What is $KAIA? Kaia Chain Explained

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• WHAT IS KAIA CHAIN?
• KAIA CHAIN KEY FEATURES
• WHAT IS $KAIA?
• KAIA’S FUTURE AND FINAL THOUGHTS
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Kaia is a high-performance blockchain backed by Kakao and Line, offering scalability, low fees, and fast transactions with 1-second block times and 4,000 TPS.

WHAT IS KAIA CHAIN?

Kaia is a high-performance public blockchain focused on scalability, low-latency transactions, environmental sustainability, and developer-friendliness. 

The Kaia mainnet officially launched in August 2024, positioning itself as a key player in the Asian blockchain ecosystem.

ꚰ Official websit: https://www.kaia.io/

➤ Kaia Technical Advantages

Kaia distinguishes itself through the following core attributes:

• High Scalability – Designed to handle large transaction volumes while maintaining network stability, Kaia provides a robust foundation for decentralized applications (dApps) and large-scale ecosystems.
• Low-Latency Transactions – Kaia significantly reduces transaction confirmation times, enhancing user experience, particularly in DeFi and real-time applications.
• Eco-Friendly Architecture – By adopting energy-efficient consensus mechanisms, Kaia lowers its carbon footprint, aligning with the blockchain industry’s shift towards sustainability.
• Developer-Friendly Environment – Kaia offers comprehensive development tools and SDKs, lowering the barrier to entry for Web3 developers and fostering innovation within the ecosystem.

➤ Strategic Backing and Industry Support

Kaia is backed by two of Asia’s largest communication giants – South Korea’s Kakao and Japan’s Line. 

This mirrors the model of Telegram’s blockchain TON, showcasing the growing interest of communication leaders in blockchain technology.

📲 Introducing the Mini Dapp Launch Day Line Up

Exclusively powered by Kaia, the Dapp Portal (@dapp_portal) is your gateway to Mini Dapps, connecting millions of users across Asia through LINE Messenger.

🌟 We are starting strong with 20 handpicked Mini Dapps in the first wave,… pic.twitter.com/UMmTgiMFd2

— Kaia (prev. Klaytn & Finschia) (@KaiaChain) December 12, 2024

➤ Merger and Mainnet Launch Progress

Kaia emerged from the merger of two prominent blockchains – Klaytn, developed by Kakao, and Finschia, a project under Line.

• Merger Background – In January 2024, Klaytn and Finschia proposed a merger aimed at creating Asia’s largest Web3 network. Inspired by the success of TON, the initiative seeks to consolidate resources and boost competitiveness.
• Community Approval – On February 15, 2024, the merger proposal received over 90% approval from the Klaytn and Finschia communities.
• Mainnet Launch and Token Conversion – Kaia’s mainnet officially launched on August 29, 2024. Klaytn’s native token, $KLAY, was automatically converted to KAIA tokens, while Finschia’s $FNSA required manual conversion by holders.

Kaia’s launch marks a significant milestone in the collaboration between Kakao and Line, laying the groundwork for an expansive Web3 ecosystem in Asia. 

With strong industry backing and innovative technology, Kaia is poised to become a foundational blockchain infrastructure in the region.

>>> More to read: Kakao and LINE Launch Kaia: A TON-Inspired Blockchain Merging Web2 and Web3

KAIA CHAIN KEY FEATURES

To achieve fast transaction processing, lower entry barriers for users, and promote developer adoption, Kaia leverages technology based on the PBFT (Practical Byzantine Fault Tolerance) algorithm. 

This enables:

• 1-second block generation and confirmation
• Throughput of 4,000 transactions per second (TPS)
• Gas fees approximately 1/10 of Ethereum’s costs
• Full compatibility with the Ethereum Virtual Machine (EVM)

➤ Core Architecture of Kaia Chain

Kaia’s architecture is designed to optimize performance and scalability through a three-tier structure:

• Core Cell Network (CCN)

Composed of core units responsible for transaction validation, execution, and block creation. This forms the backbone of the Kaia chain, ensuring network security and efficiency.

• Endpoint Node Network (ENN)

Handles RPC API requests and processes service chain data. These nodes serve as intermediaries, managing interactions between dApps and the main chain.

• Service Chain Network (SCN)

Auxiliary chains operated independently by dApps, connected to the main chain through endpoint nodes. This allows for scalability and customization without congesting the core network.

Kaia’s architecture not only enhances transaction speeds but also ensures scalability, positioning it as a competitive player in the Web3 infrastructure landscape.

>>> More to read: What is a Cross-chain Bridge & Why We Need It

WHAT IS $KAIA?

$KAIA is the native token of the Kaia blockchain, serving as the foundation for network operations, governance, and ecosystem incentives.

➤ $KAIA Tokenomics

✎ Automatic Issuance:
$KAIA tokens are automatically issued with each new block generation.

✎ Initial Annual Inflation Rate:
5.2% in the first year.

✎ Block Reward Distribution:

25% – Allocated to the Kaia Ecosystem Fund to support project growth and dApp development.

25% – Allocated to the Kaia Infrastructure Fund for network maintenance and upgrades.

50% – Distributed to the community:

• 20% – Rewards for block creators.
• 80% – Staking rewards for token holders.

➤ Utility of $KAIA Tokens

• Transaction Fees:
  $KAIA is used to pay for all transaction and gas fees on the Kaia network.

• Governance:
  Token holders participate in decentralized governance by voting on network proposals, influencing the direction and development of the Kaia blockchain.

• Staking and Security:
  Similar to Ethereum and other Proof-of-Stake (PoS) blockchains, $KAIA holders can stake their tokens to secure the network, earning staking rewards in return.

$KAIA plays a critical role in maintaining the stability and growth of the Kaia ecosystem, aligning the interests of developers, validators, and the broader community.

>>> More to read: Toncoin: Telegram’s Cryptocurrency

KAIA’S FUTURE AND FINAL THOUGHTS

Kaia stands out in the blockchain space, particularly in the Asia market, thanks to its technological innovation, strong strategic partnerships, and user-centric design. 

Backed by communication giants Kakao and Line, Kaia benefits from a massive potential user base and significant resource advantages, laying a solid foundation for its ecosystem growth.

Whether you are a developer, investor, or simply curious about the future of Web3, Kaia offers a fast, efficient, and interoperable blockchain platform. 

With the launch of its mainnet and a well-structured token economy, Kaia is poised to become a driving force in blockchain innovation and a project worth keeping an eye on.