Sony’s Soneium could set the pace for blockchain: Is BlackRock preparing to follow?

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

Sony has long been synonymous with innovation, and now it is making a bold entry into the blockchain world with its latest initiative: Soneium.

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

Just a few days later, on August 28, Sony announced… inserted the “Minato” testnet for Soneium, along with an incubation program aimed at onboarding developers to the new platform.

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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.

According to Jun Watanabe, president of Sony Block Solutions Labs, Sony sees blockchain technology as a way to enrich lives and take creativity to new heights. With Soneium, the company aims to open up new business opportunities and use cases, offering unique value from web3 technology.

It's important to note that Sony's journey towards Web3 did not start with Soneium. The company has been steadily expanding its presence in the crypto space, including acquisition Japanese cryptocurrency exchange WhaleFin, now rebranded as S.BLOX Co., and Amber Japan, a digital asset crypto-market-reports/” target=”_blank” rel=””>trade Service provider.

But what exactly is Soneium, how does it compare to its rivals, and what can we expect from this project in the future?

Understanding Soneium's core purpose

As a public blockchain, Soneium opera in an open network, inviting participants from all walks of life to participate without limitations.

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

By managing data processing in its own layer, Soneium helps alleviate these issues, making the blockchain experience faster and more affordable.

One of the most interesting aspects of Soneium is its support for advanced smart contracts, which are crucial for creating decentralized applications or dApps.

Developers will also have access to a suite of third-party tools designed to simplify the process of developing and launching applications on the Soneium network. This makes it a promising platform for innovation, offering endless possibilities of what can be created on the blockchain.

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

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

As stated, Minato also plays a pivotal role in community building. Early access to the testnet allows developers and creators to gather valuable feedback, which is key to refining their projects.

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

Astar Network, a blockchain platform known for its multi-chain capabilities, is supporting the Soneium Minato testnet. Astar provides initial liquidity and a variety of fungible and non-fungible digital assets, helping to power the early stages of the Soneium ecosystem.

In addition to Astar, a number of other major blockchain projects and companies will be early experimenters on the network, including Circle (the issuer of USDC), Optimism, Alchemy, The Graph (GRT), and Chainlink (LINK).

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

Sony is also offering investments of up to $100,000 per team. The incubation period for Soneium Spark begins in mid-October and will continue for the next few months.

Soneium's battle for dominance

Soneium has already begun forging key collaborations that could give it an edge in the highly competitive Layer 2 space.

One of the most notable partnerships is with Pyth Network, a decentralized data infrastructure known for providing high-fidelity, real-time pricing information.

This collaboration means that all Soneium-based projects from the start will have access to Pyth’s trusted market data, a critical component for applications in decentralized finance, web3 games, nft marketplaces, entertainment services, and more.

However, Soneium is entering a crowded and fiercely competitive Layer 2 landscape, where it will face established players.

One of the most prominent rivals is Base, who recently hit A key milestone: 1 million daily active addresses. Base is known for the strong backing of Coinbase, one of the most recognizable names in the cryptocurrency space. But Base is not the only competitor in the field.

Polygon (MATIC) is another key player, known for its scalability and low-fee transactions. Polygon has become a go-to layer-2 solution for many developers, especially those looking to build scalable decentralized applications without sacrificing security.

Then there’s Stacks (STX), which brings smart contracts and dApps to bitcoin (btc), offering unique opportunities for developers who want to take advantage of the security of bitcoin while building on a layer-2 network.

Mantle (MNT), another emerging Layer 2 solution, 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 strengths, and Soneium will need to carve out its own niche to stand out.

Traditional giants adopting blockchain

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

The latest rumors suggest that BlackRock, the world's largest asset manager, could be preparing to launch its own layer-2 blockchain network.

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

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The only missing piece to BlackRock's crypto puzzle is its own blockchain network, a decision that looks increasingly likely.

If BlackRock does launch its own layer-2 blockchain, it would follow a similar path to the one Coinbase followed with Base. This would allow BlackRock to streamline the recording of its $10 trillion in assets under management across different asset classes on a single, interoperable and transparent global ledger.

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

Sony’s Soneium and BlackRock’s potential Layer 2 blockchain may be targeting different segments (Sony with its focus on entertainment and gaming, and BlackRock with its financial products), but the underlying strategy is similar: leveraging blockchain to stay ahead in an increasingly digital world.

As the layer 2 space evolves, 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 road ahead is uncertain, the opportunities for growth and innovation are huge.