Can the Line ecosystem become a new Web3 phenomenon catalyst?

Introduction

As a widely popular communication software in Asia, Line announced this year that it will merge its mainnet with the South Korean public chain Klaytn, which means that Line will actively lay out its plans in the Web3 field. Looking back at the rise of the Telegram ecosystem, it attracted numerous Web3 projects and users with its large user base and mini-program platform, successfully building a bridge from Web2 to Web3. Now, Line possesses similar development conditions and is expected to incubate new phenomenon-level Web3 projects in the Asian market, injecting new vitality into the field.

The merger between Line and Klaytn 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 signifies the deep cooperation among Asian tech giants in the blockchain field, creating more innovations and opportunities for the entire industry. Therefore, Line has the potential to become a new driving force for the development of Web3, continuing the successful story of the Telegram ecosystem.

TG Ecosystem Review

The vigorous development of the TG ecosystem has not only attracted widespread attention in the Web3 field, but its unique advantages and innovative models have injected new vitality into the industry. Multiple projects have successfully gone public, especially those listed on mainstream trading platforms with rapidly growing market values, which not only validate the commercial potential of the TG ecosystem but also attract a large number of new users into the Web3 world.

The TG ecosystem has achieved remarkable results in the middle of the year, mainly thanks to its large user base and efficient communication mechanism. As a communications giant with 900 million users, its launched mini-programs and bot development features provide users with a 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 such as automatic news sending, information services, and popular mini-games.

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

In this process, several projects within the TG ecosystem have performed outstandingly. For example, some gaming projects have quickly attracted a large number of users and guided them to conduct on-chain interactions through simple operational methods and a fission mechanism, achieving the transformation from Web2 users to Web3 users. These projects have not only succeeded within the TG ecosystem but also experienced rapid market capitalization growth 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 directing traffic to their own media channels by combining task systems with video-watching tasks, further expanding the influence of the TG ecosystem.

The success of these projects not only brings a large number of new users to the TG ecosystem but also provides new ideas and models for the development of the Web3 field. They demonstrate that it is possible to effectively attract and convert Web2 users through gamification and socialization methods, while also showcasing the application potential of blockchain technology in non-financial fields such as gaming and socializing.

As the TG ecosystem continues to mature and improve, more application scenarios and business models will be explored and realized in the future. From the current development trend, the TG ecosystem will not only continue to deepen its focus on the gaming and social fields, but may also expand into finance, education, business, and several other areas, ultimately forming a diversified and open Web3 ecosystem. With more innovative projects joining and user participation, the TG ecosystem is expected to become an important force in driving the development of the Web3 industry.

Introduction to Line

Line, as a popular messaging app in Asia, is especially popular in Japan. As of 2024, Line has 95 million monthly active users, covering over 68% of Japan's total population. The app's main functions are similar to WhatsApp, providing messaging and calling services, while also featuring many unique functions 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 functions similar to Instagram Stories and a share 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 at 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 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, representing a high level of representation in the Japanese population.

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

One unique feature of Line is that more than 3 million Line accounts in Japan are owned by companies. After a business applies for and receives approval for a commercial account, it can be used. As the number of business accounts continues to increase in Japan, it has become an alternative to tools such as email marketing, providing numerous advantages for companies. It is free to use, allowing businesses to 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 the reason why Line is widely used by businesses of all sizes.

In 2020, the Japanese Ministry of Health, Labour and Welfare conducted a nationwide survey on COVID-19 in collaboration with Line, and the official account of the Ministry regularly sent health questionnaires to all Line users.

Today, Line has become one of the most useful brand tools in Japan. When collaborating 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 enterprises' digital transformation and is very 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. With Line's large user base, businesses can reach a huge potential customer group, and by integrating Line Pay, users can complete payments directly within the app, greatly enhancing shopping convenience.

As the pandemic impacts consumer behavior, consumers are increasingly inclined towards planned purchases, which requires businesses to adapt to changes through digital means. The Line Mini App has thus become a key tool for connecting online and offline ( OMO ), supporting common functions such as online ordering, reservations, and queue management, while also helping businesses improve service visibility and user engagement. Although in Taiwan, the development of the Line Mini App has not been fully opened yet, certified partners can apply in advance, and after development is completed, it must pass Line's review before being published.

Currently, Line Mini App is widely used in industries such as catering, education, healthcare, beauty, and retail. By providing a convenient user experience and strong backend support, it helps businesses stand out in a highly competitive market. As technology continues to evolve and the market further opens up, 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 increase, their number is 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 life services. This trend not only provides businesses with new customer touchpoints but also offers consumers a richer and more convenient service experience.

Introduction to the Korean Public Chain Klaytn

Klaytn is a blockchain platform launched by GroundX, a subsidiary of the South Korean internet giant Kakao, aimed at promoting the widespread application of blockchain technology through 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.

Klaytn's main feature is the integration of the advantages of public and private blockchains, providing an efficient and secure environment. 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 ( dApp ), commonly referred to as BApps ( blockchain applications ), meeting the needs of different industries and application scenarios.

Klaytn provides an accessible and user-friendly development environment, allowing blockchain technology novices to easily 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 barriers and accelerates the realization of innovative applications.

Klaytn's native cryptocurrency is KLAY, which plays multiple roles within 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 by trading and taking advantage of market price fluctuations.

In the development history of Klaytn, an important milestone is the merger with Finschia, leading 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 new mainnet Kaia's native token KAIA not only symbolizes the integration of Klaytn and Finschia, but also represents a commitment to partners and the community, intending to gather developers, enterprises, users, and traders within 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 global adoption and application of blockchain technology. Kaia's vision is to make blockchain technology easy to use and accessible to everyone, regardless of background or experience. This vision is guided by its core values of community, sustainability, and simplicity, which serve as guiding stars for Kaia in nurturing partnerships, engaging deeply with the community, and advancing the journey of 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 verification, 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 dApp, connected to the main chain via EN.

The merger of Line and Klaytn public chains

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

Background

Klaytn is a blockchain platform launched by South Korean internet giant Kakao, aimed at providing a high-performance, scalable, and secure blockchain environment. Finschia, on the other hand, is a blockchain platform launched by LINE that inherits LINE's blockchain vision and is dedicated to promoting the adoption of public blockchains and Web3 technologies. The merger of the two platforms is not only a technological integration but also a deep strategic collaboration aimed at creating a leading Web3 ecosystem in Asia.

Merging Advantages

1. Technical Integration: Kaia combines the technological advantages of Klaytn and Finschia to provide a high-performance blockchain network. It supports EVM( Ethereum Virtual Machine) and CosmWasm, enabling developers to build applications on a platform compatible with various blockchain technologies.

2. User Base: The merged Kaia will integrate the advantages of Klaytn and KakaoTalk as well as Finschia and LINE, which means Kaia will have a potential user base of over 250 million, providing a large user foundation for blockchain applications.

3. Ecosystem Expansion: Kaia will promote collaboration with partners in Japan, South Korea, and Southeast Asia in the tokenization of physical assets ( RWA ), GameFi, and DeFi fields.