Sony’s Soneium could set the blockchain pace — is BlackRock preparing to follow?

How will Sony’s Soneium fare against the existing blockchain giants, especially if BlackRock makes its anticipated move into the market?

Sony, long synonymous with innovation, is now making a bold entry into the blockchain world with its latest venture, Soneium.

Sony Block Solutions Labs, a collaboration between Sony Group and Singapore-based Startale Labs, announced the launch of this new project on August 23.

Just a few days later, on August 28, Sony introduced the “Minato” testnet for Soneium and an incubation program aimed at getting developers involved with the new platform.

Soneium will be built on Ethereum (ETH) and Optimism’s (OP) OP Stack, a highly customizable toolkit that allows developers to easily create their own networks.

Sony sees blockchain as a way to enrich lives and take creativity to new heights. With Soneium, the company aims to unlock new business opportunities and use cases, and deliver value inherent to web3 technology, according to Jun Watanabe, President of Sony Block Solutions Labs.

It’s important to note that Sony’s web3 journey didn’t start with Soneium. The company has been steadily expanding its footprint in the crypto space, including the acquisition of Japanese crypto exchange WhaleFin (now rebranded as S.BLOX Co.) and digital asset trading services provider Amber Japan.

So what exactly is Soneium, how does it perform compared to its competitors, and what can we expect from this project in the future?

Understanding the core purpose of Soneium

As a public blockchain, Soneium operates on an open network and invites participants from all walks of life to interact without limitations.

What makes Soneium stand out is its role as a layer-2 solution for Ethereum. This means that it is built on Ethereum’s existing infrastructure and aims to solve the two biggest challenges in blockchain today: slow transaction speeds and high transaction fees.

Soneium helps alleviate these issues by performing data processing in its own layer, making the blockchain experience faster and more cost-effective.

One of the most exciting aspects of Soneium is its support for advanced smart contracts, which are vital for building decentralized applications or dApps.

Developers will also have access to a range of third-party tools designed to simplify the process of developing and launching applications on the Soneium network, making it a promising platform for innovation that offers endless possibilities for what can be built on the blockchain.

The recent launch of the Soneium testnet, known as Minato, marks an important step in this journey.

Minato is designed to mirror the conditions of the mainnet, providing a realistic environment for developers to test high-volume applications. This is important to ensure that these applications perform smoothly in real-world conditions when they go live.

As claimed, Minato also plays a critical role in community building. Early access to the testnet allows developers and creators to gather valuable feedback that is important for improving their projects.

Users also benefit from this early access because they can experience and influence the future of these applications without risking their own assets. This is because Minato uses a test version of crypto assets for in-app payments, creating a risk-free environment that encourages discovery and interaction with web3 technologies.

Powering the Soneium Minato testnet is Astar Network, a blockchain platform known for its multi-chain capabilities. Astar helps fuel the early stages of Soneium’s ecosystem by providing initial liquidity and a variety of fungible and non-fungible digital assets.

Alongside Astar, a number of notable blockchain projects and companies, including Circle (issuer of USDC), Optimism, Alchemy, The Graph (GRT), and Chainlink (LINK), will also be among the network’s early testers.

Soneium is also launching a developer-focused program called Soneium Spark, designed to attract visionary developers and creators, offering access to key infrastructure, mentorship, and industry partnerships.

Sony is also offering investment opportunities of up to $100,000 per team. The incubation period for Soneium Spark will begin in mid-October and continue into the coming months.

The battle for dominance of Soneium

Soneium has begun forming key partnerships that could give it an advantage in the highly competitive Tier-2 space.

One of the most notable partnerships is with Pyth Network, a decentralized data infrastructure known for providing real-time, highly accurate price feeds.

This collaboration means that all projects built on Soneium from start to finish will have access to trusted market data from Pyth, a critical component for applications in decentralized finance, web3 games, NFT marketplaces, entertainment services, and more.

But Soneium is entering a crowded, competitive tier 2 environment where it will face established players.

One of the most notable competitors is Base, which recently reached a significant milestone – 1 million daily active addresses. Base is known for its strong support from Coinbase, one of the most well-known names in the crypto space. But Base is not the only competitor in the space.

Polygon (MATIC) is another major player known for its scalability and low-cost transactions. Polygon has become an indispensable layer-2 solution for many developers, especially those looking to build scalable dApps without compromising on security.

Then comes Stacks (STX), which brings smart contracts and dApps to Bitcoin (BTC), providing unique opportunities for developers looking to leverage Bitcoin’s security while also building a layer 2 network.

Another new layer-2 solution, Mantle (MNT), focuses on modular design and ease of integration, making it attractive to developers looking for flexibility and efficiency.

Each of these layer 2 networks has its own unique strengths, and Soneium will need to carve out a niche for itself to stand out.

Traditional giants embrace blockchain

The layer 2 blockchain space, already competing with players like Base, Polygon, and others, could soon become even more crowded.

Recent rumors suggest that the world’s largest asset manager, BlackRock, may be preparing to launch its own layer 2 blockchain network.

According to a report from Token Terminal, BlackRock is seriously considering the move as a natural extension of its growing involvement in the blockchain space. BlackRock manages a portfolio of blockchain-related products, including the iShares Bitcoin Trust (IBIT) and investments in Circle and Securitize. Securitize oversees the on-chain money market fund BUIDL.

BlackRock is the world’s largest asset manager with $10 trillion in assets under management.

We researched the company’s crypto strategy so you don’t have to.

Here’s what we found:

1. DIGITAL ASSETS (ASSET CLASS)

The company divides the crypto asset class into three different classes… pic.twitter.com/YwRz5Lr2Kr

— Token Terminal (@tokenterminal) August 12, 2024

The one missing piece in BlackRock’s crypto puzzle is its own blockchain network, and that move is looking increasingly likely to happen.

If BlackRock launches its own layer-2 blockchain, it would follow a similar path to what Coinbase is doing with Base, allowing BlackRock to streamline record-keeping of its $10 trillion in assets under management across asset classes in a single, global, interoperable, and transparent ledger.

The potential benefits are enormous: 24/7 operational capital markets, improved transparency and investor access, lower fees, and faster payments. However, challenges such as the cost of blockchain implementation and regulatory uncertainty remain significant hurdles.

Sony’s Soneium and BlackRock’s potential layer 2 blockchain may target different segments—Sony, focused on entertainment and gaming, and BlackRock, focused on financials, may have different goals—but the core strategy is similar: leverage blockchain to stay ahead in an increasingly digital world.

As the Tier-2 space develops, the entry of traditional companies like Sony and BlackRock could make the competition even more exciting and intense. Sony’s journey with Soneium is just beginning, and while the path is uncertain, the opportunities for growth and innovation are vast.