The Line ecosystem is expected to become a new engine for Web3 in Asia

Introduction

As a widely popular communication software in Asia, Line announced this year that it will merge its mainnet with the Korean public blockchain Klaytn. This strategic move indicates that Line will actively expand its footprint in the Web3 space. Looking back at the rise of the Telegram ecosystem, it successfully attracted a large number of Web3 projects and users through its strong user base and mini-program platform, becoming a bridge for the transition from Web2 to Web3. Now, Line also possesses similar development conditions and is expected to foster new Web3 phenomenon projects in the Asian market, injecting new vitality into the field.

The merger of Line and Klaytn will bring technological innovation and a transformation of governance structures, issuing a new unified token and building an integrated network across Ethereum and Cosmos. This collaboration not only accelerates the development of Web3 technology but also signifies the deep cooperation of Asian tech giants in the blockchain field, bringing more innovation and opportunities to the entire industry. Therefore, Line has the potential to become a new engine driving the development of Web3, continuing the successful story of the Telegram ecosystem.

Review of the Telegram Ecosystem

The rapid development of the Telegram ecosystem has not only attracted widespread attention in the Web3 field but has also injected new vitality into the entire industry with its unique advantages and innovative models. Multiple projects have been listed on mainstream trading platforms, and their market values have quickly risen, not only validating the commercial potential of this ecosystem but also attracting a large number of new users into the Web3 world.

The Telegram ecosystem has achieved such remarkable results mainly due to its massive user base and efficient dissemination mechanism. As a communication giant with 900 million users, its launched mini-programs and bot development features provide users with a brand new service experience. These mini-programs can not only replace most website functions, support seamless authorization and integrated payments, but also greatly enrich users' interaction methods through customized features.

In addition, Telegram has developed a chain that supports convenient blockchain transactions, further lowering the barriers for users to enter Web3. This "traffic + payment" model has allowed Telegram to develop rapidly in the Web3 field, becoming a bridge connecting Web2 and Web3.

In this process, several projects have stood out prominently. For example, some gaming projects quickly attracted a large number of users through simple operation methods and a viral mechanism, successfully guiding them to engage in on-chain interactions, achieving the transition from Web2 users to Web3 users. These projects not only succeeded within the ecosystem but also rapidly increased in market value after going public, demonstrating strong market appeal and commercial value.

Some projects enhance players' understanding and recognition of virtual currency through unique game backgrounds and management elements, while effectively expanding the ecological influence through a combination of task systems and video-watching tasks.

The success of these projects has not only brought a significant influx of fresh blood to the Telegram ecosystem but also provided new ideas and models for the development of the Web3 field. They demonstrate that through gamification and socialization, it is possible to effectively attract and convert Web2 users, while also showcasing the application potential of blockchain technology in non-financial fields such as gaming and social networking.

With the continuous maturation and improvement of the Telegram ecosystem, more application scenarios and business models will be explored and realized in the future. From the current development trend, this ecosystem will not only continue to delve into the fields of gaming and social networking but may also further expand into various fields such as finance, education, and commerce, eventually forming a diversified and open Web3 ecosystem. As more innovative projects join and more users participate, the Telegram ecosystem is expected to become an important force in driving the development of the Web3 industry.

Introduction to Line

Line is not only a popular messaging app in Asia, but it is also the most popular messaging application in Japan. As of 2024, it has 95 million monthly active users, covering over 68% of Japan's total population. The main features of this app include messaging and calling services, and it also has many other unique features, such as stickers. Popular anime, celebrities, and creators even sell their own paid stickers within the app. Businesses can set up official accounts on Line, and some companies even sell their own stickers to support marketing activities.

Line also has a status update feature, including a story-like function and a seamless sharing button. In addition, the app has a cashless payment feature called "LINE Pay," which allows users to transfer money between each other and make payments in stores.

The number of monthly active users of Line has significantly increased from 58 million in 2015 to 95 million in 2024. Among active users, the proportion of male and female users reachable through advertising is 52.5% and 47.5%, respectively. The age distribution ranges from 8.3% for those aged 15 to 19 to 31.4% for those aged 50 and above, which is quite representative of the Japanese population.

In Japan, Line is not just a tool for young people. It is widely used by people of all ages and has become an important communication mechanism for connecting friends, family, and colleagues.

One unique feature of Line is that there are over 3 million Line accounts owned by companies in Japan. If you want to set up a business account on the app, you need to fill out a registration form and submit an application. Once approved, you can start using it. As the number of business accounts continues to grow in Japan, it provides an alternative to other marketing tools like email communication, offering many advantages for businesses. Using it is free, and companies can send sales coupons to customers through the app, and even conduct surveys. Compared to email, it has a higher average open rate and click-through rate. This is why Line is used by businesses of all sizes.

In 2020, the Japanese Ministry of Health, Labour and Welfare reached an agreement with Line to conduct a nationwide survey on COVID-19. The official account of the Ministry regularly sends health questionnaires to all Line users.

Today, Line has become one of the most useful brand tools in Japan. It is a wise move to consider creating your own official Line account when collaborating with the Japanese market.

