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

Introduction

As a widely popular communication software in Asia, Line announced this year a mainnet merger with the Korean public blockchain Klaytn. This strategic move indicates that Line will actively expand its presence in the Web3 domain. 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 has 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. Multiple projects have successfully launched and their market values have quickly risen, validating the commercial potential of this ecosystem and attracting a large number of new users into the Web3 world.

The success of the Telegram ecosystem is mainly attributed to its vast user base and efficient dissemination mechanism. As a communication giant with 900 million users, its launched mini-programs and bot development features provide users with a brand new service experience. These mini-programs can not only replace most website functionalities but also support seamless authorization and integrated payments, greatly enriching the ways users interact through customized features.

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

Multiple projects in the ecosystem have stood out, particularly. For example, some gaming projects have rapidly attracted a large number of users through simple operational methods and a fission mechanism, successfully guiding them to engage in on-chain interactions and achieving a transition from Web2 users to Web3 users. These projects have not only succeeded within the ecosystem but also rapidly increased in market value after going public, demonstrating strong market appeal and commercial value.

Some projects enhance players' understanding and recognition of virtual currencies through unique game backgrounds and management elements, while effectively expanding the ecological influence by combining task systems with video-watching tasks.

The success of these projects has not only brought a lot of fresh blood to the ecosystem but also provided new ideas and models for the development of the Web3 field. They have proven 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 areas such as gaming and social networking.

As the ecosystem continues to mature and improve, more application scenarios and business models will be explored and realized in the future. From the current development trends, this ecosystem will not only continue to delve into 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 the addition of more innovative projects and the participation of more users, it 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 the total population of Japan. The main features of this app are similar to other instant messaging software, 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 campaigns.

Line also has a status update feature, including functionalities similar to stories on other platforms and a seamless sharing button. Additionally, the app has a cashless payment feature called "LINE Pay," which allows users to transfer money between each other and make payments in stores.

Line's user base has significantly increased from 58 million monthly active users 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 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 grow in Japan, it offers an alternative to other marketing tools such as email communication, providing many advantages for businesses. Using it is free, and businesses 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 of Health, Labour and Welfare regularly sends health survey questionnaires to all Line users.

Today, Line has become one of the most useful brand tools in Japan. If you are considering creating your own official Line account while collaborating with the Japanese market, this could be a wise 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 enterprise digital transformation, 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 needing 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 thus become a key tool for connecting online and offline, as it not only supports common functions such as online ordering, reservations, and queuing, but also helps businesses improve service visibility and user engagement. Although in Taiwan, the development of the Line mini app has not yet been fully opened, certified partners can apply in advance, and after development is completed, it needs to pass a review before it can be published.

Currently, the Line mini app is widely used in industries such as dining, education, healthcare, beauty, and retail. It helps businesses stand out in a competitive market by providing a convenient user experience and robust backend support. With the continuous development of technology and further market openness, 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 increase, their numbers are growing rapidly. Some companies have already 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, potentially turning Line into a super app that provides users with comprehensive life 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 Blockchain Klaytn

Klaytn is a blockchain platform launched by GroundX, a subsidiary of the South Korean internet giant Kakao. It aims to promote 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 speeds up transaction speeds and confirmation times but also maintains the efficient operation of the system.

One of Klaytn's main features is its integration of 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 high-frequency, large-scale transactions. In addition, 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 and 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 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.

Klaytn's native cryptocurrency is KLAY, which plays multiple roles in 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. In addition, KLAY is a popular choice among cryptocurrency traders and investors, who profit by trading to take 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, KAIA, not only symbolizes the combination 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 user experiences and drive the adoption and application of blockchain technology globally. Kaia's vision is to make blockchain technology easy to use and accessible to everyone, regardless of their background or experience. This vision is guided by its core values of community, sustainability, and simplicity, which serve as the guiding stars for Kaia's journey in fostering partnerships, engaging deeply with the community, and promoting 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 validation, 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 dApps, 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 between two major tech giants in Asia in the blockchain field, aiming to promote the development and application of Web3 technology.

Background

Klaytn is a blockchain platform launched by the South Korean internet giant, 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 the LINE blockchain, and it aims to...