Introduction
As a widely popular communication software in Asia, LINE announced this year its mainnet merger with the Korean public chain Klaytn, a strategic move indicating that LINE will actively expand its footprint in the Web3 field. 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 phenomenal projects in the Asian market, injecting new vitality into the field.
The merger of Line and Klaytn will bring technological innovation and governance structure changes, 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 and continue the success story of the Telegram ecosystem.
TG Ecosystem Review
Our previous articles also mentioned the explosive situation of the TG ecosystem in the middle of the year.
The rapid development of the TG ecosystem has not only garnered 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 listing of multiple projects, especially those listed on mainstream trading platforms like Binance with rapidly rising market values, not only validates the commercial potential of the TG ecosystem but also attracts a significant 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 dissemination mechanisms. Telegram itself, as a communication giant with 900 million users, provides a new service experience for users through its launched mini-programs and bot development features. These mini-programs can completely replace most websites, support seamless authorization and integrated payments, and greatly enrich user interaction through customized features such as automatically sending news, information services, and popular mini-games.
Additionally, Telegram has developed the TON blockchain, supporting convenient blockchain transactions and further lowering the barrier for users to enter Web3. This model, similar to WeChat's 'traffic + payments,' 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 performed exceptionally well. For instance, game projects like NotCoin and Catizen quickly attracted a large number of users with their simple operation methods and viral mechanisms, successfully guiding them to interact on-chain, thus achieving the transition from Web2 users to Web3 users. These projects not only succeeded within the TG ecosystem but also saw their market value surge rapidly after being listed on Binance, showcasing their strong market appeal and commercial value.
Projects like Hamster Kombat enhance players' understanding and recognition of virtual currencies through their unique game backgrounds and management elements. Additionally, by combining mission systems with video-watching tasks, they effectively drive traffic to their own YouTube channels, further expanding the influence of the TG ecosystem.
The success of these projects has not only brought a wealth of fresh blood to the TG ecosystem but has also provided new ideas and models for the development of the Web3 field. They demonstrate that by gamifying and socializing, it is possible to effectively attract and convert Web2 users while also showcasing the application potential of blockchain technology in gaming, social, and other non-financial fields.
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 trend, the TG ecosystem will not only continue to deepen in the gaming and social fields but may also further expand into finance, education, business, and other sectors, ultimately forming a diverse and open Web3 ecosystem. With the addition of more innovative projects and greater user participation, the TG ecosystem is expected to become an important force driving the development of the Web3 industry.
Introduction to Line
LINE is not only a popular communication software in Asia but 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 app's main functions are similar to WhatsApp, providing messaging and calling services, but it also has many other unique features, such as stickers. Popular anime, celebrities, and creators even sell their paid stickers within the app. Businesses can open official accounts on LINE, and some even sell their stickers to support marketing campaigns.
LINE also has a status update feature, including a function similar to Instagram stories and a seamless sharing button. Additionally, the app has a cashless payment feature called 'LINE Pay,' allowing users to transfer money between each other and make payments in stores.
LINE's user base has significantly increased from 58 million monthly active users in 2015 to 95 million in 2024. Among active users, the ratio of male to 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 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 in Japan continues to grow, it provides an alternative to other marketing tools like email communications, offering many advantages to 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 (MHLW) reached an agreement with LINE to conduct a nationwide survey on COVID-19. The MHLW's official account regularly sends health surveys 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 working with the Japanese market, we strongly recommend that you do so. If you need any assistance, please feel free to contact us.
Current Status of Line Mini App
As an innovative service on the LINE platform, the LINE MINI App has become an important tool for enterprises undergoing digital transformation, especially popular in Japan and Taiwan. It allows businesses to publish web services directly on the LINE platform, enabling users to enjoy convenient service experiences without downloading additional applications. Thanks to LINE's large user base, businesses can reach a vast potential customer group, and by integrating LINE Pay, users can complete payments directly within the app, significantly enhancing shopping convenience.
With the impact of the COVID-19 pandemic, consumers are increasingly turning to planned purchases, requiring 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), supporting common functions such as online ordering, reservations, and queue calling, while also helping businesses increase 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 completed developments must pass LINE's review before being released.
Currently, the LINE MINI App is widely used in industries such as catering, education, healthcare, beauty, and retail. By providing a convenient user experience and strong backend support, it helps businesses stand out in a highly competitive market. As technology continues to advance and the market opens further, it is expected that the LINE MINI App will play an even greater role in the future, especially in promoting the integration of online and offline services.
Additionally, as market acceptance of LINE MINI Apps continues to rise, their numbers are rapidly increasing. Some companies, such as DOTZ, have already launched no-code development platforms like 'Mini App Maker,' further lowering the technical barrier, allowing more small and medium enterprises to easily create and manage their 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 help LINE 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 Kakao's subsidiary GroundX, aiming to promote 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 efficient operation of the system.
A major feature of Klaytn is that it combines the advantages of 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 (dApps) on the platform, colloquially known as BApps (Blockchain Applications), to meet the needs of different industries and application scenarios.
Klaytn provides an easily accessible, 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 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 in the system. As a means of payment, KLAY is used in applications built on Klaytn and is also awarded to developers who contribute to the platform. Additionally, KLAY is a popular choice among cryptocurrency traders and investors, who trade it to profit from market price fluctuations.
