South Korean internet company Kakao has announced that they will be releasing a blockchain platform sometime this year but that they will not be releasing their own virtual currency.
Over the past several months, rumors have swirled about Kakao’s potential venture into blockchain technology, with many speculating that it would be through starting a cryptocurrency that can be sent through the companies messaging apps or used for payments.
Although the announcement is a disappointment to many who were looking to invest in a major company’s ICO, it does provide another use-case for blockchain technology: communication.
Ground X will be the newest addition to Kakao’s many companies and will have a team devoted to integrating blockchain-based services to Kakao’s existing internet offerings.
The company’s co-CEO Joh Su-yong recently expressed his interest in the future of blockchain technology, discussing the importance of a blockchain platform that is cohesive throughout all their services, from file sharing to texting.
The Ground X platform will not only improve the speed and efficiency of Kakao’s own platforms but will also allow other services to build upon it. The co-CEO recently said, “An open ecosystem is important to us. We are beginning dialogues with partners that want to create a blockchain token economy in Asia.”
The design of the Ground X blockchain would be very similar to that of Ethereum in that it allows for diverse scalability. This news has led many to speculate that a virtual currency may at some point be necessary to further the efficiency and scalability of the Ground X blockchain.