Sony, the multinational conglomerate known for its diverse portfolio across various industries, is preparing to launch its Ethereum layer 2 blockchain, "Soneium." This initiative, led by Sony's Block Solutions Labs, solidifies its move into the blockchain space, aiming to bridge Web3 technology with mainstream services.
The company's influence spans consumer electronics, entertainment, and gaming. Pioneering consumer electronics like the Walkman the gaming world with PlayStation. It further extends to entertainment with Sony Pictures and Sony Music, where it produces blockbuster films and manages top-tier artists. The announcement of Soneium aligns with the acquisation of the crypto exchange Amber Japan (formerly DeCurret) earlier ths year and a patent Sony filed in 2023 for an NFT framework to facilitate in-game asset transfers.
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Soneium: an Ethereum-based layer 2 blockchain
Sony intends to leverage its global reach and existing distribution networks to introduce blockchain technology to a broader audience by integrating the technology into everyday internet use through the Soneium blockchain. The joint venture between Sony Group Corporation and Startale Labs will officially begin in September 2024. Startale is a Web3 technology development company co-founded by Sota Watanabe, who is also the director of Sony Block Solutions Labs. The development company is focused on the ambitious goal of creating "Web3 for Billions".
"We believe that Sony Group's launch of an Ethereum Layer 2 in collaboration with Startale is a pivotal moment for the entire industry. The industry has been making something web3 people want because of the lack of general user touchpoints and their feedback. Sony Group has strong distribution channels in multiple industries and existing users in our daily lives. Through Soneium, we will make something people want and go mainstream beyond web3.” - Sota Watanabe, Director of Sony Block Solutions Labs
Startale is heavily involved in the development of Astar Network, a multichain dApp hub on the Polkadot blockchain that is Ethereum compatible. Soneium, on the other hand, is built on top of the Optimism OP stack used for Ethereum layer 2s (L2s) and incorporates zero knowledge rollup technology. It is designed to support decentralized applications (dApps) related to Sony's expertise in entertainment, gaming and finance.
Outlook and future applications
Sony apparently has ambitious plans for Soneium, reminding of early promises of the metaverse. It aims to protect creators and share profits, while promoting transparency and fairness. While this focus is in line with broader blockchain trends, it will require a massive development effort. Even in areas where Sony has expertise, such as entertainment and gaming, protocols have struggled to establish sustainable business models and retain users. When comparing the total value of assets in dApp smart contracts, the top 10 are dominated by DeFi applications, with the exception of Axie Infinity, the only one in the gaming category.
Beyond Soneium, Sony has demonstrated a broader commitment to the Web3 space. Earlier this year the company acquired the crypto exchange Amber Japan (formerly DeCurret). In 2023 Sony filed a patent for an NFT framework to facilitate in-game asset transfers. This can make NFT transfers possible and even between consoles of varying brands: "the standardized format may be readable via different video game platforms such as, for example, PlayStation and Xbox.". These initiatives signal Sony's dedication to exploring new financial technologies and integrating them into its broader business strategy, positioning itself as a key player in the mainstream adoption of Web3.
