Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”) (Head office: Taito-ku, Tokyo; CEO: Satoshi Kobayashi), a blockchain solution provider that deploys its high-speed proprietary blockchain technology Grid Ledger System (“GLS”), and ZenmuTech, Inc ("ZenmuTech") (Head Office: Chuo-ku, Tokyo; CEO: Yoshikazu Taguchi), which pursues data protection and data utilization through "secret splitting technology" that encrypts and manages information in various location, have collaborated to realize a secure digital society where users can utilize their data without concern about data leakage, hacking and tempering.

■　Background of Collaboration

GLS, the fast proprietary blockchain technology provided by Earlyworks, addresses the problem of slow processing speed, which has been a major bottleneck in conventional blockchains. GLS has a processing speed of less than 0.2 seconds in certain circumstances, which is ideal for enterprise blockchains. GLS has controllable and easy-to-use operational functions that are as good as those of conventional databases. It has high processing power like a large-scale database, and achieves both easy-installation and high customizability, as well as high tamper-resistance and convenience, which are the characteristics of blockchains.

ZenmuTech's AONT (All-or-Nothing Transform) secret splitting technology divides data into "several pieces (shares) that is nullified and split across various locations”, so that if one fragment is missing, the whole picture cannot be recovered and data leakage can be prevented. This technology is attracting attention as an alternative solution of encryption technology, which has been the basis of security technology to date. Combining the tamper-resistance of blockchain with data-nullifying technology by secret splitting, Earlyworks and ZenmuTech are now able to provide strong and fast next-generation data protection. With this collaboration, Earlyworks and ZenmuTech will create an innovative business model for the enterprises in Japan.

■　Objectives of Collaboration

With this collaboration, Earlyworks and ZenmuTech seek:

(1) New blockchain to unleash a digital revolution GLS enables secure management of a wide variety of content, including not only text, but also images, videos, and music. This implies that content creators can offer engaging content while keeping their work secure and protected.

(2) Powerful SDKs brought by ZENMU Engine (SDK) & GLS (SDK) Combining the two SDKs is expected to result in a more convenient and powerful SDK that delivers security and reliability. Customerswill be able to enjoy their digital lives with peace of mind and handle their data with confidence in the business world.

(3) Secret splitting x blockchain = robust security Earlyworks and ZenmuTech will develop a technology to secretly split large files and manage a fragment of them on the blockchain. This is expected to reduce the risk of information leakage and data tampering. The transparency of blockchain and the robustness of secret splitting combine to set a new standard for data protection.

Additional details on this collaboration will be released later this summer.

■　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 $10.6 billion in 2023 and $404.1 billion in 2030 (*1). The market is expected to grow 38-fold in the seven years from 2023 to 2030, and such huge market growth is attracting more attention around the world.

On the other hand, the Japanese blockchain market is expected to be worth 142.7 billion JPY (*2) in 2023, and compared to the global market size, Japan's market share is estimated to be about 10%.

In Japan, the "Priority Policy Program for Realizing Digital Society " approved by the 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 Digital Agency to study the future use of blockchain. Although the "Web 3.0 Study Group" has been established at the Digital Agency and has been increasing its activities, the actual business use of blockchain has yet to increase significantly.

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 ZenmuTech

ZenmuTech develops and sells its own products, including “ZENMU Engine”, which provides ZENMU-AONT's secret splitting technology as SDK, and “ZENMU Virtual Drive”, which prevents information leakage from PCs, and is used by many companies. In the field of secret computation, ZenmuTech provides “QueryAhead”, a database platform for secret computation, for research and social implementation in collaboration with AIST.

In order to realize highly secure solutions that could not be realized with conventional encryption technologies, ZenmuTech will pursue data protection and data utilization with its innovative technological capabilities and creativity through open innovation.

Name: ZenmuTech, Inc Location: 804 THE HUB GINZA OCT 8-17-5 Ginza, Chuo-ku, Tokyo Representative Director: Yoshikazu Taguchi URL : https://zenmutech.com/

【Trademarks】 All company names and product names on this document are properties and trademarks or registered trademarks of their respective companies.

■　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 current expectations and projections about future events that the Company believes may affect its 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 undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.