BORA

What is Bora (BORA)?

Bora is a blockchain ecosystem that allows users to store, secure, and grow their entertainment and crypto assets.

Now in its second iteration, Bora was created to accommodate various game, content, and entertainment-specific demands on blockchain technology and various products to support the ecosystem.

Bora is a decentralized digital content platform that launched as a private layer 2 for Ethereum. This first iteration was closed off and therefore possessed limited scalability in adoption, although this allowed for a fast proof-of-authority (PoA) consensus mechanism.

Therefore, Bora 2.0 offers a rethink of the entire network concept, and many of the disadvantages associated with Bora 1.0 have been eliminated.

The network is now also attached to Klaytn rather than Ethereum. Many of the products designed for the ecosystem are launching in partnership with Klaytn-based partners as this second iteration of Bora comes together.

Who are the Founders of Bora?

Bora was launched by an expert mobile and game development team, including current CEO Gyehan Song, a former employee of Samsung Electronics. Song has 20 years of development experience, the same as CSO Key Yune, an acclaimed game developer.

Bora CTO Igoo Lee is known for his work building the infrastructure of titles like Fifa Online, while VP of Engineering Kyoungwook Cheon founded a game portal called Free Chal back in the year 2000.

Bora is registered in Singapore as MetaBora Singapore Pte Ltd and is also referred to as Borachain.

How Does Bora Work?

Bora was initially a private proof-of-authority network, but centralization was a proven disadvantage in an increasingly open-source, decentralized industry. As a result, the network saw very little adoption, and the team behind it decided to investigate Klaytn’s PBFT algorithm since they had transitioned from Ethereum to Klaytn in 2021.

Bora 2.0 changed its consensus algorithm to PBFT for speed, fault tolerance, and finality. In fact, this switch to PBFT enabled the reduction of risks related to security while also matching the speed and efficiency provided by PoA.

Along with the change in consensus algorithm, Bora is changing its node operation method to be the “Governance Council'' matching that of Klaytn. This Governance Council, abbreviated simply as GC, carries out the majority decision-making that is the foundation of PBFT consensus.

This shift from PoA to GC-led PBFT will resolve the closed-off private chain of Bora 1.0. According to the Bora team, 20 GC partner companies are already ready to onboard. These include The Sandbox, Collab Asia, Kakao, Lionheart Studio, XLGames, Wemade, Krust Universe, and more.

Note that 4 of the 20 are Kakao subsidiaries, and Kakao is the firm ultimately behind the Klaytn blockchain.

Any new partner wishing to join the ranks of the GC will have to be proposed by one of the existing members and voted in by a majority. Each of the partners participating in the GC operates an individual validator node and stake a certain amount of BORA tokens.

How is the Bora Network Secured?

Much like Klaytn, Bora 2.0 uses a Byzantine Fault Tolerance model called PBFT, which addresses some of the drawbacks of proof-of-work and proof-of-stake, such as uncertainty in penalties and efficiency issues.

Klaytn began as a fork of Ethereum but shifted to a PBFT algorithm, sometimes referred to as Istanbul BFT. It uses a system of economic incentives for node behavior and can remain resilient even if a high threshold of nodes fails.

Klaytn also features a hub and spoke model where independent side chains can be built atop the core chain to increase processing power. This architecture is also in place with Bora, giving it a unique advantage in theoretically infinite scalability.

These side chains could also take the form of “Bora service chains” or games, which interact with the main Bora blockchain to mint various tokens and interact with Bora dApps.

What is the Use of BORA?

BORA is the native token of the Bora network and is used as a medium of exchange as well as for staking and governance on the platform. Bora’s validators, or Governance Council, have to stake a certain threshold of BORA tokens to the protocol.

How Much BORA is In Circulation?

BORA tokens initially launched as ERC-20 tokens on Ethereum but have since migrated to Klaytn thanks to the Bora team’s decision to focus Bora 2.0 on the Klaytn ecosystem.

The token had a total supply of 1.325 billion BORA at genesis, with the team and advisors picking up 15%, 20% going to the project reserve, 25% allocated to the reserve, and 40% used in token sales.

Under the Governance Council regime that went live with Bora 2.0, BORA inflation began in the 4th quarter of 2022. For the first year, 3 BORA tokens are generated per block, decreasing by 25% yearly for 12 years.

From the 13th year onward, a minimum supply will be generated for the operation of the GC node and rewarding Bora ecosystem activities. The unused remainder will then go into permanent lock-up, often referred to as “burning.”

There are also permanent lock-ups in operation currently. Bora 2.0 implemented an automated permanent lock-up mechanism for tokens, where a portion of all fees from token transactions and platform activities are locked away. It is estimated that 1.5%-2.0% of the total transaction volume on Bora goes into permanent lock-up.

How Do You Buy BORA?

Bora and its host blockchain, Klaytn, are both projects originating in Asia, and that is reflected in the BORA token’s listings. Most top exchanges that are based in Asia or serve Asian geographies offer BORA tokens, and customers can use fiat currencies like KRW and IDR to buy BORA.

You can also buy BORA on Klaytn-based decentralized exchanges such as KLAYswap.

How Do You Store BORA?

It’s important to be aware of which network your BORA tokens are on since some ERC-20 BORA tokens are still in circulation and haven’t been migrated to Klaytn yet.

Regardless, the Klaytn ecosystem is compatible with Ethereum, so wallet storage for BORA isn’t a big issue. Most multi-asset wallets like SafePal, Ledger, Trezor, and Trust Wallet can handle BORA tokens. It’s also possible to use Metamask, although you’ll have to tweak its settings a little first.

Is BORA a Good Investment?

Bora is a project that displays the agility required to succeed in the blockchain industry. Much of the Bora 2.0 whitepaper is spent detailing the errors made in Bora 1.0, but the team has moved swiftly to address many of the issues with their original design decisions.

A project with potential from a technological standpoint, Bora nevertheless faces significant challenges ahead. Web3 and blockchain aren’t viewed very favorably by mainstream gaming media. While this could largely be due to conflicts of interest, the damage has been done.

However, entertainment, and especially gaming, is an area of massive potential for blockchain projects, as detailed in a recent Reddit post by ImmutableX co-founder Robbie Ferguson. If Bora can claim even a small share of this pie, its future could be very rosy indeed.