Can the Line ecosystem become a new engine for Web3 development?

Introduction

This year, Line announced a mainnet merger with the Korean public blockchain Klaytn, a strategic move that indicates Line will actively expand its footprint in the Web3 space. 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 spawn new Web3 phenomenon-level projects in the Asian market, injecting new vitality into the field.

The merger between Line and Klaytn will bring about 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 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 listings of multiple projects, especially those that have been listed on mainstream trading platforms and whose market values have rapidly risen, not only validate the commercial potential of the Telegram ecosystem but also attract a large number of new users into the Web3 world.

The Telegram ecosystem has achieved such remarkable results by mid-year mainly due to its vast user base and efficient dissemination mechanism. Telegram itself, as a communications giant with 900 million users, has introduced mini-programs and bot development features, providing users with a brand new service experience. These mini-programs not only can completely replace most websites, support seamless authorization and integrated payments, but also greatly enrich the ways users interact through customized features, such as automatic news delivery, information services, and the increasingly popular mini-games.

In addition, Telegram has developed the TON blockchain, which supports convenient blockchain transactions and further lowers the entry barrier for users to 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, several projects within the Telegram ecosystem have stood out, particularly. For example, some gaming projects have rapidly attracted a large number of users through simple operation 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 Telegram ecosystem but have also seen their market value soar rapidly after listing, 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, while effectively driving traffic to their YouTube channels by combining task systems with video-watching tasks, further expanding the influence of the Telegram ecosystem.

The success of these projects has not only brought a lot of fresh blood to the Telegram ecosystem but 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 areas such as gaming and social networking.

As the Telegram 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 Telegram ecosystem is not only set to continue deepening its presence in the gaming and social fields, 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 increased user participation, the Telegram 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 over 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 companies even sell their own stickers to support marketing activities.

Line also has a status update feature, including a function similar to Instagram Stories and a seamless sharing button. In addition, the app has a cashless payment feature 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 active users, the proportion of male and female users that can be reached 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 population in Japan.

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 increase in Japan, 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, 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 collaborate with the Japanese market, creating their own official Line account is a 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 needing to download additional applications. Thanks to Line's large user base, businesses can reach a huge potential customer group, and by integrating Line Pay, users can complete payments directly within the app, significantly enhancing the convenience of shopping.

With the impact of the COVID-19 pandemic, consumers are increasingly turning to planned purchasing, 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 ( OMO ). It not only supports common functions such as online ordering, reservations, and queue calling, 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 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 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 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 already 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 offers businesses a 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. It aims to promote the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn adopts the Proof of Stake ( PoS ) consensus mechanism, which not only accelerates transaction speeds and confirmation times but also maintains the efficient operation of the system.

One of the main features of Klaytn is that it merges 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. 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 easily accessible and user-friendly development environment, allowing even newcomers to 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 concept 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 means of payment, KLAY is used in applications built on Klaytn and is also distributed as rewards 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 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 KAIA of the new mainnet 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, businesses, users, and traders in a unified ecosystem.

The launch of Kaia signifies the rise of a network centered around 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 its journey of fostering partnerships, engaging with the community, and driving blockchain adoption.

The network structure of Kaia 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 dApp, 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 collaboration of two major tech giants in Asia.