Kakao Allocates Tens Of Millions Dollars For Blockchain And AI
Kakao, a large South Korean Internet company and operator of the messenger, spent part of its budget on blockchain technology, ZDNet reports.
The corporation published a financial report for the last quarter of 2018, which says that over $57 million expenses were related to blockchain, artificial intelligence, and other new technologies.
Along with this, the net profit of Kakao for this period was only $3.8 million. Therefore, the company’s interest for innovations cost it a lot and caused rather large losses. Despite this, the vice-president of the corporation, Bae Jae-hyun, assured that Kakao will continue to invest in DLT and other technologies.
The Korean internet giant launched its own test blockchain Klaytn in October last year. The development has a flexible consensus mechanism for confirming transactions, and the network capacity allows 1500 payments per second. The main network will be ready to roll out in the first half of 2019.
Kakao also invested in an Israeli startup Orbs. Its team is developing a so-called “hybrid blockchain” compatible with the Ethereum network.
It is noteworthy that Kakao has its own fintech division — the Ground X blockchain-company. It establishes partnership with other crypto industry players and attracts funds for Kakao's own projects.
In addition, in 2018, the corporation opened an office in Singapore, one of the most favorable states for the crypto business. Kakao was hoping to attract $88 million from abroad through its blockchain Klaytn. After that, the number of the project’s partners grew from 9 to 30 in one month.
Previously, a startup for transactions SendFriend attracted investments from Ripple and Barclays.