Kaia’s Origin: Merger of Klaytn and Finschia Blockchains

Kaia emerged from the merger of two prominent Layer 1 blockchain platforms: Klaytn and Finschia. Klaytn, developed by South Korea’s Kakao, and Finschia, created by LINE, a subsidiary of Naver, were both significant players in the Asian blockchain landscape.

Kaia represents the unification of these well-established Layer 1 blockchain platforms, each platform bringing unique strengths and achievements to the merger, making the formation of Kaia a strategic step toward creating a comprehensive blockchain ecosystem.

Klaytn was developed by South Korea’s Kakao, and was designed to serve enterprise-grade blockchain needs with a focus on performance, scalability, and usability. Launched in 2019, it quickly gained traction in the Asian blockchain industry, particularly in South Korea. It provided infrastructure for decentralized applications (dApps) and positioned itself as a blockchain optimized for real-world use cases. Its ecosystem included a diverse range of participants, from enterprises and small businesses to developers and creators, and featured partnerships with prominent global entities.

Finschia, previously known as LINK Chain, was created by LINE, a subsidiary of Naver. LINE is one of Asia’s most popular communication platforms, having over 200 million monthly active users at its peak. Finschia’s blockchain was designed to integrate with LINE’s applications, enabling blockchain-powered services directly within the messenger ecosystem. Its primary focus was on creating user-friendly blockchain solutions and bridging the gap between mainstream users and decentralized technology. The platform’s integration with LINE Wallet provided millions of users with access to blockchain features, laying a strong foundation for user adoption.

In early 2024, the teams behind Klaytn and Finschia recognized an opportunity to combine their technological expertise and user bases to form a unified blockchain ecosystem. The merger proposal aimed to address the fragmented nature of blockchain development by creating a single platform capable of delivering superior performance and a broader range of services. The proposal garnered strong support from stakeholders, with 95% of Finschia’s governance members and 90% of Klaytn’s governance members voting in favor of the merger.

The creation of Kaia was more than a mere combination of two platforms; it represented a convergence of vision and resources. Klaytn contributed its high-performance blockchain infrastructure and enterprise-oriented approach, while Finschia brought its expertise in user integration and accessibility. The merger enabled Kaia to use the technological advancements and ecosystem strengths of both platforms.

Kaia’s mainnet launched on August 29, 2024, marking a significant milestone in the blockchain industry. The platform introduced features inherited from its predecessors, such as fast transaction speeds, low latency, and user-friendly integrations. Its focus on interoperability and developer support also ensured that existing projects and applications from Klaytn and Finschia could transition to Kaia.

Objectives and Vision

Kaia’s primary objective is to become Asia’s leading blockchain platform, facilitating the widespread adoption of Web3 services across the continent. By integrating with popular messaging applications like Kakaotalk and LINE, Kaia seeks to provide access to blockchain-based services for over 250 million users.

The platform focuses on enhancing user experience and distribution by embedding Web3 functionalities directly into familiar interfaces, aiming to lower entry barriers and promote the use of decentralized applications (dApps) in areas such as decentralized finance (DeFi), gaming, and real-world asset tokenization.

Kaia distinguishes itself from other Layer 1 blockchains through several features:

• High Performance: Kaia offers low transaction latency with a one-second block time and immediate finality, supporting a throughput of up to 4,000 transactions per second. This performance enables responsive user experience and supports applications requiring near-real-time interactions.
• EVM Compatibility and Planned CosmWasm Support: Kaia is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to deploy existing Ethereum-based dApps without modification. Additionally, there are plans to support CosmWasm, enhancing interoperability with the Cosmos ecosystem.
• User Accessibility: By integrating with widely used messaging apps, Kaia simplifies user onboarding and interaction with blockchain services. Features like fee delegation enable applications to cover transaction fees on behalf of users, reducing friction in user experience.
• Ecosystem Support: Kaia provides comprehensive developer tools, including software development kits (SDKs), smart contract libraries, and APIs. The platform also offers ecosystem funds to support projects in various sectors, fostering innovation and growth within its network.
• Decentralized Governance: Kaia’s governance structure includes over 45 entities, comprising traditional enterprises, decentralized autonomous organizations (DAOs), and builders. This diverse participation enhances decentralization and community involvement in decision-making processes.

Highlights

• Kaia was created through the merger of Klaytn and Finschia, two significant Asian Layer 1 blockchains.
• The platform aims to promote Web3 adoption in Asia by integrating with popular messaging apps.
• Kaia offers high transaction throughput, EVM compatibility, and plans for Cosmos interoperability.
• The ecosystem is designed to reduce barriers for users and developers through features like fee delegation and extensive developer tools.
• Kaia’s governance model ensures decentralization with active participation from enterprises, DAOs, and builders.