Earlyworks Co., Ltd., a company that provides proprietary ultra-fast blockchain infrastructure technology known as the Grid Ledger System (GLS) (head office: Taito-ku, Tokyo; Representative Director & CEO: Sei Kobayashi; hereinafter referred to as “Earlyworks”), and ZenmuTech, Inc., a company that promotes the protection and use of data through secret-sharing technology that is harnessed to distribute and manage information after it has been encrypted (ZenmuTech; Representative Director: Zenichi Taguchi; head office: Chuo-ku, Tokyo; herein referred to as “ZenmuTech”) launched a partnership with one another based on the technology both companies bring to the table in hopes of realizing an even safer and more secure digital society in which users can use data without anxiety.

■ Background behind collaboration
The Grid Ledger System (GLS), a proprietary blockchain technology provided by Earlyworks that is the fastest of its kind in the world, resolves the problem of slow processing speeds, which had been a large bottleneck with conventional blockchain, and has a processing speed of less than 0.2 seconds, which is optimal for enterprise blockchain, and controllable and user-friendly operational functions that are on par with those of conventional databases. With a processing capacity that is as high as what one might see with large-scale databases, GLS is easy to adopt and highly customizable and is also highly tamper-resistant and convenient in a way that is consistent with how blockchain works.

ZenmuTech’s secret-sharing technology, based on the All-or-Nothing Transform (AONT), divides data into several distributed fragments (shares), each inherently meaningless, and manages them in separate environments, rendering the overall data indecipherable. Data leakage is prevented since the data cannot be recovered if even a single distributed fragment (share) is missing. This technology has been attracting attention as an alternative to the encryption technology that has been the basis of security technology to date. We have thus far been using our proprietary secret-sharing technology to develop ZENMU Virtual Drive, a product that prevents data leaks from PCs, and providing secret-sharing engines in order to deliver innovative data-protection products and services to the market.

At this time, we can provide robust and fast next-generation data protection solutions by combining the tamper-resistance of blockchain with a process to render data meaningless through secret sharing. Through this collaboration, we aim to create an innovative business model for enterprises and harness advanced home-grown technologies to reach a new stage for opening up the future for companies.

■ Initiatives carried out in the context of this partnership
The following are objectives to be met through collaboration between both companies:

1) A new blockchain spurring the digital revolution
Our new blockchain defies the conventional wisdom surrounding blockchain by allowing us to securely manage not just text but a wide variety of content, such as images, videos, and music.
This evolution enables creators to offer more engaging content with the assurance that their works are securely protected. The accommodation of greater flexibility in service planning and the lowering of technical hurdles lead to the emergence of new business models and increase the feasibility of a thriving digital society.

2) A powerful SDK from the collaboration between ZENMU Engine and GLS
Combining these two SDKs opens the door to new package development possibilities.
Introducing a more convenient and powerful SDK for achieving unprecedented levels of security and reliability. Users can enjoy a digital life that is more secure than ever before and handle data with peace of mind even in settings where business is conducted.

3) Secret sharing x blockchain = Extremely robust security
By combining innovative technologies, we will develop an amazing technology that is capable of applying secret sharing to large files and managing a portion of these files with blockchain.
This will dramatically lower the risk of information leaks and data tampering. A new standard for data protection will be set by combining the transparency of blockchain with the robustness of secret sharing.

A more detailed release is slated for this summer. Stay tuned.

■ Market potential and the background behind this partnership
The worldwide market for blockchain, the quintessential technology of Web 3.0, continues to grow in size with each passing year. This market is expected to be worth approximately 10.6 billion dollars (approximately 1,550 billion yen) by 2023 and approximately 404.1 billion dollars (approximately 58,600 billion yen) by 2030.(*1) In other words, the market will likely expand by around thirty-eight times in the seven-year period between 2023 and 2030 and garner substantial attention for the utterly astonishing pace at which it is developing.
At the same time, the domestic blockchain market is thought to be worth 142.7 billion yen(*2) in 2023, accounting for around an estimated ten percent of the global market.
In Japan, the development of an environment for the promotion of Web 3.0, including in terms of the use of NFTs (non-fungible tokens) based on blockchain technology has been incorporated into the Priority Plan for the Realization of a Digital Society as approved by the Cabinet in June 2022. Accordingly, the number of initiatives in this area has been increasing, as can be seen in the establishment and running of the Web 3.0 Study Panel to explore the use of blockchain technology in the future. Nevertheless, the actual use of this technology by businesses cannot be said to have increased significantly yet.
In addition to the high difficulties involved in accurately understanding the technical aspects of blockchain and using it suitably in business, certain issues, including the lack of human resources and expertise required to oversee the development of new businesses, are cropping up. We formed this partnership in order to help resolve these issues and promote the further growth of the domestic blockchain market.

