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Abstract Chain: Creating a new paradigm for the public chain ecosystem for end users
Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?
TL;DR
Introduction
Abstract Chain was established in March 2024 and is a Layer 2 blockchain based on Ethereum, utilizing zero-knowledge proof (zk) technology, dedicated to providing a seamless and differentiated Web3 experience for mainstream end users. The chain adopts an account abstraction mechanism that simplifies wallet setup and on-chain signing processes, lowering the entry barrier. Through zk-rollup technology, Abstract is able to offer low-cost, high-throughput on-chain transaction capabilities, providing scalability and security guarantees for applications aimed at end users.
The competition in the blockchain ecosystem is fierce, but there is still a way to go before achieving true large-scale mainstream user adoption. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks, attracting crypto-native users. However, to achieve what is known as "end-user Crypto," a Web3 platform that combines low barriers to entry with high user engagement needs to be built.
Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms such as Telegram and LINE. This has achieved some success to a certain extent, but this model, which relies on the openness of Web2 platform ecosystems, remains challenging to implement in mature markets like Europe and the United States.
Abstract Chain has chosen another path: to promote the direct embedding of cryptographic technology into applications aimed at end users, allowing users to use it seamlessly.
The mainnet of Abstract will be launched in January 2025, along with the portal platform "Portal" as an entry point to the gaming and application ecosystem. Portal is not only a content display window but also a highly interactive online destination that integrates sections such as live streaming, rewards, collectibles, and Spotlight( app recommendations), creating a sticky user experience. This strategy allows Abstract to differentiate itself from other chains and become the core engine of its growth.
Abstract's flywheel
The development of new chains usually begins with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the introduction of on-chain application development and DeFi protocols. To attract users, projects often encourage participation through methods such as airdrops.
The network effects of these models mainly rely on the on-chain assets held by users. For example, Ethereum was driven by the NFT boom in its early days, while Solana has recently gained popularity due to meme coins. These native assets bind users on-chain, while also encouraging developers to build applications around trends. From a business perspective, this approach is akin to having customers use a specific payment card that can only be used at certain stores.
Abstract Chain has taken a different approach. It is not centered on asset accumulation, but rather builds the portal platform (Portal) as a dynamic online hub, designed around the following three main functions:
This system allows new users to quickly enter Web3, while existing users continue to return due to new content.
If we compare it to a shopping mall, Abstract is like managing a thriving large shopping center: integrating multiple stores in one place, continuously holding performances on a central stage, maintaining high foot traffic and activity, allowing customers to keep returning for enjoyment.
The following analysis will focus on three key growth areas: user traffic >> portal engagement >> application ecosystem driving. Together, these constitute the core components of the Abstract platform's business flywheel.
A. User Guide
The early user base of Abstract largely depends on its association with the Pudgy Penguins IP and its extremely simple and user-friendly design concept. Fans of Pudgy and $PENGU continue to flow into Abstract, but its smooth onboarding experience provides a significant advantage in converting attention into actual users.
Simple entry experience
Abstract Chain is committed to eliminating traditional barriers and simplifying the user onboarding process. Its native account abstraction feature allows users to easily create Abstract accounts and enable wallets just like registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery or transfer operations feel as simple as browsing the web or playing a game. Additionally, the chain employs ZK rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, significantly reducing the costs of on-chain interactions.
After users create an account, they can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time transaction functions, providing deposit options including bridging and fiat deposits for quick fund arrival. The trading section of the Portal supports native coin swaps without the need to search for third-party services. These integrated features collectively lower the barrier to entry, allowing users to seamlessly enter the on-chain world.
Using Pudgy fans as the initial user base
Abstract leverages the large and active fan community owned by Pudgy Penguins. Pudgy Penguins have a total of over 3 million followers on X(, Twitter), Instagram, and TikTok, as well as over 500,000 $PENGU token holders, providing a ready pool of users for the Abstract chain.
In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live streaming stickers, and more. For $PENGU holders, the Portal also has practical uses—they can use $PENGU tokens to tip during live streams, which is one of the use cases for $PENGU on Abstract.
