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

Introduction

Line, a popular communication software in Asia, announced this year a mainnet merger with the South Korean public blockchain Klaytn. This strategic move indicates that Line will actively expand its footprint in the Web3 space. Looking back at the rise of the Telegram ecosystem, it successfully attracted numerous 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 not only accelerates the development of Web3 technology but also signifies deep collaboration 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.

TG Ecosystem Review

The rapid development of the TG ecosystem has not only attracted widespread attention in the Web3 field but also injected new vitality into the entire industry with its unique advantages and innovative models. Multiple projects have been listed on mainstream trading platforms, and their market values have quickly surged, which not only validates the commercial potential of the TG ecosystem but also attracts a large number of new users into the Web3 world.

The reason why the TG ecosystem has achieved such remarkable results by mid-year is mainly due to its large user base and efficient communication mechanisms. 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 payments, but also greatly enrich users' interaction methods through customized features, such as automatic news delivery, information services, and popular mini-games.

In addition, Telegram has developed the TON blockchain, supporting convenient blockchain transactions and further lowering the entry barrier for users into Web3. This model, similar to WeChat's "traffic + payment," has allowed Telegram to rapidly grow in the Web3 space, becoming a bridge between Web2 and Web3.

In this process, several projects within the TG ecosystem have stood out particularly. For example, some gaming projects have quickly attracted a large number of users through their simple operation methods and fission 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 TG ecosystem but have also seen their market value rapidly soar after going public, demonstrating their strong market appeal and commercial value.

Other projects enhance players' understanding and recognition of virtual currencies through unique game background settings and management elements. At the same time, by combining a task system with video-watching tasks, they effectively drive traffic, further expanding the influence of the TG ecosystem.

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

With the continuous maturation and improvement of the TG ecosystem, 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 delve into the fields of gaming and social networking but may also further expand into finance, education, business, and other areas, ultimately forming a diversified and open Web3 ecosystem. As more innovative projects join and more users participate, 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 over 68% of the total population of Japan. The main features of this app are similar to WhatsApp, offering 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 businesses even sell their own stickers to support marketing activities.

Line also features a status update function, including a feature similar to Instagram stories and a seamless sharing button. Additionally, the app has a cashless payment function 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 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.

One unique feature of Line is that over 3 million Line accounts in Japan are owned by companies. 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 increase in Japan, it provides an alternative to other marketing tools such as email communication, offering 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, the Japanese 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. For companies looking to enter the Japanese market, creating an official Line account is a strategy 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 digital transformation for enterprises, 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 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 the convenience of shopping.

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 therefore become a key tool for connecting online and offline; it not only supports common functions such as online ordering, reservations, and queue calling, but also helps businesses enhance service visibility and user engagement. Although in Taiwan, the development of the Line Mini App has not yet been fully opened, there are already certified partners who can apply in advance, and once development is completed, it must pass Line's review before being published.

Currently, the Line Mini App has been widely used in industries such as catering, education, healthcare, beauty, and retail. It helps businesses stand out in a highly competitive market by providing a convenient user experience and strong backend support. With the continuous development of technology and further opening of the market, it is expected that the Line Mini App will 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, 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 provides businesses with a whole new customer touchpoint but also brings 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 times but also maintains the efficient operation of the system.

One of the main features of Klaytn is that it combines the advantages of 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. Additionally, Klaytn supports smart contracts, enabling developers to build various decentralized applications (dApps) on the platform, commonly referred to as BApps (Blockchain Applications), to meet the needs of different industries and application scenarios.

Klaytn provides an accessible, 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 a new blockchain environment, 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 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 KAIA of the new mainnet Kaia not only symbolizes the union of Klaytn and Finschia but also represents a commitment to partners and the community, intending to bring together developers, enterprises, users, and traders in a unified ecosystem.

The launch of Kaia signifies the rise of a network centered on collaboration, innovation, and users, which will simplify the user experience and promote the widespread adoption and application of blockchain technology globally. Kaia's vision is to make blockchain technology accessible and available to 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 driving blockchain adoption.

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

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

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

• Service Chain Network (SCN): An auxiliary blockchain operated independently by dApps, connected to the main chain via EN.

The Merger of Line and Klaytn's Public Blockchain

Klaytn and LINE's public chain Finschia have merged to create a new blockchain ecosystem ------ Kaia. This merger marks the deep cooperation between two major Asian tech giants, Kakao and LINE, in the blockchain field.