Busan, the second-largest city in South Korea, is making notable advancements using blockchain technology. The city is constructing a blockchain mainnet at the city level that adheres to a domestic blockchain standard compatible with global blockchain mainnets like Ethereum and Cosmos. This initiative aims to create an “open blockchain” environment.
Previously, Busan City had implemented several blockchain-based projects such as B-Pass and digital vouchers, each utilizing different blockchain mainnets for various businesses. Unfortunately, this approach led to a less user-friendly experience. In order to address this issue, the city is now developing an open blockchain solution.
According to a local media outlet, the city stated it would promote the development of the blockchain mainnet and establish it as a mid to long term task through its already laid down plan. The plan is the ‘Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule’.
Furthermore, with a focus on the Blockchain Digital Asset Exchange, the city is actively working towards becoming a Blockchain city. As part of this effort, it plans to establish a Blockchain Innovation Fund. The Blockchain Innovation Fund (BBF) is a privately-led fund supported by financial and public institutions in Busan. Its purpose is to foster the growth of the city’s Blockchain industry and infrastructure.
Through this innovation fund, Busan aims to secure over 100 billion won in funding. This will be achieved by creating sub-funds for various business sectors, leveraging both public financial institutions in Busan and private capital.
The Busan Digital Asset Exchange Corporation is set to launch in November. The process will involve a public offering to select a business in October, followed by the establishment of a corporation after the final selection is completed. The chosen entity will then present a business plan at the ‘BWB 2023’ event in November.
Upon its launch, the exchange will focus on full-scale operations in the first half of 2024. However, initially, it will only facilitate blockchain-based transactions for products and not virtual assets or token securities.
This model aims to promote the tokenization of various products, such as gold, silver, copper, and crude oil. Additionally, the process will involve leveraging existing infrastructure, including logistics warehouses and certification systems.
“In the future, we plan to tokenize and trade global intellectual property rights (IP) and carbon emissions rights. In particular, we plan to expand the trading area to token securities (ST).”
Also, Busan City is in the process of forming the ‘Busan Blockchain Alliance (BBA)’, stating that it is a business alliance for achieving a blockchain city. At the ‘BWB 2023’ event in November, Busan will announce the 100 BBA participating companies.
Busan City has positioned itself as a hub for blockchain innovation by adopting a regulation-free approach. According to local media reports, Busan City plans to transform the Busan Blockchain Regulation-Free Special Zone into a global innovation hub and actively support the expansion of innovative companies that have proven themselves in Busan.
In addition, Busan City will participate in the establishment of blockchain standards led by the Korea Internet and Security Agency (KISA). This initiative, called the Blockchain Trust Framework (BTF), aims to enhance the quality and interoperability of private services in Busan by providing a blockchain technical system with high performance and security levels. Moreover, the standard can also be leveraged by public services within the city.