Sony’s Soneium could set the pace of the blockchain – is BlackRock preparing to follow?

How will Sony’s Soneium fare against existing blockchain giants, especially if BlackRock makes its expected move into the market?

Sony has long been synonymous with innovation and is now making a bold entry into the blockchain world with its latest initiative: Soneium.

On August 23, Sony Block Solutions Labs – a collaboration between Sony Group and Singapore-based Startale Labs – announced the launch of this new project.

Just a few days later, on August 28, Sony further introduced the “Minato” testnet for Soneium, along with an incubation program aimed at introducing developers to the new platform.

Soneium will be built on Ethereum (ETH) and Optimism’s OP Stack (OP), a highly customizable toolkit that allows developers to easily create their own networks.

According to Jun Watanabe, chairman of Sony Block Solutions Labs, Sony sees blockchain as a way to enrich lives and take creativity to new heights. With Soneium, the company aims to unlock new business opportunities and use cases and deliver value unique to web3 technology.

It’s important to note that Sony’s journey to web3 didn’t start with Soneium. The company has been steadily expanding its footprint in the crypto space, including acquiring Japanese crypto exchange WhaleFin – now renamed S.BLOX Co. – and Amber Japan, a digital asset trading service provider.

But what exactly is Soneium, how does it compare to its rivals and what can we expect from this project in the future?

Understanding Soneium’s core purpose

As a public blockchain, Soneium operates on an open network and invites participants from all walks of life to participate without restrictions.

What makes Soneium so special is its role as a layer 2 solution for Ethereum. This means it builds on Ethereum’s existing infrastructure, aiming to solve two of the biggest challenges in blockchain today: slow processing speeds and high transaction fees.

By handling data processing on its own layer, Soneium helps alleviate these problems, making the blockchain experience faster and more affordable.

One of the most exciting aspects of Soneium is its support for advanced smart contracts, which are crucial for creating decentralized applications, or dApps.

Developers also get access to a range of third-party tools designed to simplify the process of developing and launching apps on the Soneium network. This makes it a promising platform for innovation, offering endless possibilities for what can be built on the blockchain.

The recent launch of the Soneium testnet, known as Minato, marks an important step in this journey.

Designed to mirror the conditions of the mainnet, Minato provides developers with a realistic environment to test high-volume applications. This is essential to ensure that these apps perform smoothly under real-world conditions when they go live.

As stated, Minato also plays a crucial role in community building. Early access to the testnet allows developers and makers to gather valuable feedback, which is essential for refining their projects.

Users also benefit from this early access because they can experience and influence the future of these applications without risking their own assets. That’s because Minato uses a test version of crypto assets for in-app payments, creating a risk-free environment that encourages research and engagement with web3 technologies.

The Soneium Minato testnet is powered by Astar Network, a blockchain platform known for its multi-chain capabilities. Astar provides initial liquidity and a variety of fungible and non-fungible digital assets, fueling the early stages of Soneium’s ecosystem.

In addition to Astar, numerous other prominent blockchain projects and companies will be early experimenters on the network, including Circle (the publisher of USDC), Optimism, Alchemy, The Graph (GRT), and Chainlink (LINK).

Soneium is also introducing a builder-focused program called Soneium Spark, designed to attract visionary developers and makers and provide access to critical infrastructure, mentorship and industry partnerships.

Additionally, Sony is offering investments of up to $100,000 per team. Soneium Spark’s incubation period begins in mid-October and continues through the coming months.

Soneium’s battle for dominance

Soneium has already started forging key partnerships that could give it an edge in the highly competitive Layer-2 space.

One of the most notable partnerships is with Pyth Network, a decentralized data infrastructure known for providing real-time, high-fidelity price feeds.

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This partnership means that all projects building on Soneium from the ground up will have access to Pyth’s reliable market data, a critical component for applications in decentralized finance, web3 games, NFT marketplaces, entertainment services and more.

However, Soneium is entering a crowded and fiercely competitive tier-2 landscape, where it will face established players.

One of its most prominent rivals is Base, which recently reached a major milestone: 1 million daily active addresses. Base is known for its strong backing from Coinbase, one of the most recognized names in the crypto space. But Base is not the only competitor in the field.

Polygon (MATIC) is another major player, known for its scalability and cheap transactions. Polygon has become a go-to layer 2 solution for many developers, especially those who want to build scalable dApps without sacrificing security.

Then there’s Stacks (STX), which brings smart contracts and dApps to Bitcoin (BTC), offering unique opportunities for developers looking to leverage Bitcoin’s security while building on a layer-2 network.

Mantle (MNT), another emerging layer 2 solution, focuses on modular design and ease of integration, making it attractive to developers seeking flexibility and efficiency.

Each of these layer 2 networks has its strengths, and Soneium will need to build its niche to stand out.

Traditional giants embracing blockchain

The layer-2 blockchain space, which is already competitive with players like Base, Polygon and others, could soon become even more intense.

The latest rumors suggest that BlackRock, the world’s largest asset manager, may be gearing up to launch its own layer-2 blockchain network.

According to a report from Token Terminal, BlackRock is seriously considering this move as a natural extension of its growing involvement in the blockchain space, where it already manages a portfolio of blockchain-related products, including the iShares Bitcoin Trust (IBIT), and investments in Circle and Securitize, which oversees the on-chain money market fund BUIDL.

The only missing piece in BlackRock’s crypto puzzle is its own blockchain network – a move that seems increasingly likely.

If BlackRock launches its own layer 2 blockchain, it would follow a similar path to what Coinbase has done with Base. This would enable BlackRock to streamline the administration of its $10 trillion of assets under management across asset classes into a single, global, interoperable and transparent ledger.

The potential benefits are enormous: 24/7 operational capital markets, improved transparency and access for investors, lower fees and faster settlements. However, challenges such as the cost of blockchain implementation and regulatory uncertainties remain significant hurdles.

Sony’s Soneium and BlackRock’s potential layer 2 blockchain may target different segments – Sony with its focus on entertainment and gaming, and BlackRock with its financial products – but the underlying strategy is similar: leveraging blockchain to gain the edge remain in an increasingly digital world.

As the tier 2 space evolves, the entry of traditional companies like Sony and BlackRock could likely make the competition even more exciting and intense. Sony’s journey with Soneium is just beginning, and while the path is uncertain, the opportunities for growth and innovation are enormous.

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