- Busan plans to integrate blockchain-based services on a city-wide platform.
- The chain will be compatible with Ethereum and Cosmos.
- Busan aims to become the first ever real ‘Blockchain City.’
In a groundbreaking move, South Korea’s major port city, Busan, is setting its sights on becoming a global blockchain hub. With plans to launch an Ethereum-compatible mainnet, the city aims to integrate blockchain tech across its public services seamlessly.
Busan’s Blockchain to Power Public Services
On Thursday, September 21, local news reports emerged of an initiative by Busan, the second largest city in South Korea. The city is reportedly taking significant steps to integrate blockchain technology into its public services .
Busan has previously engaged in various blockchain-based ventures, including non-pass and digital vouchers. The new blockchain mainnet will integrate and streamline these existing services. Moreover, the mainnet will be compatible with global blockchain platforms like Ethereum and Cosmos to promote compatibility.
But the city’s blockchain aspirations don’t stop there. Busan Port will play a pivotal role, with items like gold, silver, copper, and crude oil being tokenized for trade. The existing infrastructure, including logistics warehouses and certification schemes, will be leveraged to facilitate these transactions.
Busan’s Bid to Become Blockchain City
This initiative is part of Busan’s broader plan to establish itself as a “blockchain city” and promote the development of a Busan Digital Asset Exchange. Initially, it will support blockchain-based transactions of tangible commodities, such as precious metals and raw materials. Over time, the exchange will expand to handle virtual assets, token securities, and other digital assets.
To fuel these initiatives and ensure they are grounded in innovation, Busan City announced the inception of a blockchain innovation fund, BBF. This fund, primarily backed by financial public institutions in Busan, aims to amass more than 1,000 billion won in business capital. The city will also launch the ‘Busan Block Alliance’ (BBA), a consortium of corporations working towards making “blockchain city” a reality.
On the Flipside
- While Busan’s ambition to become a blockchain city is commendable, it will inevitably face regulatory challenges. South Korea has a history of stringent regulations concerning cryptocurrencies and blockchain technology.
- Blockchain, while revolutionary, is not without its technical limitations. Scalability, transaction speeds, and interoperability with other systems could pose challenges.
Why This Matters
If successful, Busan’s endeavor could set a precedent for other cities globally to integrate blockchain technology into public services. Busan’s initiative could play a major role in promoting the benefits of blockchain technology to the general public.
Read more about South Korea’s blockchain initiatives:
Building the Metaverse: How South Korea Made a Winning Blueprint for Infrastructure
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