Earlyworks Co., Ltd. Entered into a Memorandum of Understanding with Social Finance Limited for Blockchain Game Development

Tokyo, Japan, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System (“GLS”), today announced that it entered into a Memorandum of Understanding (“MOU”) with Social Finance Limited (“Social Finance”), an operator of the Web3 platform GuildQB, which is one of the largest blockchain gaming guilds in Japan, to jointly develop blockchain games. This represents a key initiative of the Company to leverage GLS in the gaming industry.

Pursuant to the MOU, the Company and Social Finance agreed to work together to plan, develop and operate blockchain games using blockchain technology. Earlyworks agreed to provide GLS, offer design or design support for blockchain games, and conduct technical verification, system development and operation. Social Finance is responsible for blockchain game planning, marketing and sales of content in blockchain games, and formation and operation of communities in blockchain games. The allocation of revenue will be determined upon negotiation between the Company and Social Finance for each product.

This partnership aims to provide the real-time processing capabilities and improve the user experience in blockchain games. Conventional blockchain games face challenges from algorithms that are associated with public chains, and struggle with high real-time processing. In contrast, GLS moves most of the public chain processing to a secure and highly available off-chain environment and seamlessly links with public chains. As a result, GLS achieves ultra-high-speed processing, a feat that is beyond the capabilities of public chains operating independently. GLS enables real-time issuance of NFTs for purchase or transfer, immediate in-game utilization of NFT items, and effective utilization of NFT items in blockchain games. A simulation role-playing game is scheduled to be released as the first blockchain-game based on GLS.

Mr. Satoshi Kobayashi, the Chief Executive Officer and Representative Director of Earlyworks, commented, “We are excited about this partnership with Social Finance, which is expected to explore new frontiers of gaming and unleash new possibilities for the industry. In addition, this initiative is set to strengthen our technological advantages by tapping into the high processing speed of GLS and enhancing its compatibility with the gaming industry. We firmly believe that this partnership will further enhance the profitability of our GLS-based services across industries and expand our market footprint in the Web 3.0 era, bringing enduring value for our shareholders.”