The week which began with the buzz of TOKEN2049 in Singapore is now gearing up for the Formula 1 weekend. Just a stone’s throw from the heart of the action, we sat down with Sam Seo, the Chairman of the Kaia Foundation, in his downtown Singapore office.
Despite the high-octane atmosphere outside, the conversation was firmly focused on the issues faced in the blockchain and Web3 space today, from the technical challenges of decentralized platforms to the human hurdles—namely, how to make Web3 accessible to everyday users who might still be intimidated by the technology.
We also discussed which trends he believes are promising and which are overhyped. As Web3 pioneers look to onboard the next billion users, we learned how Kaia is breaking down barriers to mass adoption.
Sam’s entry into Web3 and its evolution
How did you end up in Web3?
“I was originally a computer scientist, I did a PhD in computer science, basically doing pure research until 2017.
I worked as a research engineer at a company but, in 2017, people went crazy about ICOs and blockchain. At the time, we didn’t really use the term Web3. The defining moment was when one of my friends asked me about cryptocurrencies, which led me to read up and sparked my interest in it.”
A friend’s inquiry about digital tokens led Sam to read Bitcoin’s white paper. What started as a favor for a friend quickly turned into a fascination. The Bitcoin paper introduced him to the philosophy of decentralization, ownership, and the technical brilliance behind blockchain systems.
Dr. Sam Seo, Chairman Kaia Foundation
That was the beginning which opened the door to a broader exploration. Sam mentioned that he began participating in hackathons and other events that brought him closer to blockchain core development.
“It was 2018 and one of the IT companies in South Korea, Kakao, started their blockchain platform called Klaytn, and they were looking for engineers and other talents from different areas. And I applied, and then I joined the Klaytn team. Yes. That was the 2018.”
He steadily rose through the ranks, from protocol engineer to CTO, eventually becoming the Director. Fast forward to today, Sam is the Chairman of Kaia Foundation, a position he took on after Klaytn merged with another blockchain platform, Finschia.
What are the most unexpected ways that you’ve seen your technology being used?
“In the age of people rapidly issuing tokens and NFTs, most of everything is related to speculative assets, but in terms of adoption, and I mean real adoption, it still isn’t really part of everyday life.”
“People using crypto assets for purchase and payments, but the blockchain is capable of much more than that and should rise above the assets itself,” he added.
Of course, the assets are the core part of blockchain technology, Sam asserted and stressed on the point that we need real-life use cases in our lives.
“With Kaia, what we are trying to solve is the adoption problem of Web3 technology, through integration with existing channels like Kakao or LINE Messenger.”
In Sam’s words, the key to unlocking true Web3 mass adoption lies in creating a seamless end-user experience. Despite the continued growth of digital tokens and decentralized applications (dApps), the technical barriers are still too high for average users. There is complexity surrounding private keys and seed phrases, and the ever-present risk of scams deters many from fully engaging with blockchain ecosystems.
“So Kaia does like to lower the barrier and hurdles for normal users, but how can you do that?” Sam asked rhetorically, “Our approach is, as mentioned earlier, to leverage the existing, very familiar and comfortable environment of messengers. By connecting these messengers to Web 3, we are going to bring Web 2 users to Web 3 – and this is just the beginning.”
What a smart way to allow users to get familiar with Web3.
Bringing Web3 to the masses and asset tokenization
After a brief discussion about Web3 adoption, we asked Sam about some trends he considered most promising and those he thought were overhyped.
Sam pointed out that the economic opportunities created by tokens, whether through ICOs, NFTs, or meme coins, have been a consistent driver of innovation. However, at the heart of these trends is the community’s incentive system.
“Trends are basically types of implementation.”
According to him, Web3 is fundamentally about communities, and how they are built, motivated, and rewarded. In his view, the incentive structures that underpin these communities are the core innovation of Web3.
In a work where everything is tokenized, we asked Sam what kind of token Kaia would need to launch for its users.
He identified two primary categories: pure digital tokens and real-world asset tokens. While digital tokens, including cryptocurrencies and NFTs which represent a large portion of current blockchain applications are much more prevalent, Sam also saw immense value in tokenizing real-world assets.
“I see the value of the real world asset tokens because they have intrinsic value behind the tokens”.
By representing assets like real estate, gold, or even ships on the blockchain, Kaia can provide users with greater liquidity and accessibility to traditionally illiquid assets.
In Sam’s view, the future of blockchain will be driven by a combination of these two types of tokens. Digital tokens offer innovation and experimentation, while real-world asset tokens provide stability and intrinsic value. Kaia aims to create a balanced and strong ecosystem that appeals to a wide range of users and investors.
Are we ready with low-code solutions?
We got a full view of tokenization and digital assets categorization so far. Now was the time to see how Kaia looks at low code and no code solutions playing a role in the metaverse or in onboarding the next 1 billion users as a whole.
