NTT Docomo will invest as much as 600 billion yen (US$4 billion) on the next-generation internet technology known as Web3, Nikkei learned, as Japan's top mobile carrier seeks to take a leading position using its mobile infrastructure.
The Japanese mobile carrier will set up a company slated to begin operations in fiscal year 2023 to specialize in Web3. NTT Docomo will spend between 500 billion yen to 600 billion yen to develop Web3-related infrastructure and services, centered on the blockchain technology.
The blockchain is an autonomous, decentralized system in which a group of freely participating computers share the burden of its operation, without relying on any specific organization or company. Using blockchains, one can develop, for example, a service that allows individual users to directly exchange digital assets with each other while preventing tampering with data. Web3 applies this structure to wide-ranging services.
Docomo plans to launch Web3 services after initially developing a technology infrastructure that can offer services for cryptocurrency issuance and exchange as well as electronic wallets all in a single package.
Web3 is currently used in limited areas, including games and finance. In October, Docomo reached a basic agreement with Stake Technologies, a Singapore-based startup that develops a blockchain infrastructure called Astar Network, on a tie-up deal to jointly promote Web3. Stake Technologies is led by CEO Sota Watanabe.
Astar has a system to connect different blockchains. Docomo aims to combine the Astar technology and operational know-how to develop a technology infrastructure that can be used by businesses and individuals for wide-ranging services.
There have recently been noticeable cases in which Japan has seen Web3-related human resources leave the country. That has come as domestic taxation measures to promote the technology have been delayed. For example, Japan taxes the holding of cryptocurrencies. The Financial Services Agency only began discussions on ways to develop an environment that will allow safe transactions of digital assets used in Web3 last month.
By beginning to develop an infrastructure for Web3, Docomo aims to become a leader in the technology utilizing its mobile infrastructure. It also seeks to help promote a Web3 industry in Japan.