The city administration is working toward transforming Busan into a blockchain city. To achieve this, they have initiated a $75-million development plan.
Busan, the second-largest city in South Korea, is developing a public blockchain network compatible with well-known blockchain platforms like Ethereum and Cosmos. The primary objective of this initiative is to integrate various blockchain-based services from different networks onto a single platform at the city level. This endeavor aims to establish Busan as a prominent blockchain city.
Busan City has set aside a budget of 100 billion Korean won ($75 million) for the development of open blockchain technology that aligns with global standards. This allocation is made possible through the Blockchain Innovation Fund (BIF), which aims to support and enhance Busan’s blockchain industry.
Most of the project’s funding will come from Busan’s governmental financial institutions, although around 100 private businesses have also expressed interest. The BIF operates as a private fund and spearheads the progress of Busan’s blockchain sector, collaborating with financial and public institutions.
The development of the public blockchain falls under the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule plan. The primary goal is to transform Busan into a prominent blockchain city.
The official announcement highlighted Busan City’s proactive exploration of blockchain technology in its trade-free zone. However, due to the utilization of different blockchains for various projects, businesses faced challenges associated with fragmentation. Consequently, the city administration recognized the need to adopt a public blockchain at a city-wide level that is compatible with global networks like Ethereum.
Unlocking Seamless Integration: Busan’s Blockchain Trust Framework
However, Busan City is actively participating in the establishment of the Blockchain Trust Framework technology standard led by the Korea Internet & Security Agency.
The project’s objective is to raise the caliber of private services and make seamless integration between them possible. This will be achieved by specifying requirements such as a blockchain-based technical system, performance parameters, and robust security measures. Furthermore, the established standard will also find application in public services across Busan City.
In the first half of 2024, the long-term blockchain development plan includes the creation of the Busan digital asset exchange. This exchange will enable the listing and trading various digital assets and tokenized securities, such as precious metals (like gold), copper, and oil. Furthermore, there are plans to tokenize and trade global intellectual property rights and carbon emissions rights. The administration behind these projects aims for comprehensive growth in their offerings.
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