South Korea's Busan is Developing A Blockchain Mainnet, Wants To Become A 'Blockchain City'

South Korea’s Busan is Developing A Blockchain Mainnet, Wants To Become A ‘Blockchain City’

Updated: 21 September 2023

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South Korea’s second-largest city Busan is developing its own blockchain mainnet, with the goal of becoming a ‘Blockchain City.’

The aim of the project is to streamline blockchain services on different mainnets to operate on a single platform. The city aims to ensure the services are compatible with global blockchain networks such as Ethereum and Cosmos, according to a report in News1 Korea.

It’s allocated a budget of 100 billion Korean won ($75 million) for the development of the open blockchain under its Blockchain Innovation Fund (BIF). This funding will be sourced from investments provided by public financial institutions within Busan, and approximately 100 private companies have expressed their interest to participate.

“We will promote the Busan Blockchain Regulation-Free Special Zone to a global innovation special zone and actively support the overseas expansion of innovative companies proven in Busan,” the city’s government said.

Busan city’s commitment was detailed in the ‘Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule.’

Busan Blockchain City Development Plan (Source: News1)

BIF, a collaboration between financial institutions and public entities, will support the expansion of Busan’s blockchain industry and the development of essential infrastructure.

In addition to developing the mainnet, the city plans to create a ‘blockchain city’ with a focus on the Busan Digital Asset Exchange, scheduled for November. The plan involves a public selection process in October to choose a business entity, followed by the establishment of the corporation upon final selection. The selected consortium will present a detailed business plan during the ‘BWB 2023’ event in November.

Busan revealed in December last year the formation of a steering committee responsible for establishing its primary digital asset exchange. It’s scheduled to begin operations in the first half of next year. At first, the exchange will deal with blockchain-based transactions for physical goods like precious metals and raw materials, making trading transparent using tokens.

Gold, silver, copper, and crude oil that are traded through Busan Port will be converted into tokens and traded on the blockchain. This will use existing facilities like warehouses and certification systems in the city to make things work better and more transparently.

Setting Standards for Enhanced Blockchain Services

Alongside the development of the mainnet, Busan is also engaged in the development of technology standards called the Blockchain Trust Framework (BTF), under the guidance of the Korea Internet & Security Agency (KISA), according to local media reports.

BTF aims to improve the quality of private services and promote better connectivity between services. The standards will also apply to public services within the city, reinforcing its role as a hub in blockchain technology.

Looking Ahead to Global Growth

Future plans include extending tokenization to include worldwide intellectual property rights and carbon emissions rights, with the long-run goal of expanding into token securities.

Busan also plans to establish Busan Blockchain Alliance (BBA) to enhance blockchain innovation and realize Busan’s vision as a ‘Blockchain City.’ The BBA will unveil 100 participating companies at the ‘BWB 2023’ event.

The city had previously led several projects based on blockchain technology, including B-Pass and digital vouchers. But the effort faced setbacks because of the use of different blockchain networks that didn’t work smoothly together.