*1: Blockchain market forecasts to 2030 (Global Information, Inc.):
(https://www.gii.co.jp/report/smrc1308673-blockchain-market-forecasts-global-analysis-by.html)

*2: AI forecasts of the size of the blockchain market in terms of trends to 2029 (xenoBrain):
（https://service.xenobrain.jp/forecastresults/market-size/blockchain）

■ About the Grid Ledger System (GLS), a proprietary ultra-fast blockchain infrastructure technology
GLS is a proprietary ultra-fast blockchain infrastructure technology designed to resolve all blockchain issues. We analyzed a large number of blockchains and reviewed their design concepts from the consensus algorithm level. By combining the requirements needed to be met by enterprise layer companies when they provide services, functions truly required to have blockchain businesses become an entrenched part of the world are provided by GLS. Like databases, the system offers high processing power, can be adopted with ease, is highly customizable, and delivers blockchain features in terms of both tamper resistance and convenience.

<Key features of GLS>
・Ultra-high-speed throughput for approving transactions within 0.2 seconds
・Provides a high level of TPS using parallel processing that is capable of accommodating even large-scale systems
・Provides kill switches, finality, and a high level of interoperability with other systems, which are features not found in typical blockchains
・Provides accessibility that is as good as existing database systems and can accommodate the introduction of high-security measures
・Can be applied to practical business applications without requiring virtual currency for transaction processing

GLS | High-speed blockchain with global-leading speed

GLS is a high-speed blockchain suitable for the development of new business systems. Exceptional usability that reflects the advantages of both companies is achieved by resolving the adoption difficulties and low-performance criticisms associated with conventional blockchains and borrowing the concepts of high tamper resistance, zero downtime, and traceability, which were beyond the reach of databases, from what is known of blockchain technology.

gls.e-arly.works

■ About Earlyworks
Earlyworks Co., Ltd., provides the Grid Ledger System (GLS), a proprietary ultra-fast blockchain infrastructure technology that combines ultra-high-speed processing of less than 0.2 seconds, which is ideal for enterprise blockchains, with high levels of tamper resistance, security, and reliability and that is equipped with high-speed accessibility, which is required when a company develops services and products. In July 2023, the company came to be listed on the NASDAQ market in the United States and has been promoting the maximization of the potential of blockchain in terms of societal implementation as a pioneer among blockchain tech companies originating in Japan.

Name: Earlyworks Co., Ltd.
Head office: MR Building 3F, 5-7-11 Ueno, Taito-ku, Tokyo
Representative: Sei Kobayashi, Representative Director & CEO
URL：https://e-arly.works/

■ About ZenmuTech
ZenmuTech develops and sells its own products, including ZENMU Engine, which provides the ZENMU-AONT secret-sharing technology as an SDK, and the Virtual Drive, which prevents information leaks from PCs. These products are in use by many companies. In the field of secret computing, the company provides QueryAhead, a secret computing database platform, for research and societal implementation in collaboration with AIST. In order to realize highly secure solutions that could not have been achieved with conventional encryption technology, the company pursues data protection and data utilization through its innovative technological capabilities and open innovation-inspired creativity and contributes in a myriad of ways to society.

Name: ZenmuTech, Inc.
Address: The Hub Ginza OCT 804, 8-17-5 Ginza, Chuo-ku, Tokyo
Representative: Zenichi Taguchi, Representative Director
URL: https://en.zenmutech.com/