South Korea’s Busan to Become a Blockchain City with Ethereum and Cosmos
Overcoming Hurdles: Busan’s Decision for Ethereum and Cosmos
The city has been exploring the capabilities of blockchain technology to offer services such as digital vouchers and other business opportunities. However, the implementation hit a roadblock due to the varying networks and the “uncomfortable user experience (UX)”. As blockchain enthusiasts are aware, Ethereum’s operation with its various sidechains is vastly different from applications that run on Cosmos, Cardano, Tezos, Solana, and other networks. Recognizing these challenges, Busan has chosen to focus on Ethereum and Cosmos, aiming to standardize its blockchain efforts. The total cost of the “Blockchain City” initiative is projected to be around 100 billion Korean Won, approximately $74 million.
Busan’s Blockchain Innovations: Exchange and Innovation Fund
Established in November 2022, the Busan Digital Asset Exchange (BDAE) is yet to start operations. The platform aims to enable users to access commodities, raw materials, and other assets through tokenized products. Over time, BDAE also plans to grant access to other assets, including tokenized global intellectual property (IP) rights.
In addition to the BDAE, Busan is also devising a blockchain innovation fund. This fund will fuel the progress of blockchain technology and its related infrastructure, offering tremendous support to the entire ecosystem.
Tokenization: Recognition and Benefits
Tokenized assets and related financial products have been gaining recognition across various quarters. Leading financial institutions, banks, exchanges, and service providers have acknowledged the potential advantages of adopting these products. A recent paper from the US Federal Reserve (Fed) expressed that tokenized assets could open doors to a more diverse set of investors, resulting in more competitive and liquid markets and better price discovery.
Busan as the Blockchain Center of Asia
South Korea’s government has set its sights on transforming Busan into the blockchain hub of Asia. Since receiving official designation as a regulation-free blockchain zone in 2019, the city has been accelerating its blockchain implementation plans across sectors including finance, tourism, logistics, and public safety. Approximately 100 private companies have expressed interest in these developments, emphasising the city’s growing receptiveness to blockchain technology.
Key Points
What is Busan’s “Blockchain City” initiative?
Busan, South Korea’s second highest populated city, plans to transform into a “Blockchain City” by focusing its blockchain initiatives on Ethereum and Cosmos.
How will the blockchain be used in Busan?
The city plans to offer services like digital vouchers and offer businesses a platform to operate on the blockchain.
What are the other blockchain-related initiatives in Busan?
Apart from the “Blockchain City” initiative, Busan is also developing the Busan Digital Asset Exchange (BDAE) and a blockchain innovation fund to encourage blockchain technology development and infrastructure.
What is the mission of South Korea’s government regarding Busan?
The government aims to establish Busan as the blockchain center of Asia.
