Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?

Summary

• Abstract Chain will launch in January 2025, aiming to promote the large-scale adoption of cryptographic technology and build an easily accessible and engaging platform that is centered around end users in the blockchain.
• Abstract Chain offers a smooth user experience brought by native account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning its own portal platform, integrating live streaming and reward systems, and attracting application developers to join the ecosystem.
• This live streaming platform has attracted over 10,000 hosts, with an average user participation time of more than 7 minutes per day, and a 30-day retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale application: approximately 2 million registered wallet users, about 100,000 daily active wallets, and around 700,000 on-chain transactions per day, reflecting the high activity of the platform.

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, dedicated to providing seamless and differentiated Web3 experiences for mainstream end users. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract is able to provide low-cost, high-throughput on-chain transaction capabilities, ensuring scalability and security for applications aimed at end users.

The competition in the blockchain ecosystem is fierce, but there is still some distance to go before true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is called "crypto for end users," it is necessary to build a Web3 platform that combines low barriers to entry with high stickiness.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has achieved some success, but this model, which relies on the openness of Web2 platform ecosystems, is still difficult to implement in mature markets like Europe and America.

Abstract Chain has chosen a different path: promoting the direct embedding of cryptographic technology into applications aimed at end users, allowing users to use it directly without even realizing it.

The mainnet of Abstract will launch in January 2025, along with the portal platform "Portal" as an entry point to the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination that integrates live broadcasts, rewards, collectibles, Spotlight( app recommendations), and other sections, creating a sticky user experience. This strategy sets Abstract apart from other chains and becomes the core engine of its growth.

The Flywheel Effect of Abstract

The development of a new chain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the introduction of on-chain application development and DeFi protocols. To attract users, projects often encourage participation through methods such as airdrops.

The network effects of these models primarily rely on the on-chain assets held by users. For example, Ethereum was initially driven by the NFT craze, while Solana recently gained popularity due to meme coins. These native assets bind users to the blockchain, while also encouraging developers to build applications around trends. From a business perspective, this approach is akin to having customers use a specific payment card that can only be spent at certain stores.

Abstract Chain takes a different approach. It is not asset accumulation-centered, but rather builds the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:

• Basic Services: Provide tools such as wallets, fiat entry, token exchange, etc., to enable access to the ecosystem.
• User Interaction: Enhance user engagement through live streaming and the rewards center
• Project Discovery: Guiding users to explore new content through the Spotlight section

This system allows new users to quickly enter Web3, while existing users are continuously recalled by new content.

If we compare it to a shopping mall, Abstract is like managing a thriving large shopping center: integrating multiple stores in one place, continuously holding performances on the central stage, maintaining high traffic and activity, allowing customers to keep coming back to enjoy.

The following analysis will focus on three key growth areas: user traffic >> portal hosting >> application ecosystem drive. Together, these constitute the core components of the Abstract platform's business flywheel.

A. User Guidance

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. Fans of Pudgy and $PENGU continue to flock to Abstract, but its smooth onboarding experience shows a significant advantage in converting attention into actual users.

A simple introductory experience

Abstract Chain is dedicated to eliminating traditional barriers and simplifying the onboarding process for users. Its native account abstraction feature allows users to easily create an Abstract account and enable a 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 simple as browsing the web or playing games. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capability, greatly 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 functions and offers deposit options including bridging and fiat deposit services, enabling quick fund transfers. 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 entry barrier, allowing users to seamlessly enter 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 over 3 million followers on X(, Twitter), Instagram, and TikTok, with over 500,000 $PENGU token holders, providing a ready-made user pool for Abstract chain.

In the Abstract Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stream stickers, etc. For $PENGU holders, the Portal also has practical uses—they can use $PENGU tokens to give gifts during live streams, which is one of the use cases for $PENGU on Abstract.

The synergy between this IP and the platform's functionality has greatly accelerated the growth of Portal—1.61 million wallets were activated within two months after the mainnet launch.

More importantly, due to the widespread distribution of Pudgy and $PENGU fans, Abstract's user profile is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of whom are from the United States, while the remaining users are primarily distributed across European and East Asian countries such as Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong. This user group is very valuable for end-user applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

( B. Portal Platform

The portal platform of Abstract is called "Digital Theme Park" ) Digital Theme Park of Fun ###, which 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 users averaging more than 7 minutes of daily engagement. Among users of the Abstract Global Wallet ( AGW ), 40% returned to make at least one transaction within 30 days of wallet creation, a retention rate far higher than the industry average.

Live Streaming Feature

Live streaming is a medium favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users each month. For Abstract, live streaming is not only a reason for user return visits but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.

The "Stream-to-Earn" model introduced by Abstract, "看播赚"( encourages user participation through rewards, comments, gifts, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points)XP(. Additionally, the "follow" and "recommend" features help build a community atmosphere, promoting continuous user engagement and social sharing.

By the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can even receive 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.

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Reward and Reputation System

Many crypto projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system in the on-chain ecosystem is still rare. Abstract uses the XP and badge system )Badges( to build such infrastructure.

Abstract uses off-chain XP as the main incentive tool to reward participants who meet target behaviors. Content creators can earn XP through live interactions, developers can win XP by completing user activity tasks, and regular users can obtain XP through actions such as linking social accounts and using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be minted as on-chain NFTs or displayed within the app based on the level of behavior and tasks, becoming 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 within the Portal. However, in the future, the XP and badge system is expected to expand to the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem and is aimed at developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases excellent applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log into these applications directly using their Abstract ID, allowing them to start experiencing them immediately without a cumbersome registration process.

![Abstract Chain Overview: How to Build a User-Friendly Public Chain Ecosystem for End Users?])https://img-cdn.gateio.im/webp-social/moments-2a73665cb6b77c1ac5568f005617b6d7.webp(

) C. Application Ecosystem

For any blockchain, ultimate success depends on the ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" applications aimed at end users from Web3 projects and mainstream enterprises.

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"### to provide developers with market support, technical guidance, and monthly stipends. Developers can earn XP rewards each month based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to the applications.

Games are an important entry point for bringing Web2 users into the Web3 world. Among the top 10 applications in Abstract, 8 are occupied by gaming products. Popular games include "Pudgy World," "Bigcoin.