Kaia: A New Web3 Infrastructure Built by Asian Social Giants

Kaia is a unified mainnet formed by the merger of two leading blockchain platforms in Asia, Klaytn and Finschia. This merger is supported by the two major internet giants Kakao and LINE from South Korea and Japan. By combining their respective ecosystems and assets, Kakao and LINE plan to create a giant blockchain in Asia and gradually lead the global Web3 market.

On August 29, 2024, the merged Kaia mainnet officially went live. Sam Seo, the chairman of the Kaia Foundation, holds a Ph.D. in high-performance computing and previously served as CKO at KrustUniverse, where he was responsible for leading the development and operation of Klaytn.

The joint support from Kakao and LINE provides strong momentum for Kaia. Kakao has a usage rate of 96% in South Korea, while LINE is very popular in Japan, Taiwan, and Thailand. Together, they bring Kaia's potential user base to over 250 million. This lays a solid foundation for the adoption of blockchain technology in the East Asian market.

Token Economics

Kaia's native token KAIA plays a core role in the blockchain economy, used for paying transaction fees and incentivizing consensus nodes. Each new block automatically issues KAIA tokens, with an initial annual inflation rate of 5.2%. The block reward distribution is as follows:

• 50% allocated to CCO and the community
• 25% allocated to the Kaia ecosystem fund (KEF)
• 25% allocated to the Kaia Infrastructure Fund ( KIF )

Kaia implements an on-chain governance system, where voting rights are proportional to the amount of KAIA tokens contributed, but there is a cap to prevent monopolization by a minority.

Technical Architecture

Kaia is a highly optimized, BFT-based public blockchain with the following characteristics:

• 1 second block generation and confirmation time
• Can process 4000 transactions per second
• Low gas fees, about 1/10 of Ethereum
• EVM compatible, supports Solidity contracts

Kaia's network structure is divided into three logical sub-networks: core unit network, endpoint node network, and service chain network.

Kaia adopts an optimized version of the Istanbul BFT consensus algorithm, addressing the issue of increased communication volume by randomly selecting committees.

Ecosystem

Kaia is actively building a diversified ecosystem, mainly including:

1. DeFi track: includes projects like Neopin, Lair Finance, CapybaraExchange, etc.

2. Payment Track: Collaborating with Alchemy Pay to provide a seamless transition from fiat to cryptocurrency.

3. AI track: Includes projects such as FlareAI and FDN.

4. Mini DApps on LINE: The first batch of Mini DApps is scheduled to be launched in January 2025, covering various fields such as gaming, social, and prediction markets.

5. Other ecological activities: such as the Kaia Wave Maker Program, offline events co-hosted with LINE NEXT, etc.

Highlights Summary

1. Unique Positioning: Industry Giants Join Forces to Build the Foundation of the East Asian Blockchain Ecosystem

2. Asset scale and ecological breadth: the largest Web3 network in Asia

3. A large influx of Web2 users: The gateway connecting Web2 and Web3

4. Global Vision and Ecological Cooperation: From East Asia to the World

5. The low valuation of MC/TVL: Indicates huge growth potential

6. Layout for the Future: Reshaping the Digital Infrastructure of Finance and Culture

Kaia has demonstrated exceptional ability to promote the large-scale application of blockchain by deeply exploring East Asia, integrating resources from industry giants, and adopting a bold globalization strategy. In the future, whether Kaia can fulfill its mission of reshaping the global blockchain landscape will become an important barometer for the development of the blockchain industry.