- Investors panic as Klaytn network shuts down for 30 hours.
- Many questions if operations under Klaytn is still safe after the breakdown.
- However, more scalable blockchain solutions like Sigma Chain is another suitable option for businesses.
Following the crypto exchange crackdown that took effect the last two months, fear and uncertainty have become the order of the day in the South Korean digital assets market. Hitherto, the Bank of Korea brought up the idea of creating their own digital currency and they went on to carry that out.
As the Central Bank Digital Currency (CBDC) emerged, the Bank of Korea announced it will conduct simulation research of the CBDC. On that note, many research service providers submitted bids to carry out the research. Thereafter, Ground X was picked as the company to lead the research, however, Rep. Yang questioned the selection. According to Rep. Yang, Ground X does not have its own original technology to carry out such a huge project.
Ground X, an affiliate of Kakao designed a blockchain network, Klaytn (KLAY) which launched in June 2019. However, recently, Klaytn was shut down for 30 hours and that resulted in a FUD among non-fungible token (NFTs) projects issued based on the Klaytn blockchain.
In light of this, several people probed whether the NFT data issued on the Klaytn network was safe. One industry expert pointed out that even if Klaytn is normalized, that the projects that are running NFT projects based on Klaytn will still worry over the stability of the Klaytn network.
Presently, only one node is displayed on the Klaytnscope. On top of that, deposits and withdrawal down Klayton-type coins listed on crypto exchanges were also restricted. At the moment, investors are worried that after the network restart, the price of the coin may plunge as well as NFTs, and DeFi deposits.
Source: klaytnscope
Fortunately, there are more sustainable innovative blockchain technology firms out there that are empowering businesses to integrate blockchain. And also, providing real-world solutions to such businesses. One of them is Sigma Chain.
Unlike Klaytn (KLAY), Sigma chain does not depend on third-party software. In fact, all of its technology is developed from in-house technology, which makes it overly scalable. Due to many blockchain solutions being difficult to adapt since they are hard-coded, Sigma chain took it upon themselves to write a new coding language.