Building Bridges—NonEntropy Japan Brings Filecoin to Web2 & the Metaverse

NonEntropy Japan is the Filecoin storage provider that’s building the metaverse to boost demand for Web3 data storage.

The TL;DR on NonEntropy Japan

NonEntropy Japan is a hardware and software company that uses Filecoin network protocols to store data. The Filecoin storage provider is also a metaverse developer with a software focus—the team knows that a successful transition to Web3 must be user friendly. NonEntropy Japan is the talented team behind FilMatch, the Dropbox-style data onboarding software, and organizer of a professional consortium called IPFS JAPAN.

If you want to get inspired, then keep reading to find out everything else about NonEntropy Japan.

What is NonEntropy Japan?

NonEntropy Japan is a Filecoin storage provider that’s creating the metaverse to grow demand for Web3 data storage. The storage provider creates metaverse digital twins for many applications, and has a strong software focus to enable user friendly experiences.

Assets. NonEntropy Japan maintains both office space and data center operations. The headquarters office is in Tokyo, while the storage provider’s data center operations are co-located in shared data centers across the region. The team operates a total of 32 42U racks across five data centers.

Geographies. NonEntropy Japan intentionally uses co-located data center space, which requires less capital investment, for the purpose of being more geographically distributed. The storage provider operates at four data center locations in Japan—three in the Tokyo region and one in Hyogo—and has storage operations in Shenzhen, China.

With its predominantly Japanese footprint, the Web3 storage provider is focused on serving Japanese clients. NonEntropy Japan collaborates globally with other storage providers to duplicate clients’ data per their geographic preferences and other requests.

Industry verticals. NonEntropy Japan stores data for clients across industries and sectors, often serving enterprises in industries with high data storage needs. NonEntropy Japan works with clients in the media and entertainment fields, in addition to many organizations in the public sector. Media and entertainment companies have vast troves of creative content, while public sector agencies often have high data storage needs coupled with limited budgets.

Storage capacity. The Filecoin storage provider has a current capacity of 30 pebibytes (PiBs) of data on a quality-adjusted basis. While more than half of that capacity is currently based in China, NonEntropy Japan is now only growing its data storage operations in Japan. By year-end 2023, NonEntropy Japan plans to add more than 60 PiBs (quality adjusted) of storage capacity to its Japanese locations.

Funding. NonEntropy Japan, like many organizations, is funded by a multitude of sources. Let’s take a look at the funding and revenue sources that support NonEntropy Japan—

Data storage services: NonEntropy Japan earns income by storing data for clients and helping to operate the Filecoin network.
Hardware rentals and sales: The company monetizes Web3 data storage hardware by selling or renting it to clients and then operating the hardware for them.
Private investment: NonEntropy Japan has received funding from strategic corporate investors, venture capital funds, and angel investors.

Partnerships. The Filecoin storage provider in January 2023 announced a strategic partnership with Seagate, the storage hardware manufacturer. NonEntropy Japan and Seagate are working together to develop the market in Japan for Filecoin data storage, plus are collaborating to develop new data storage solutions for enterprises.

Community involvement. NonEntropy Japan is active in the Filecoin community, both by formally participating in Filecoin incentive programs and by attending events like FIL-Singapore. The storage provider was an early participant in Slingshot, the community program that aims to preserve open datasets. NonEntropy Japan also engages with Filecoin Plus, the incentive program designed to attract high-quality data to the network.

Why does NonEntropy Japan exist?

NonEntropy Japan is “passionate about advancing to Web3.0.” The storage provider is on a mission to offer Web3-based storage options with “quality, convenience, reliability, and affordability.” NonEntropy Japan views itself as an infrastructure provider, one that’s building digital bridges to a decentralized internet.

The tech company’s drive to make Web3 internet feel like Web2 is based on the belief that the current data storage landscape is “unhealthy.” A small number of companies currently dominate the digital storage landscape, making users “highly bound” to just a few data storage platforms.
NonEntropy Japan is making Web3 more accessible by eliminating the need for specialized knowledge to use Filecoin and other Web3 technologies.

NonEntropy Japan explains its decision to work with the Filecoin network by saying that the Filecoin mission resonated with the team. “To create a decentralized, efficient, and robust foundation for humanity’s information” is Filecoin’s lofty goal. The software company, upon discovering Filecoin, immediately recognized the protocol as having global potential.

