Kaia Network Emerges as Potential TON Competitor, Targeting Mini-DApps Ecosystem on Line and KakaoTalk Platforms

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

Kaia, a Layer 1 blockchain network, has officially completed its mainnet deployment following a merger between Finschia, the blockchain from Line, a popular Japanese messaging app, and Klaytn, a network backed by Kakao, a Korean messaging platform. The project aims to foster an ecosystem of mini-decentralized applications (DApps) on the Line and KakaoTalk platforms.

The launch of Kaia comes at a time when the web3 ecosystem on Telegram and The Open Network (TON) is experiencing rapid growth. TON, in particular, has seen remarkable success after integrating with Telegram in September 2023. The network's total value locked (TVL) surged 10,000% from August 2023, reaching an all-time high of $1.144 billion five weeks ago. While TON's TVL has since declined 47% to $610 million, the network's overall performance and user base remain strong.

Kaia, which supports Ethereum Virtual Machine (EVM) smart contracts and claims one-second block times, appears to be well-positioned to capitalize on the growing demand for messenger-integrated DApps. The project is expected to announce further details regarding its tokenomics and governance structure in the coming weeks.

The project's inspiration is evident in its approach. As Young-su Ko, CEO of Line Next, notes, the launch of Kaia marks a crucial first step in expanding the Asian Web3 ecosystem and will serve as a significant catalyst for Line Next's global business. 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.

Kaia has already launched a software development kit (SDK) that enables developers to create and launch mini dApps directly within the Line messenger app. With Line and Kakao boasting a combined user base of over 250 million, the potential for messenger-integrated DApps to reach a mass audience is significant.

The merger that led to the creation of Kaia was initially proposed in January by Klaytn and Finschia, with the aim of creating “the largest web3 network in Asia.” The proposal was ultimately passed on Feb. 15, with 95% support from Finschia's community and 90% from Klaytn.

According to the Klaytn Foundation, the merger will combine Klaytn's DeFi and gaming services with Finschia's NFT, payment, and AI services to create a massive ecosystem of over 420 dApps and services. Both Klaytn and Finschia have already established strong user bases in South Korea and Japan, respectively.

Klaytn, which launched in June 2019, has quickly emerged as a top network among South Korean users. As highlighted in DappRadar's 2023 report, Klaytn ranked among the top 10 blockchains by users in 2021 after growing 1,100% to 873,000. Some of the most popular Klaytn-based dApps of the past 30 days include Kgken, a move-to-earn app with 743,000 users, Superwalk with 50,700, and Iskra with 45,000.

Finschain, on the other hand, has also attracted a significant user base since launching in 2018. DOSI, an NFT platform and Finschia's top dApp, boasts 5.6 million cumulative users and has facilitated more than 530,000 NFT transactions all-time.

Both KLAY and FNSA tokens are listed on major cryptocurrency exchanges, with KLAY currently ranking as the 76th largest cryptocurrency with a $1B market cap, according to CoinGecko. FNSA, meanwhile, ranks 310th with a capitalization of $151.2 million.