Busan, South Korea’s second-largest city, is forging ahead with plans to develop an Ethereum-compatible mainnet, setting its sights on becoming a true ‘blockchain city.’ The city administration, propelled by this vision, has unveiled an ambitious $75-million development plan to transform this dream into a reality.
A Unified Blockchain Network
Notably, at the heart of this groundbreaking initiative is the creation of a public blockchain network. This will seamlessly integrate with mainstream blockchain platforms like Ethereum and Cosmos. The ultimate goal is to unite a diverse array of blockchain-based services from various mainnets onto a single, cohesive platform at the city level. Eventually, paving the way for Busan’s evolution into a true blockchain hub.
Financial Backing for Transformation
Furthermore, to fuel this technological transformation, Busan City has committed a substantial budget of 100 billion Korean won ($75 million). These funds will be sourced through investments from public financial institutions within Busan. Significant interest has started pouring in from nearly 100 private companies.
The financial backing is channeled through the Blockchain Innovation Fund (BIF). This is a private fund dedicated to supporting Busan’s blockchain industry and the development of crucial infrastructure, with strong participation from local financial and public institutions.
This public blockchain development effort operates within the framework of the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule plan. They are all aimed at solidifying Busan’s status as a blockchain city. The ultimate goal is clear: to provide a unified and seamless experience for businesses and individuals alike.
Testing the Waters and Setting Industry Standards
Notably, Busan City has actively explored various use cases for blockchain technology within its trade-free zone. However, these experiments have primarily taken place on different blockchain platforms, leading to a less-than-optimal user experience for businesses. This glaring issue has further propelled the city administration to pivot towards a public blockchain solution that harmonizes with global blockchain networks such as Ethereum.
In a bid to lead the way in blockchain innovation, Busan City is actively participating in the development of the Blockchain Trust Framework technology standard. Moreover, this is under the guidance of the Korea Internet & Security Agency.
Further, this initiative aims to establish stringent requirements, including blockchain technical system, performance, and security benchmarks. This is all in the pursuit of enhancing the quality of private services and fostering seamless interconnections between them. These standards will also extend to public services provided within Busan City.
A Glimpse into the Future
Looking ahead, the city’s comprehensive blockchain development plan includes the launch of the Busan digital asset exchange in the first half of 2024. Notably, this exchange is set to list digital assets. Also, it’ll tokenize securities, encompassing precious metals and raw materials like gold, copper, and oil.
Furthermore, the project’s architects envision a future where global intellectual property rights and carbon emissions rights can be tokenized and traded on this innovative platform.