NonEntropy Japan’s products & services

You may be curious about the services and products that NonEntropy Japan offers. The storage provider operates a diversified business, in part because it understands the importance of having multiple income streams. The company also knows that the transition to Web3, for individual users, has to feel easy (and even fun!). Let’s take a look at the products and services that NonEntropy Japan provides—

Decentralized data storage: NonEntropy Japan uses the Filecoin network to store and replicate data for consumers and enterprise clients. The storage provider adheres to standard Filecoin protocols to participate in the Web3 data storage network.
Hardware rental and sales: NonEntropy Japan both rents and sells Web3 cloud storage hardware to clients. The storage provider monetizes the value of the hardware in addition to operating the hardware for its clients.
Data onboarding software: NonEntropy Japan is the development team behind FilMatch—Dropbox-style software that enables users to easily onboard data to the Filecoin network. FilMatch also supports data encryption, management, and retrieval.
Metaverse products: NonEntropy Japan uses Matterport 3D-space technology to create metaverse products—such as digital twins, avatars, and virtual communications channels. The company is focused on creating digital twins for a variety of applications, a strategy that the company uses to boost demand for its Filecoin data storage.
Developer kits: NonEntropy Japan creates software kits that enable developers to access Web3 data storage using hardware operated by NonEntropy Japan. These developer kits include technology gateways and sets of application programming interfaces (APIs).

How NonEntropy Japan stores data

Now let’s dig into exactly how NonEntropy Japan uses the Filecoin network to store data for enterprise clients.

Client negotiates agreement: NonEntropy Japan works with each prospective client to develop the terms of an agreement for data storage. This initial agreement specifies the quantity of data, duration of storage, any additional security measures that may be required, and other client preferences.
Client sends data: The client initiates the storage service by sending data to NonEntropy Japan. Clients can use physical means, such as sending hard drives, and can transfer data using the internet.
Data is onboarded: NonEntropy Japan uploads data to its servers once the data is received. If a client has requested for the data to be encrypted, then that process is completed first.
Data is replicated: In keeping with a client’s preferences, NonEntropy Japan replicates the data, causing it to be held by multiple storage providers in the Filecoin network. Replication occurs in accordance with clients’ geographic or other preferences.
Data is retrieved: Clients can retrieve their data at any time by contacting the NonEntropy Japan team. The storage provider oversees the retrieval process to ensure that it is efficient and secure.

NonEntropy Japan powers its operations using a variety of hardware and software. Without getting too technical, let’s take a peek at what NonEntropy Japan uses—

Seagate: hard drives for data storage capacity
Dell: data storage capacity hardware and general server equipment
Lotus: Filecoin reference implementation software
Ubuntu: open-source operating system that’s built on Linux for enterprise servers

A brief history of NonEntropy Japan

NonEntropy Japan was founded in December 2020 by Takuo Nishimura and a business partner. The founding team since 2018 had recognized the technological potential of the Filecoin protocol, and chose to first experiment with Web3 data storage by collaborating with a group of Chinese experts. The proof-of-concept test that the two teams began in 2018 was a success, paving the way for the official formation of NonEntropy Japan.

The burgeoning Filecoin storage provider didn’t waste any time before it began developing product and service offerings to complement its Web3 storage business. The team also understood from the beginning the need for scale as a digital infrastructure company. Let’s get a glimpse of the biggest milestones (to date!) in NonEntropy Japan’s history—

