Exclusive Interview with Astar Founder: Sounding the Horn for Japan's Web3, "Sony Chain" is About to Welcome Major Updates

Interview: Zen, PANews

Written by: Zen, PANews

In the "lost thirty years," Japan missed the entrepreneurial wave of the internet era, and the vast country has yet to produce a single local internet giant. In 2023, Japan's GDP was surpassed by Germany, dropping to the fourth largest economy in the world. Acknowledging past mistakes, the Japanese government began relaxing cryptocurrency policies last year in an attempt to catch up with the new wave of internet development represented by Web3.0.

Thanks to the easing of regulatory policies and reduced uncertainty, many large Japanese companies have begun actively participating in the Web3 space. The significant capital and R&D capabilities they bring will play an important role in the development of the Web3 ecosystem, promoting the advancement and popularization of Web3 technology. Among the many traditional Japanese companies entering Web3, Astar Network, the largest public chain in Japan, often stands out. Recently, Astar made headlines by forming a joint venture with Sony and announced plans to launch a "Sony Chain" that benchmarks Base.

Recently, as Astar Network founder Sota Watanabe visited China, PANews arranged an interview with him. During the conversation, Sota shared his personal experiences and the development history of the Astar project, revealing some details about the recent developments regarding the "Sony Chain," which has garnered public interest.

Sota Watanabe: Entrepreneurial Journey and Traveling the World

Before the COVID-19 pandemic, Sota, who had just founded Astar Network (then known as Plasm Network), visited China multiple times, leaving footprints in cities like Beijing, Shanghai, and Hangzhou. Years later, upon returning to China, Sota and his Astar are no longer newcomers. Today, Astar is the largest blockchain public chain in Japan, and Sota himself has become a well-known entrepreneur in the Web3 industry, serving as a director of the Japan Blockchain Association. Additionally, on the day of the interview, the Japanese Ministry of Economy, Trade and Industry announced the recruitment of companies for the "2025 Digital Public Goods Demonstration Project Utilizing Web3 and Blockchain," with Sota participating in its system and design as a member of the advisory committee.

"As an entrepreneur, it is very important to see the world with your own eyes. When deciding on long-term strategies, especially regarding cryptocurrencies, which are decentralized, we need to collaborate with many people from different countries," Sota said, noting that before this trip to China, he had just returned from Mexico and spent a few days in Japan.

In fact, Sota began traveling the world during his university years, witnessing many social issues such as poverty and discrimination. After feeling the disparities in the world, he joined a non-profit organization. "I can bring happiness to ten people in front of me, but there are many more who are out of reach. However, through internet technology, we can empower people. When I started my business, I considered whether to choose artificial intelligence or blockchain, but I ultimately chose the latter because it empowers people."

What is Astar's Secret to Gaining Support from Sony, Samsung, and Others?

In early 2022, Astar Network launched its mainnet and gradually went live on major exchanges like Binance, OKX, and Upbit, entering a phase of business expansion. From this period, Astar shifted its focus to domestic development in Japan and received support from several traditional industries and Web3 giants.

Astar signed cooperation agreements with Japanese telecom operator NTT Docomo and received sponsorship from automotive giant Toyota for the Astar Network hackathon. After establishing a foothold in the Japanese market, Astar expanded overseas, securing investments from Samsung and UOB, and became the first user of Polygon's new "AggLayer" technology to launch the Ethereum-based Layer 2 solution Astar zkEVM. Astar zkEVM has attracted several well-known companies and entrepreneurs, including Deloitte Tohmatsu, which is developing a baseball-themed NFT game based on it, and Yoake, a new entertainment company co-founded by Yasushi Akimoto, one of the creators of AKB48 and Nogizaka46, which will create entertainment content and idol economy within the ecosystem.

The business giant that has collaborated most deeply with Astar Network is Sony, a comprehensive group involved in electronics, semiconductors, entertainment, and finance. In February 2023, Sony Network Communications, a subsidiary of Sony Group, partnered with Astar Network to launch a Web3 incubation program. Since then, the collaboration has deepened, with Astar's development company Startale Labs receiving a $3.5 million investment from Sony Network Communications a few months later. In September 2023, the two parties established a joint subsidiary, "Sony Network Communications Labs Pte. Ltd." According to BizFile, Sony Network Communications' stake in Startale Labs has been transferred to the group company, indicating that the strategic position of "Sony Chain" has been further elevated, and the project may enjoy a larger budget and access to more resources from Sony.

During the interview, Sota also shared Astar's secrets to business expansion. "Many people focus too much on technology, starting from the technology and then considering user experience. We believe it should start from user experience and then develop the technology." He noted that almost all technological inventions in computer hardware and software originated in the United States, while East Asia, represented by China, Japan, and South Korea, excels in commercializing introduced technologies, which is an advantage for Asians. "Another strategy is storytelling," Sota added. Japan has experienced economic stagnation for the past thirty years, and Web3, as the next wave of IT, has become a major trend that the government must invest in. "The Japanese government and the Japanese people share this narrative, so I can talk to many government officials, large company personnel, and entrepreneurs because we share this narrative."

