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NTT Digital, a subsidiary of NTT Docomo established in 2022 to promote Web3.0
This year, the digital wallet "scramberry WALLET," which serves as the gateway to the Web3.0 realm, is finally getting off the ground. We spoke to Eisuke Endo, a director at NTT Digital who is involved in service development, about his thoughts on web3 and the outlook for the next service.
Your parent company, NTT Docomo, announced that it will invest 600 billion yen in the Web3.0 sector in 2022. Could you tell us again why the NTT Group has decided to focus on the Web3.0?
Eisuke Endo (hereinafter, Endo): We are proud of our support of the communications infrastructure as the NTT Group, but we thought that by combining communications technology with web3 technology, we could provide new value that is even more significant.
Blockchain technology is sometimes discussed in terms of web2 and web3, but we see it as a continuous technology, and as a means to accelerate and advance things that could not be done with conventional technology.
Our initial idea was that we should be able to create an even more significant business by visualizing and transferring value, centered on blockchain technology, in addition to supporting infrastructure.
The figure of 600 billion yen tends to attract attention, but if you want to create a stable infrastructure foundation, the scale will naturally become larger. We did not want to attach meaning to the figure of 600 billion yen, but rather announced our intention to settle down and create infrastructure that incorporates web3.
We would like to work long-term to create services that will become part of your daily life infrastructure.
Is there still a possibility of investment in the future?
Endo: We see value in the power of tokenization and tokens, so we would like to consider investing in them in the future.
We also don't think we need to be tied to blockchain. For example, if AI technology is effective in advancing tokenization, we may consider using it in that way.
What do you think about the current challenges in the web3 field?
Endo: In Japan, many people are still skeptical of web3. In fact, it is a technology that only a few engineers can understand, and many people have a dangerous image of it because of the idea that "Web3.0 = crypto assets".
We want to dispel that image as well. Above all, we think it is important to create meaningful use cases not only for crypto assets, such as tokenization, which is the idea of web3, but also from an emotional perspective, such as revitalizing fan communities.
We think that the ideal form for web3 technology is to be "used without knowing it". We want to create a situation where people can use our services as a matter of course, without being strongly aware of it in their daily lives.
When it comes to communications infrastructure, the NTT Docomo brand is likely to be a strong weapon, but how do you plan to operate as NTT Digital?
Endo: We would like to contribute to creating an orderly environment by utilizing the technology and knowledge we have cultivated as the NTT Group.
At present, web3 technology is ahead of the competition, and legal systems have not yet caught up, so we believe it will be difficult to realize the safe and secure web3 experience we are aiming for. We hope to play the role of a trust anchor and not only establish rules, but also change the skeptical perception of web3 to some extent.
We ourselves are behind the scenes of the services you use as infrastructure, and this stance will not change even with web3. Even in web3, we believe it would be desirable for "NTT Digital's infrastructure to be used behind the scenes of existing apps and services."
In addition, we currently have 98 million "d Account" users (as of the end of December 2023) as the NTT Group. We would like to provide our services to these users in the future by collaborating with NTT Group services.
There are other companies that are working in the Web3.0 field, but what approach will NTT Digital take?
Endo: Currently, the situation in this business is similar to the Internet around 1995, so rather than thinking of it as a competition, I think it would be more meaningful for us to help each other grow. Above all, this is an area with global opportunities, so I want to work hard and improve myself.
You released the Web3.0 digital wallet "scramberry WALLET" in March. Can you tell us how this wallet differs from other companies' apps and what your objective was in developing it?
Endo: The biggest point is that we are focusing on ease of use and safety so that not only those who have experience with web3, but also those who are experiencing crypto assets and NFTs for the first time can continue to use it for a long time.
In particular, in terms of operability, users can smoothly complete the process from initial registration to purchasing crypto assets and NFTs without being aware of blockchain. For example, with regard to onboarding, initial registration can be easily completed with SMS authentication using a phone number, and the backup method is also in a format that does not depend on web3 literacy.
In addition, while conventional wallets required manual switching of networks for each chain, scramberry WALLET not only switches automatically, but also realizes a UX that allows you to see at a glance which tokens you hold.
We had many internal discussions about how to make it easy for those who are experiencing web3 for the first time and how to make the structure as easy as possible without being aware of blockchain, and we came up with the current specifications.
It seems like you place a lot of emphasis on "ease of use and safety," but what elements of scramberry WALLET do you think relate to that the most?
Endo: There are several, but I think the most important aspect is security. We want users to use scramberry WALLET for a long time, so we are always creating a highly secure environment, including an alert function for crypto assets with low trading volume and NFTs.
With the popularity of wallets, having them installed as standard by carriers will be a big advantage, but are there any plans to roll out scramberry WALLET as a standard app at NTT Docomo?
Endo: I think that's a possibility in the future. We ourselves are the infrastructure behind the services that you use, and that stance won't change even in web3. So, even in web3, I think it would be good if "NTT Digital's infrastructure is actually being used behind the scenes of existing apps and services."
Are there any services you are considering for the future?
Endo: The basics of tokenization are issuance, distribution, and storage, and we would like to consider web3 services related to these three. In particular, from the perspective of issuance, we plan to develop NFT services and STOs (security tokens).
We also plan to provide the functions of scramberry WALLET as an API for corporate customers. In fact, we plan to conduct trials with event companies to revitalize fan communities using NFTs in the near future.
By using a smartphone app that already has the wallet functions required to use each function of web3 implemented, we hope to provide customers with a new digital experience without them even being aware of web3.
Finally, please tell us about your future prospects and goals.
Endo: I believe that our mission has been and will continue to be to build trust in the field of infrastructure. On top of that, I would be happy if the new ideas and technologies of web3 could permeate your lives through our services.
We would like to provide services that give meaning to the economics and significance of web3, starting with providing the infrastructure.
I also believe that 2024 will be an important year for us to develop services and provide value to the market, starting with the wallet. I hope you will keep an eye on future developments.
Eisuke Endo
NTT Digital, Inc. Director, CISO, Managing Director of Service Development Department
At NTT Digital, he serves as Director, CISO, Managing Director of the Service Development Department in the areas of service development and security management. Since the establishment of NTT Digital in December 2022, he has been involved in business planning as a director.
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