Commenced decentralized data storage: Working with its Chinese collaborators, the team in June 2020 began using the Filecoin network to store data for enterprise clients.
Launched hardware rental business: Also in June 2020, the founding team began monetizing its Web3 hardware by renting it to clients.
Participated in Slingshot: The NonEntropy Japan team, in October and November 2020, participated in the Filecoin Slingshot program to onboard public data sets. The team also won a Slingshot award for a video that it co-produced with WeRaveYou, an Israeli media company.
Formally established NonEntropy Japan: It wasn’t until December 2020 that the team officially formed NonEntropy Japan. This milestone is significant because it’s when the NonEntropy Japan team began drastically decreasing its reliance on its Chinese collaborators.
Launched Filecoin node: April 2021 is when the NonEntropy Japan team established a Japan-based node in the Filecoin network.
Released FilMatch software: April 2021 is also when NonEntropy Japan released its FilMatch software (formerly known as IPFS Souko). Launching FilMatch was significant because it enabled NonEntropy Japan to begin serving the consumer market.
Established large-scale data center operation: NonEntropy Japan first began operating Web3 data storage hardware at scale in September 2021, with the establishment of its largest data center in Tokyo. The storage provider previously maintained only two smaller data centers, for testing the team’s Filecoin storage capabilities.
Raised seed capital: NonEntropy Japan in August 2022 successfully raised a seed round of financing worth 140 million yen. The financing was contributed by a mix of individual angel investors, venture capitalists, and corporations as strategic investors.
Formed Seagate partnership: The strategic partnership between Seagate and NonEntropy Japan commenced in January 2023. The partnership enables NonEntropy Japan to jointly develop new storage solutions and optimize the price and quality of its hardware purchases.

Who is NonEntropy Japan?

Now let’s meet the CEO of NonEntropy Japan, Takuo Nishimura.

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Takuo Nishimura, Chief Executive Officer

Takuo is a serial entrepreneur with a long professional history in the technology sector. Prior to co-founding NonEntropy Japan, he spent a decade at the helm of SIGOOT, an IT and financial services consulting company that frequently recommended Filecoin-based solutions. Takuo has held leadership roles with various technology companies, including a translation software business and an application services provider. He previously invested in internet-related companies for Japan Joint Finance Corporation and has worked as an investment banker for Mirai Securities. Takuo is a graduate of Keio University in Tokyo, Japan.

NonEntropy Japan describes its team structure as being “very flat.” Minimizing hierarchy and bureaucracy “allows us to move quickly and adapt to changing market conditions,” according to the Filecoin storage provider. “We are able to make decisions and implement solutions quickly, without being bogged down by hierarchical layers. This agility has allowed us to stay ahead of the curve and consistently deliver high-quality products and services to our customers.”

The team also encourages each member to bring their own unique perspectives and experiences to the work. Fostering diversity, according to NonEntropy Japan, “allows us to approach challenges from multiple angles and find the best solutions. We encourage open communication and collaboration [to create] a sense of community and inclusivity within our organization.”

Who uses NonEntropy Japan?

NonEntropy Japan serves the consumer market and a diverse range of enterprise clients. The organizations that use NonEntropy Japan for decentralized data storage operate in a variety of sectors including media, broadcasting, entertainment, and government.

NonEntropy Japan also works with clients across sectors to provide metaverse products like digital twins—a move that simultaneously generates demand for high-capacity, low-cost data storage. Let’s take a look at some of NonEntropy Japan’s metaverse clients who also use Filecoin data storage—

DiscoverFeed: This metaverse company provides electronic music fans with virtual experiences on its platform. DiscoverFeed uses digital twins from NonEntropy Japan to create these virtual experiences.
Paralym Art: This organization combines the business of art with advanced technology to support artists with disabilities. Paralym enables digital art exhibitions, resulting in artists with limited mobility receiving both worldwide exposure and increased sales.
Ligna Furniture: This North Carolina furniture store works with NonEntropy Japan to make shopping for Ligna furniture a virtual experience. Imagine strolling through a digital Ikea, and you can understand how Ligna Furniture uses digital twins and Filecoin data storage from NonEntropy Japan.

How NonEntropy Japan approaches marketing & sales

How do users find out about NonEntropy Japan? The team knows very well the importance of raising awareness about its technology and consistently making sales.

The Filecoin storage provider and metaverse builder uses marketing tactics that are effective for connecting with a wide consumer audience. NonEntropy Japan raises awareness by hosting events and frequently issuing press releases that highlight company achievements and developments. The team also maintains a website for NonEntropy Japan and regularly posts to social media—primarily YouTube and Twitter.

“We are committed to transparency and keeping our clients and the public informed about our latest news and developments,” says NonEntropy Japan. “We believe that this is essential to building trust and maintaining strong relationships with our stakeholders.”

