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Abstract Chain: A New Paradigm for Building Consumer-Friendly Public Chain Ecosystems
Abstract Chain Perspective: How to Build a Consumer-Friendly Public Chain Ecosystem?
TL;DR
Introduction
Abstract Chain is an Ethereum Layer 2 blockchain established in March 2024, utilizing zero-knowledge proof ( zk) technology, dedicated to providing a smooth and differentiated Web3 experience for mainstream consumers. The chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the entry barrier. Through zk-rollup technology, Abstract is able to offer low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for consumer applications.
Although the blockchain ecosystem is highly competitive, there is still a long way to go before genuine mass adoption by mainstream users. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is referred to as "consumer-grade crypto," it is necessary to build a Web3 platform with a low entry barrier and high user retention.
Early exploratory attempts like TON and Kaia aim to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. Although some progress has been made, this model, which relies on the openness of the Web2 platform ecosystem, remains difficult to implement in mature markets like Europe and the United States.
Abstract Chain has chosen a different path: embedding encryption technology directly into consumer applications, encouraging users to use it directly without being aware.
The mainnet of Abstract will be launched in January 2025, along with the Portal platform, which serves as an entry point for the gaming and application ecosystem. The Portal is not just a content display window, but a highly interactive online destination that integrates live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and becomes the core engine of growth.
The Business Flywheel of Abstract
The development of a new blockchain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) by developing on-chain applications and introducing DeFi protocols. To attract users, projects encourage participation through methods such as airdrops.
The network effects of this model mainly rely on the on-chain assets held by users. For example, Ethereum was initially dominated by the NFT boom, while Solana recently gained popularity due to meme coins. These native assets lock users onto the chain while attracting developers to build applications around the trends. From a business analogy, this approach is similar to having customers use a specific payment card that can only be spent at certain stores.
Abstract Chain has taken a different approach. Instead of focusing on asset accumulation, it has built the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:
This system enables new users to quickly access Web3, while existing users are continuously attracted back by new content.
Metaphorically speaking, Abstract is similar to operating a thriving large shopping mall: integrating multiple stores in one place, continuously holding performances on the central stage, maintaining high foot traffic and activity, encouraging customers to keep coming back to enjoy.
The following analysis revolves around three core growth areas: user acquisition >> portal hosting >> application ecosystem drive. Together, they form the key components of the Abstract platform's business flywheel.
A. User Guide
The initial user base of Abstract largely relies on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design concept. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives this chain a distinct advantage in converting interest into actual users.
Easily start your experience
Abstract Chain is committed to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can 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 or frequently sign transactions. Account recovery and transfer operations are as intuitive as browsing the web or playing games. Additionally, the chain uses zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the cost of on-chain interactions.
Once users create an account, they can immediately use all basic crypto tools through the Portal. The wallet in the top left corner supports real-time trading features and provides recharge options including cross-chain and fiat deposits, enabling quick capital 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 access 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 have a total of over 3 million fans across X(, Twitter), Instagram, and TikTok, with 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 everywhere, just like Mickey Mouse at Disneyland: appearing on marketing banners, user avatars, live streaming stickers, and more. For PENGU holders, the Portal also has practical uses—they can use PENGU tokens to tip during live broadcasts, which is one of the use cases for PENGU on Abstract.
The synergy between this IP and platform functions has greatly facilitated the growth of Portal—activating 1.61 million wallets within two months after the mainnet launch.
Moreover, due to the widespread distribution of Pudgy and PENGU fans, the user profile of Abstract is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in developed markets—17.4% of whom are from the United States, while the rest are mainly distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is very valuable for consumer-facing applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.
( B. Portal Platform
The portal platform of Abstract is called "数字主题公园)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 users to manage assets and rewards.
Early data shows that Portal's performance is impressive. 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 engagement time of over 7 minutes. Among Abstract global wallet ( AGW ) users, 40% return at least once to transact within 30 days of wallet creation, a retention rate that is significantly higher than the industry average.
Live streaming feature
Live streaming is a media loved by young people around the world. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming is not only a reason for user return visits but also enhances the platform's stickiness and monetization capabilities. Live streaming has been proven to boost game and merchandise sales, which aligns closely with Abstract's goal of building an entertainment ecosystem.
The "Stream-to-Earn(" model introduced by Abstract encourages user participation through tips, comments, gifts, etc. Both hosts and viewers can earn tokens, rewards, or experience points)XP(. Additionally, the "follow" and "recommend" features help build a community atmosphere, promoting continuous user visits and social sharing.
As of the end of April 2025, Portal has gathered over 1,000 streamers, with total viewing hours exceeding 500,000. Some top streamers have received tips of up to 9 ETH in a single live broadcast. The top 100 streamers account for a significant portion of the platform's tipping revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having over 4,000 interactive users.
![Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?])https://img-cdn.gateio.im/webp-social/moments-f56512c1a76052d0800ff4825806dbf0.webp(
Reward and Reputation System
Many crypto projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system is still scarce in on-chain ecosystems. Abstract builds this infrastructure using the XP and badge system )Badges(.
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 activity tasks, and ordinary users can earn XP by connecting social accounts or using recommended applications.
At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed within the app based on behavior and task levels, becoming a part of the user's identity and gradually forming a complete reputation system.
Currently, this system is still in its early stages, with functionality limited to the Portal. However, in the future, the XP and badge system is expected to expand throughout the Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that covers 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 into: 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 immediately without a complicated registration process.
![Abstract Chain Overview Interpretation: How to Build a Consumer-Friendly Public Chain Ecosystem?])https://img-cdn.gateio.im/webp-social/moments-882fde433307b256dff9855e23b597a1.webp(
) C. Application Ecosystem
For any blockchain, ultimate success depends on the ability to cultivate a rich and diverse application ecosystem. For Abstract, the mission is to attract "interesting" consumer-facing applications from Web3 projects and mainstream institutions.
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 stipends. Developers can earn XP rewards each month based on user engagement.