This paper combs the development status of blockchain in Japan: blockchain applications are implemented in many fields

Published on 1/14/2022   510 views   0 Comments  

Original title: what are the applications of blockchain in Japan

Japan is the third largest economy in the world, and its government and society have a positive attitude towards the development of blockchain and crypto. Because Nakamoto, the initiator of blockchain, is considered to be from Japan or a Japanese, Japanese society generally holds a friendly or even supportive attitude towards blockchain.

In terms of policy, Japan has adopted the payment services act (PSA) to recognize crypto as legal property, treat the transaction income generated by crypto as miscellaneous income, and tax investors accordingly. It can be said that the policy level has recognized the status of crypto and ensured the development of crypto in Japan.

Blockchain will continue to develop in depth in 2021 and be applied in many fields. For this, Japan is at the forefront of the world in blockchain application. Japan's blockchain applications include real estate registration, identity registration, inter-bank clearing, bitcoin insurance, supply chain finance and consumer payment.

Real estate field

Previously, the Japanese government planned to develop a large-scale project to register all real estate in towns, farmland and forest areas into a single blockchain ledger. The Japanese government will include about 230 million plots and 50 million buildings registered in Japan into the blockchain ledger, which will also include the details attached to these properties (such as details of collateral) and the detailed price of real estate sales. This move will vigorously promote the application of blockchain at the government level.

According to the previous disclosure of the Japanese government, the test will be conducted in the selected cities in 2018. If the test is successful, the Japanese government will put all real estate registrations on the blockchain in the next five years. Today's progress is still in the state of testing and evaluation.

The Japanese government seeks to combine all the data from the government real estate database into a visual data record, so as to solve the previous inconsistent and scattered data management of the Japanese government. In Japan, local governments, judicial and land management departments maintain their own property rights registration, which leads to problems such as non-standard and non-uniform data. Blockchain can solve the above problems.

The traditional paper registration cannot be updated in time to reflect the people's ownership of real estate. Previous surveys by the Japanese Ministry of justice showed that the land registration records of 6.6% of urban landowners and 26.6% of small and medium-sized cities and mountainous areas have not changed in recent 50 years. The blockchain platform can also realize cross reference of data. For example, if part of the property is cultivated land, the user will be recorded in the cultivated land registration. Combined with local data, it is easier to understand who is responsible for the vacant land or buildings.

The integration of Japanese real estate data can improve the efficiency of real estate transactions, help more and more Japanese vacant real estate sales and help the government accurately redevelop vacant land.

In 2019, Japanese real estate companies Sekisui house, KDDI Corp and Hitachi said they were trying out an information sharing blockchain platform for real estate leasing. The telecommunications company KDDI provides authentication services, while Hitachi uses an Ethereum based platform.

Shamaison, a sub brand of Sekisui house, owns a large number of managed rental apartments. Shamaison started a pilot plan in March 2021 to launch an application that allows tenants to view, submit lease applications and browse contract processes (based on blockchain). Originally announced in June 2020, the pilot program aims to create a one-stop software for customers to make tenants' leasing work faster and more efficient. Sekisui house explained in its 2021 sustainable development report that when multiple computers connected to the Internet share transaction history and other data, blockchain technology is very suitable to ensure information security among multiple enterprises.

In April 2020, nexchain alliance was officially established in Japan with 18 members, including Kansai Electric, Tokyo gas, Sumitomo Mitsui insurance and Tokyo Marine Insurance. Nexchain alliance aims to achieve secure data sharing among enterprises and create new services, not just related to real estate.

identity authentication

In 2017, Japan's Financial Services Authority (FSA) developed a blockchain driven platform. The platform will enable Japanese customers to share their personal information among multiple banks and financial institutions. This platform allows bank account holders to register a shared ID, and then use this shared ID to open accounts between different banks.

This shared ID saves the personal information that needs to be filled in again when opening a new account in a new bank. The personal information and data saved by this shared ID will be input, recorded and safely stored on a shared blockchain jointly developed by FSA and other financial institutions.

In addition, on February 26, 2019, Softbank group, a well-known Japanese investment company, announced to jointly launch a blockchain based identity recognition and authentication project with tbcasoft, a blockchain startup in the United States. The project plans to use zero knowledge proof and distributed ledger technology to protect personal identity information from theft.

