Applying Blockchain to IoT ( ABC Strategy)

Kaula tries to apply Blockchain technology to Internet of things arena.
We see four technologies in the digital transformation recently emphasized. First of all, field data are gathered at IoT site. Because they are usually big data, they are processed as such. Next, the data should be analyzed by smarter algorithms (sometimes called as AI) to identify the essential factors, and then stored in Blockchain and shared by stakeholders in secured and non-tampering manner. The following Figure 1 shows these four items and value transmission among them, which leads to data circulation and yields additional applications.

Figure 1. Four technologies in the digital transformation

Kaula thinks it important to process this value transmission in a connected and consistent manner because IoT application needs “total engineering” and because the four technologies are still treated separately.

Moreover, Kaula identifies that there are characteristic differences among AI and Blockchain which are applied to IoT applications. Blockchain is a technology to extend usages. While IoT enlarges of the physical world that we can treat, Blockchain enables new stakeholders to join in and share the value chaining. On the other hand, AI is a technology to make the data more valuable and more competitive. Figure 2 shows two axes; Deepening of solutions (A axis by AI) and Extension (BC axis by Blockchain).

Figure 2.  Two Axes: Blockchain drive to extend a solution, while AI to deepen it.   This diagram is valid for not only IoT solutions but also others.

An example is that data from IoT can be stored in safe and non-tampering to be used by new stakeholders with their business models. But Blockchain does not say anything, if the input data is true or not. Some data checking by AI which also sees other environmental data can add a value that the input data is true. (Revised)


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Thank you very much for attending the 1st Kaula Blockchain seminar. 

Kaula™ BlockChain Seminar #1

Date:Aug. 3, 2017

Venue: Grandhill Ichigaya, Tokyo


1.Kaula’s business strategy         Katsuji Okamoto, CEO

Download the presentation material   (in Japanese)


2.Usage Record Management System using Factom Blockchain

(1)Factom Introduction                Hiroyasu Nohata, CIO

Download the presentation material   (in Japanese)

Factom’s video “Factom is forever”  with Japanese sub-title

Video message by Paul Snow, Factom chief architect  with Japanese sub-title


(2)My number application using Factom Blockchain      Yosuke Ogushi, Atrris

Download the presentation material   (in Japanese)

Demo Video  (in Japanese)

Demo Video  with English sub-title


3.Blockchain and other edge cutting activities in UK     Katsuji Okamoto, CEO

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4.Kaula Laboratories

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“Usage record management system utilizing Factom’s blockchain solution”



Press release: a joint development with Atrris

Kaula Inc. and Atrris Corporation have formed a joint development of a usage record management system utilizing Factom’s blockchain solution

The initiative will retain record authenticity and tamper resistance to data processing of the Japanese social security system.

TOKYO, JAPAN (June 13, 2017) – Kaula Incorporated (Head office: Chiyoda-ku, Tokyo, Representative Director, Katsuji Okamoto), a blockchain platformer, is pleased to announce that Kaula and Atrris Co., Ltd. (Head office: Setagaya-ku, Tokyo, Representative Director, Masanori Yasumitsu), who has been developing personnel, payment, accounting and medical logistics systems, have agreed to jointly develop a “usage record management system” against data involved in the above applications using Factom blockchain. Using this system, you can retain authenticity and tamper resistance of log records generated when the Japanese social security system’s data is processed – when information is added, updated, deleted or retrieved in mission-critical applications. Kaula and Atrris will also jointly promote business around the usage record management system.

Background of Collaboration

Recently, blockchain technology has received attention because of its great potential to drastically change the way we do business and the impact it will have on society. Blockchain has become the solution requested to achieve record authenticity or tamper resistance against processed results in mission-critical applications that Atrris develops. Kaula and Atrris have been investigating ways to conquer this requirement, where they use their knowledge combined with Factom’s blockchain technology, a data layer blockchain product, for use cases that office staff of local government access data of the Japanese social security number system. Now that Kaula and Atrris have completed a PoC (Proof of Concept) and confirmed that their jointly developed usage record management system can retain log record authenticity or tamper resistance, both companies will proceed to a next step of experimental proof with their customers, and then will apply the system to business applications.
In addition, by using Factom you can more securely and surely manage, track and audit various kinds of documents or records such as log records in general, loan records, securities or insurance contracts and medical data and others in a decentralized way than legacy centralized systems. Kaula and Atrris will widely and jointly promote the usage record management system to these business areas.

