Busan City to Launch Blockchain Network that Will Be Compatible with Public Blockchains
South Korea's second-largest city, Busan, has unveiled a plan to promote the city's technological development through blockchain.
According to the plan, titled “Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule,” the city will build its own blockchain network that will be operational by 2026. Busan will also build an exchange for the exchange of digital assets and a tokenization platform, all with the aim of establish new standards that encourage the adoption of technology at the national level.
The plan states that the city will become South Korea's Blockchain City and will serve as a central hub to support the creation of new public and private services based on this technology and to encourage the construction of other digital innovations.
To consolidate this plan, the city has created a blockchain innovation fund of 100.000 billion Korean won, approximately $74,9 million.
An open blockchain compatible with public networks
One of the goals that Busan has set for its blockchain network, according to local media, is for it to be compatible with public networks existing, such as Bitcoin, Ethereum, Cosmos, among others.
According to reports, Busan has been experimenting with blockchain technology for some time now. However, both authorities and companies that have been involved in the city’s initiatives find it difficult to separately use the different blockchain networks that exist in the ecosystem today.
Therefore, Busan is focusing on a blockchain of its own that is built openly and that it is compatible with existing public networks, thus facilitating the development of accessible, efficient and more convenient services.
The city is adopting the Blockchain Trust Framework (BTF) technical standard to ensure “interoperability between services,” the media reported. This standard is driven by the Korea Internet and Security Agency (KISA) to set standards and requirements to ensure performance and security to improve the quality of private services through the use of this technology.
Busan to launch asset tokenization platform
Asset tokenization is also part of Busan's plans to establish itself as the country's Blockchain City.
The city is reportedly working on developing a tokenization platform for Support token transactions representing different commodities, such as precious metals and crude oil.
News1 Agency reported The Busan authorities want to be able to trade commodities more transparently based on tokenization on the blockchain. In the future, carbon credits and intellectual property will also be tokenized on the blockchain to ensure their trading and exchange in a safe, smooth and transparent manner.
Coalition of blockchain companies created
Other developments that the city of Busan is promoting in relation to blockchain technology is the establishment of a coalition of companies interested in the blockchain, called Busan Blockchain Alliance (BBA), through which it will promote new policies and regulations focused on blockchain development and innovation. This coalition will be presented in November, at the “BWB 2023” event, the agency reported.
With all these developments, Busan will boost the construction of its own blockchain infrastructure and support the growth and innovation of the digital industry.
Since last year, the South Korean government has been taking a friendly approach towards cryptocurrencies and blockchain, considering opening the doors to ICOs, institutionalizing cryptocurrencies, promoting the metaverse, and much more.
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