So do you know that KuCoin Community chain or simply KCC chain isn't officially
associated with the KuCoin exchange, nor is it built by any of its core members.
In fact, most of the developers behind the platform are not public at all.
On today's Coinmarketcap episode, we deep dove in, explore
what is KCC and how it works and also much more.
So make sure to check the timestamps down below to easily navigate this guide.
My name is Trev and let's just get right into it.
What is KuCoin community chain?
KCC chain is built around a single purpose to accelerate
the flow of value around the world without boundaries.
The platform attempts to reduce friction in the crypto space and distinguish itself
from other layer one blockchains by its high speed, low fees and direct
compatibility with Ethereum and ERC 20 smart contracts.
So how does it work?
Well, the KCC chain is a fork of Ethereum.
This means much of its architecture remains the same, which ensures
Ethereum Dapps can easily deploy on and or migrate to the KCC chain if they wish.
Likewise, this means many popular web three wallets will work with the platform,
including Metamask.
The platform
maintains consensus using a system known as proof of stake autority or peel.
This is a modified version of Proof of Stake that requires node holders
known as validators
to stake their identity rather than a specific number of KCS tokens
in order to participate in the block production and verification process.
The same consensus mechanism is used by the BNB chain.
These validators receive the transaction fees contained in each block in return
for their owners participation in the network's consensus.
In a later update, a KCC chain will introduce staking
which will allow non node holders to stake their KCS tokens
to earn a fraction of the network's transaction fee revenue.
Similar to delegated proof of stake blockchains
due to its relatively low activity, those blocks remain empty, meaning that
the platform generates a very little in the way of transaction fee revenue.
According to data from the official KCC Chain Block Explorer
daily transaction fee revenue generally hovers between $150
to $300 a day to be shared between participating nodes.
As of this recording, KCC chain has a total of 12 nodes in operation,
one of which has been inactive for more than a month.
The platform is expected to support up to 29 validator nodes.
New validators can only be voted into position by existing validators.
Given that KCC chain is an independent blockchain, it also has its own
Native Gas token known simply as KuCoin shares token or KCS.
KCS was initially launched as an ERC 20 token on the Ethereum blockchain,
but partially migrated to KCC chain when its main net
went live and launched in June of 2021.
The case is token is now used for paying for smart contract operations
and regular transactions on the KCC blockchain.
Assets can be migrated to and from the KCC chain through the use of the KCC bridge.
This currently supports transfers between KuCoin community chain
and Ethereum, BNB Chain, Polygon, Phantom and Avalanche.
So what makes KCC chain unique?
KCC chain faces strong competition from other currently
more successful exchanges associated blockchains including
Binance, BNB Chain, Okex, OKC Chain and Crypto.com.
Cronos Chain.
To help succeed in an increasingly competitive layer.
One landscape KCC chain includes a number of distinguishing features.
Number one is that it's community run.
Unlike many other exchanges, associated blockchains and community
chain is not owned and operated by a centralized exchange.
Instead, it's being built by members of the KuCoin community.
And because of this,
it claims to be more decentralized than many of its competitors.
Since it's free to evolve as per the whims of the community,
rather than in response to regulations or the will of its creators.
Also, EVM compatibility as a fork of Go Ethereum a KCC chain shares
many of its features.
Arguably the most important of which is its compatibility
with the Ethereum virtual machine, or even.
This allows developers to deploy their Ethereum code
directly on KCC chain with few to no modifications needed.
KCC chain hopes that its low fees and high throughput will be enough to entice
developers and projects away from Ethereum and other EVM chains to its platform.
Also, high throughput KCC chain has a block time
of just 3 seconds, which is the same as a BNB chain.
Because of this, the average transaction will typically achieve finality
within 3 seconds.
This makes it around four times faster than Ethereum,
which currently has a block time of around 13 seconds.
While developers having yet provided official statistics on its throughput,
it's reasonable to assume that it's somewhere around 100 to 300 transactions
per second, or TPS, which is similar to BNB chain also low transaction fees.
KCC Chain is currently one of the cheapest blockchains by average transaction fee.
Since the platform is relatively inactive.
The average transaction fee currently hovers around $0.01.
This, however, can be expected to increase if competition for block space grows.
For example, if KCC chains Dapp ecosystem expands and or its userbase grows.
To put this into perspective,
the average Ethereum transaction fee is around a dollar and $0.50.
So does KuCoin community chain have any Dapps?
Despite launching its main net in June of 2021, KuCoin community
chain has so far seen relatively little uptake among developers,
and just a small handful of applications are currently live on the platform.
The three most popular in terms of their total value locked or TVL
are Mojito Swamp, an automated market maker running exclusively on KCC.
The platform allows users to trade digital assets and provide
liquidity to earned yields in the form of trading fees.
Like many AMMs it also features a variety of yield farms in which users
can stake their mojitos swap LP tokens to earn additional rewards.
And the next one is ku swap.
Arguably, an entire DeFi ecosystem into itself ku swap
is similar to Mojito Swamp in that it includes both aiming yield farm
functionality, but this is extended with additional features
like an NFT marketplace, NFT trading, battle game, lottery and vault system.
It also has its own igo, and ido incubator and launchpad which has hosted
four projects as of this recording, raising just over $1 million in total.
And the next one is KillSwitch A DeFi yield aggregator.
KillSwitch allows users to maximize the yields they earn on their KCC chain
based assets through the use of a variety of specialized tools.
Some of its additional features include an automated take profit and stop
loss tool, kill position option and boost tool,
all of which are designed to increase yield and minimize losses.
In the last year, the platform has seen the total value locked or TVL in its DeFi
protocols swell from just $0 to over $76 million at its peak.
The vast majority of this TVL is associated with Mojito Swamp,
which has an impressive dominance of more than 86%.
Other Dapps on KCC chain currently have a TVL of under $1 million
and overall more than two dozen Dapps are operating on KCC chain.
But most of these have very few users and limited utility
help it expand its ecosystem and build out its Dapp landscape.
Kucoin community chain recently announced a $50 million ecosystem
accelerator program with the head of KCC, Leandre Niu, saying in a press release.
As an important part of KuCoin's decentralized business ecosystem,
KCC will enter an explosive development phase in 2022.
Thus, we would like to establish the KCC ecosystem efficiently
and quickly through a series of ecosystem incentive plans.
At the same time,
we will continue to explore high quality launching projects and hidden gems
for KCS enthusiasts and KuCoin users while improving the ecosystem.
So it remains unclear whether the program has been a success.
KCC chain remains relatively underdeveloped compared
to competing EVM chains.
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