Earlyworks and CAICA DIGITAL Entered into a Business Alliance Agreement to Support the Expansion of Web3 Business

Rhea-AI Summary

Earlyworks Co., (NASDAQ: ELWS) has signed a business alliance agreement with CAICA DIGITAL Inc. to provide comprehensive support for Web3 projects. This partnership aims to capitalize on the growing global blockchain market, expected to reach $404.1 billion by 2030. The alliance will focus on enhancing Earlyworks' Grid Ledger System (GLS) and supporting the development of new businesses adopting CAICA's Web3 solutions.

The collaboration comes as Japan's blockchain market share, estimated at 10% of the global market in 2023, seeks to expand. Despite government initiatives like the "Web 3.0 Study Group," business adoption of blockchain in Japan remains This alliance aims to address this gap and promote Web3 ventures in the country.

Positive

• Partnership with CAICA DIGITAL to expand Web3 business support
• Potential to tap into a rapidly growing global blockchain market, projected to reach $404.1 billion by 2030
• Opportunity to enhance Earlyworks' proprietary Grid Ledger System (GLS)
• Alignment with Japanese government initiatives promoting Web3 adoption

Negative

• current adoption of blockchain technology in Japanese businesses
• Earlyworks operating in a highly competitive and rapidly evolving market

Insights

Financial Analyst

This business alliance between Earlyworks and CAICA DIGITAL marks a strategic move in the rapidly growing Web3 market. With the global blockchain market projected to reach $404.1 billion by 2030, representing a 38-fold growth from 2023, this partnership positions both companies to capitalize on this explosive growth. However, Japan's current 10% market share in the global blockchain space suggests significant room for expansion.

The collaboration aims to leverage Earlyworks' Grid Ledger System (GLS) and CAICA's "CAICA Web3 for Biz" to provide comprehensive support for businesses venturing into Web3 projects. This could potentially accelerate adoption of blockchain technologies in Japan, aligning with the government's "Priority Policy Program for Realizing Digital Society." While the alliance shows promise, investors should note that actual business use of blockchain in Japan is still in its early stages, which may impact short-term revenue growth.

Tech Expert

The partnership between Earlyworks and CAICA DIGITAL is a significant step towards addressing the technical challenges in Web3 adoption. Earlyworks' proprietary Grid Ledger System (GLS) could potentially offer unique advantages over traditional blockchain systems, though specific technical details are not provided. The integration with CAICA's "CAICA Web3 for Biz" solution suggests a comprehensive approach to Web3 implementation, likely covering aspects such as smart contracts, decentralized applications (dApps) and possibly tokenization.

However, it's important to note that the Web3 space is highly competitive and rapidly evolving. The success of this alliance will depend on their ability to offer tangible benefits over existing solutions and adapt to emerging technologies. Investors should closely monitor the technical developments and adoption rates of their combined offerings to gauge the long-term viability of this partnership in the dynamic Web3 landscape.

TOKYO, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (NASDAQ: ELWS) ("Earlyworks" or the "Company"), a blockchain solution provider headquartered in Taito-ku, Tokyo which develops its proprietary blockchain technology, Grid Ledger System ("GLS"), has signed a business alliance agreement with CAICA DIGITAL Inc. ("CAICA"), a company headquartered in Minato-ku, Tokyo which develops system solutions for the financial industry and Web3 businesses. Together, the Company and CAICA will provide comprehensive support to businesses engaged in Web3 projects.

• Market Potential and Alliance Background

The global market for blockchain, a leading Web3 technology, continues to grow every year and is expected to reach approximately $404.1 billion in 2030 (*1). The market is expected to grow 38-fold in the seven years from 2023 to 2030 (*1), and such market potential is attracting more attention around the world.

On the other hand, the Japanese blockchain market share was estimated to be about 10% of the global market size in 2023 (*2). In Japan, the "Priority Policy Program for Realizing Digital Society" approved by the Japanese Cabinet in June 2022 includes "Promoting Web3.0”, which in turn includes the use of NFTs (non-fungible tokens) based on blockchain technology, and the "Web 3.0 Study Group" was established at the Japanese Digital Agency to study the future use of blockchain. Although the "Web 3.0 Study Group" has been established at the Japanese Digital Agency and has been increasing its activities, the actual business use of blockchain has yet to increase significantly.

Through this business alliance, Earlyworks aims to enhance the services of GLS, while also supporting the system development of new businesses that adopt "CAICA Web3 for Biz" (as described below), providing strong support for companies in promoting their Web3 ventures.