“In terms of adoption of technology, the low code environment is really critical for reducing the technical barriers for developers, allowing faster development and better integration with platforms like metaverse environments.”
This kicked our mind to ask what Kaia would love to build if gas fees weren’t a thing in Web3.
Sam had a very interesting answer to this, he said “One feature that I want to build on Kaia is gas abstraction.” On top of this, he mentioned, “Kaia already provides gas delegation features.”
Gas delegation means Web3 service providers on Kaia can pay the gas fee on behalf of the user, allowing users to enjoy their services without having to pay gas fees.”
But there is another approach to it that Kaia is thinking about. Sam added, “What if we can also allow the users to pay gas fees with other tokens? That was the main question that we had, and then, we designed the mechanism that will enable this feature and will be working to implement it.”
“Gas abstraction will be built and launched in the near future further to streamline the Kaia user experience for mainstream adoption.”
Why Kaia?
But how does Kaia tackle the challenges?
“The biggest challenge that Web3 is facing now is user onboarding.”
The technology is advancing rapidly, with innovations in Layer 1 and Layer 2 solutions, zk-rollups, and more, but the UX of Web3 platforms still leaves much to be desired.
In his words,” The UX problem is the most challenging one for normal users because people are sometimes scared about the cryptos and the interface. We have to improve the UX if we ever hope to onboard the rest of the world.
By creating user-friendly interfaces and addressing security concerns, the industry can attract more users and drive the widespread adoption of the ecosystem.
Can’t agree more with Sam on this. After this topic we mentioned how Telegram is growing its existence in the industry using the TON network. We asked if there is a chance that Kaia has a similar relationship with Kakao and KakaoTalk or any other ambitions of the same way.
“We are also inspired by what Telegram and TON are doing.”
“We saw how they utilize Telegram to onboard more users and to give a convenient or simplified UX for users. Coincidentally,, we are also planning to launch a very similar feature called Mini Dapps.” He added Mini Dapps online will be launched soon, hopefully within this year.
“With LINE messenger we can also do the same thing with KakaoTalk. We’ll be working on this Mini Dapp environment inside LINE messenger, with the first Mini Dapps launching hopefully in November this year.”
Clash of Super apps?
Just like how Elon Musk is trying to build his super app, do you see the nearest future as the clash of super apps? We curiously asked Sam.
He replied, “Super apps tend to gain widespread adoption in many countries, so it only makes sense to leverage them to drive Web 3 adoption.”
“For me, super apps would be the most promising environment for Web 3 and its adoption. Platforms like LINE, Kakao, or other messengers would be attracting more users and then would be providing a convenient environment.”
Written by Yaroslav Belkin and Ashish Kumar
The week which began with the buzz of TOKEN2049 in Singapore is now gearing up for the Formula 1 weekend. Just a stone’s throw from the heart of the action, we sat down with Sam Seo, the Chairman of the Kaia Foundation, in his downtown Singapore office. Despite the high-octane atmosphere outside, the conversation was
Amazon’s journey from a modest online bookstore to the world’s largest online retailer is a narrative of innovation, disruption, and relentless ambition. Today, Amazon dominates the e-commerce landscape, setting the standard for online shopping with its vast product selection, lightning-fast delivery, and customer-centric approach. This article explores the evolution of Amazon’s leadership in online shopping, examining the key strategies, innovations, and challenges that have shaped its rise to the top.
The Early Days: From Bookstore to Everything Store
Amazon was founded by Jeff Bezos in 1994 as an online bookstore, capitalizing on the internet’s potential to reach a global audience. The decision to start with books was strategic; books were easy to ship, did not require much storage space, and had a universal appeal. From the beginning, Bezos envisioned Amazon as more than just a bookstore. His long-term goal was to create the “everything store,” a one-stop-shop where customers could find and purchase anything they needed online.
The initial success of Amazon was driven by its innovative approach to e-commerce. While traditional bookstores were limited by physical space, Amazon offered an extensive catalog of books that was virtually limitless. The company’s early focus on customer satisfaction, with features like customer reviews, personalized recommendations, and a user-friendly interface, set it apart from competitors.
By 1997, Amazon had gone public, and its rapid growth continued. The company began to expand its product offerings beyond books, gradually adding categories like music, electronics, and toys. This diversification was essential to Amazon’s strategy of becoming the go-to online retailer for all consumer needs. The company’s ability to offer a wide range of products, combined with its commitment to customer service, established it as a leader in online shopping.
Innovation and Expansion: The Prime Revolution
One of the most significant milestones in Amazon’s evolution was the launch of Amazon Prime in 2005. For an annual fee, Prime members received free two-day shipping on eligible purchases, a proposition that was revolutionary at the time. The introduction of Prime was a game-changer, transforming customer expectations and further solidifying Amazon’s leadership in online shopping.
