Japan Smart Chain revealed to provide Japan a sovereign, Ethereum Equivalent blockchain | by Norbert Gehrke | Tokyo FinTech

Joichi Ito, President of Chiba Technical College and co-founder of Digital Storage, and Russell Cummer, Founder and former Chairman of Paidy (Japan’s main BNPL service), have collectively launched AltX Analysis KK to develop Japan Good Chain (JSC), a Japan-sovereign, Ethereum blockchain optimised for Japanese laws.

Japan Good Chain goals to unravel key regulatory and shopper safety challenges for digital transactions, unlocking sizable efficiencies for Japan-based corporations, customers, and innovators.

Background

Japan’s skill to leverage web3 applied sciences has been constrained by the shortage of compatibility between home laws safeguarding Japan-based customers and the event of those applied sciences overseas. This hole has left Japanese corporations hesitant to undertake blockchain for transformative use instances like funds, loyalty techniques, and user-friendly finance.

To handle these challenges, Japan Good Chain is a sovereign blockchain resolution that aligns with Japan’s regulatory framework. By resolving regulatory issues on the infrastructure stage, Japan Good Chain facilitates Japanese companies and customers to learn from sooner, cheaper, and safer digital companies.

Mission Description

Japan Good Chain is the sovereign blockchain for Japan. It’s a public Layer 1 Ethereum Equal blockchain validated completely onshore by Japan’s industrial leaders. JSC embeds digital KYC/AML strategies into the Layer 1 infrastructure layer with its pioneering Mizuhiki Protocol, constructed to scale back compliance burdens on operators and customers.

The Protocol accommodates an identification technique that customers can management themselves, mixed with a collection of eKYC instruments and companies optimised for Japanese laws. The Mizuhiki Protocol will likely be offered freed from cost to Japan Good Chain initiatives and end-users.

Mission: Japan Good Chain is dedicated to streamlining the Japanese blockchain ecosystem and general buyer expertise by specializing in shopper ache factors within the software layer that may be higher addressed on the Layer 1 blockchain.

Imaginative and prescient: Japan Good Chain’s imaginative and prescient is to allow widespread adoption of web3 in Japan by eliminating repetitive kind filling throughout purposes, and to permit customers to simply and safely transact with regulated companies with out oversharing pointless private info. Japan Good Chain will set a world precedent for safe, scalable, and sovereign digital transaction infrastructure.

Drawback it solves: Presently, regulated companies face excessive ranges of redundancy and monetary burden for servicing Japan’s buyer base with fashionable, cost-effective, and quick purposes in areas equivalent to gaming, funds, and finance. By addressing Japan’s regulatory necessities on the infrastructure layer, companies could confidently make investments long run into web3 purposes that unlock buyer delight.

Guiding Ideas

Japan Good Chain’s distinctive method to creating the situations for web3 adoption to thrive in Japan lies in its 4 guiding ideas as outlined under:

1. Precept of Sovereignty

Sovereignty — being inside the management of Japan and past the affect of outdoor regulatory and geopolitical forces is essential for JSC. Japan Good Chain is Japan’s sovereign L1: it’s validated onshore in Japan by key leaders in Japanese trade, and it’s constructed to adjust to and uphold Japanese laws. JSC is past the attain of international regulators and outdoors forces to the best extent doable.

2. Precept of Safety

The standard of 1’s digital property being safe. Japan Good Chain is Ethereum Equal, and leverages Japan’s prime engineering expertise to fortify Ethereum’s excellence with sturdy infrastructure.

3. Precept of Security

Prospects of regulated on-chain companies (equivalent to stablecoins) can safely work together with others, realizing that accounts have been verified and Japan’s anti-money laundering and anti-social compliance insurance policies have been embedded on the infrastructure layer.

4. Precept of Scalability

The flexibility of the platform to satisfy the wants of an ever-growing buyer base. Japan Good Chain will provide L2 as a service from launch, permitting pre-existing and future L2 initiatives to undertake compliant infrastructure at a considerably decrease price to what’s being presently provided.