The synergy between this IP and the platform's functionality has greatly promoted the growth of Portal—within 2 months after the mainnet launch, 1.61 million wallets were activated.
Moreover, due to the wide distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user-focused crypto ecosystems like TON and Kaia. Abstract attracts many users from developed markets—17.4% of whom are from the United States, while the remaining users are primarily distributed across Europe and East Asian countries such as ( Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong ). This user base is highly valuable for end-user-focused applications and provides a strong foundation for Abstract to build a high-quality consumer ecosystem.
B. Portal Platform
The portal platform of Abstract is called "Digital Theme Park" ( Digital Theme Park of Fun ), which is not only a place for users to discover popular applications and creators but also the core interface for users to manage assets and rewards.
Early data shows that Portal's performance is impressive. As of March 2025, Portal has over 600,000 monthly active users ( MAU ) and 100,000 daily active users ( DAU ), with users averaging more than 7 minutes of daily stay. Among Abstract Global Wallet ( AGW ) users, 40% return to perform at least one transaction within 30 days of creating their wallet, a retention rate that is significantly higher than the industry average.
Live streaming feature
Live streaming is a medium favored by young people around the world. Web2 platforms like Twitch attract 240 million unique users globally each month. For Abstract, live streaming is not only a reason for users to return, but it can also enhance platform stickiness and monetization potential. Live streaming has been proven to promote game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.
The "Watch to Earn" ( Stream-to-Earn ) model introduced by Abstract encourages user participation through rewards, comments, gifts, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user engagement and social sharing.
By the end of April 2025, Portal has gathered over 1,000 streamers, with a total viewing time exceeding 500,000 hours. Some top streamers can even receive tips of up to 9 ETH in a single live stream. The top 100 streamers account for a significant portion of the platform's tip revenue, with individual monthly incomes ranging from $4,000 to $5,000, and having more than 4,000 interactive users.
Rewards and Reputation System
Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in on-chain ecosystems is still rare. Abstract uses the XP and badge system (Badges) to build such infrastructure.
Abstract uses off-chain XP as the main incentive tool to reward participants who meet target behaviors. Content creators can earn XP through live interactions, developers can earn XP by completing user activity tasks, and regular users can earn XP through actions such as linking social accounts and using recommended applications.
At the same time, the badge feature allows users to showcase their achievements. Different types of badges will be minted as on-chain NFTs or displayed within the app based on behavior and task levels, becoming part of the user's identity and gradually forming a complete reputation system.
Currently, this system is still in its early stages, with functionality limited to within the Portal. However, in the future, the XP and badge system is expected to expand throughout the Abstract ecosystem, evolving into a loyalty and reputation framework that covers the entire ecosystem, aimed at developers and users.
Application Discovery
Portal also serves as the "app store" of the Abstract ecosystem. The "Discover" section showcases outstanding applications selected by user votes, categorized into: digital collectibles, games, NFTs, social, AI, trading, prediction markets, etc. Users can log in to these applications directly using their Abstract ID, allowing them to start experiencing immediately without a cumbersome registration process.
C. Application Ecosystem
For any blockchain, ultimate success depends on the ability to cultivate a rich and diverse application ecosystem. For Abstract, its mission is to attract "interesting" end-user applications from Web3 projects and mainstream enterprises.
Web3 project
Abstract is fully compatible with EVM( Ethereum Virtual Machine) and also supports the migration of existing Ethereum smart contracts, facilitating cross-chain deployment. The platform has launched the "Builder-in-Residence Program"(, which provides developers with market support, technical guidance, and monthly subsidies. Developers can earn XP rewards monthly based on user engagement, and outstanding projects have the opportunity to receive additional incentives. The live streaming platform also promotes featured games through embedded links to drive traffic to the applications.
Games are an important gateway for bringing Web2 users into the Web3 world. Among the top 10 applications of Abstract, 8 are occupied by gaming products. Popular games include "Pudgy World", "Bigcoin",