Kaia Chain: The Integration of Web2 Giant LINE into the Future of Web3
What is Kaia?
Kaia is a high-performance public blockchain dedicated to achieving high scalability, low-latency transactions, eco-friendliness, and being developer-friendly. Its mainnet officially launched in August this year. According to the official introduction, the goal of Kaia Chain is to accelerate the adoption of blockchain technology and meet the demands of large-scale applications.
Website : https://www.kaia.io/
Backing from Industry Giants: Kakao and LINE
Similar to the Telegram-supported public blockchain TON, Kaia is also backed by two of Asia's largest communication giants, Kakao and LINE. The inspiration for this collaboration came from TON, combining South Korean social giant Kakao's blockchain, Klaytn, with LINE’s blockchain, Finschia, forming a stronger blockchain network. This merger proposal was introduced in January this year and received more than 90% support from both Klaytn and Finschia communities by February.
Kaia Chain's Core Technology
Kaia is known for its robust technical architecture and high efficiency, utilizing PBFT (Practical Byzantine Fault Tolerance)-based technology, which allows for fast block creation and confirmation, processing up to 4,000 transactions per second. Kaia Chain is also compatible with Ethereum Virtual Machine (EVM), enabling developers to easily migrate Ethereum applications to Kaia Chain. More importantly, Kaia’s gas fees are approximately one-tenth of Ethereum’s, which is a significant draw for both developers and users.
Kaia Chain's Architecture Design
Kaia Chain's core architecture is composed of three networks:
This architectural design aims to ensure network flexibility and stability, supporting various applications and business scenarios.
Kaia Chain's Tokenomics
Kaia's native token, $KAIA, is the core of the entire network, serving multiple purposes, including paying transaction fees, participating in community governance, and staking to earn rewards. The tokenomics design is attractive, with an initial inflation rate of 5.2%, and block rewards are distributed according to a predefined ratio to the ecosystem fund, infrastructure fund, and stakers/block creators in the community.
Who Truly Controls Kaia Chain?
This is one of my primary concerns regarding Kaia Chain. The two giants backing Kaia, Kakao and LINE, provide stable technical support and a massive user base. However, this raises the question—does this mean that Kaia remains a highly centralized blockchain? Although both companies have promised to gradually introduce community governance, decision-making power currently still rests with them. This poses a significant challenge for blockchain technology, which emphasizes decentralization.
From a development perspective, I believe this centralized control could facilitate the rapid advancement of technology and market applications in the short term. However, in the long run, whether Kaia can truly enable community participation in decision-making will determine its success in achieving widespread adoption of Web3 applications globally.
Kaia Chain's Dapp Ecosystem Development and Data Analysis
As of March 14, 2025, Kaia Chain's Dapp ecosystem has rapidly expanded. LINE has already launched 52 Mini Dapps, particularly in the gaming sector, with games like Elderglade and Frog Defense, where the player base has exceeded two million users. Even more impressive is the growth in transaction volume and active users within Kaia's ecosystem. In just one month, Kaia's monthly transaction volume increased by 124%, reaching 27.38 million, and the number of active users on-chain grew by 252%, reaching 8.1 million.
These figures reflect Kaia’s platform effect, but I believe the future challenge lies in how it can continue to attract more developers and users, especially those from the Web2 space who have yet to transition to Web3. Data indicates that approximately 32% of Dapp goods are paid for using non-virtual assets, such as credit cards, showing that a substantial number of users are still unfamiliar with virtual asset transactions. For Kaia, reducing the barriers to entry and simplifying user experience will be key to future growth.
Personal Perspective and Considerations: The Future Direction of Kaia Chain
In summary, I believe Kaia Chain has great potential, particularly with the backing of Kakao and LINE, positioning it to become a key player in the Asian blockchain market. However, as the Dapp ecosystem expands and the user base grows, Kaia’s future challenges will revolve around how to resolve issues of decentralized governance and how to attract more Web2 developers and users.
Currently, Kaia's main market is concentrated in Japan, Taiwan, Thailand, and Indonesia, regions with substantial user bases and blockchain development potential. However, whether Kaia can break through these regions and further globalize will depend on how it tackles challenges related to smart contract compatibility, payment system integration, and user experience. If Kaia can effectively address these issues, I believe it has the potential to become the next blockchain leader beyond the Asian market.
For developers, especially those coming from the Web2 space, I recommend keeping an eye on Kaia’s technological developments and considering how Web3 technology can be integrated into existing applications based on market demand. Kaia’s low fees and high efficiency make it an attractive choice, especially in application development and user interaction scenarios.
reference source : https://medium.com/kaiachain/kaia-mini-dapp-on-line-messenger-attracts-35-million-users-in-its-first-month-of-launch-80569084001d