How Does a Japanese Traditional Enterprise Approach Crypto and Blockchains?

Transcript

Thank you, Sanders. First, now please welcome our next presenter, Mr. Tiki Narita. Good morning everyone. Uh thank you for coming to my session even in this early morning. My uh today's I'm going to talk about how Sumitomo cooperation approach uh crypto and blockchain.

So I hope you will find some insights about way of collaboration uh between enterprise and protocols. So let me explain Sumitomo Corporation at first. So Sumitomo Corporation is a diversified business uh companies uh in other words uh business conglomerate in Japan uh founded in 1919 almost 100 years ago. The company is uh headquartered in Tokyo but uh have global network with 127 offices in 63 countries and uh Smith Corporation is also doing a lot of B

business investment. So currently we have uh over 500 companies in 65 lesions and uh we have uh diversified businesses with nine groups. So top light there is a there is a media and uh digital group which includes uh the biggest cable TV company in Japan and next to it there is a diverse urban development group which includes uh developing and operating the commercial building and apartment building as well.

And bottom left Delhi is a lifestyle uh business group which includes uh supermarket chain and drug chains. And bottom right uh Delhi is energy transformation business group which includes uh um the developing and operating the uh renewable energy like solar power plant and wind power plant. And now we are thinking uh blockchain technology is disruptive innovation causing paradigm shift to our society and our businesses.

So currently we are taking two approaches for blockchain. So uh the first approach is building real world use cases. So this aims to create new values in your traditional business fields powered by blockchain tokens. We have done uh some project like uh global logistic interoperability project using uh blockchain uh interperability protocol uh co-working with border and chain link and also we have currently working for stable coin cross border limitance project even this is undisclosed information so please please

keep it secret and now we are uh trying to build more and more use cases but working hard for this initiative we are facing some challenge that is uh the building real world use cases need long time to generate positive cash cash flow so there are mainly uh two reasons the first reason is innovators dilemma so currently sim corporation has uh 43 business units and most of them are profitable So uh people in some business unit just think about we are already prof

profitable and we have our own strategy and we don't need to use new technology like blockchain and there are uh many easy excuse not to use blockchain like um there is a big switching cost or operational complexity in shifting phase and so on. And uh the other reason is like many related parties. So most of our businesses are industrial type uh B2B uh businesses which includes uh many uh large enterprise related parties.

So for example thinking about global logistic import and export business in just one transaction uh we have many related party like sellers buyers uh sellers bank buyers bank uh shipping company uh logistic uh shipping company insurance company government agency like custom. So incentive alignment is very very difficult uh and uh takes long time. So in order to tackle this this challenge uh second approach is coming.

So which is uh node operation and validator service. So currently we are learning validator node of ERM and avalanche and we are planning to expand this validator business more and more. The purpose of this initiative is building a foundation for real world use case build development. So through node operation uh we are thinking we can acquire deep knowledge of protocol itself and we can build relationship with uh protocols and their ecosystem.

So this is extremely important for our use case development because based on this knowledge and relationship we can choose the best protocol which is suitable for specific use case. So for example some use cases need uh just huge scalability while others needs uh more function of compliance for regulation and so on. And the last but not least uh through node operation we can generate positive cash flow from daily day one which is complement for uh long-term game of uh business uh use case development and um so

current so currently we are taking so for lap up currently we are taking a mix of approach of long-term game of node operation uh sorry long-term game of uh business development and uh node operation which can generate positive cash flow from from day to day and also can be uh foundation of use case development as well. So I have one more slide uh tips about uh for collaboration between enterprise and protocols and uh probably uh my time is uh learning so much. So I have uh

much time for explain about this but I have uh some tips for proto protocols and enterprise. So please come to me after session if you are interested about this topic. So yeah, thanks so much uh for listening. I'm really uh happy to talk with protocols which are interested in the enterprise node operators and building real world use cases with enterprises. So yeah, thanks so much Will they miss?