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Third-generation Blockchain Platforms Competing to Preempt Korean Market
Blockchain Platform Competition
Third-generation Blockchain Platforms Competing to Preempt Korean Market
  • By Yoon Young-sil
  • September 27, 2018, 09:40
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Third-generation platforms seek to address the shortcomings of the second-generation platform ethereum, such as a commission fee for each transaction and a slow speed of data processing.

Competition has begun among the so-called third-generation blockchain platforms to preempot the South Korean market. Third-generation blockchain platforms refer to those that seek to address the shortcomings of ethereum, a second generation platform that emerged following the first generation bitcoin.

Ethereum is a decentralized platform where applications run exactly as programmed without any chance of fraud, censorship or third-party interference. Yet it is not without its own shortcomings, such as a commission fee for each transaction and a slow speed of data processing. Third-generation platforms seek to address these problems in their own methods.

Recently, the “Orbs” platform has been attracting much attention in South Korea. It aims to build on the strengths of ethereum and solve the problem of slow speeds by using separate chains. Unlike other projects that are trying to replace ethereum, the platform is seeking to succeed and advance ethereum.

Orbs is drawing attention as it is highly likely to collaborate with the blockchain payment project “Terra.” In addition, the platform has already established a strategic partnership with Ground X, the blockchain subsidiary of Kakao Corp. Orbs also participates in promising blockchain payment project “Puma Pay,” which raised US$117 million (130.63 billion won) of money through an initial coin offering (ICO) in the second quarter. If it absorbs Terra, Orbs is expected to become the most noteworthy blockchain platform in the payment sector.

EOS is the project that can compete with Orbs. It has introduced a system that determines 21 block producers in a vote in order to improve the slow speed of data processing. The platform has laid a foundation for a broad popular service by making service providers, rather than service users, pay a fee.

Lately, the nation’s leading game developer Neowiz Co. has started developing games based on EOS. An increasing number of EOS-based games are coming into the market around the world. EOS has been accepted as the most promising third-generation platform in the gaming sector.

South Korea’s internet giants Naver Corp. and Kakao Corp. are gradually unveiling their own platforms. Naver has been carrying out the blockchain business through its Japanese subsidiary “Line,” which has recently launched blockchain platform “Link Chain” and cryptocurrency “Link.” Link Chain and Link are forecast to be used in various areas, including Line’s user reward-based content, commerce and games, which are to be released in the future.

Kakao is developing blockchain platform “Clayton” through its blockchain subsidiary Ground X. It is planning to disclose its test net in October, together with the services running on Clayton. The company will also introduce cryptocurrency “Clay” to be used in the Clayton platform.

In addition, ICON, which is considered the nation’s leading blockchain project, has recently released the version 3.0 of its main net and is seeking to develop services that would run on it. ICON-based services, including the sharing economy project “Blue Whale,” advertising project “Webloc” and “Stage,” which connects artists with fans, will hit the market in the near future.