Prime was more than just a shipping service; it was a strategic move to create customer loyalty. The subscription model incentivized customers to make Amazon their default shopping destination, as the more they used Prime, the more value they received. Over time, Amazon expanded the benefits of Prime to include streaming video and music, exclusive deals, and other perks, making it an indispensable service for millions of customers.
The success of Prime can be measured by its membership numbers, which have grown exponentially over the years. As of 2024, Amazon Prime has over 200 million members worldwide, a testament to the value it offers. The Prime membership model has been so successful that it has influenced the broader retail industry, with many competitors launching their own subscription services in response.
The Technology Edge: Fulfillment and Logistics
Amazon’s dominance in online shopping is not just a result of its vast product selection and customer-centric approach; it is also rooted in its technological prowess. The company has invested heavily in building a state-of-the-art fulfillment and logistics network, which has been a critical factor in its ability to offer fast, reliable delivery to customers.
Amazon’s fulfillment centers, which are strategically located around the world, are marvels of automation and efficiency. These facilities use advanced robotics, artificial intelligence, and data analytics to manage inventory, process orders, and ship products with unparalleled speed. The company’s ability to deliver products quickly and accurately is a key reason why customers choose Amazon over other online retailers.
In addition to its fulfillment centers, Amazon has developed a vast logistics network that includes its own fleet of planes, trucks, and delivery vehicles. The company’s investment in logistics has allowed it to reduce its reliance on third-party carriers like UPS and FedEx, giving it greater control over the delivery process. This vertical integration has enabled Amazon to offer services like same-day and next-day delivery, further enhancing its competitive advantage.
Moreover, Amazon’s logistics innovations extend beyond its own operations. The company’s delivery service partner (DSP) program has created opportunities for small businesses to operate delivery routes for Amazon, while its crowd-sourced delivery platform, Amazon Flex, allows individuals to deliver packages using their own vehicles. These initiatives have expanded Amazon’s delivery capacity and ensured that it can meet the growing demand for fast shipping.
Expanding the Ecosystem: Marketplace and AWS
Another key component of Amazon’s success in online shopping is its ability to create a comprehensive ecosystem that extends beyond retail. The Amazon Marketplace, launched in 2000, has been instrumental in expanding the company’s product selection and driving revenue growth. The Marketplace allows third-party sellers to list their products on Amazon’s platform, giving customers access to a wider range of goods and enabling Amazon to earn a commission on each sale.
The success of the Marketplace has been staggering. Today, over half of the products sold on Amazon are from third-party sellers, many of whom are small and medium-sized businesses. The Marketplace has also been a critical factor in Amazon’s global expansion, as it allows sellers from around the world to reach customers in different markets without the need for a physical presence.
In addition to the Marketplace, Amazon Web Services (AWS) has played a crucial role in the company’s growth and profitability. Launched in 2006, AWS offers cloud computing services to businesses, allowing them to store data, run applications, and scale their operations with ease. AWS has become the backbone of the internet, powering everything from startups to large enterprises. The revenue generated by AWS has given Amazon the financial flexibility to invest heavily in its retail operations, including its logistics network, Prime, and original content for Prime Video.
Challenges and Criticisms
While Amazon’s leadership in online shopping is undeniable, it has not been without challenges and criticisms. The company’s dominance has raised concerns about its impact on competition, with critics arguing that Amazon’s scale and market power give it an unfair advantage over smaller retailers. There have also been concerns about the treatment of workers in Amazon’s fulfillment centers, with reports of grueling conditions and low wages sparking public outcry and calls for better labor practices.
Amazon has also faced scrutiny over its impact on the environment. The company’s rapid delivery services, which require a vast logistics network, contribute to carbon emissions and environmental degradation. In response, Amazon has pledged to achieve net-zero carbon emissions by 2040 and has invested in renewable energy and electric vehicles to reduce its environmental footprint.
Despite these challenges, Amazon continues to grow and innovate, constantly pushing the boundaries of what is possible in online shopping. The company’s ability to adapt to changing consumer preferences, invest in technology, and create a seamless shopping experience has ensured its position as the leader in e-commerce.
The Future of Amazon in Online Shopping
As Amazon looks to the future, it faces both opportunities and challenges. The rise of new technologies like artificial intelligence, machine learning, and automation will continue to shape the e-commerce landscape, and Amazon is well-positioned to leverage these innovations to enhance its operations and customer experience.
The company is also likely to continue expanding its ecosystem, integrating its retail operations with other services like AWS, Prime Video, and Alexa. This integration will further entrench Amazon in the daily lives of consumers, making it even more difficult for competitors to challenge its dominance.
In conclusion, Amazon’s leadership in online shopping is the result of a relentless focus on customer satisfaction, innovation, and scale. From its early days as an online bookstore to its current status as a global e-commerce giant, Amazon has consistently pushed the boundaries of what is possible in retail. As the company continues to evolve, it will undoubtedly remain a dominant force in the world of online shopping, shaping the future of commerce for years to come.
