Kakao’s Klaytn and Line’s Finschia Blockchains Merge To Create Kaia Network

The booming web3 ecosystem on Telegram and The Open network could soon face competition.

On Aug. 29, Kaia completed the mainnet deployment of its Layer 1 network following a merge between Finschia, the blockchain from Line, a popular Japanese messaging app, and Klaytn, a network backed by Kakao, a Korean messaging platform.

Kaia supports Ethereum Virtual Machine (EVM) smart contracts and claims one-second block times. Kaia aims to foster an ecosystem of mini-decentralized applications (DApps) on the Line and KakaoTalk platforms.

“The Kaia mainnet launch marks a crucial first step in expanding the Asian Web3 ecosystem and will serve as a significant catalyst for Line Next’s global business,” said Young-su Ko, CEO of Line Next. “Through the Kaia Wave project, Line Next will focus on delivering a more efficient Web3 platform for builders and improving accessibility and convenience for users.”

TON competitor

The project draws inspiration from the meteoric rise of The Open Network (TON), which emerged as 2024’s fastest-growing blockchain after integrating with Telegram, the popular encrypted messaging application, in September 2023. TON’s total value locked (TVL) increased 10,000% from August 2023 to tag an all-time high of $1.144 billion five weeks ago. TON’s TVL has since tumbled 47% to $610 million.

TON’s growth was propelled by the success of Telegram Mini Apps (TMA). Hamster Kombat, one of the largest TAMs, boasts a user base of 80 million players. Notcoin (NOT), the token issued by another leading TMA, boasts a market cap of $900 million after going live in May.

“Inspired by the success of TON, we aim to integrate with messengers first, leveraging their role as super apps,”said Aidan Kwon, head of the Klaytn Foundation. “Unlike anonymous-focused platforms, our messenger apps offer expansive service integration opportunities.”

Kaia launched a software development kit (SDK) allowing developers to create and launch mini dApps directly within the Line messenger app. Line and Kakao boast a combined user base of over 250 million.

Chain merge

In January, Klaytn and Finschia proposed merging their networks in a bid to create “the largest web3 network in Asia.” The proposal passed on Feb. 15, garnering 95% support from Finschia’s community and 90% from Klaytn.

“Post-merge, Klaytn’sDeFi and gaming services and Finschia’sNFT, payment, and AI services will come together to create a massive ecosystem of 420+ dApps and services,”the Klaytn Foundation said.

Klaytn launched in June 2019 and quickly emerged as a top network among South Korean users. According to DappRadar’s2023 report, Klaytn ranked among the top 10 blockchains by users in 2021 after growing 1,100% to 873,000. Kgken, a move-to-earn app, ranks as the most popular Klatyn-based dApps of the past 30 days with 743,000 users, followed by Superwalk with 50,700, and Iskra with 45,000.

Finschia has also attracted a significant user base since launching in 2018. Finschia’stop dApp, DOSI, an NFT platform, has garnered 5.6 million cumulative users and facilitated more than 530,000 NFT transactions all-time.

Klaytn’sKLAY token currently ranks as the 76th largest cryptocurrency with a $1B market cap, according to CoinGecko. Finschia’sFNSA ranks 310th with a capitalization of $151.2 million.

Kaia said it will merge KLAY and FNSA and introduce new tokenomics.

Read More: TON Ventures Spins Out Of TON Foundation After $40 Million Raise