The Line ecosystem is expected to become a new driving force for the development of Web3

Introduction

As a widely popular communication software in Asia, Line announced this year a mainnet merger 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, expected to foster new Web3 phenomenon projects in the Asian market and inject new vitality into the field.

The merger between Line and Klaytn will bring about technological innovations and changes in 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 deep cooperation among 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 success 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 sector 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 capitalization has rapidly climbed, validating the commercial potential of the Telegram ecosystem and attracting a large number of new users into the Web3 world.

The reason why the Telegram ecosystem has achieved significant results by mid-year is mainly due to its large user base and efficient communication mechanism. As a communication giant with 900 million users, the mini-programs and bot development features introduced by Telegram provide users with a brand new service experience. These mini-programs not only can replace most website functions, support seamless authorization and integrated payments, but also greatly enrich user interaction methods through customized features.

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

Several projects have stood out in the Telegram ecosystem. For example, some gaming projects have quickly attracted a large number of users through simple operational methods and viral mechanisms, successfully guiding them to engage in on-chain interactions and achieving the transition from Web2 users to Web3 users. These projects not only succeeded within the ecosystem but also saw their market value rapidly soar after listing, demonstrating strong market appeal and commercial value.

Other projects enhance players' understanding and recognition of virtual currencies through unique game backgrounds and management elements, while effectively expanding the ecological impact through the integration of task systems and video-watching tasks.

The success of these projects not only brings a lot of fresh blood to the ecosystem but also provides 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 areas such as gaming and social networking.

With the continuous maturation and improvement of the ecosystem, more application scenarios and business models will be explored and realized in the future. From the current development trend, the ecosystem will not only continue to delve into the fields of gaming and social interaction but may also further expand into finance, education, business, and other areas, ultimately forming a diversified and open Web3 ecosystem.

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 the total population of Japan. The main functions of this app are similar to other instant messaging software, providing messaging and calling services, while 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, with some even selling their own stickers to support marketing activities.

Line also has a status update feature, including a function similar to stories on other social platforms and a seamless sharing button. Additionally, the app has a cashless payment function called "Line Pay," allowing users to transfer money between each other and make payments in stores.

The number of monthly active users on Line has increased significantly 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 population in Japan.

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.

A 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 way to communicate compared to other marketing tools like email, offering many advantages for businesses. It is free to use, and businesses can send sales coupons to customers through the app and even conduct surveys. Compared to email, it has higher average open rates and click-through rates. This is why Line is used by businesses of all sizes.

In 2020, Japan's 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. For companies looking to collaborate with the Japanese market, creating an official Line account is a choice worth considering.

Current Status of Line Mini App

The Line Mini App, as an innovative service on the Line platform, has become an important tool for digital transformation for businesses, 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 needing to download additional applications. Thanks to Line's large user base, businesses 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 COVID-19 pandemic, consumers are increasingly turning to planned purchases, requiring businesses to adapt to this change through digital means. The Line Mini App has thus become a key tool for connecting online and offline; it not only supports common functions such as online ordering, reservations, and queue calling but also helps businesses increase service visibility and user engagement. Although the development of the Line Mini App has not yet been fully opened in Taiwan, certified partners can apply in advance, and after development is completed, it must pass review before being released.

Currently, the Line Mini App is widely used in industries such as food and beverage, education, healthcare, beauty, and retail. It helps businesses stand out in a competitive market by providing a convenient user experience and strong backend support. With the continuous development of technology and further opening of the market, it is expected that the Line Mini App will play an even greater role in the future, especially in promoting the integration of online and offline.

In addition, 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 in the future, Line Mini Apps will play a greater role in e-commerce and online services, and may even propel Line to become a super app, providing users with comprehensive lifestyle 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 Chain Klaytn

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

One of the main features of Klaytn is that it combines 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 business applications that require handling high-frequency, large-scale transactions. Additionally, Klaytn supports smart contracts, enabling developers to build various decentralized applications (dApps), commonly referred to as BApps (Blockchain Applications), to meet the needs of different industries and application scenarios.

Klaytn provides an easy-to-access, user-friendly development environment, allowing even newcomers to blockchain technology to easily build and deploy blockchain applications. Through a platform similar to web services, Klaytn simplifies the process of creating new blockchain environments and reduces 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.

Klaytn's native cryptocurrency is KLAY, which plays multiple roles in the system. As a means of payment, KLAY is used in applications built on Klaytn, and it is also distributed as rewards to developers who contribute to the platform. Additionally, KLAY is a popular choice among cryptocurrency traders and investors, who profit from trading by taking advantage of market price fluctuations.

An important milestone in the development of Klaytn was 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, not only symbolizes the integration 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 around collaboration, innovation, and users, which will simplify the user experience and promote the popularization and application of blockchain technology on a global scale. 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 the guiding stars for Kaia in nurturing partnerships, deeply engaging with the community, and driving blockchain adoption.

Kaia's network structure 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 operated independently by dApps, connected to the main chain through 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 a deep collaboration between two major technology 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 introduced by Line, inheriting the vision of Line's blockchain and committed to promoting the popularization of public blockchains and Web3 technologies. The merger of the two platforms represents not only a technical integration but also a deep strategic collaboration, aimed at creating a leading Web3 ecosystem in Asia.

Merging Advantages

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