Current Status of Line Mini App

The Line mini app, as an innovative service on the platform, has become an important tool for enterprise digital transformation, especially popular in Japan and Taiwan. It allows businesses to directly publish web services on the Line platform, enabling users to enjoy a convenient service experience without downloading additional applications. Thanks to Line's large user base, enterprises can reach a vast potential customer group, while integrating Line Pay allows users to complete payments directly within the app, significantly enhancing shopping convenience.

With the impact of the pandemic, consumers are increasingly turning to planned purchases, which requires businesses to adapt to this change through digital means. Line mini-apps have thus become a key tool for connecting online and offline, supporting common functions such as online ordering, reservations, and queue management, while also helping businesses improve service visibility and user engagement. Although the service has not yet been fully opened for development in Taiwan, certified partners can apply in advance, and completed developments must pass a review before being published.

Currently, Line mini-apps are widely used in industries such as catering, education, healthcare, beauty, and retail. By providing a convenient user experience and strong backend support, they help businesses stand out in a highly competitive market. With the continuous development of technology and further opening of the market, it is expected that this service will play a greater role in the future, especially in promoting the integration of online and offline.

Additionally, as the market's acceptance of Line mini-apps continues to rise, their numbers are growing rapidly. Some companies have launched no-code development platforms, further lowering the technical barriers, allowing more small and medium-sized enterprises to easily create and manage their own Line mini-apps. It is expected that this service will play a greater role in e-commerce and online services in the future, and may even propel Line to become a super app, providing users with a comprehensive range of life services. This trend not only provides businesses with a brand new customer touchpoint but also offers consumers a richer and more convenient service experience.

Introduction to the South Korean Public Blockchain Klaytn

Klaytn is a blockchain platform launched by the South Korean internet giant Kakao's subsidiary, aimed at promoting the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn employs a Proof of Stake (PoS) consensus mechanism, which not only accelerates transaction speed and confirmation times but also maintains the efficient operation of the system.

A key feature of Klaytn is that it integrates the advantages of both public and private blockchains, providing an environment that is both efficient and secure. This unique combination allows Klaytn to support a large number of transactions and users while maintaining low processing times and costs, which is crucial for commercial applications that require handling high-frequency, large-scale transactions. Additionally, Klaytn supports smart contracts, enabling developers to build various decentralized applications (dApps) on the platform, commonly referred to as BApps (Blockchain Applications), to meet the needs of different industries and application scenarios.

Klaytn provides an accessible and user-friendly development environment, making it easy for even newcomers to blockchain technology to build and deploy blockchain applications. Through a platform similar to web services, Klaytn simplifies the process of creating a new blockchain environment, reducing the technical burden on developers. This design philosophy is particularly appealing to developers transitioning from centralized applications to decentralized applications, as it lowers the entry barrier and accelerates the realization of innovative applications.

The native cryptocurrency of Klaytn is KLAY, which plays multiple roles within the system. As a payment method, KLAY is used in applications built on Klaytn, and it is also distributed as rewards to developers who contribute to the platform. In addition, KLAY is a popular choice among cryptocurrency traders and investors who profit from market price fluctuations through trading.

An important milestone in the development of Klaytn is the merger with Finschia, which led to the birth of the new mainnet Kaia. Kaia combines the technological advantages of Klaytn and Finschia, aiming to create the largest Web3 ecosystem in Asia. The native token of the new mainnet Kaia, KAIA, not only symbolizes the merger of Klaytn and Finschia, but also represents a commitment to partners and the community, intending to bring together developers, enterprises, users, and traders in a unified ecosystem.

The launch of Kaia signifies the rise of a network centered on collaboration, innovation, and users, which will simplify the user experience and promote the widespread adoption and application of blockchain technology globally. Kaia's vision is to make blockchain technology accessible and widespread for everyone, regardless of their background or experience. This vision is guided by its core values—community, sustainability, and simplicity—values that serve as guiding stars for Kaia in nurturing partnerships, engaging deeply with the community, and driving blockchain adoption.

Kaia's network architecture is divided into three logical subnets:

1. Core Unit Network (CCN): Composed of Core Units (CC) responsible for transaction validation, execution, and block creation.

2. Endpoint Node Network (ENN): Composed of endpoint nodes (EN) that handle RPC API requests and process service chain data.

3. Service Chain Network (SCN): An auxiliary blockchain independently operated by dApps, connected to the main chain via EN.

The Merger of LINE and Klaytn's Public Chains

Klaytn and LINE's public chain Finschia have merged to create a new blockchain ecosystem ------ Kaia. This merger marks the deep collaboration between two major tech giants in Asia in the blockchain field, aiming to promote the development and application of Web3 technology.

Background

Klaytn is a blockchain platform launched by a South Korean internet giant, aimed at providing a high-performance, scalable, and secure blockchain environment. Finschia, on the other hand, is a blockchain platform launched by LINE, inheriting the vision of the LINE blockchain and dedicated to promoting the popularization of public blockchain and Web3 technologies. The merger of the two platforms not only