NonEntropy Japan has increased awareness about its Filecoin data storage business by creating and managing a consortium called IPFS JAPAN. (IPFS—short for InterPlanetary File System—is the data storage protocol that powers the Filecoin network.) This consortium brings together Web3 companies and experts to engage in dialogue with users, support the development of Web3 technologies, enable recruiting efforts, and develop joint proposals for public agencies.

NonEntropy Japan takes a somewhat different approach to sales, preferring to use a highly targeted approach that prioritizes companies and individuals who are already excited about Web3 technology. The Filecoin storage provider always focuses on education during the sales process, both because Web3 tech is very new and because educating a potential client can produce valuable upsell opportunities.

NonEntropy Japan augments its salesforce by working with a wide variety of channel partners, including financial advisors, accountants, insurance agents, physical warehouses, and creative enterprises like photography studios. The choice of channel partner is highly targeted to the product or service being offered by NonEntropy Japan.

What hasn’t worked for NonEntropy Japan is outbound marketing via a call center. Unsolicited telephone calls to a general business audience were not productive, inspiring the storage provider to pivot to a narrower focus.

Operations at NonEntropy Japan

What’s a typical day like at NonEntropy Japan? You may be wondering about how this Filecoin storage provider and software developer operates. First, let’s take a peek at the general organizational structure for the company—

Hardware: The hardware team is responsible for server monitoring and management to ensure uninterrupted data storage operations. The team provides support for software updates and implements security measures.
Software: The software team both develops new software solutions and maintains existing software products such as FilMatch. This team also manages software integrations with the Filecoin network.
Sales: The NonEntropy Japan sales team engages in a high-touch process with enterprise clients. The team works closely with prospective customers to educate them about Filecoin data storage, the metaverse, and other Web3 technologies.
Fund raising: NonEntropy Japan takes fund raising seriously, with a team devoted to developing and nurturing investor relationships. This team frequently networks with and pitches to interested investors.
Reporting and analytics: This division of NonEntropy Japan focuses on business planning and reporting. The team also provides regular status reports to the company’s data storage clients.

The business and technical teams at NonEntropy Japan are clearly delineated but also closely collaborative. The team says that “our focus on collaboration and teamwork is a key factor in our continued success.”

Challenges for NonEntropy Japan

NonEntropy Japan is a young company in a rapidly evolving industry—so it’s not surprising that the Filecoin storage provider faces some challenges. Keep reading to understand the obstacles facing NonEntropy Japan, and what the company is doing to overcome these hurdles.

Challenge #1—Securing sufficient funding

NonEntropy Japan is chasing some pretty major opportunities in the Web3 space, which requires plenty of funding. The storage provider is investing in costly hardware, paying competitive salaries, and buying Filecoin tokens to satisfy collateral requirements. All of that adds up! A slump in the price of FIL adds additional financial pressures for NonEntropy Japan.

The Filecoin storage provider is addressing this challenge in a couple different ways. The team offers a diversified range of complementary products and services, creating upsell opportunities and reducing the company’s reliance on any single income stream. NonEntropy Japan also maintains a strong focus on fund raising, treating it as an ongoing activity rather than a one-time event.

Challenge #2—Raising awareness about Web3

NonEntropy Japan is bringing new technology to the marketplace, which means that it is tasked with educating its audience about Filecoin and Web3. Raising awareness about “invisible infrastructure” is not easy, and can make the cost of customer acquisition very high.

What is NonEntropy Japan doing to address this challenge? The Filecoin storage provider is using a variety of marketing tactics to raise awareness about itself and Web3 technology, with a focus on consumers and enterprise clients who already share concerns about Web2 tech. The storage provider is developing practical use cases, such as metaverse digital twins, to create new applications for Filecoin and Web3. Another major way that NonEntropy Japan is raising awareness about Web3 and its own business is by leading the IPFS JAPAN consortium.

Challenge #3—Hiring top talent

Working with brand-spanking-new technology can make it difficult to identify and recruit qualified talent. NonEntropy Japan says that there’s a “lack of tech talent” currently working on Web3 technologies, which increases the demand for those with relevant skill sets. The storage provider is obligated to pay top dollar to attract and retain the best team.

