Busan city plans to develop its own blockchain mainnet that is compatible with other global blockchain mainnets like Ethereum and Cosmos. The aim is to unify various blockchain-based services under one platform.
On September 21, Busan disclosed its medium-to-long-term projects, including the development of the blockchain mainnet, through the "Busan Digital Asset Exchange Establishment Plan and Future Schedule."
The city also plans to establish Busan as a 'Blockchain City,' centered around a digital asset exchange. A Blockchain Innovation Fund will be set up to boost these efforts.
Open-Source Blockchain Development Similar to Ethereum and Cosmos
Busan city aims to actively participate in establishing domestic blockchain technology standards. As part of this initiative, it will develop a mainnet to support various blockchain-based services within the city.
Busan has been a blockchain deregulation zone and has conducted several blockchain-based projects, such as Bypass and digital vouchers. However, the usage of different mainnets for each project has led to a less-than-ideal user experience.
Therefore, Busan will develop a mainnet that can become a domestic blockchain standard while being compatible with global blockchain mainnets like Ethereum and Cosmos. These are public blockchains that anyone can access, and Busan aims to build a similar 'open-source blockchain.'
Busan also plans to participate in the Blockchain Trust Framework (BTF) standard construction process being conducted by the Korea Internet & Security Agency (KISA). This will help enhance the technical, performance, and security aspects of private services and facilitate inter-service compatibility.
Digital Asset Exchange as the Core of 'Blockchain City,' 100 Billion KRW Fund to Be Established
Busan plans to inaugurate its digital asset exchange corporation in November. The selection process for the operator will be conducted in October, and a consortium will be officially selected. Trading operations are targeted to start in the first half of 2024. Initially, transactions will not include virtual assets or token securities but will focus on commodities like precious metals and raw materials.
In the long run, the city aims to tokenize global intellectual property rights, carbon credits, and expand into token securities.
Moreover, Busan plans to set up a Blockchain Innovation Fund (BBF), targeting more than 100 billion KRW in size, with contributions from financial public institutions in Busan. This fund will be managed by an operational committee, and the city will have the power to recommend a majority of the committee members to ensure its public nature.
Busan also plans to form the 'Busan Blockchain Alliance (BBA)' and aims to announce 100 participating companies at the 'BWB 2023' event in November.
In a statement, Busan city said it will "actively support overseas expansion of innovative companies that have been validated within Busan by upgrading the Busan blockchain deregulation zone to a global innovation zone."