South Korea’s Blockchain City to Operate on Ethereum and Cosmos
A new report reveals that South Korea’s Busan city plans to establish a “Blockchain City” that will operate on the Ethereum and Cosmos blockchains. The project, expected to be completed by 2026, is part of the Busan Digital Asset Exchange (BDAE) and Future Schedule Plan.
Busan has been exploring various implementations of blockchain technology and aims to offer services like digital vouchers while enabling businesses to operate on the blockchain. However, the city faced challenges due to differences between networks and user experience issues.
Given the complexities of different blockchains, Busan decided to focus on Ethereum and Cosmos to standardize its blockchain initiatives. The project will cost approximately $74 million and will center around the BDAE.
Busan City’s Efforts to Contribute with Blockchain Technology
The BDAE was launched in November 2022 but has not yet commenced operations. The company plans to reveal its business plans at an upcoming event in November.
The trading venues provided by the BDAE will give users access to tokenized products representing commodities, raw materials, and other assets. The long-term goal is to expand access to tokenized global intellectual property rights.
Tokenized assets have gained attention from various sectors, including banks and financial service providers. These products offer potential benefits such as increased liquidity, competitive markets, and better price discovery.
In a paper published by the US Federal Reserve (Fed), it was stated that tokenization allows for additional features embedded in tokenized assets that can benefit markets for underlying reference assets. These attributes can lower barriers to entry for investors and lead to more competitive and liquid markets.
In addition to the “Blockchain City” and the BDAE, Busan will launch a blockchain innovation fund to support the development of blockchain technology and infrastructure.
Hot Take: South Korea’s Push for Blockchain Innovation
South Korea’s Busan city is taking significant steps to establish itself as a hub for blockchain innovation. By focusing on Ethereum and Cosmos, the city aims to overcome the challenges posed by different blockchain networks and provide standardized blockchain solutions.
The “Blockchain City” project and the BDAE are expected to pave the way for digital transformation and tokenized asset trading in Busan. With plans for a blockchain innovation fund, the city is actively supporting the development of blockchain technology and infrastructure.
This initiative demonstrates South Korea’s commitment to embracing emerging technologies and fostering an environment conducive to blockchain adoption. As the project progresses, it will be interesting to see how Busan’s efforts contribute to the growth of the global blockchain ecosystem.
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