South Korea’s second-largest city, Busan, is making significant strides in becoming a blockchain city. The city is currently developing a public blockchain network that is compatible with mainstream blockchain platforms like Ethereum and Cosmos. The goal is to integrate blockchain-based services from different mainnets onto a single platform at the city level.
To support this initiative, Busan City has allocated a budget of 100 billion Korean won ($75 million) for open blockchain development that adheres to global standards. The funds will be raised through investments from public financial institutions within Busan, with almost 100 private companies expressing interest. This effort is being led by the Blockchain Innovation Fund (BIF), a private fund that supports the growth of Busan’s blockchain industry and infrastructure construction, in collaboration with financial and public institutions in the city.
The development of a public blockchain in Busan aligns with the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule. The main objective of this plan is to transform Busan into a blockchain city.
One of the driving forces behind the decision to develop a public blockchain is the desire to provide a seamless and efficient experience for businesses operating within the city. Busan City has been actively experimenting with various use cases of blockchain technology in its trade-free zone. However, most of these projects were implemented on different blockchains, leading to a disjointed experience for businesses. By adopting a public blockchain that is compatible with global networks like Ethereum, the city administration aims to create a unified platform that addresses this challenge.
Related Post
In addition to developing a public blockchain, Busan City is actively participating in the establishment of the Blockchain Trust Framework technology standard, led by the Korea Internet & Security Agency. This project aims to enhance the quality of private services and promote interconnection between services by setting requirements for blockchain technical systems, performance, and security levels. The standard will also be utilized for public services within Busan City, further solidifying the city’s commitment to blockchain adoption.
Looking ahead, Busan has a long-term plan for blockchain development, which includes the establishment of the Busan digital asset exchange by the first half of 2024. This exchange will not only provide a platform for listing digital assets but also enable the trading of tokenized securities, such as precious metals and raw materials like gold, copper, and oil. The administration behind these projects also has ambitions to tokenize and trade global intellectual property rights and carbon emissions rights in the future.
By embracing blockchain technology and establishing itself as a blockchain city, Busan aims to promote innovation, attract blockchain startups, and position itself as a leader in the rapidly evolving blockchain industry. This strategic move demonstrates the city’s commitment to leveraging blockchain’s potential in various sectors, ranging from finance and trade to intellectual property rights and environmental sustainability.
The development of a public blockchain network in Busan has the potential to revolutionize the way businesses and individuals interact and transact within the city. With its compatibility with major blockchain platforms and a significant budget allocation, Busan is laying the foundation for a thriving blockchain ecosystem that can drive economic growth and technological advancement. As Busan progresses in its journey to become a blockchain city, it will undoubtedly serve as a role model for other cities around the world seeking to harness the transformative power of blockchain technology.
