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

Introduction

Line, as a widely popular communication software in Asia, announced this year a mainnet merger with the Korean public blockchain Klaytn. This strategic move indicates that Line will actively expand its territory in the Web3 space. Reflecting on 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 give rise to new Web3 phenomenon projects in the Asian market, injecting new vitality into this field.

This merger will bring technological innovation and changes in governance structure, 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 signals 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 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. Among them, the successful launch of multiple projects, especially those listed on mainstream trading platforms with rapidly increasing market values, has not only validated the commercial potential of the Telegram ecosystem but has also drawn a large number of new users into the Web3 world.

The reason why the Telegram ecosystem has achieved such remarkable results by mid-year is mainly due to its large user base and efficient dissemination mechanism. As a communication giant with 900 million users, Telegram itself offers a new service experience through its mini programs and bot development features. These mini programs can not only completely replace most websites, supporting seamless authorization and integrated payments, but also greatly enrich users' interaction methods through customizable features, such as automatic news delivery, information services, and popular mini-games.

In addition, Telegram has developed the TON blockchain, which supports convenient blockchain transactions and further lowers the barrier for users to enter Web3. This model, similar to WeChat's "traffic + payment," has allowed Telegram to rapidly develop in the Web3 field, becoming a bridge between Web2 and Web3.

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

Some projects enhance players' understanding and recognition of virtual currency through their unique game backgrounds and management elements. At the same time, by combining a task system with video-watching tasks, they effectively drive traffic to their own video channels, further expanding the influence of the Telegram ecosystem.

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

As the Telegram ecosystem continues to mature and improve, more application scenarios and business models will be explored and realized in the future. Based on the current development trends, the Telegram ecosystem will not only continue to delve into the gaming and social fields but may also further expand into finance, education, business, and other areas, ultimately forming a diversified and open Web3 ecosystem. With the addition of more innovative projects and the participation of more users, 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 communication app in Asia, but it is also the most popular messaging application in Japan, with 95 million monthly active users as of 2024, covering over 68% of the total population of Japan. 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 enterprises even sell their own stickers to support marketing activities.

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

The number of monthly active users on 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 advertisements 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.

A unique feature of Line is that over 3 million Line accounts in Japan are owned by companies. 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 offers an alternative to other marketing tools such as email communication, providing many advantages for businesses. It is free to use, 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, Japan's Ministry of Health, Labour and Welfare (MHLW) reached an agreement with Line to conduct a nationwide survey on COVID-19. The official MHLW account regularly sends health survey questionnaires to all Line users.

Today, Line has become one of the most useful brand tools in Japan. For companies considering collaboration with the Japanese market, creating an official Line account is a choice worth considering.

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 companies to directly publish web services on the Line platform, enabling users to enjoy a convenient service experience without the need to download additional applications. Thanks to Line's large user base, businesses can reach a vast potential customer group, and by integrating Line Pay, users can complete payments directly within the app, greatly 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. The Line Mini App has thus become a key tool for connecting online and offline (OMO). It not only supports common functions such as online ordering, reservations, and queue management, but also helps businesses improve 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 once developed, it must pass a review before being published.

Currently, the Line Mini App is widely used in industries such as dining, 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 the 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.

Additionally, as the market's acceptance of Line Mini Apps continues to rise, their numbers are rapidly increasing. Some companies have already 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 drive Line to become a super app, providing users with comprehensive lifestyle services. This trend not only offers businesses a brand new customer touchpoint but also brings consumers a richer and more convenient service experience.

Introduction to the Korean Public Blockchain Klaytn

Klaytn is a blockchain platform launched by GroundX, a subsidiary of the South Korean internet giant Kakao, aimed at promoting the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn adopts 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 Klaytn's main features is its integration of the advantages of public and private blockchains, providing an environment that is both efficient and secure. This unique combination enables 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. In addition, Klaytn supports smart contracts, allowing developers to build various decentralized applications (dApps) on the platform, commonly known 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 new blockchain environments, 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. Additionally, KLAY is a popular choice among cryptocurrency traders and investors, who profit by trading to take advantage of market price fluctuations.

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, not only symbolizes the union of Klaytn and Finschia but also represents a commitment to partners and the community, aiming 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 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 advancing the adoption of blockchain.

The network structure of Kaia is divided into three logical subnets:

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

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

III 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 merges with LINE's public chain Finschia, creating a new blockchain ecosystem ------ Kaia. This integration