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

Introduction

As a widely popular communication software in Asia, Line announced this year its mainnet merger with the Korean public chain Klaytn. This strategic move signals that Line will actively expand its Web3 territory. Looking back at the rise of the Telegram ecosystem, it successfully attracted many Web3 projects and users with its large user base and mini-program platform, becoming a bridge between Web2 and Web3. Now, Line also possesses similar development conditions and is expected to spawn new Web3 phenomenon 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 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, 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 success story of the Telegram ecosystem.

Review of the Telegram Ecosystem

The rapid development of the Telegram ecosystem has attracted widespread attention in the Web3 field, injecting new vitality into the industry with its unique advantages and innovative models. Multiple projects have successfully gone public, especially those listed on mainstream trading platforms with quickly rising market capitalizations, validating the commercial potential of the TG ecosystem and attracting a large number of new users into the Web3 world.

The TG ecosystem has achieved significant results by mid-year primarily due to its large user base and efficient communication mechanisms. As a messaging giant with 900 million users, Telegram's introduction of mini-programs and bot development features offers users a brand new service experience. These mini-programs not only can replace most websites, support seamless authorization and integrated payments, but also greatly enrich user interaction methods through customization.

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

In this process, several projects in the TG ecosystem have stood out. Games like NotCoin and Catizen have quickly attracted a large number of users through simple operation methods and a fission mechanism, successfully guiding them to engage in on-chain interactions and achieving the transition from Web2 users to Web3 users. These projects have not only succeeded within the TG ecosystem but have also seen their market value rapidly surge after going public, demonstrating strong market appeal and commercial value.

Projects like Hamster Kombat enhance players' understanding and recognition of virtual currencies through 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 YouTube channels, further expanding the influence of the TG ecosystem.

The success of these projects not only brings a lot of fresh blood 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 approaches, while showcasing the application potential of blockchain technology in non-financial fields such as gaming and social networking.

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 is not only expected to continue deepening in the fields of gaming and social interaction but may also further expand into finance, education, business, and other areas, ultimately forming a diversified and open Web3 ecosystem. With more innovative projects joining and more users participating, the TG 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 messaging 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 functions of this app are similar to WhatsApp, providing messaging and calling services, while also featuring many unique functionalities, 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 also 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 app has a cashless payment feature called "LINE Pay," which 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 advertising 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, making it 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. 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 such as email communication, 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 widely used by businesses of all sizes.

In 2020, Japan's Ministry of Health, Labour and Welfare reached an agreement with Line to conduct a nationwide survey on COVID-19. The official account of the Ministry regularly sends health survey questionnaires to all Line users.

Today, Line has become one of the most useful brand tools in Japan. It would be a wise move to consider creating your own official Line account when collaborating with the Japanese market.

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 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, significantly enhancing shopping convenience.

With the impact of the pandemic, consumers are increasingly turning to 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). 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 the Line MINI App has not been fully opened in Taiwan, certified partners can apply in advance, and once development is complete, it must pass Line's review before being released.

Currently, the 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 competitive market. With ongoing technological advancements and further market opening, 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.

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 such as "Mini App Maker," further lowering technical barriers and 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 drive Line to become a super app, providing users with comprehensive life services. This trend not only offers businesses new customer touchpoints but also brings consumers a richer and more convenient service experience.

Introduction to the South 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 high performance, scalability, and reliability. Klaytn uses a Proof of Stake (PoS) consensus mechanism to accelerate transaction speed and confirmation times, keeping the system running efficiently.

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 and large-scale transactions. In addition, Klaytn also supports smart contracts, enabling 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 easily accessible and user-friendly development environment, allowing newcomers 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 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. In addition, KLAY is a popular choice among cryptocurrency traders and investors, who profit from trading by taking 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 merger of Klaytn and Finschia but also represents a commitment to its partners and community, intending to gather developers, enterprises, users, and traders within a unified ecosystem.

The launch of Kaia signals the rise of a network that is centered around collaboration, innovation, and users. It will simplify the user experience and promote the adoption and application of blockchain technology on a global scale. 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 its journey to foster partnerships, engage deeply with the community, and drive blockchain adoption.

Kaia's network architecture is divided into three logical subnets:

Ⅰ Core Unit Network (CCN): Composed of core units (CC) responsible for transaction verification, 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 dApp, connected to the main chain through EN.

The merger of Line and Klaytn's public chains

Klaytn and LINE's public chain Finschia have merged to create a new blockchain ecosystem------Kaia. This merger marks the deep collaboration of 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 the vision of LINE's blockchain and is dedicated to promoting the popularization of public blockchains and Web3 technology. The merger of the two platforms represents 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