Abstract Chain Panorama Analysis: Creating a Consumer-Grade Blockchain Ecosystem

Introduction

Abstract Chain was established in March 2024 and is a Layer 2 Blockchain based on Ethereum. It employs zero-knowledge encryption technology and is dedicated to providing a smooth Web3 experience for ordinary users. The chain uses an account abstraction mechanism to simplify wallet setup and transaction signing processes, significantly lowering the barriers to use. Through zk-rollup technology, Abstract has achieved low-cost, high-throughput transaction capabilities, ensuring scalability for consumer applications.

Although the blockchain ecosystem is developing rapidly, there is still a distance to true mass adoption. Early projects like Arbitrum and Optimism have addressed performance bottlenecks and attracted crypto-native users. However, to achieve "consumer-grade crypto," it is necessary to create Web3 platforms that have both low barriers to entry and high user retention.

Projects like TON and Kaia have attempted to integrate Web3 into mainstream social platforms such as Telegram and LINE to reduce user acquisition costs. This approach has achieved some success, but promoting it in mature markets like Europe and the United States remains challenging.

Abstract Chain has chosen a different path: embedding encryption technology directly into consumer applications for a seamless user experience. In January 2025, with the launch of the Abstract mainnet, the portal platform Portal was introduced as the entry point for its gaming and application ecosystem. Portal not only showcases content but also integrates interactive features such as live streaming, rewards, and collectibles, aiming to create a sticky user experience. This strategy sets Abstract apart from other public chains and becomes the core engine for its growth.

Abstract's Business Model

Unlike traditional public chains, Abstract does not focus on asset accumulation, but instead aims to create Portal as a dynamic online center, designed around three main functions:

1. Basic Services: Provide tools such as wallets, fiat gateways, and token exchanges to facilitate user entry into the ecosystem;
2. User Interaction: Enhance user engagement through live broadcasts and the rewards center;
3. Project Discovery: The Spotlight section guides users to explore new content.

This system ensures that new users can quickly access Web3, while old users are continuously attracted back by new content.

The operational model of Abstract is similar to managing a bustling large shopping mall: integrating various business types, continuously holding events in a central location, maintaining high customer traffic and activity levels, and encouraging customers to return repeatedly.

The business flywheel of the Abstract platform is mainly composed of three key growth areas: user acquisition, portal engagement, and application ecosystem drive.

User Guide

The initial user base of Abstract mainly comes from the Pudgy Penguins( fan group, as well as benefiting from its extremely easy-to-use design philosophy. Although fans of Pudgy and PENGU continue to pour in, the smooth guiding experience of Abstract is key to converting attention into actual users.

) Easy to Get Started Experience

Abstract Chain is committed to simplifying the user onboarding process. Its native account abstraction feature allows users to create accounts and enable wallets just like registering on a regular website, without the need to manage private keys or sign frequently. Account recovery and transfer operations have also become intuitive and simple. In addition, zero-knowledge rollup technology is used on-chain, ensuring extremely low gas fees and high concurrency capabilities, significantly reducing the cost of on-chain interactions.

After users create an account, they can immediately use all basic cryptocurrency tools through the Portal. The wallet in the top left corner supports real-time transactions and provides recharge options, including cross-chain bridging and fiat deposit services. The trading section of the Portal supports native token exchanges without the need to search for third-party services. These integrated features collectively lower the threshold for use, allowing users to seamlessly access the on-chain world.

Pudgy fans as an early user base

Abstract gained initial users through the large and active fan community of Pudgy Penguins. Pudgy Penguins has over 3 million fans on major social media platforms, as well as over 500,000 PENGU token holders, providing Abstract with an ready user base. In the Portal, the image of Pudgy Penguins is everywhere, reminiscent of Mickey Mouse in Disneyland. For PENGU holders, the Portal also offers practical uses, such as tipping live streams with PENGU tokens.

The synergy between this IP and platform functions has driven the rapid growth of Portal. Within two months of the mainnet launch, it attracted 1.61 million wallet activations. More importantly, due to the broad distribution of Pudgy and PENGU fans, Abstract's user profile differs from other consumer-grade crypto ecosystems. Abstract attracts a large number of users from developed markets, with 17.4% from the United States, while the rest are mainly distributed across Europe and East Asian countries. This user group is highly valuable for consumer applications, laying a foundation for Abstract to build a high-quality consumer ecosystem.

![Abstract Chain Overview: How to Bring Public Chain Ecosystem to Mainstream Users?]###https://img-cdn.gateio.im/webp-social/moments-6938f57b0d9409c0c6443f6a55bbc6c0.webp(

Portal Platform

The Abstract Portal is known as the "Digital Paradise". It is not only a place for users to discover popular applications and creators, but also the core interface for managing assets and rewards.

Early data shows that Portal is performing exceptionally well. 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 daily. 40% of Abstract Global Wallet )AGW( users return to make at least one transaction within 30 days of creating their wallet, a retention rate that far exceeds the industry average.

) Live Function

Live streaming is a medium that is highly favored by young people around the world. For Abstract, live streaming is not only a reason for user return visits but also enhances platform stickiness and monetization potential. It has been proven that live streaming can promote game and product sales, which is highly consistent with Abstract's goal of building an entertainment ecosystem.

The "Stream-to-Earn" ### model launched by Abstract encourages user interaction and participation, including tipping, commenting, gifting, etc., allowing both streamers and viewers to earn tokens, rewards, or experience points ( XP ). Additionally, the "Follow" and "Recommend" features help build a community atmosphere, promoting continuous user visits and social sharing.

