Abstract Chain Panorama Analysis: How to Build a Public Chain Ecosystem for End Users?

Summary

• Abstract Chain will launch in January 2025 as a user-centric blockchain dedicated to promoting the widespread adoption of cryptographic technology and building an accessible and engaging platform.
• Abstract Chain offers a unique user experience brought about by account abstraction, leveraging the established fan base of Pudgy Penguins and $PENGU to provide differentiated value through its unique user structure.
• Abstract's growth strategy revolves around building a digital entertainment theme park: owning its own portal platform, integrating live streaming and reward systems, and attracting application developers into the ecosystem.
• This live streaming platform has attracted over 10,000 hosts, with users averaging more than 7 minutes of participation time daily, and a 30-day retention rate of 40%. The live streaming feature has become one of the main competitive advantages.
• Abstract Chain has currently achieved large-scale application: approximately 2 million registered wallet users, about 100,000 daily active wallets, and around 700,000 on-chain transactions per day, reflecting the high activity level of the platform.

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 mainstream end-users with a seamless and differentiated Web3 experience. This chain adopts an account abstraction mechanism, simplifying wallet setup and on-chain signing processes, thereby lowering the participation threshold. 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 some distance to go before true large-scale mainstream user adoption. Early projects like Arbitrum or Optimism have successfully addressed performance bottlenecks and attracted crypto-native users. However, to achieve what is known as "Crypto for End Users"(, it is necessary to build a Web3 platform that combines low barriers to entry with high stickiness.

Early explorations like TON and Kaia attempted to reduce user acquisition costs by integrating Web3 into mainstream social platforms like Telegram and LINE. This has been somewhat successful, but this model of relying on the openness of Web2 platform ecosystems is still difficult to implement in mature markets such as Europe and the United States.

Abstract Chain has chosen a different path: promoting the direct integration of cryptographic technology into end-user applications, allowing users to use it directly without awareness.

The mainnet of Abstract will be launched in January 2025, along with the introduction of the portal platform "Portal," which serves as the entry point for the gaming and application ecosystem. Portal is not only a content showcase but also a highly interactive online destination, integrating sections such as live streaming, rewards, collectibles, and Spotlight) app recommendations(, creating a sticky user experience. This strategy distinguishes Abstract from other chains, making it the core engine of its growth.

) The Flywheel Effect of Abstract

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 initially driven by the NFT craze, while Solana has recently gained popularity due to meme coins. These native assets bind users to the chain while incentivizing developers to build applications around the trends. From a business perspective, this approach is akin to getting customers to use a specific payment card and only allowing them to spend it at certain stores.

Abstract Chain has taken a different approach. It is not centered around asset accumulation, but instead builds the portal platform )Portal( as a dynamic online hub designed around the following three main functions:

• Basic Services: Provide tools such as wallets, fiat entry, token exchange, etc., to enable access to the ecosystem.
• User Interaction: Increase user engagement through live broadcasts and the rewards center.
• Project Discovery: Guide users to explore new content through the Spotlight section.

This system enables new users to quickly enter Web3, while existing users are continuously recalled through new content.

If we compare it to a shopping mall, Abstract is like operating a thriving large shopping center: integrating multiple stores in one place, continuously hosting performances on a central stage, maintaining high traffic and activity, and encouraging customers to keep coming back to enjoy.

The following analysis will focus on three key growth areas: user traffic >> portal hosting >> application ecosystem driving. These together constitute the core components of the Abstract platform's business flywheel.

![Abstract Chain Overview: How to Build a User-Friendly Public Chain Ecosystem for End Users?])https://img-cdn.gateio.im/webp-social/moments-f5f990cd5c53d3fdf3873ff0314c236c.webp(

) A. User Guide

The initial user base of Abstract largely relies on the association with the Pudgy Penguins IP and its extremely user-friendly design philosophy. Fans of Pudgy and $PENGU continue to flow into Abstract, and its smooth onboarding experience gives the chain a significant advantage in converting attention into actual users.

Easy onboarding experience

Abstract Chain is dedicated to eliminating traditional barriers and simplifying the user participation 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 and transfer operations are as intuitive as browsing the web or playing games. In addition, the chain employs ZK rollup technology to ensure extremely low gas fees and high concurrent processing capabilities, significantly reducing the costs of on-chain interactions.

After creating an account, users can immediately use all basic crypto tools through the Portal. The wallet in the upper left corner supports real-time trading features and offers recharge options including bridging and fiat deposit services for quick fund deposits. The trading section of the Portal supports native token swaps without the need to seek additional third-party services. These integrated features collectively lower the usage threshold, allowing users to seamlessly enter the on-chain world.

Taking Pudgy fans as the initial user base

Abstract leverages the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million followers on X###, Twitter(, Instagram, and TikTok, with more than 500,000 $PENGU token holders, providing Abstract with a ready user pool.

In Abstract's Portal, the image of Pudgy Penguins is as ubiquitous as Mickey Mouse in Disneyland: appearing on marketing banners, user avatars, live stream 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 scenarios for using $PENGU on Abstract.

The synergy between this IP and platform functions has greatly driven the growth of Portal - activating 1.61 million wallets within two months after the mainnet launch.

Moreover, due to the widespread distribution of Pudgy and $PENGU fans, the user profile of Abstract is also different from other end-user-oriented crypto ecosystems like TON and Kaia. Abstract attracts a large number of users from developed markets—17.4% of which are from the United States, while the remaining users are primarily distributed across European and East Asian countries such as Germany, the United Kingdom, France, Japan, South Korea, Singapore, and Hong Kong. This user group is highly valuable for end-user-oriented applications, providing a strong foundation for Abstract to build a high-quality consumer ecosystem.

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) 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.

Initial 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 an average daily user engagement time of over 7 minutes. Among users of Abstract Global Wallet ) AGW (, 40% returned to conduct at least one transaction within 30 days of wallet creation, 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 each month. For Abstract, live streaming is not only a reason for user return visits, but also enhances 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 in this abstract encourages user participation through rewards, comments, gifts, and other means, allowing both streamers and viewers to earn tokens, rewards, or experience points ) XP (. Additionally, the "Follow" and "Recommend" features help to build a community atmosphere, promoting continuous user engagement and social sharing.

As of 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 receive tips of up to 9 ETH in a single live broadcast. The top 100 streamers account for a significant portion of the platform's tip income, with individual monthly earnings between $4,000 and $5,000, and having over 4,000 interactive users.

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Reward and Reputation System

Many crypto projects encourage early user participation through point systems, but a truly complete loyalty and reputation system in the on-chain ecosystem 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 interactive live broadcasts, developers can earn XP by completing user activity tasks, and regular users can earn XP by linking social accounts, using recommended applications, and other actions.

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, the 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 across the entire Abstract ecosystem, evolving into a loyalty and reputation framework that covers the whole ecosystem and targets both developers and users.

Application Discovery

Portal also serves as the "app store" for the Abstract ecosystem. The "Discover" section showcases high-quality 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.

![Abstract Chain Overview: How to Build a User-Friendly Public Chain Ecosystem for End Users?])https://img-cdn.gateio.im/webp-social/moments-2a73665cb6b77c1ac5568f005617b6d7.webp(

) C. Application Ecosystem

For any blockchain, the ultimate success depends on whether it can 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 "Resident Developer Program"###Builder.