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Abstract Chain: An Innovative Path to Building a People-Friendly Public Chain Ecosystem
Abstract Chain Analysis: How to Build a Consumer-Friendly Public Chain Ecosystem?
Summary
Introduction
Abstract Chain is a Layer 2 blockchain based on Ethereum, established in March 2024, utilizing zero-knowledge encryption ( zk ) technology, dedicated to providing mainstream consumers with a seamless and differentiated Web3 experience. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thus lowering the entry barrier. Through zk-rollup technology, Abstract offers low-cost, high-throughput on-chain transaction capabilities, providing scalability and security for consumer applications.
Despite the fierce competition in the blockchain ecosystem, there is still a way to go before true mass mainstream user adoption is achieved. Early projects like Arbitrum and Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is called "consumer-grade crypto," it is necessary to establish a Web3 platform with a low entry barrier and high user retention.
Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. Although some success was achieved, this model, which relies on the openness of Web2 platform ecosystems, remains difficult to implement in mature markets such as Europe and the United States.
Abstract Chain has chosen a different path: embedding encryption technology directly into consumer applications, encouraging users to use it unknowingly.
The mainnet of Abstract will launch in January 2025, along with the Portal platform as an entry point to the gaming and application ecosystem. Portal is not just a content showcase but a highly interactive online destination that integrates live broadcasts, rewards, collectibles, and Spotlight( application recommendations), creating a sticky user experience. This strategy differentiates Abstract from other chains and positions it as a core engine for growth.
Business Flywheel of Abstract
The development of a new chain typically starts with building a developer ecosystem, gradually increasing the on-chain locked value ( TVL ) through the development of on-chain applications and the introduction of DeFi protocols. To attract users, projects incentivize participation through methods such as airdrops.
The network effect of this model primarily relies on the on-chain assets held by users. For example, Ethereum was driven by the early NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the chain while attracting developers to build applications around the trends. From a business analogy, this approach is similar to making customers use a specific payment card that can only be spent at certain stores.
Abstract Chain has taken a different approach. Instead of focusing on asset accumulation, it has built the portal platform (Portal) as a vibrant online hub, designed around the following three main functions:
This system allows new users to quickly engage with Web3, while existing users are continuously attracted back by new content.
Similar to a shopping mall, the operation of Abstract is akin to a thriving large shopping center: integrating multiple stores in one place, continuously hosting performance events on a central stage, maintaining high traffic and activity levels, and encouraging customers to return for enjoyment.
The following analysis revolves around three core growth areas: user acquisition >> portal engagement >> application ecosystem drive. Together, they form the core components of the Abstract platform's business flywheel.
A. User Guide
Abstract's initial user base heavily relies on its association with Pudgy Penguins IP and its extremely user-friendly design concept. Although fans of Pudgy and PENGU continue to flock to Abstract, its smooth onboarding experience gives the chain a significant advantage in converting interest into actual users.
Easy onboarding experience
Abstract Chain is dedicated to simplifying the user onboarding process by eliminating traditional barriers. With the native account abstraction feature, users can easily create an Abstract account and activate their wallet just like registering for a regular website account. Users do not need to manage private keys or frequently sign transactions. Account recovery and transfer operations are as intuitive as browsing the web or playing games. Additionally, the chain employs zero-knowledge rollup technology, ensuring extremely low gas fees and high parallel processing capabilities, greatly 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 trading functionality and provides recharge options including bridging and fiat deposit services for quick fund inflows. The trading section of the Portal supports native token swaps without the need to search for third-party services. These integrated features collectively lower the entry barrier, allowing users to seamlessly enter the on-chain world.
Using Pudgy fans as the initial user base
Abstract utilizes the large and active fan community owned by Pudgy Penguins. Pudgy Penguins has over 3 million followers on X(, Twitter), Instagram, and TikTok, with over 500,000 PENGU token holders, providing a ready-made user pool for the Abstract chain.
In Abstract's Portal, the image of Pudgy Penguins is everywhere, just like Mickey Mouse at Disneyland: appearing in 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 functions has greatly promoted the growth of Portal---1.61 million wallets were activated within 2 months after the mainnet went live.
More importantly, due to the widespread fan base of Pudgy and PENGU, the user profile of Abstract is also different from other consumer-grade crypto ecosystems like TON and Kaia. Abstract has attracted a large number of users in developed markets—17.4% of whom are from the United States, while the remaining users are mainly distributed across European and East Asian countries such as Germany, the UK, France, Japan, South Korea, Singapore, and Hong Kong. This user base is very valuable for consumer-facing 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 Entertainment Theme Park". It 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.
According to early data, 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 spending an average of over 7 minutes per day. 40% of Abstract global wallet(AGW) users return at least once to transact within 30 days of creating their wallets, a retention rate that is much higher than the industry average.
Live streaming feature
Live streaming is a media format 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 user return but also enhances platform stickiness and monetization potential. Live streaming has been proven to boost game and merchandise sales, aligning closely with Abstract's goal of building an entertainment ecosystem.
The "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 ). In addition, the "follow" and "recommend" features help to build a community atmosphere, promoting continuous user visits and social sharing.
As of the end of April 2025, Portal has gathered over 1,000 broadcasters, with a total viewing time exceeding 500,000 hours. Some top broadcasters have received tips as high as 9 ETH in a single live stream. The top 100 broadcasters account for a significant portion of the platform's tip income, with individual monthly incomes ranging between $4,000 and $5,000, and each having over 4,000 interactive users.
Reward and Reputation System
Many crypto projects encourage early user participation through point mechanisms, but a truly complete loyalty and reputation system is still scarce in on-chain ecosystems. Abstract uses XP and badge system (Badges) to build this infrastructure.
Abstract uses off-chain XP as the primary incentive tool to encourage participants who meet target behaviors. Content creators can earn XP through live interaction, developers can earn XP by completing user activity tasks, and regular users can earn XP by connecting social accounts or using recommended applications.
At the same time, through the badge feature, users can showcase their achievements. Different types of badges will be issued as on-chain NFTs or displayed within the app based on behavior and task levels, becoming a 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 to the entire Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that covers both developers and users.
Application Discovery
Portal also acts as the "app store" for the Abstract ecosystem. In the "Discover" section, high-quality applications selected by user votes are showcased and 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 complicated 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 consumer-facing "interesting" applications from Web3 projects and mainstream institutions.
Web3 project
Abstract is fully compatible with EVM) Ethereum Virtual Machine###, supporting existing Ethereum.