Master Gichin Funakoshi is considered the "father of modern karate" as well as the "founder of ShotoKan Karate-Do.

Master Funakoshi had trained in both of the popular styles of Okinawan karate of the time: Shorei-ryu and Shorin-ryu. After years of study in both styles, Master Funakoshi combined specific aspects and ideas of the two styles into one system.  He never named his style always referring to it simply as "karate." Then in 1935, Master Funakoshi's supporters had pooled enough funds to erect the first free-standing karate dojo in Japan. The dojo opened the next year and in honor of their sensei, Master Funakoshi's students created a sign reading Shoto-kan which was placed above the entrance.  "Kan" means "building and "Shoto" means "pine waves," which describes the sound of the wind rustling through pine trees. Master Funakoshi, who loved nature, was fond of this murmuring sound -- he considered it a kind of "celestial music." Therefore, he used the name "Shoto" to sign his calligraphy.

Master Funakoshi's karate reflects the changes made in the art by Anko Itosu, including the Heian/Pinan Kata series. Master Funakoshi changed the names of the Kata in an effort to make the "foreign" Okinawan names more palatable to the then-nationalistic Japanese mainland.

In the 1920s, Master Funakoshi adopted the Kyu/Dan rank system and the uniform (Keikogi) developed by Kano Jigoro, the founder of Judo. This system uses colored belts (obi) to indicate rank. Originally, karate had only three belt colors: white, brown, and black (with ranks within each). The original belt system, still used by Shotokan Karate of America, is:

• Ungraded: White
• 8th kyu–4th kyu: white
• 3rd kyu–1st kyu: brown
• Dan grades: black

Funakoshi awarded the first 1st Dan (Shodan) Shotokan karate ranks to Tokuda, Otsuka, Akiba, Shimizu, Hirose, Gima, and Kasuya on 10 April 1924.  The ultimate rank achievable, in this original ranking system created by Master Funakoshi, is Godan, (fifth-degree black belt), the highest rank ever awarded by Master Funakoshi.