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Abstract Chain: Building a user-friendly public chain ecosystem
Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?
Summary
Introduction
Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, aimed at providing mainstream end users with a seamless and differentiated Web3 experience. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signature processes, thereby lowering the entry barriers. Through zk-rollup technology, Abstract can offer low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for applications aimed at end users.
The competition in the blockchain ecosystem is fierce, but there is still a distance to true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what's referred to as "end-user Crypto", it is necessary to build a Web3 platform that is low-threshold and highly engaging.
Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has achieved some success, but this model, which relies on the ecological openness of Web2 platforms, is still difficult to implement in mature markets like Europe and the United States.
Abstract Chain has chosen a different path: to promote the direct integration of cryptographic technology into applications aimed at end users, allowing users to use it seamlessly.
The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as the entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination, integrating sections such as live broadcasts, rewards, collectibles, and Spotlight( application recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine for its growth.
The flywheel effect of Abstract
The development of a new chain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the introduction of on-chain application development and DeFi protocols. To attract users, projects often encourage participation through methods such as airdrops.
The network effects of these models mainly rely on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the blockchain, while also encouraging developers to build applications around trends. In business terms, this approach is similar to having customers use a specific payment card that can only be spent in certain stores.
Abstract Chain has taken a different approach. It is not asset accumulation-centric, but instead constructs the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:
This system allows new users to quickly enter Web3, while existing users continue to return due to new content.
If compared to a shopping mall, Abstract is similar to operating a prosperous large shopping center: integrating multiple stores in one place, with a central stage continuously hosting performances, maintaining high traffic and activity, allowing customers to return repeatedly for enjoyment.
The following analysis focuses on three key growth areas: user traffic >> portal absorption >> application ecosystem drive. Together, these form the core components of the Abstract platform's business flywheel.
A. User Guide
Abstract's initial user base heavily relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design concept. Fans of Pudgy and $PENGU continue to flock to Abstract, and its smooth onboarding experience provides a significant advantage in converting attention into actual users.
Easy onboarding experience
Abstract Chain is dedicated to eliminating traditional barriers and simplifying the user entry process. Its native account abstraction feature allows users to easily create an Abstract account and activate their wallet just like registering for a regular website account. Users do not need to manage private keys, nor do they need to frequently sign transactions. Account recovery or transfer operations feel as seamless as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high concurrent processing capabilities, significantly reducing the cost of on-chain interactions.
After creating an account, users can immediately use all basic cryptocurrency tools through the Portal. The wallet in the upper left corner supports real-time trading functions, providing recharge options such as bridging and fiat deposits for quick fund entry. The trading section of the Portal supports native coin exchanges without the need to search for third-party services. These integrated features collectively lower the barriers to entry, allowing users to seamlessly enter the on-chain world.
Using Pudgy fans as the initial user base
Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, and has over 500,000 $PENGU token holders, providing a ready-made user pool for the Abstract chain.
In Abstract's Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stream stickers, and more. For $PENGU holders, the Portal also has practical uses---they can use $PENGU tokens to tip during live streams, which is one of the use cases for $PENGU on Abstract.
The synergy between this IP and platform features greatly facilitated the growth of Portal---1.61 million wallets were activated within 2 months after the mainnet launch.
More importantly, due to the wide distribution of Pudgy and $PENGU fans, Abstract's user profile is also different from other end-user-oriented crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of which are from the United States, while the remaining users are mainly distributed in European and East Asian countries such as ( Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong, etc. ). This user group is very valuable for end-user-oriented applications and provides a strong foundation for Abstract to build a high-quality consumption ecosystem.
B. Portal Platform
The portal platform of Abstract is called "Digital Theme Park" ( Digital Theme Park of Fun ). It is not only a place for users to discover popular applications and creators but also the core interface for managing assets and rewards.
Early data shows that Portal is performing exceptionally well. As of March 2025, Portal has over 600,000 monthly active users (MAU) and 100,000 daily active users (DAU), with an average daily user session time exceeding 7 minutes. Among users of the Abstract Global Wallet (AGW), 40% returned to conduct at least one transaction within 30 days of creating their wallets, a retention rate significantly higher than the industry average.
Live Streaming Function
Live streaming is a media format favored by young people worldwide. Web2 platforms like Twitch attract 240 million unique users each month. For Abstract, live streaming is not only a reason for user return visits but also enhances platform stickiness and profit potential. Live streaming has been proven to promote game and merchandise sales, aligning perfectly with Abstract's goal of building an entertainment ecosystem.
The "Watch-to-Earn" ( Stream-to-Earn ) model introduced in the abstract encourages user participation through tips, comments, gifts, and other means, allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user engagement and social sharing.
As of the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can receive tips of up to 9 ETH per live stream. The top 100 streamers account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000 and having over 4,000 interactive users.
Reward and Reputation System
Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in on-chain ecosystems is still rare. Abstract uses the XP and badge system (Badges) to build such infrastructure.
Abstract uses off-chain XP as the main incentive tool to reward participants who meet target behaviors. Content creators can earn XP through live interaction, developers can earn XP by completing user engagement tasks, and regular users can earn XP through actions like linking social accounts and using recommended applications.
At the same time, the badge feature allows users to showcase their achievements. Depending on behavior and task levels, different types of badges will be minted as on-chain NFTs or displayed within the app, becoming part of the user's identity and gradually forming a complete reputation system.
Currently, the system is still in its early stages, with functionality limited to within the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem, while serving both developers and users.
Application Discovery
Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases high-quality applications selected by user votes, categorized by: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing without a cumbersome registration process.
C. Application Ecosystem
For any blockchain, ultimate success depends on whether it can cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" end-user applications from Web3 projects and mainstream enterprises.
Web3 project
Abstract is fully compatible with EVM( Ethereum Virtual Machine), supporting the migration of existing Ethereum smart contracts and facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"(, providing developers with market support, technical guidance, and monthly allowances. Developers can earn XP rewards monthly based on user participation, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to the applications.
Games are an important entry point for bringing Web2 users into the Web3 world.