Note: Factom is a blockchain framework developed and provided by Factom, Inc. whose head office is located in Austin, TX, USA. Factom is on a mission to give the world’s systems authenticity. People and institutions today can solve hard problems and change the world for the better when they have a reliable framework to build upon. Factom frees up dead capital, which allows companies to grow and helps people to better utilization of social capital.

About Atrris Corporation

Through many experiences of directly meeting customer needs along with customers’ business analysis and development of their applications for 20 years, Atrris developed and accumulated its proprietary business analysis know-how, provides business analysis consulting, develops mission-critical applications for various kinds of business sectors and supplies supporting services to build an enterprise system that includes infrastructure design around the system as well as business system design.

About Kaula, Inc.

Now that disruptive innovation is required, management team with extensive experiences in wide-ranging business and talented young people gathered and founded a company in January 2017 to support corporate reform with new solutions. Based on blockchain technology, Kaula develops services in the field of record management, IoT and other applications as a breakthrough platformer that reforms life and industrial structure as well as companies’. Kaula also adds AI technology to its solutions in order to improve effectiveness of blockchain-based applications.

●For more information, please contact
Hiroyasu NOHATA
Email : info @

●Press Release PDF

Kaula joined Enterprise Ethereum Alliance.

Enterprise Ethereum Alliance (EEA)  announced that Kaula joined EEA as its formal member at the Consensus 2017 held at New York on May 22.

EEA aims to achieve the following five goals to promote Ethereum used in enterprise environment.

  1. Develop a sufficiently modular Ethereum implementation to separate and define clear interfaces between networking and storage layers – that is a prototype for pluggable consensus that minimizes the code changes required to switch consensus algorithms.
  2. Experiment with potential consensus algorithms, along with data privacy and permissioning frameworks.
  3. Develop a clear set of capabilities and performance characteristics that suit the needs of enterprises, including:
    1. 100 transactions per second, across a 10 party network
    2. High volume and value use cases
    3. High availability/reliability
    4. Parallelization and horizontal scaling
  4. Develop a Version 1 specification for Enterprise Ethereum, based on the learnings from the above plus the roadmap and requirements gathered from members, i.e., produce a reference implementation.
  5. Leverage a robust governance process to ensure alignment and agreement on approaches.

Please see also the original press release → enterprise-ethereum-alliance-release


Kaula has formed “Kaula Labs” for Blochchain and IoT.

Kaula has formed a new organization, Kaula Labs, to promote blockchain and IoT technologies on April 6, 2017.  Junichi Ohtsuka, CTO and the person in charge of the Labs, says “we will dedicate ourselves to develop new business with game-changing services as a provider of open smart contract platform .”

Kaula originally puts focuses on IoT, Bigdata, AI and Blockchain technologies to promote digital transformation and the Labs is an organization to provide experimental proof environment for three business domains such as sharing economy, micro payment and robot adviser. As for Blockchain and IoT concern, innovations of business model are also required as well as those of technical stuffs. Founding Kaula Labs which has strong technical backgrounds will accelerate collaboration with expert teams who have lots of experiences of planning and building new business to proceed management innovation.

The newly founded Kaula Labs is now planning to develop micropayment platform SMP (Smart Market Protocol) which is Ethereum-based and to make it open sourced shortly.

As well, Kaula and Kaula Labs extend their global alliances to obtain cutting-edge blockchain technologies. The collaboration with KAHM announced on March 6 was the first trial to connect the advancing UK, and it continues to alliances with potent companies in Europe and US.