NonEntropy Japan is addressing this challenge by using its awareness-raising activities to also support its hiring efforts. The storage provider treats the recruiting process much like its sales process—both are high-touch endeavors that require consistent effort. NonEntropy Japan also pays attractive salaries as a strategy to retain its best performers.

NonEntropy Japan successes

Plenty has gone right for NonEntropy Japan, which is why the Filecoin storage provider boasts many successes in its short history. Keep reading to dig into NonEntropy Japan’s biggest accomplishments to date.

Success #1—Established large-scale data center

NonEntropy Japan in September 2021 established its first large-scale data center operations, in shared data center space in Tokyo. This was a major success for the storage provider because it represented a total shift away from the early partnership in China. NonEntropy Japan was successful at establishing a large-scale data center footprint in part because it had already been testing its data center capabilities in two smaller Japanese locations.

NonEntropy Japan has been building on this success by continuing to expand its data center operations. The team is leveraging its increasing hardware footprint to form valuable strategic partnerships and position itself as a powerful Web3 infrastructure company. The storage provider is also leveraging its full control over its hardware to provide top-quality service to clients.

Success #2—Sold 500 million yen of storage hardware

NonEntropy Japan in fiscal year 2021 crossed an exciting threshold—it sold 500 million yen of data storage hardware. The storage provider considers this as a major success because every sale of data storage hardware also creates an opportunity for NonEntropy Japan to operate that hardware for the client. NonEntropy Japan attributes this achievement in part to its strong focus on potential clients who are already excited about Web3.

The Filecoin storage provider is building on this success by developing additional sales opportunities through channel partnerships. NonEntropy Japan is also leveraging its growing purchasing power to drive down per-unit costs and achieve hardware economies of scale. With a large and growing hardware footprint, NonEntropy Japan is well positioned to continually reduce its per-server overhead expense.

Success #3—Raised 140 million yen

NonEntropy Japan in August 2022 successfully raised 140 million yen from seed investors including corporations, investment funds, and individuals. The storage provider attributes this success to the diversified strength of the company, which generates revenue from both hardware and software. NonEntropy Japan says that developing “real use cases” has been crucial for generating investor interest in the storage provider’s business.

NonEntropy Japan is leveraging the momentum generated from this successful funding round to invest in additional storage hardware and develop new Web3 software solutions. The storage provider is also using some of the funds to add new members to the team. NonEntropy Japan continues to engage with investors, both current and prospective, to create follow-on financing opportunities.

What’s ahead for NonEntropy Japan?

NonEntropy Japan has a lot to be excited about. What does the storage provider hope to accomplish in the months and years ahead? Let’s check it out—

In 2023, NonEntropy Japan plans to raise another round of funding from individual and strategic investors. The company intends to accelerate the growth of its hardware business and release more software that provides user-friendly experiences with the decentralized internet.
Over two years, the Filecoin storage provider intends to add at least 200 PiBs (quality adjusted) of data storage capacity. NonEntropy Japan expects to produce 400 new digital twins for clients, and aims to enable clients to host their own metaverse stores. NonEntropy Japan also aims to list itself as a public company in the next 2-3 years.
Within five years, NonEntropy Japan plans to establish a quality-adjusted storage capacity of 1 exabyte (XiB). The storage provider aims to use much of that capacity to store data for metaverse-based digital twins—the team has a goal of 1,000 new digital twins in the next five years.

NonEntropy Japan expects to also grow geographically over time, with an initial focus on expanding in the Asia-Pacific region and to North America. The storage provider plans to first add data storage capacity in these regions, and then expand its marketing and sales activities to tap into regional demand for the company’s products and services.

Regardless of the timeframe or geographic location, NonEntropy Japan is staying focused on just a few key priorities—

Decentralized data storage
Hardware rentals and sales
User-friendly software experiences
Sales and fund raising
Exceptional client service

NonEntropy Japan knows that any viable alternative to Web2 technology needs to be both compatible with the existing tech and easy to use. That’s why the Filecoin storage provider is a bridge builder—a consumer software expert that harnesses the power of Web3 infrastructure. NonEntropy Japan is tasked with raising awareness and educating consumers about the benefits of Filecoin and Web3, but envisions a day when the many benefits of decentralized internet are well understood. NonEntropy Japan is among the talented teams working every day to make a smooth transition to Web3 happen.