Can the Line ecosystem become a new Web3 engine?

Introduction

Line, as a widely popular communication software in Asia, announced this year a mainnet merger with the Korean public chain Klaytn. This strategic move signifies 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 give rise to new Web3 phenomenon projects in the Asian market, injecting new vitality into the 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 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 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 listing of multiple projects, especially those that have been listed on certain mainstream trading platforms and have seen their market value rise rapidly, not only validates the commercial potential of the Telegram ecosystem but also attracts 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 vast user base and efficient dissemination mechanism. Telegram itself, as a communication giant with 900 million users, has introduced mini-programs and bot development features, providing users with a brand new service experience. These mini-programs can not only completely replace most websites, support seamless authorization and integrated payment, but also greatly enrich users' interaction methods through customized features, such as automatic news sending, information services, and the trending mini-games.

In addition, Telegram has developed the TON blockchain, which supports convenient blockchain transactions, further lowering 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. For example, some gaming projects have rapidly 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.

Certain projects enhance players' understanding and recognition of virtual currencies through unique game backgrounds and management elements, while effectively directing traffic to their own video platforms through a combination of task systems and video-watching tasks, further expanding the influence of the Telegram ecosystem.

The success of these projects has not only brought a large amount of fresh blood to the Telegram ecosystem but also provided new ideas and models for the development of the Web3 field. They have proven that through gamification and socialization, Web2 users can be effectively attracted and converted, while also demonstrating the application potential of blockchain technology in non-financial fields such as gaming and social interaction.

As the Telegram ecosystem continues to mature and improve, there will be more application scenarios and business models explored and realized in the future. From the current development trend, the Telegram ecosystem will not only continue to deepen in 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 participation from 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. As of 2024, it has 95 million monthly active users, covering more than 68% of Japan's total population. The main features of this app are similar to WhatsApp, 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, and some companies even sell their own stickers to support marketing activities.

Line also has a status update feature, including a function similar to Instagram Stories and a seamless sharing button. In addition, the application has a cashless payment feature called "LINE Pay" that allows for transfers between users and payments in stores.

The number of monthly active users of 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, 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 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 communications, offering many advantages to 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.

Today, Line has become one of the most useful brand tools in Japan. If you are considering creating your own official Line account when collaborating with the Japanese market, this could be a good choice.

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 downloading 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, significantly enhancing the convenience of shopping.

With the impact of the COVID-19 pandemic, consumers are increasingly turning to planned purchases, which requires businesses to adapt to this change through digital means. The Line Mini App has therefore become a key tool for connecting online and offline ( OMO ). It not only supports common functions such as online ordering, reservations, and queue calling, but also helps businesses improve service visibility and user engagement. Although the development of 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 Line's review before it can be published.

Currently, the Line Mini App is widely used in industries such as catering, education, medical care, 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, the Line Mini App is expected to play a 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 like "Mini App Maker," further lowering the technical barriers, enabling 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 a brand new customer touchpoint 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 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 time but also maintains the efficient operation of the system.

One of the main features 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 business applications that require handling high-frequency, large-scale transactions. In addition, Klaytn also supports smart contracts, enabling developers to build various decentralized applications (dApp), 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, allowing even those new 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, 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 in the system. As a payment method, KLAY is used in applications built on Klaytn, and it is also awarded to developers who contribute to the platform. Additionally, 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 KAIA of the new mainnet not only symbolizes the combination of Klaytn and Finschia but also represents a commitment to partners and the community, intending to unite developers, enterprises, users, and traders in a unified ecosystem.

The launch of Kaia signifies the rise of a network that is collaborative, innovative, and user-centric, 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—which serve as guiding stars for Kaia in nurturing partnerships, engaging deeply with the community, and driving the adoption of blockchain.

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 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's Public Chains

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

Background

Klaytn is developed by the South Korean company.