The Line ecosystem is expected to become a new engine driving the development of Web3

Introduction

Line, a messaging app popular among Asian users, announced this year a mainnet merger with the South Korean public blockchain Klaytn. This strategic move indicates that Line will actively lay out its plans in the Web3 field. Looking back at the rise of the Telegram ecosystem, it successfully attracted numerous Web3 projects and users through its large user base and mini-program platform, becoming an important bridge for the transition from Web2 to Web3. Now, Line similarly possesses comparable development conditions and is expected to spawn new Web3 phenomenon-level 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 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 the deep cooperation among Asian tech giants in the blockchain field, bringing more innovation and opportunities to the entire industry. Therefore, Line is expected 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 attracted widespread attention in the Web3 field, injecting new vitality into the entire industry with its unique advantages and innovative models. Multiple projects have successfully gone public, especially those listed on mainstream trading platforms with rapidly rising market capitalizations, which not only validate the commercial potential of the TG ecosystem but also attract a large number of new users into the Web3 world.

The reason why the TG ecosystem has achieved such remarkable results in the middle of the year is mainly due to its large user base and efficient communication mechanism. Telegram, as a communication giant with 900 million users, offers a brand new service experience through its mini-programs and bot development features. These mini-programs can not only completely replace most websites but also support seamless authorization and integrated payments. Additionally, through customized features such as automatic news updates, information services, and popular mini-games, they have greatly enriched users' ways of interaction.

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

In this process, several projects within the TG ecosystem stand out particularly. For example, some gaming projects have quickly attracted a large number of users through simple operating methods and a fission mechanism, 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 soar rapidly after going public, demonstrating their 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 directing traffic to their video platform by combining a task system with video-watching tasks, further expanding the influence of the TG ecosystem.

The success of these projects not only brings a wealth of fresh blood to the TG ecosystem but also provides 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 gaming, social, and other non-financial fields.

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 the addition of more innovative projects and the participation of more users, the TG ecosystem is expected to become an important force 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, with 95 million monthly active users as of 2024, covering more than 68% of the total population of Japan. 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 businesses even sell their own stickers to support marketing activities.

Line also features a status update function, including a story-like feature similar to Instagram and a seamless sharing button. Additionally, the app has a cashless payment function called "LINE Pay," which allows users to transfer funds to each other and make payments in stores.

The number of monthly active users of Line has significantly increased from 58 million in 2015 to 95 million in 2024. Among the active users, the reachable proportions through advertising are 52.5% for male users and 47.5% for female users. 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. To set up a business account on the app, a registration form must be filled out and submitted for approval. Once approved, it can be used. As the number of business accounts in Japan continues to grow, it offers an alternative to email communications and other marketing tools, providing 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, 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. For companies looking to enter the Japanese market, creating an official Line account is a strategic choice 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 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 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 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 management, 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, certified partners can apply in advance, and once development is completed, it must pass a review before being published.

Currently, the Line Mini App is widely used in industries such as food and beverage, education, healthcare, 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 the 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, 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 life services. This trend not only offers businesses a brand new customer touchpoint 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, aiming to promote the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn uses 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 its integration of 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 high-frequency, large-scale transactions. In addition, Klaytn supports smart contracts, enabling developers to build various decentralized applications (dApps) on the platform to meet the needs of different industries and application scenarios.

Klaytn provides an accessible and user-friendly development environment that allows even beginners in 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.

Klaytn's native cryptocurrency 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 awarded to developers who contribute to the platform. Additionally, KLAY is a popular choice among cryptocurrency traders and investors, who profit by trading to take advantage of market price fluctuations.

A significant milestone in the development of Klaytn was 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 merger 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 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—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:

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 via 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 the two Asian tech giants Kakao and LINE in the blockchain field, aiming to promote Web3 technology.