Since Japan declared Web3 a “national strategy,” more and more traditional companies in the country have merged or are considering integrating their businesses with Web3. Jangdeok Ko, the CEO of non-fungible token (NFT) marketplace SBINFT, has said. However, Ko admitted that many of these companies are still in the “trial-and-error phase” as they continue to explore the most effective ways to integrate Web3 into their operations.
Japan is taking the lead in promoting Web3
The SBINFT chief also attributes the growing interest of traditional companies in Web3 to the Japanese government’s promotion of the technology and its ambition to become a global leader in Web3. In fact, according to Ko, Japan is already ahead of many other countries in promoting Web3.
Despite its adoption by traditional companies, the Web3 industry continues to struggle with the issue of piracy, a problem that has plagued the sector since 2020. Commenting on the problem, Ko told Bitcoin.com News that the ease with which NFTs are minted has exacerbated the problem. While technological advances have alleviated the problem somewhat, they have not been able to eliminate it, the CEO said.
Commenting on Bitcoin.com News via Telegram, Ko sheds light on why SBINFT, which was acquired by Japanese financial services firm SBI in September 2021, is focusing on NFT tickets, characters and games. The CEO also discussed the measures his company has implemented to tackle the problem of NFT piracy. Below are Ko’s answers to all questions asked.
Bitcoin.com News (BCN): Can you briefly talk about how Japan’s blockchain gaming ecosystem is developing and the key factors driving its recent momentum? Can you also tell our readers what it will take for the country to become a globally competitive Web3 hub?
Jangdeok Ko (JK): Japan has produced a variety of globally popular characters in the fields of video games and anime. However, companies producing such IP are still very cautious about the blockchain ecosystem.
On the other hand, IP producing companies are still looking for the ideal tokenomics based on cryptocurrencies and NFTs to succeed in the blockchain gaming market, which could also be the next generation gaming market.
Square Enix, SEGA and Bandai Namco Entertainment are particularly active in Tokenomics. They have partnered with the OASYS chain, a game-specific chain from Japan, and take on the challenge of creating the next generation of Tokenomics-compatible blockchain games.
Moreover, the arrival of these major game makers has stimulated the market, and Japanese venture companies are all entering the blockchain game market. Most of them are preparing for the OASYS ecosystem.
We at SBINFT are also working to expand the market by partnering with them as a leading NFT marketplace in Japan that can be comfortably used by a wide range of companies from large corporations to venture firms.
Moreover, for Japan to become an international Web3 hub, it is necessary to first define detailed rules regarding crypto assets and equivalent tokens, and to create a situation where global companies can easily expand their operations in Japan.
In Japan, the government and private sector are actually more advanced in promoting Web3 than anywhere else in the world.
BCN: In your opinion, how inclined are Japan’s traditional companies to explore Web3 and why has SBI Group, Japan’s largest financial conglomerate, ventured into the NFT industry with SBINFT?
JK: Web3 is positioned as a national strategy and many companies are paying attention to it. That’s why many companies, even traditional ones, are considering combining their own businesses with Web3. However, many are still in the trial and error phase of figuring out how to combine their own business and Web3.
The SBI Group offers comprehensive internet-based financial services. It has a culture different from that of traditional financial institutions and is characterized by rapid business development, in addition to strategies that accommodate current trends and respond to changes. Particularly in the field of fintech, where technological innovation is advancing day by day, we are actively promoting the use of and investments in AI and blockchain.
The SBI Group also aims to develop businesses beyond finance, with finance at its core, and especially in the business area of the digital space with blockchain technology at its core.
In the process of developing a diversified business through group companies such as SBI VC Trade Co., Ltd., which operates a crypto asset exchange, and SBI Art Auction, which organizes art auctions, the Group also considered launching the closely related NFT service going to use. . To this end, it acquired SBINFT (formerly Smart Apps, Inc.) in September 2021 and also entered the NFT marketplace business.
BCN: Given the Japanese government’s support for Web3, there seems to be a lot going right if the country wants to become a Web3 innovation center. Can you shed light on the other side of the coin, namely the challenges and risks that you think could derail Japan’s Web3 progress?
JK: Japan has been very active in becoming the first country in the world to promote Web3 through government initiatives. The driving force behind these efforts is simply to become a leading player in the new era on which Web3 is based.
The Web3 Project Team, chaired by a member of the House of Representatives and consisting of private sector members, experts and lawyers, was established within the ruling ruling party and released a Web3 White Paper last year. The contents of the Web3 White Paper have also influenced the policies of the Japanese government. The team will continue to take the lead in actively promoting the project.
Therefore, at the moment there are no problems that hinder progress, but we are working positively enough to solve problems that other countries are facing.
BCN: Your new SBINFT Mits platform reportedly aims to simplify the terrifying ‘Wild West’ of blockchain for traditional businesses. Can you share how SBINFT Mits is helping old-school brands embrace Web3?
JK: For companies, starting a project with new technology or implementing new tools is a challenge. Starting an NFT project in particular requires specialist knowledge and in many cases a wide variety of tools. Therefore, there are cases where the introduction of NFT projects has not made progress due to concerns about the loss of operational efficiency due to the proliferation of management tools.
On the other hand, in the field of NFT projects by companies, there is a need for a one-stop Web3 service that maintains operational efficiency and can generate synergistic effects with the company’s products and services.
SBINFT Mits is a comprehensive NFT management support service that provides one-stop support for NFT issuance, community building and management, etc. Even if you have no knowledge of Web3, you can easily start an NFT project, making it is ideal for companies with the above issues and need to start an NFT project.
SBINFT Mits also supports measures to develop and acquire KOLs (Key Opinion Leaders) for a company’s products. The service is unique because it allows companies to use NFT to reward thought leaders while cyclically creating their own new thought leaders and loyal users.
BCN: Most NFT marketplaces are primarily focused on allowing artists to mint, sell, and resell their NFT artworks. However, your platform claims to be focused on practical NFTs like game characters and tickets. What was your thought process behind doubling in-game characters and other practical NFTs?
JK: SBINFT released the NFT Marketplace in 2021 with 100 approved artists. We currently have approximately 200 approved artists working with us. However, looking at the Japanese market, the NFT marketplace, with its focus on NFT artworks, is not extensive. This is because traders do not properly recognize the value of NFT artworks.
However, when it comes to the NFTs themselves, the practical use of NFTs is becoming more widely recognized. In particular, the utility of NFT is attracting attention in the fields of cards, characters and games, and major Japanese game makers and ticketing companies are entering the market one after another.
We would like to first work with major Japanese operators to increase public awareness of NFT by producing examples of NFT with utility, and in the future we would like to distribute examples of artworks and other uses of NFT to participants in the trade.
BCN: In recent years, NFT marketplaces are said to have made progress in preventing piracy of digital assets and monitoring for scams. How big do you think the problem of piracy and NFT fraud is, and what initiatives has SBINFT taken to protect the community?
JK: In the years since 2020, piracy and fraudulent projects have been rife, and with the creation of numerous services that allow anyone to freely issue NFTs regardless of the rights of the IP holder, a market full of piracy and fraudulent projects has been created, if anything.
Recently, the distribution of illegal NFTs has decreased, but not completely eliminated. Nor have any technological measures been found yet to stop this. This situation is not good for large IP holders.
We started from the beginning of our 2021 release as a marketplace with only authorized artists/projects to vigorously address the issues surrounding the distribution of pirated NFTs.
Do you agree with SBINFT’s approach to tackling NFT piracy? Let us know what you think in the comments below.