Aspiring to Become a Global Project, Focused on Itself

However, Sota does not wish to focus solely on the Japanese market. His visit to China is primarily to discuss cooperation with several well-known internet companies. "We are not satisfied yet. Japan is an important market, but we hope to create a global project, expanding throughout Asia, especially hoping to enter the U.S. market."

"My mission is to popularize Web3," Sota stated, noting that the adoption rate of cryptocurrencies and Web3 is only 3% of the global population. "This is an incremental game, so what we need to do is bring the remaining 97% of people into this ecosystem. Astar will leverage Sony and other companies to bring large numbers of people into blockchain." He emphasized, "We hope to drive the Japanese economy and lead the development of the Web3 industry; this is what Astar and Sony aim to achieve." Yet, even with the goal of becoming a global blockchain, establishing a successful foothold in the local market remains the top priority. Sota admitted that the Japanese government is very supportive of them, and as Japanese entrepreneurs, they need to achieve milestones such as becoming one of the top five or top ten projects; otherwise, even with government support, they cannot form a narrative. "So it depends on us."

With Sony's Entertainment Empire Behind It, How Much Expectation Can "Sony Chain" Bring?

The competition in the public chain ecosystem has now reached a fever pitch, making it quite challenging for each to retain its "small plot of land." The timing of "Sony Chain" entering the fray undoubtedly faces many challenges. When asked about the core competitive advantages of "Sony Chain," Sota pointed out that as a business giant, Sony has a wide-ranging entertainment ecosystem that spans movies, games, music, and more, while Coinbase is a cryptocurrency company, and Telegram is a social networking company. "So, based on Sony's resources and influence, we can truly bring millions unfamiliar with Web3 into this ecosystem. Just like everyone uses the internet in coffee shops without knowing about TCP/IP and HTTP protocols. We hope to achieve this through blockchain collaboration with Sony."

Sony's cameras, audio-visual digital products, game consoles, and televisions are highly recognized and well-known, and in China, the slogan "Sony is great" has become widely circulated, giving many the impression that Sony is merely an electronic consumer brand. In reality, Sony has made significant strides in the entertainment sector, including acquiring the rights to the superhero IP "Spider-Man" and producing the globally popular anime "Demon Slayer" through its subsidiary Aniplex in recent years. According to financial reports, the total sales of Sony's three major entertainment businesses—gaming and network services, music, and film—account for nearly 60% of the group's total sales in the 2023 fiscal year.

This emphasis on cultural IP aligns with Sony's core strategy. Sota stated that one of the core strategies of "Sony Chain" is to introduce a large number of intellectual properties and then explore new ways for Web3 projects to collaborate with IP on the blockchain through revenue sharing. "The business model has not been fully determined, but we can ensure authenticity on the blockchain." He mentioned that "Sony Chain" will initially start with deploying Web3 projects and, in the long run, will introduce elements from gaming, music, and other fields.

"But we will focus on user experience, not just minting NFTs and conducting simple transactions. User experience is very important; they don't need to know whether they are using Web3 or Web2. This is the best user experience we want to achieve," Sota added. Regarding more detailed information about "Sony Chain," Sota is currently unable to disclose much. However, he revealed to PANews that a significant update for the project will be announced in August this year; additionally, Astar will also undergo a new brand upgrade and milestone in the coming months.

Accelerating Mass Adoption by Leveraging Established Giants' Extensive Touchpoints

In today's Web3 industry, there is a pressing pursuit for mass adoption among practitioners, while the landscape is also rife with fraud, asset risks, and excessive speculation. Sota believes that the view held by the U.S. government and some Japanese politicians that cryptocurrencies are merely a gambling game is based on their judgment of the current market situation. "Through practical use cases, we need to prove ourselves and convince political leaders and regulators that cryptocurrencies are no longer just a speculative tool." He stated that industry practitioners need to provide real solutions that help people improve their lives. Cryptocurrencies should not just be the privilege of the wealthy; they should also benefit those with little power.

Regarding the topic of mass adoption, Sota mentioned that the use of Web3 technology will not be the only reason for Japanese companies to adopt it; Web3 itself is no longer a distinguishing factor. "I think the actual benefits and user experience are more important. We are not talking about blockchain; we are talking about solutions that improve user experience."

Sota also cited the story of early Microsoft growing into a giant with the help of IBM and later supporting OpenAI as an example. He pointed out that achieving mass adoption is crucially about leveraging existing assets and touchpoints, as new Web3 companies alone cannot reach billions of users in a short time; it requires twenty years. "Therefore, Web3 needs to utilize existing large companies and products to achieve this goal, as they have a unique advantage in pushing blockchain into the mainstream."