As of the end of April 2025, Portal has accumulated over a thousand streamers, with a total live viewing time exceeding 500,000 hours. Some top streamers have received tips as high as 9 ETH in a single instance. The top 100 streamers account for a significant share of the platform's tip revenue, with personal monthly incomes ranging between $4,000 and $5,000, and interactive users exceeding 4,000.

( Rewards and Reputation System

Abstract uses off-chain XP as the main incentive tool to encourage target user behaviors. Content creators can earn XP through live interaction, developers can earn XP by completing user engagement tasks, and ordinary users can earn XP by linking social accounts or using recommended applications.

At the same time, the badge feature allows users to showcase their achievements. Based on behavior and task levels, different types of badges will be minted as on-chain NFTs or displayed within the app, becoming part of the user's identity and gradually forming a complete reputation system.

The system is currently still in its early stages, with functionality limited to the Portal. However, in the future, XP and the badge system are expected to expand throughout the Abstract ecosystem, evolving into a comprehensive loyalty and reputation framework that serves 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 and categorizes them into sections, including: digital collectibles, games, NFTs, social, AI, trading, and prediction markets. Users can log in to these applications directly using their Abstract ID and start experiencing them immediately, without the cumbersome registration process.

![Abstract Chain Overview: How to Bring Public Chain Ecosystem to Mainstream Users?]###https://img-cdn.gateio.im/webp-social/moments-f56512c1a76052d0800ff4825806dbf0.webp###

Application Ecosystem

For any Blockchain, the ultimate success depends on whether it can incubate a rich and diverse application ecosystem. Abstract's mission is to attract consumer-oriented "fun" applications from Web3 projects and mainstream institutions.

( Web3 project

Abstract is fully compatible with EVM, supporting the migration of existing Ethereum smart contracts, and facilitating cross-chain deployment. The platform has launched the "Resident Developer Program," providing developers with market support, technical guidance, and a monthly allowance. Developers can earn monthly XP rewards based on user participation, and outstanding projects have the chance to receive additional incentives. The live streaming platform will also promote featured games through embedded links to drive traffic to the applications.

Games are an important entry point for attracting Web2 users into the Web3 world. Among the top ten popular applications on Abstract, eight are game-related products. Popular games include "Pudgy World," "Bigcoin," and "BTC Mining Game," adventure titles like "Onchain Heroes" and "LOL Land," as well as the Pudgy IP game launched by YGG, and community projects like "Gigaverse."

By collaborating with mainstream NFT platforms, Abstract has enabled the buying and trading of game assets, further enriching the gaming ecosystem. Currently, over 120 projects have been deployed on Abstract, covering social applications such as "Gacha", trading platforms like "BuzzFun" and "Myriad", as well as games such as "Gigaverse", "Onchain Heroes", and "Multiplier".

The strong user base of Abstract allows new projects to quickly gain attention. For example, "Duper" and "Witty" attracted 50,000 users just a few days after their launch; the prediction market "Myriad" attracted nearly 500,000 users within two months of its launch. These success stories greatly enhance the confidence of developers and encourage more teams to invest in building.

![Abstract Chain Overview: How to Bring Public Chain Ecosystem to Mainstream Users?])https://img-cdn.gateio.im/webp-social/moments-882fde433307b256dff9855e23b597a1.webp###

( mainstream institutions

Abstract is actively collaborating with consumer-facing institutions, such as music and sports brands, to migrate their Web3 products on-chain. For example, digital collectibles similar to NBA Top Shots will be issued in the form of NFTs, allowing fans to purchase, hold, and trade. These sports and music enthusiasts align perfectly with Abstract's consumer positioning.

For institutions looking for on-chain partners, Abstract has natural advantages: Ethereum-level security, a user-friendly interface, and low-threshold access methods are all its core selling points. Although specific collaborations have not yet been officially announced, once launched, it is expected to bring a large number of mainstream Web3 users to Abstract, allowing them to truly immerse themselves in the on-chain experience.

Recently, the Oracle Red Bull Racing team launched an on-chain fan interaction project called "In the Moment" on Abstract, targeting the Gen Z and Gen A youth demographics. Combining classic F1 moments, it introduces digital ownership and interactive experiences. This project transforms viewers from passive spectators into active participants and is a multi-year strategic deployment aimed at attracting young people to convert their interests into a sense of belonging and even a "shareholder" mentality through collectible and interactive on-chain methods.

![Abstract Chain Panorama Analysis: How to Bring Public Chain Ecosystem to Mainstream Users?])https://img-cdn.gateio.im/webp-social/moments-2c897f126cda6d21408185918bf426a1.webp###

Core Concept: Consumer-Level Crypto

Luca Netz, co-founder of Abstract, clearly stated: the mission of Abstract is to create "consumer-grade crypto", which means building a large-scale popularization path for "blockchain applications that serve the daily lives of billions of people and meet their personal needs."

They believe that the best way to guide the first 50 million users into the crypto world is to focus on "non-essential consumption" scenarios, which are activities that bring joy, evoke emotional resonance, and can enhance the experience through blockchain technology.

Abstract Chain is the main platform for this consumer crypto vision. The unique characteristics of blockchain technology: digital ownership, censorship resistance, and borderless payment capability, enable the emergence of consumption scenarios such as gaming, socializing, expression culture (meme), collectibles, and more.