1 Blockchain Market Forecast to 2030 Global Information, Inc. (https://www.gii.co.jp/report/smrc1308673-blockchain-market-forecasts-global-analysis-by.html )
2 Future Trends of Blockchain Market size forecast by 2028 with AI xenoBrain (https://service.xenobrain.jp/forecastresults/market-size/blockchain)

• About GLS (Grid Ledger System), a proprietary blockchain infrastructure technology

GLS is a hybrid blockchain that combines the technical advantages of both blockchain technology and database technology. Database technology provides the traditional infrastructure for data storage, collection, organization and processing, and enables the construction of systems. GLS has high processing power like a database, ease of implementation and high customizability, as well as the blockchain's characteristics of tamper-resistance and convenience.

<Main features of the GLS> high processing speed, parallel processing and auto-scale functions, high tamper-resistance, zero server downtime, versatile applications, enabled emergency stop

https://gls.e-arly.works/ja/new-business

• About CAICA DIGITAL

CAICA DIGITAL is a business holding company listed on the Tokyo Stock Exchange Standard Market (Code: 2315). In addition to managing its subsidiaries, the company operates a matching service called "CAICA Web3 For Biz" (https://www.caica.jp/web3/) to help businesses and projects create Web3 ventures. Leveraging its strengths as a listed company in compliance, its experience in operating cryptocurrency exchanges, selling cryptocurrency derivative products, and having a subsidiary with over 50 years of experience in developing financial systems, CAICA DIGITAL combines cutting-edge blockchain technology with an experienced consulting team. They provide a wide range of services, including NFT sales, Web3 SaaS businesses, payment processing, and large-scale OTC services, quickly and through a one-stop solution.

Company Name: CAICA DIGITAL Co., Ltd.
Representative: President and CEO: Shin Suzuki
Location: Lexington Aoyama, 5-11-9 Minami Aoyama, Minato-ku, Tokyo
Established: July 1989
Business Activities: Management and operation of group companies
Corporate Website: https://www.caica.jp/

• About Earlyworks

Earlyworks Co., Ltd. is a Japanese company operating its proprietary private blockchain technology, GLS, to leverage blockchain technology in various applications in a wide range of industries. GLS is a hybrid blockchain that combines the technical advantages of blockchain and database technology. GLS features high-speed processing, which can reach 0.016 seconds per transaction, tamper-resistance, security, zero server downtime, and versatile applications. The applicability of GLS is verified in multiple domains, including real estate, advertisement, telecommunications, metaverse, and financial services. The Company’s mission is to keep updating GLS and make it an infrastructure in the coming Web3/metaverse-like data society.

Earlyworks Co., Ltd.
Location: 3F MR Building, 5-7-11 Ueno, Taito-ku, Tokyo
Representative: Satoshi Kobayashi, Representative Director and CEO
Business description: Providing system solutions using GLS
Date of Establishment: May 2018
Corporate website: https://e-arly.works/

For inquiries from the press regarding this matter, please contact Earlyworks Co., Ltd.
E-MAIL: ew-ir@e-arly.works

Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s and CAICA’s current expectations and projections about future events that the Company and CAICA believe may affect their financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company and CAICA undertake no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in their expectations, except as may be required by law. Although the Company and CAICA believe that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that such expectations will turn out to be correct, and the Company and CAICA caution investors that actual results may differ materially from the anticipated results and encourage investors to review other factors that may affect their future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission and in CAICA’s relevant disclosure documents.

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8247d20c-c41e-48e8-a2d4-6a0ff9c421d3
https://www.globenewswire.com/NewsRoom/AttachmentNg/e929c653-2a6a-4095-9dbf-3d801e5f5d2b

FAQ

What is the purpose of Earlyworks' business alliance with CAICA DIGITAL?

The alliance aims to provide comprehensive support for Web3 projects, enhance Earlyworks' Grid Ledger System, and support the development of new businesses adopting CAICA's Web3 solutions.

What is the projected size of the global blockchain market by 2030?

The global blockchain market is expected to reach approximately $404.1 billion by 2030, growing 38-fold from 2023 to 2030.

What is Japan's current share of the global blockchain market?

Japan's blockchain market share was estimated to be about 10% of the global market size in 2023.

How is the Japanese government promoting Web3 adoption?

The Japanese government has included 'Promoting Web3.0' in its 'Priority Policy Program for Realizing Digital Society' and established a 'Web 3.0 Study Group' at the Digital Agency to study future blockchain use.