Japanese electronics giant Sony (SONY) has launched a new layer-2 blockchain platform called “Soneium.”
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The general-purpose blockchain platform is a layer-2 network built on the Ethereum (ETH) protocol. Sony describes it as “a versatile general-purpose blockchain.” The technology company known for its video games says that Soneium has been designed to support gaming, finance, and entertainment apps.
Sony adds that the blockchain platform has been launched following a four-month test period that involved 14 million digital wallets. Analysts say Sony’s foray into the technology that underpins crypto is further evidence that technology companies are looking to use blockchain to commercialize media.
Ethereum Network
Sony says that its new layer-2 blockchain “prioritizes user-centric design, simplifying blockchain interactions.” Sony adds that its Soneium blockchain enables users to transact on the Ethereum network quickly and for little cost.
Other companies that use blockchains similar to the one from Sony include U.S. crypto exchange Coinbase Global (COIN). Sony’s stock has increased 6% over the last 12 months to trade at $20.50 U.S. per share.
Is SONY Stock a Buy?
The stock of Sony has a consensus Moderate Buy rating among two Wall Street analysts. That rating is based on two Buy recommendations issued in the last three months. The average SONY price target of $24 implies 17% upside from current levels.
