Can the Line ecosystem become the Asian version of Telegram?

Introduction

This year, Line announced its mainnet merger with the South Korean public chain Klaytn, a strategic move that indicates Line will actively expand its layout in the Web3 field. Looking back at the rise of the Telegram ecosystem, it successfully attracted numerous Web3 projects and users through its large 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 this field.

The merger between Line and Klaytn will bring technological innovation 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 innovation 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 also injected new vitality into the entire industry with its unique advantages and innovative models. Multiple projects have successfully launched and their market values have soared, validating the commercial potential of the ecosystem and attracting a large number of new users into the Web3 world.

The Telegram ecosystem has achieved significant results by mid-year mainly due to its massive user base and efficient communication mechanisms. As a communication giant with 900 million users, the introduction of mini-programs and bot development features provides users with a brand new service experience. These mini-programs not only can replace most websites, support seamless authorization and payment integration, but also greatly enrich user interaction methods through customization features.

In addition, Telegram has developed the TON blockchain, which supports convenient blockchain transactions and further lowers the barrier for users to enter Web3. This "traffic + payment" model enables Telegram to rapidly develop in the Web3 field, becoming a bridge between Web2 and Web3.

During this process, multiple projects in the ecosystem have performed outstandingly. For example, some gaming projects have quickly attracted a large number of users through simple operation methods and viral mechanisms, successfully guiding them to engage in on-chain interactions and achieving the transition from Web2 users to Web3 users. These projects have not only succeeded within the ecosystem but have also seen their market capitalization rapidly soar after going public, demonstrating strong market appeal and commercial value.

Other projects enhance players' understanding and recognition of virtual currency through unique game background settings and management elements, while effectively driving traffic to their own platforms by combining a task system with video-watching tasks, further expanding the influence of the ecosystem.

The success of these projects not only brings a lot of fresh blood to the ecosystem but also provides new ideas and models for the development of the Web3 field. They demonstrate that through gamification and socialization approaches, Web2 users can be effectively attracted and converted, while also showcasing the application potential of blockchain technology in non-financial areas such as gaming and socializing.

As the 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, this ecosystem is not only expected to continue deepening in the fields of gaming and social interaction but may also further expand into multiple areas such as finance, education, and business, ultimately forming a diverse and open Web3 ecosystem. With the addition of more innovative projects and user participation, this ecosystem is expected to become an important force in 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 more than 68% of the total population of Japan. The main functions of this app are similar to other messaging software, providing messaging and calling services, while it also has many 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" that allows users to transfer money to each other and make payments in stores.

The number of monthly active users of Line has increased significantly 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.

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. With the increasing number of business accounts 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. If you are considering creating your own official Line account while collaborating with the Japanese market, it is strongly recommended to do so.

Current Status of the 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 companies to directly publish web services on the Line platform, enabling users to enjoy convenient service experiences without needing 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 complete payments directly within the app, 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 changes through digital means. The Line Mini App 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 the development of the Line Mini App in Taiwan has not yet been fully opened, certified partners can apply in advance, and after development is completed, it needs to pass review before being released.

Currently, Line Mini App has been widely applied 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 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 increase, their numbers are rapidly growing. 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 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 life services. This trend not only offers businesses new customer touchpoints 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 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.

A key feature of Klaytn is that it combines 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 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 provides an easy-to-access, user-friendly development environment that enables 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 and reduces the technical burdens 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, and it is also distributed as a reward to developers who contribute to the platform. Additionally, KLAY is a popular choice among cryptocurrency traders and investors, who profit from market price fluctuations through trading.

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, with the intention of bringing together developers, enterprises, 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 accessible and widespread for 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 deeply with communities, 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 operated independently by dApps, connected to the main chain via EN.

Line and Klaytn Public Chain Merger

Klaytn and LINE's public chain Finschia have merged to create a new blockchain ecosystem------Kaia. This merger marks the 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 South Korean internet giant Kakao, aimed at providing 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 committed to promoting the popularization of public blockchain and Web3 technology. The merger of the two platforms not only integrates technology but also represents a deep strategic cooperation, aiming to create a leading Web3 ecosystem in Asia.

Merging Advantages

1. Technical Integration: