Japan’s Kumamoto City Bolsters Innovative Blockchain Startups

Sony Network Invests $3.5M in Startale Labs to Drive Global Web3 AdoptionSony Network Communications, a prominent Japanese internet service provider, has made an investment of $3.5 million in Startale Labs, an innovative Web3 company based in Singapore. The primary objective of this collaboration is to establish an infrastructure that will promote the global adoption of Web3 technologies.Photo by Bastian Riccardi on UnsplashTelecom meets Web3Sony Network Communications, founded in 1995, offers high-speed fiber-optic broadband services and operates in various sectors of the telecommunications industry. The company is actively involved in advanced technology ventures such as the Internet of Things (IoT) and artificial intelligence (AI). Meanwhile, Startale Labs specializes in the Web3 domain, providing advisory services related to Web3, supporting the creation of layer 1 blockchains and applications, and collaborating with other entities to develop core Web3 functionalities.As part of this partnership, Jun Watanabe, the President and Representative Director of Sony Network Communications, will join Startale Labs as a director. He expressed his gratitude for the collaboration, emphasizing the deepening ties between Sony and Startale Labs. He highlighted the fruitful joint efforts already underway to advance Web3 technologies. Both companies share the objective of fostering an infrastructure that facilitates global Web3 adoption. Jun Watanabe said this initiative will lead to the emergence of revolutionary Web3 applications.Sota Watanabe, the CEO of Startale Labs, acknowledged Sony Group’s remarkable achievements across diverse industries such as gaming, entertainment, and financial services. He believes that Sony holds great potential in the Web3 sector, and Startale Labs is well-positioned to contribute its expertise and knowledge to this domain. With this partnership, Sota Watanabe envisions a collaborative effort that will not only foster the global Web3 infrastructure but also drive the creation of valuable and impactful Web3 applications.Sony’s Web3 expansionSony Group has been actively exploring opportunities in the Web3 field. Earlier this month, Sony Bank, another affiliate of Sony Group, partnered with Mitsui & Co. Digital Asset Management (MDM) to introduce MDM’s security token service, Alterna, to the Tokyo-based online bank’s customers. Through this collaboration, Sony Bank customers can invest in real-world assets, such as large-scale real estate properties, using security tokens provided by Alterna. This platform opens up investment avenues that were previously inaccessible to retail investors due to high capital requirements. Notably, the minimum investment requirement through Alterna is 100,000 yen.Government supportThere’s also been a positive move from the Japanese government for the Web3 and cryptocurrency industry. The Japanese National Tax Agency recently announced the revised corporate taxation rules pertaining to crypto assets. Under the new amendment, companies are exempt from taxes on unrealized gains from cryptocurrencies if the virtual assets were issued by the company and have been continuously held since issuance, or if they have remained subject to certain transfer restrictions since issuance.Startale Labs CEO Sota Watanabe welcomed this development on his Twitter account, stating that Web3 projects like Astar Network can now conduct business in Japan without moving their operations overseas. Meanwhile, he highlighted the importance of addressing the issue of corporate taxes on tokens issued by third parties in the future. He hoped for continuous engagement in constructive discussions with politicians and government agencies.

