the NFT will explode this year.
The same goes for asset tokenization. Currently, it is mainly based on real estate such as Casa Korea and Sejong Telecom, but I hope that other real asset-based tokens can also emerge through the Financial Services Commission’s innovative financial services.”
―Now, most of the Financial Services Commission’s innovative financial services and government-sponsored R&D projects run on private platforms developed by Hyperledger or companies. Will Clayton-based public services be available in the future?
“If you ask which country Ethereum is in, of course, it is not any country. However, if you ask who is leading the answer, everyone already knows the answer. In the future, each public blockchain has a regional base in the situation where the regulatory environment is different for each country. There is a possibility to go.
If so, it is possible to ask how long will only Ethereum be used until Korea or Asian countries introduce blockchain to a specific field? In the end, if we are going to move on to a data-driven era, I think (government and corporations) need to open the door to public blockchain more proactively. Services like DeFi can’t basically come out on a private blockchain platform.
These days, private companies are first coming out with a forward-looking attitude toward public blockchain. We were also surprised to see Shinhan Bank launching a Clayton-based loan product using Hatch Labs’ Hennessy Wallet API and dashboard. Kakao group companies, such as Kakao Bank and Kakao Pay, are not well known on the outside, so they are experimenting with leaving various records on Clayton.”
-Naver Line announced last year its plan to develop a CBDC platform and supply it to central banks in each country.
“This is the first time I’m talking about today, and GroundX has also been preparing CBDC-related services. The Bank of Korea has completed external consulting for CBDC and is starting to build and test the pilot system from this year. Ground X will also support when a pilot system construction project is open.
At this time, Ground X is not going to enter alone, but is considering alliance with Kakao’s other group companies. That doesn’t mean that Kakao’s affiliates will do it alone, but plan to collaborate with other places such as financial institutions.
The reason why we are holding the idea is because Clayton’s structure is a good structure to raise CBDC. For example, if a CBDC is actually issued by a central bank, it will be difficult to use a platform with tens of thousands of nodes, such as Ethereum, or a private platform with only one node. It is highly likely that various banks and government agencies will manage nodes in the form of a consortium.
If so, Clayton, which has a hybrid structure in which 32 governance council companies operate nodes and build service chains under them, is the right choice. Also, above all, Clayton is the only Saree that has operated a public blockchain for more than a year and a half, with dozens of companies and institutions running their own nodes like Clayton.
In addition, the service base that Kakao has built with various mobile services can be the optimal environment for testing retail CBDCs.”
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