Ethereum software company ConsenSys has formed a technology partnership with the Kakao Klaytn blockchain, with the aim of developing a proprietary platform for the issuance of CBDC in South Korea.
Klaytn is a shared blockchain developed by Ground X, a subsidiary of the South Korean internet company Kakao. Kakao is known for its mobile messaging app Kakao Talk, and has since expanded to shop specifically and travel. In 2019, the company started work on the Klaytn blockchain, which at the time of publication was ranked number 25 in terms of market value in the cryptocurrency area.
As part of the partnership, ConsenSys will work on the development of a customized version of Klaytn in preparation for the upcoming CDBC pilot program in South Korea. The project will also include making Klaytn interoperable with Ethereum Layer-2 solutions and will seek to build interoperable bridges with other blockchains.
“Through this collaboration, we will improve the efficiency of the Klaytn platform, equip it to handle transactions that conceptually support CBDC, and improve it to integrate Ethereum Layer 2,” said Charles de Hassi, Asia Pacific Managing Director for ConsenSys. …
Klaytn is the crossroads of the Ethereum blockchain, but Ethereum’s public and decentralized functions are generally undesirable for governments or companies. According to the press release, a special series was created “to reflect the growing concern for data protection among financial institutions.”
The central bank’s digital currencies or the central bank’s digital currencies are simply digital copies of national currencies and must therefore be checked by central authorities. However, ConsenSys’ plan to make its suspended private network compatible with the current public blockchain shows that national CBDC platforms do not need to be isolated as originally intended.
“We are pleased to partner with ConsenSys to strengthen our public network and build a private network that can successfully pass the CBDC distribution test,” said Jason Hahn, CEO of Ground X, following the announcement of the partnership.