Use Case Examples of Blockchain Utilization in Japanese Companies Expanding? Future Prospects of Fintech from Financial Data

As blockchains penetrate the world, whether domestically or overseas, the demand for crypto assets also increases and has a positive impact on the market. As an investor of crypto assets, focusing on the future of blockchain will be a necessary investment decision.
However, the news of blockchain introductions by major companies will travel around the world in an instant, centering on major media. Even if you hear information that many people already know, it is not very interesting. In this article we will look at micro blockchain trends based on financial data of “new and small businesses” listed on the Tokyo Stock Exchange and Mothers from a slightly different perspective.
The number of small and medium-sized enterprises is 99.7% in Japan (https://www.stat.go.jp/data/e-census/2014/pdf/kaku_gaiyo.pdf> according to the Ministry of Internal Affairs and Communications) and has an overwhelming share of them. It is no exaggeration to say that the future of cryptographic assets can be forecasted by the investment trends in blockchains.

Don’t be late abroad! Many domestic companies are also looking at blockchain

Utilization of blockchain is in progress. The movement towards commercialization has begun to appear mainly in IT companies such as IBM, Microsoft, Facebook, etc. worldwide. Meanwhile, new innovation winds using blockchain are taking place, centered on large domestic companies that are not behind overseas.
For example, GMO TECH, a GMO group company, developed a service called “GMO Up Capsule Electronic Money” during March 2018. It is a service that uses blockchain in the conventional electronic money mechanism and can instantly charge and pay stores.
In addition, the “Trade Practice x Blockchain” initiative jointly conducted by Tokio Marine & Nichido Fire Insurance and NTT DATA is well known in the crypto asset industry. By storing all trade data exchanged by multiple carriers and insurers on the blockchain, it is a service that allows anyone involved to edit, send, and view information.

Future prospects of blockchain from financial data
The examples of GMO and Tokio Marine & Nichido Fire Insurance, which I introduced earlier, were widely reported in the five major newspapers in Japan and became a fact that many people learned.
On the other hand, even among start-up companies and small and medium-sized companies that are not listed in major media, there are quite a few companies that focus on blockchain behind them. Companies that are small on that scale, but have the potential to change the future. In fact, by looking at the “Financial Statements,” you can clearly see how they are trying to use the blockchain for business.
If you are already an investor in cryptocurrencies, looking at the side of a blockchain from such a micro point of view will see how this fundamental technology will affect the market. Also, if you are diversifying in stocks, learning how to read the financial data that companies publish quarterly will help you forecast future stock price movement.
So let’s introduce a company that is active to the blockchain with financial data.

Asteria Medium-term Management Plan

Asteria Co., Ltd. was originally called Infoteria, but since October 2018 it has been operating under a new trade name. Typical products include IT services such as “asteria warp,” which can utilize vast amounts of data without programming technology and “Handbook,” which is the industry’s number one market share MCM (mobile content management).

(Source: https://www.asteria.com/jp/wp-content/files_mf/1529304227ipr180618_04_p14-p44.pdf> Asteria Inc., Medium-term Management Plan 2020, page 27)
Asteria medium-term business plan 2020 forecasts the future of the blockchain market from within and outside Japan, and advocates appropriate blockchain-based service delivery by 2021. As we have already started experimenting with document tampering detection solutions using blockchain technology in collaboration with Taketa City, Oita Prefecture, commercialization will be realized in the near future.
According to the latest financial information for the third quarter of the fiscal year ending March 2019, net sales increased 4.9% year over year to 2.5 billion Yen.
Operating income fell sharply by 67.4% compared to the same term last year, but actually this deterioration is the result of expansion of investment by strengthening human resources and strengthening sales promotion for future growth and acquisition of company “This Place,” where both are an increase in cost with a positive factor and as a result of the increase in compensation-type acquisition fees.

The one-year stock chart is in a slight downtrend, but in addition to achieving the highest net sales after listing in the current term, the aggressive investment style is also highly regarded as a highly rated, so it cannot be said that it is a bad stock.
(Reference: Asteria Co., Ltd., Financial Results for the Third Quarter of the Fiscal Year Ending March 2019 [IFRS] (Consolidated))

Cloudworks medium-term management plan

Cloudworks Co., Ltd. offers a service that matches the contractor who wants to outsource work such as companies with the contractor who acts as a freelancer. In technical terms, it is called crowdsourcing.

(Source: http://contents.xj-storage.jp/xcontents/AS80447/92f01697/436c/47ef/86ac/95ac 84cf2acd6 / 20190214116830205s. Pdf> Cloud Works Co., Ltd. financial results presentation materials)
Cloudworks is also active in the blockchain space.
Build a system that allows traders to trust each other by combining the data with AI, decentralizing data on transactions conducted between orders, and storing individual cloud score information (such as actual results and evaluations) in a blockchain. The trading partner’s information can be accessed by anyone, and its credit can be checked at a glance, which is a specialty of the blockchain.

Based on the business information for the first quarter of the fiscal year ending in September 2019, Cloudworks achieved significant sales and profit growth with sales of 49.9% YoY and gross profit of 33.6% YoY. The domestic freelance population topped 10 million in 2018, and the market size is expected to grow further due to the lifting of second-hand jobs.
The stock market is well-received, and the movement for one year has been steady.
(Reference: Financial Results for the First Quarter of September 2019 Japan standard] (consolidated))

Unilita medium-term management plan

Unilita Co., Ltd. is a company that provides cloud-based system operation and data utilization services. Typical examples are products such as job management software “A-AUTO”, “cloud slip” that makes a form system cloud, and employee education video tools “LIVE UNIVERSE.”
In addition to robots and RPA (desk work automation), UniLita is promoting new investment in blockchain technology in its mid-term business plan of 2018-2020. In particular, for document systems that represent UniLita, data storage on the blockchain should enable smooth transmission and reception of information from bookkeeping to tax payments.

The price movement for one year is not bad either.
With the financial information for the third quarter of the fiscal year ending March 2019, net sales achieved a significant 35.1% year-on-year increase. Operating income fell 29.3% YoY, but development investment in cloud products was the main cause for that, and it is highly appreciated that they are actively planting seeds for the future.
(Reference: https://www.unirita.co.jp/dcms_media/other/190207_briefnote.pdf> Unilita Co., Ltd., Financial Report for the Third Quarter of the Fiscal Year Ending March 2019 (Consolidated))

Summary

Information on use cases of blockchains is mainly news of major companies regardless of whether they are overseas or domestic, but actually, among SMEs and mid-sized companies, there are places where they intend to actively expand investment in the same field.
In particular, CloudWorks and Unilita, which were introduced above, have greatly increased their sales, but it is highly appreciated that they are investing their resources for future investments. By using the blockchain, they can store huge amounts of data and send and receive them smoothly among the people involved. It is practically impossible to hack the system, and each piece of information is protected by high security.
Although the use of such blockchain directly affects the market of crypto assets, it may also be an indicator for measuring their prospects when referring to stock information on stock markets. It is also interesting to peek at the blockchain from the perspective of crypto assets, in addition to the perspective of the stock market.