Can the Line ecosystem become the new Web3 engine?

Introduction

As a widely popular messaging app in Asia, Line announced this year a mainnet merger with the Korean public chain Klaytn. This strategic move signifies Line's intent to actively expand its territory 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 possesses similar development conditions and is expected to foster new Web3 phenomenon projects in the Asian market, injecting new vitality into this field.

The merger between Line and Klaytn will bring technological innovations 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 innovations 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.

TG Ecosystem Review

The rapid development of the TG 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. Several projects have successfully been listed, especially those that have been listed on mainstream trading platforms and whose market value has risen rapidly, which not only validates the commercial potential of the TG ecosystem but also attracts a large number of new users into the Web3 world.

The reason why the TG ecosystem has achieved such remarkable results by mid-year is mainly due to its large user base and efficient communication mechanisms. As a communication giant with 900 million users, Telegram's introduction of mini-programs and bot development features provides 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 user interaction through customized functions, such as automatically sending news, information services, and 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 "traffic + payment" model, similar to WeChat, 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 stand out particularly. For example, some gaming projects have quickly attracted a large number of users through simple operational methods and a viral 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 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 own video channels by combining task systems with video-watching tasks, further expanding the influence of the TG ecosystem.

The success of these projects not only brings a lot 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 non-financial fields such as gaming and social networking.

As the TG ecosystem continues to mature and完善, more application scenarios and business models will be explored and realized in the future. From the current development trend, the TG ecosystem will not only continue to delve into the fields of gaming and social networking, but is also likely to further expand into finance, education, business, and other areas, ultimately forming a diversified and open Web3 ecosystem. With more innovative projects joining and more users participating, 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 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 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 features a cashless payment function called "LINE Pay," allowing users to transfer money between each other and make payments in stores.

The number of 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 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. 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 offers an alternative to other marketing tools like email communications, providing many advantages for businesses. Using it is free, 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. If you are considering creating your own official Line account when collaborating with the Japanese market, it is highly recommended to do so.

Current Status of Line Mini App

The Line MINI App, as an innovative service on the Line platform, has become an important tool for enterprises' digital transformation, especially popular in Japan and Taiwan. It allows businesses to directly publish web services on the Line platform, providing users with 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 make 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 thus become a key tool for connecting online and offline ( OMO ). It not only supports common features such as online ordering, reservations, and queue management 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 once 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 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 further market opening, it is expected that the Line MINI App will play an even greater role in the future, particularly 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 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 propel Line to become a super app, providing users with comprehensive life 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, which aims 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 time but also maintains the efficient operation of the system.

A major feature of Klaytn is that it integrates the advantages of both public and private blockchains, providing an efficient and secure environment. 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 commercial applications that need to handle high-frequency, large-scale transactions. Additionally, Klaytn 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 offers an easily accessible, user-friendly development environment, making it simple 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.

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 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.

A significant milestone in the development of Klaytn was its merger with Finschia, which led to the birth of the new mainnet Kaia. Kaia combines the technological advantages of both 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 integration of Klaytn and Finschia but also represents a commitment to partners and the community, intending to bring together developers, enterprises, users, and traders within 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 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 its journey of fostering partnerships, engaging deeply with the community, and promoting blockchain adoption.

The network structure of Kaia 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 ( EN ) that handle RPC API requests and process service chain data.

Ⅲ 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's public chain Finschia has merged, creating a new blockchain ecosystem------Kaia. This merger marks the deep cooperation between two of Asia's tech giants, Kakao and LINE, in the blockchain field, aiming to promote the development of Web3 technology and