Web3 New Engine: The Rise of the Line Ecosystem

Introduction

As one of the most popular communication software in Asia, Line announced this year its mainnet merger with the Korean public blockchain Klaytn. This strategic move indicates that Line will actively expand its footprint in the Web3 realm. 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 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 of Line and Klaytn will bring technological innovation and a transformation of governance structures, 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 success 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. Among them, the successful listing of multiple projects, especially those listed on mainstream trading platforms and whose market values have rapidly climbed, not only validates the commercial potential of the Telegram ecosystem but also attracts a large number of new users to the Web3 world.

The reason why the Telegram ecosystem has achieved such remarkable results in the middle of the year is mainly due to its large user base and efficient dissemination mechanism. Telegram itself, as a communications giant with 900 million users, has launched 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 automatically sending news, information services, and the trending mini-games.

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

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

Some projects enhance players' understanding and recognition of virtual currency through their unique game backgrounds and management elements. At the same time, by integrating a task system with video-watching tasks, they effectively direct traffic to their own video platforms, further expanding the influence of the Telegram ecosystem.

The success of these projects not only brings a wealth of fresh blood to the Telegram 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 non-financial areas such as gaming and social networking.

With the continuous maturation and improvement of the Telegram ecosystem, more application scenarios and business models will be explored and realized in the future. From the current development trend, the Telegram ecosystem will not only continue to delve into the gaming and social fields but may also further expand into finance, education, business, and other areas, ultimately forming a diverse and open Web3 ecosystem. As more innovative projects join and more users participate, the Telegram ecosystem is expected to become an important force in promoting 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 over 68% of Japan's total population. The main features of this app provide messaging and calling services, and it also has many other unique functions, 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 activities.

Line also has a status update feature, including a story sharing function and a seamless sharing button. In addition, 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 of Line has significantly increased from 58 million in 2015 to 95 million in 2024. Among the 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, 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 there are over 3 million Line accounts owned by companies in Japan. 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 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 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 choice worth considering.

Current Status of Line Mini Programs

The Line Mini Program, 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 downloading additional applications. Thanks to Line's large user base, enterprises can reach a vast potential customer group, and by integrating Line Pay, users can complete payments directly within the application, 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 program has thus become a key tool for connecting online and offline, supporting common functions such as online ordering, reservations, and queue calling, while also helping businesses improve service visibility and user engagement. Although in Taiwan, the development of the Line mini program has not yet been fully opened, certified partners can apply in advance, and after development is completed, it must pass platform review before being published.

Currently, Line mini-programs are widely used in industries such as catering, education, healthcare, beauty, and retail. They help businesses stand out in a competitive market by providing a convenient user experience and strong backend support. With the continuous development of technology and further market opening, it is expected that Line mini-programs 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-programs continues to increase, their numbers are growing rapidly. Some companies have launched no-code development platforms, further lowering the technical barriers, enabling more small and medium-sized enterprises to easily create and manage their own Line mini-programs. It is expected that in the future, Line mini-programs 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 Korean Public Blockchain Klaytn

Klaytn is a blockchain platform launched by GroundX, a subsidiary of South Korean internet giant Kakao, aimed at promoting the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn adopts a Proof of Stake ( PoS ) consensus mechanism, which not only accelerates transaction speed and confirmation time but also maintains the efficient operation of the system.

One of the main features of Klaytn is that it integrates 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 handling high-frequency, large-scale transactions. In addition, Klaytn also supports smart contracts, enabling developers to build various decentralized applications ( dApp ), commonly known 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.

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, while also being rewarded to developers who contribute to the platform. In addition, KLAY is also a popular choice among cryptocurrency traders and investors, who profit from market price fluctuations through trading.

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 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 the user experience and promote the widespread adoption and application of blockchain technology globally. 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 the guiding stars for Kaia in fostering partnerships, engaging deeply with the community, and driving blockchain adoption.

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

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

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

III Service Chain Network ( SCN ): An auxiliary blockchain operated independently by dApp, connected to the main chain through EN.

The Merger of Line and Klaytn's Public Chains

Klaytn has merged with LINE's public chain Finschia 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, aiming to promote the development and application of Web3 technology.