An important milestone in the development of Klaytn was the merger with Finschia, leading to the birth of the new mainnet Kaia. Kaia combines the technical advantages of Klaytn and Finschia, aiming to create Asia's largest Web3 ecosystem. The native token of the new mainnet Kaia, KAIA, not only symbolizes the merger of Klaytn and Finschia but also represents a commitment to partners and the community, aiming to bring together developers, businesses, users, and traders within a unified ecosystem.
The launch of Kaia signals the rise of a network centered on collaboration, innovation, and users, simplifying user experiences and promoting the widespread adoption and application of blockchain technology globally. Kaia's vision is to make blockchain technology user-friendly and accessible to everyone, regardless of their background or experience. This vision is guided by its core values - community, sustainability, and simplicity - which are the guiding stars for Kaia in nurturing partnerships, deeply engaging with the community, and promoting blockchain adoption.
Kaia's network structure is divided into three logical subnets:
Ⅰ Core Unit Network (CCN): Composed of core units (CC) responsible for transaction validation, execution, and block creation.
Ⅱ Endpoint Node Network (ENN): Comprised 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 dApps, connected to the main chain via EN.
Image Source: https://docs.kaia.io/learn/ Overview of Kaia
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 deep cooperation of two tech giants in Asia, 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 Korean internet giant Kakao, aiming to provide a high-performance, scalable, and secure blockchain environment. Finschia, on the other hand, is a blockchain platform launched by LINE, inheriting the vision of LINE's blockchain and dedicated to promoting the adoption of public blockchains and Web3 technology. The merger of the two platforms is not just a technical integration but also a deep strategic collaboration aimed at creating Asia's leading Web3 ecosystem.
Merger Advantages
1. Technical Integration: Kaia combines the technical advantages of Klaytn and Finschia, providing a high-performance blockchain network. It supports EVM (Ethereum Virtual Machine) and CosmWasm, enabling developers to build applications on a platform compatible with multiple blockchain technologies.
2. User Base: The merged Kaia will integrate the advantages of Klaytn with KakaoTalk and Finschia with LINE, meaning Kaia will have a potential user base of over 250 million, providing a vast user base for blockchain applications.
3. Ecosystem Expansion: Kaia will promote ecosystem expansion in collaboration with partners in Japan, Korea, and Southeast Asia in the areas of real-world asset tokenization (RWA), GameFi, and DeFi, further enriching Kaia's ecosystem and attracting more developers and projects to join.
4. Governance Structure: Kaia plans to expand its governance structure to include 100 leading global enterprises, implementing permissionless verification to enhance the system's decentralization and security.
Merger Impact
The merged Kaia is expected to have a profound impact on the Web3 industry. It will not only bring new vitality to the blockchain field in Asia but may also become the focal point of the global blockchain community. The launch of Kaia signals the rise of a network centered on collaboration, innovation, and users, simplifying user experiences and promoting the widespread adoption and application of blockchain technology globally.
In addition, the optimization of Kaia's governance model and support for AI-driven dApp discovery and promotion will make Kaia an important bridge connecting traditional enterprises and modern blockchain technology. Kaia's success will rely on the competitiveness of its technology and ecosystem, as well as its influence on the global Web3 stage.
Overall, the merger of Klaytn and Finschia, along with the launch of the new mainnet Kaia, marks an important milestone in the development of blockchain technology in Asia, bringing new value and opportunities to the Web3 industry. With the continuous development and maturation of Kaia, we have reason to expect that it will play a more significant role in the blockchain field.
Outlook
With the successful merger of Klaytn and Finschia, the birth of the new mainnet Kaia brings new vitality and innovation to the Web3 industry. Kaia's vision is to promote the widespread adoption and application of blockchain technology by providing an inclusive, accessible, and technologically advanced platform. Looking ahead, Kaia is expected to become an important force in the blockchain field in Asia and even globally, with its development having a profound impact on the entire Web3 ecosystem.
Kaia has immense development potential; it will not only provide developers with powerful tools and resources to build and deploy innovative blockchain applications but will also bring users a richer and more convenient service experience. With the addition of more DeFi projects, GameFi applications, and other Web3 services, Kaia's ecosystem will become more diverse and vibrant. Furthermore, Kaia's support for AI-driven dApp discovery and promotion will further foster innovation and user engagement on the platform.
Kaia's global expansion plan, including collaborations with top gaming companies in multiple Asian countries and Web3 projects with globally recognized IPs, indicates that it will provide an unprecedented collaborative platform for developers, innovators, and users. Kaia's governance structure optimization and the implementation of permissionless verification will enhance the decentralization of the network, improve the openness and security of the system, and create a fairer and more transparent environment for the global blockchain community.
In summary, the future development of Kaia is full of expectations. It will not only inject new momentum into the development of blockchain technology in Asia but may also lead the global Web3 industry into a new era. With continuous technological advancements and a maturing ecosystem, Kaia is expected to become an important bridge connecting the traditional internet and emerging blockchain technology, providing users worldwide with a secure, convenient, and rich digital communication and financial services platform.
