Line Ecosystem: The New Engine of Web3 in Asia?

Introduction

As a widely 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 territory in the Web3 space. Reflecting on 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 give birth to new Web3 phenomenon projects in the Asian market, injecting new vitality into the field.

This merger will bring technological innovations and changes in governance structure, issue a new unified token, and build 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 innovations 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. The successful launch of multiple projects, especially those listed on mainstream trading platforms with rapidly rising market values, has not only validated the commercial potential of the TG ecosystem but has also attracted a large number of new users into the Web3 world.

The TG ecosystem has achieved such remarkable results in the middle of the year mainly due to its large user base and efficient communication mechanism. Telegram itself, as a messaging giant with 900 million users, offers a new service experience through its mini-programs and bot development features. These mini-programs can not only fully replace most websites, supporting seamless authorization and integrated payments, but also greatly enrich the ways users interact through customized functions such as automatic news delivery, information services, and popular mini-games.

In addition, Telegram has developed the TON blockchain, supporting convenient blockchain transactions, further lowering the barriers 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, several projects within the TG ecosystem have stood out particularly. For example, some gaming projects have quickly attracted a large number of users through their simple operation methods and fission 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 TG ecosystem but have also seen their market value rapidly soar after going public, demonstrating their strong market appeal and commercial value.

Some projects enhance players' understanding and recognition of virtual currencies through their unique game backgrounds and management elements, while effectively directing traffic to their own YouTube channels through a combination of task systems and video-watching tasks, further expanding the influence of the TG ecosystem.

The success of these projects has not only brought a lot of fresh blood to the TG 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 demonstrating the application potential of blockchain technology in non-financial fields such as gaming and socializing.

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 trends, the TG 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 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 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 more than 68% of the total population of Japan. The main functions 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 of them 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 function called "Line Pay," allowing 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 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.

One 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 increase in Japan, it provides an alternative to other marketing tools like email communication, offering many advantages to 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 Ministry of Health, Labour and Welfare of Japan reached an agreement with Line to conduct a national 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. For companies collaborating with the Japanese market, creating an official Line account is a very worthwhile option to consider.

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 in 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 needing to download additional applications. Thanks to Line's large user base, companies can reach a vast potential customer pool, and by integrating Line Pay, users can complete payments directly within the app, greatly enhancing the convenience of shopping.

With the impact of the COVID-19 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, supporting common functions such as online ordering, reservations, and queue management, while also helping businesses improve service visibility and user engagement. Although the development of the Line Mini App has not yet been fully opened in Taiwan, certified partners can apply in advance, and upon completion of development, it must pass Line's review before being published.

Currently, the Line Mini App is widely used in industries such as catering, education, healthcare, beauty, and retail. It helps businesses stand out in a highly competitive market by providing a convenient user experience and strong backend support. With continuous technological development 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 services.

In addition, as the market's acceptance of Line Mini Apps continues to increase, their numbers are growing rapidly. Some companies have launched no-code development platforms like "Mini App Maker" to further lower the technical barriers, enabling 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 offers businesses a brand 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, aimed at promoting the widespread adoption of blockchain technology through its high performance, scalability, and reliability. Klaytn uses a proof-of-stake 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 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 need to handle high-frequency, large-scale transactions. In addition, Klaytn supports smart contracts, enabling developers to build various decentralized applications on the platform, commonly referred to as BApps, 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 effortlessly 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 in 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. 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 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 not only symbolizes the union 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 heralds 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 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 guiding stars for Kaia in nurturing partnerships, deeply engaging with the community, and advancing the adoption of blockchain.

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

• Core Unit Network: Composed of core units responsible for transaction validation, execution, and block creation.

• Endpoint Node Network: Composed of endpoint nodes that handle RPC API requests and process service chain data.

• Service Chain Network: An auxiliary blockchain independently operated by dApps, connected to the main chain through endpoint nodes.

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 signifies deep collaboration between two major Asian tech giants, Kakao and Line, 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 Kakao, aimed at