Japanese startup Kyuzan Co., Ltd. (located in Bunkyo-ku, Tokyo; President and CEO: Takumi Takahashi, hereinafter "Kyuzan"), which specializes in blockchain technology, has signed a partnership agreement with Dentsu International Information Services Co., Ltd. (located in Minato-ku, Tokyo; President and CEO: Ryoichi Nasu, hereinafter "ISID") and started joint research to create new user experiences (UX) that support the development of Non-Fungible Tokens (NFTs), digital data with unique and irreplaceable appraisal and ownership certificates. The research will also focus on constructing an NFT marketplace.

Through this partnership, Kyuzan's blockchain technology and the company's NFT development platform "Mint" will be combined with ISID's expertise in system development related to various Intellectual Property (IP) content provided to entertainment companies and the Dentsu Group. The research will pursue the creation of new NFT experiences, the development of new blockchain technologies to support those experiences, and the construction of NFT marketplaces.

Background

NFTs are digital data that prove to be unique and irreplaceable due to blockchain technology, and are used for game items, digital art, physical asset ownership, and more. As mechanisms for buying and selling content and for returning revenue to creators, they have gained attention in the entertainment and sports areas and their market is expanding rapidly. However, it is a challenge to not only issue and sell NFTs, but also to design and develop new user experiences to enhance the IP and brand value of the content. To address this need, ISID and Kyuzan have initiated joint research to create new NFT experiences, develop new blockchain technologies for faster transactions and lower fees, and construct NFT marketplaces using "Mint."

Main themes of joint research

The two companies will conduct joint research on "UX design" and "utilization of blockchain technology", which are currently challenges in the development and utilization of NFTs. The main themes of the joint research are as follows:

• Design and feasibility verification of new NFT experiences that merge reality and the digital realm using AR/VR, metaverse※1, etc.

• Consideration and improvement of diverse and complex buying and selling methods using wallets, credit card payments, etc.

• Development of new blockchain technologies utilizing multiple protocol layers in NFTs, such as Layer 2 technology※2

• Creation of a service platform for NFT utilization and secondary circulation management for various content using "Mint"

• Verification of carbon offset schemes※3 for CO2 emissions from NFT issuance and sales that consume electricity

ISID and Kyuzan will accelerate cooperation for developing solutions that maximize the utilization of NFTs starting with this joint research.

■About Kyuzan Co., Ltd.
Kyuzan Co., Ltd. is a blockchain startup that develops NFT services and blockchain development platforms. The company's blockchain game "EGGRYPTO" developed in collaboration with GameWith boasts the largest number of active users in the world. The company has started offering the NFT platform "Mint," which makes it easy to build original NFT shops that express the unique brand identity. For more information, please visit the website (https://kyuzan.com/).

■About Dentsu International Information Services Co., Ltd. (ISID)
ISID supports the digital transformation of businesses and society with its solid technical capabilities and creativity under the vision of "HUMANOLOGY for the future ~Creating the future with people and technology.~" In addition to offering solutions in the financial, manufacturing, business solutions, and communication IT fields, ISID promotes "X Innovation," which transcends technology, industry, company, and region, to create solutions that contribute to the evolution of customers, consumers, and society. For more information, please visit the official website (https://www.isid.co.jp/).

*The names of companies and products mentioned in this release are trademarks or registered trademarks of their respective companies.