Japan Smart Chain revealed to provide Japan a sovereign, Ethereum Equivalent blockchain

Joichi Ito, President of Chiba Technical University and co-founder of Digital Garage, and Russell Cummer, Founder and former Chairman of Paidy (Japan’s leading BNPL service), have jointly launched AltX Research KK to develop Japan Smart Chain (JSC), a Japan-sovereign, Ethereum blockchain optimised for Japanese regulations.

Japan Smart Chain aims to solve key regulatory and consumer protection challenges for digital transactions, unlocking sizable efficiencies for Japan-based companies, consumers, and innovators.

Background

Japan’s ability to leverage web3 technologies has been constrained by the lack of compatibility between domestic regulations safeguarding Japan-based users and the development of these technologies abroad. This gap has left Japanese companies hesitant to adopt blockchain for transformative use cases like payments, loyalty systems, and user-friendly finance.

To address these challenges, Japan Smart Chain is a sovereign blockchain solution that aligns with Japan’s regulatory framework. By resolving regulatory concerns at the infrastructure level, Japan Smart Chain facilitates Japanese businesses and users to benefit from faster, cheaper, and more secure digital services.

Project Description

Japan Smart Chain is the sovereign blockchain for Japan. It is a public Layer 1 Ethereum Equivalent blockchain validated entirely onshore by Japan’s industrial leaders. JSC embeds digital KYC/AML methods into the Layer 1 infrastructure layer with its pioneering Mizuhiki Protocol, built to reduce compliance burdens on operators and users.

The Protocol contains an identification method that users can control themselves, combined with a suite of eKYC tools and services optimised for Japanese regulations. The Mizuhiki Protocol will be provided free of charge to Japan Smart Chain projects and end-users.

Mission: Japan Smart Chain is committed to streamlining the Japanese blockchain ecosystem and overall customer experience by focusing on consumer pain points in the application layer that can be better addressed at the Layer 1 blockchain.

Vision: Japan Smart Chain’s vision is to enable widespread adoption of web3 in Japan by eliminating repetitive form filling across applications, and to allow users to easily and safely transact with regulated services without oversharing unnecessary personal information. Japan Smart Chain will set a global precedent for secure, scalable, and sovereign digital transaction infrastructure.

Problem it solves: Currently, regulated businesses face high levels of redundancy and financial burden for servicing Japan’s customer base with modern, cost-effective, and fast applications in areas such as gaming, payments, and finance. By addressing Japan’s regulatory requirements at the infrastructure layer, businesses may confidently invest long term into web3 applications that unlock customer delight.

Guiding Principles

Japan Smart Chain’s unique approach to creating the conditions for web3 adoption to thrive in Japan lies in its four guiding principles as defined below:

1. Principle of Sovereignty

Sovereignty — being within the control of Japan and beyond the influence of outside regulatory and geopolitical forces is key for JSC. Japan Smart Chain is Japan’s sovereign L1: it is validated onshore in Japan by key leaders in Japanese industry, and it is built to comply with and uphold Japanese regulations. JSC is beyond the reach of foreign regulators and outside forces to the greatest extent possible.

2. Principle of Security

The quality of one’s digital assets being secure. Japan Smart Chain is Ethereum Equivalent, and leverages Japan’s top engineering talent to fortify Ethereum’s excellence with robust infrastructure.

3. Principle of Safety

Customers of regulated on-chain services (such as stablecoins) can safely interact with others, knowing that accounts have been verified and Japan’s anti-money laundering and anti-social compliance policies have been embedded at the infrastructure layer.

4. Principle of Scalability

The ability of the platform to meet the needs of an ever-growing customer base. Japan Smart Chain will offer L2 as a service from launch, allowing pre-existing and future L2 projects to adopt compliant infrastructure at a significantly lower cost to what is being currently offered.

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