Japan's Ministry of Economy, Trade and Industry report: The government should promote the practical application of blockchain technology (download the full report)

Japan’s Ministry of Economy, Trade and Industry (METI) has released a research report on blockchain technology (full report), suggesting that the government actively verify the feasibility of this technology.

The report, jointly released by Japan’s Ministry of Economy, Trade and Industry (METI) and Nomura Research Institute (NRI), includes an introduction to blockchain technology and details on bitcoin transactions.

It is worth noting that this report lists several examples of blockchain applications, while recommending that the government actively participate in the exploration and research of blockchain technology, and explaining the reasons why the government participates in the practice of blockchain technology.

The government should actively explore the practical applications of blockchain technology and then announce the results to the public, explaining the opportunities and challenges that blockchain technology brings to various industries in Japan, so as to effectively promote the development of related industries.

Application examples listed in the report include asset management, identity authentication, commercial circulation management, communication, information storage, crowdfunding, finance (including remittance, transaction settlement, etc.), Internet of Things (IoT), loyalty and rewards, medical services, market forecasting, elections, information sharing, etc.

However, the report states that not all application cases can improve efficiency. For some industries, the cost of replacing old systems with new ones is quite high.

The report further states that the system architecture of blockchain technology and the integration of blockchain technology with existing industries are likely to pose a threat to the development of the industry.

From a technical perspective, researchers say blockchain and the real world may be out of sync, and the immutability of blockchain may be a big problem.

Regarding the commercial applications of blockchain, the report puts forward two points: service agreements need to be established on private chains; and token asset prices need to be stable.