Korean Drama Studio Unveils Web3-Based Project Featuring BTS UniverseChorokbaem (CRB) Media, a renowned South Korean drama production studio, has revealed an innovative content distribution project based on Web3 technology, featuring the popular BTS universe, as reported by the Maeil Business Newspaper.Photo by Shubham’s Web3 on UnsplashBTS Universe-based dramaCRB Media announced on Monday its participation in Paris Expo Porte de Versailles, where it showcased a minute-long teaser of “YOUTH,” a drama that centers around the universe of K-pop sensation BTS. This new initiative by the Korean production studio aims to transcend the limitations of existing online streaming platforms.The Most Beautiful Moment in LifeThe production of “YOUTH” has been in the works since 2020 and revolves around the story that goes back to BTS’s 2015 album, “The Most Beautiful Moment in Life.” The BTS Universe has already seen successful adaptations across various entertainment platforms, including novels, webtoons, and short films.Web3 fan engagementAn official from CRB Media said that Web3 technology allows network participants to be both content consumers and providers, enabling fans who were previously passive consumers to monetize their engagement and foster an even more vibrant independent fandom culture.24 episodes starting in 2HThe drama series “YOUTH” comprises a total of 24 episodes, with one or two episodes set to be released weekly starting in the second half of this year.The series is directed by Kim Jae-hong, known for his work on “Beloved Eun-dong” and “Steal Heart,” and written by Kim Soo-jin, the talented screenwriter behind notable productions such as “Dazzling,” “Weightlifting Fairy Kim Bok-joo,” and “Songgot: The Piercer,” among others.CRB Media’s legal issuesMeanwhile, it’s been reported that the Seoul Southern District Prosecutors’ Office’s Financial Investigation Division 2 executed a search and seizure operation on CRB Media last week. The raid was conducted after the prosecution obtained circumstantial evidence indicating the studio’s potential role in an embezzlement scandal. The case involves Kang Jong-hyun, who stands accused of misappropriating a colossal sum of 62.8 billion KRW ($46.9 million) from affiliates of Bithumb, a major Korean cryptocurrency exchange. Kang is currently under suspicion as the clandestine owner of the exchange.

Disagreement has emerged within the Bitcoin blockchain community, revolving around the BRC-20 token standard. Domo, the pseudonymous developer behind the creation of the token standard, has publicly expressed his opposition to an upcoming upgrade proposed by the Hong Kong headquartered project, UniSat Wallet.Photo by Kanchanara on UnsplashDue diligence concernsOn Tuesday Domo took to the X social media platform (previously Twitter) to articulate his concerns. He voiced apprehensions about hastily implementing updates in BRC-20, asserting that such a rush could potentially harm the broader BRC-20 user community. Domo's resistance is rooted in his belief that UniSat Wallet's proposed updates lack due diligence and are being introduced precipitously without considering potential repercussions. He wrote:”Recognizing the serious implications and valuations involved, I believe rushing these updates in BRC20 is reckless, disregards their peer indexers, and could potentially harm the broader community of BRC20 users.” ‘Split’ rather than ‘fork’Conversely, UniSat Wallet has declared its intention to “follow the Ordinals Jubilee upgrade, to confirm that BRC-20 is still on Ordinals without splitting into an isolated protocol." Described as a "split" rather than a "fork," UniSat Wallet's approach adapts to the Ordinals Jubilee upgrade, a transformative change in how the Bitcoin blockchain manages tokenized assets. In mapping the way forward its proposing to take, UniSat outlined that it would publish a whitepaper on Jan. 31, describing it as “the most significant present we are able to deliver” for BRC-20, Ordinals and Bitcoin. The crux of the matter lies in the method and pace of implementing these changes. Domo's concerns reflect a broader sentiment within the crypto community, where the rapid pace of advancements often collides with the need for stability and thorough vetting. UniSat Wallet's proposed changes, though innovative, may be viewed as potentially destabilizing by certain community members, especially those deeply entrenched in the current BRC-20 standard. Striking a balanceThis development is pivotal, highlighting the dynamic and occasionally contentious nature of blockchain technology and cryptocurrency standards. Web3 project incubator and investor TrustlessLabs summed up the matter in a social media post on Wednesday, drawing the following conclusions:”This situation encapsulates a critical challenge in blockchain protocol development: finding the right balance between preserving stability and embracing technological advancements.” As technology evolves, divergent opinions on the trajectory of these advancements are inevitable. The ongoing debate between Domo and UniSat Wallet serves as a microcosm of the larger conversations transpiring in the crypto space about how to strike the right balance between progress and stability. The BRC-20 token standard, an experimental fungible token standard on Bitcoin, draws inspiration from Ethereum's ERC-20 standard. It allows the creation of fungible tokens using Bitcoin’s Ordinals protocol, constituting a significant breakthrough in cryptocurrency by enabling novel forms of tokenization on the Bitcoin blockchain. This disagreement not only spotlights a critical debate in the crypto realm but also emphasizes the delicate equilibrium between innovation and stability.