In this regard, Takeshi Fukuizumi, vice president of Softbank, said that individuals should create encrypted digital identities instead of using and storing multiple user names and passwords in places with uneven levels of privacy protection. The working group is supported by the telecom operator blockchain Alliance (CBSG) launched by tbcasoft. In addition to tbcasoft and Softbank mentioned in the article, the founding members of the alliance also include sprint, an American telecom company, and Yuanchuan Telecom in Taiwan.

Inter bank clearing

In January 2018, Fujitsu will cooperate with Mizuho Financial Group, Sumitomo Mitsui Financial Group (SMFG) and Mitsubishi UFJ Financial Group (MUFG) to develop point-to-point remittance services using blockchain. Fujitsu has developed a cloud based blockchain platform. The above three banks can jointly use the fund transfer between individuals, and a smartphone application that allows users to process different steps of remittance, deposit and transfer, including withdrawal.

Previously, Fujitsu, Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group verified whether the system can associate the personal transfer account established on the platform with the user's actual bank account. They also further confirmed whether the new platform can accurately and safely handle a series of processes, including value transfer between individual transfer accounts and clearing and settlement. They issued a statement saying the experiment was very successful.

Bitcoin insurance

Previously, 01 blockchain sorted out the information of some crypto exchanges, including Japanese exchanges. Due to the frequent theft incidents, major exchanges have launched bitcoin insurance.

Sumitomo Mitsui insurance company from Tokyo and bitflyer (Japan crypto exchange) have launched a new product, which will enable bitcoin exchange and its customers to insure bitcoin assets. In addition, coincheck is jointly launching a similar product with Tokyo Marine Nikko Fire Insurance Co., Ltd.

According to the Nikkei Shimbun, Sumitomo Mitsui insurance company and bitflyer's insurance products will provide compensation services for losses caused by default or hacker attacks, with insurance amounts ranging from 10 million yen to 1 billion yen (about 550000 to 55 million yuan). At the forefront is the claim range of the insurance product, which also includes losses caused by internal accidents and improper operation of employees. In addition, the insurance company will also pay the follow-up expenses of the accident, such as customer communication and litigation losses. For example, Mt. GOx, which is now bankrupt (shocked in 2015 and lost 850000 bitcoins), has now received lawsuits from Canada and the United States.

Table 1 hacked time and loss amount of crypto exchange in the past

Data source: 01 blockchain

Supply chain finance

In April 2017, Mizuho bank, a subsidiary of Mizuho Financial Group, Japan's second largest financial institution, and IBM announced the joint development of blockchain trade finance platform. Based on blockchain solutions, the platform aims to improve the efficiency of supply chain and trade processes. The goal of the platform is to realize the fast and safe exchange of digital transaction documents and supply chain transaction data; Among them, the characteristics of blockchain are tamper proof, which improves the transparency and credibility of all parties to the transaction.

The institutional sectors involved in the platform include exporters, importers, shipping companies, insurance companies, port operators and port authorities. The above institutions will share timely and effective shipping transaction data on the platform. This will make the overall message exchange more efficient.

In this regard, Masao sanbe, manager of IBM's Japanese sales department, said that the Mizuho Financial Group and Mizuho bank project marked an important step in the actual financial and trade operation of the blockchain. IBM Japan has seen the blockchain's ability to optimize trade and financial services by cooperating with the global trade network to digitize documents and processes.

Consumption payment

In October 2017, remixpoint, a Japanese energy company, launched a new electricity service to customers all over Japan, which includes bitcoin payment. In the system, customers who use bitcoin to pay for electricity can enjoy a discount (about 3%). Bitcoin payment is mainly handled by the company's crypto exchange bitpoint.

Bitpoint is a licensed crypto exchange based in Tokyo, Japan. Bitpoint has branches in Hong Kong, South Korea, Taiwan, Malaysia and Panama.

In addition to paying the electricity bill, bitpoint also cooperates with the airline letao airlines to provide bitcoin payment services for its flights and affiliated stores. Together with evolving Asia, bitpoint also provides bitcoin payment options for more than 1400 hotels and restaurants in Japan.

In this regard, remixpoint said that their target customers are enterprises and retailers. Generally, the electricity charges of low-power customers in the retail electricity market are less than those of high-power customers, so there are less costs that can be saved through new services. The company has opened an account at bitpoint to facilitate customers to pay with bitcoin and save expenses. We will promote crypto settlement in Japan through payment services, which can reduce remittance and settlement costs, which is also the initial value of crypto.

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