The city of Busan, South Korea's second-largest metropolis, is actively working on establishing a public blockchain network that can seamlessly interact with major blockchain platforms like Ethereum and Cosmos. This initiative aims to consolidate various blockchain-based services from different mainnets onto a unified city-level platform, with the ultimate goal of transforming Busan into a prominent blockchain-powered city.
To finance this ambitious project, Busan City has earmarked a substantial budget of 100 billion won (equivalent to $75 million) through the Blockchain Innovation Fund (BIF). Funding for this endeavor will be acquired via investments from Busan's public financial institutions, and a significant number of private companies have already expressed interest. The BIF is a private equity fund led by Busan's financial and public entities, established to bolster the development and infrastructure of the city's burgeoning blockchain industry.
This effort to create a public blockchain is executed as part of the "Busan Digital Asset Exchange Establishment Promotion Plan" and "Future Timetable," both aimed at solidifying Busan's status as a blockchain hub. The city administration has actively explored diverse applications of blockchain technology in its free trade zone. However, many of these ventures were executed on different blockchain networks, causing inconvenience for businesses. Consequently, Busan City is now focusing on developing an inclusive city-wide public blockchain that harmonizes with leading global blockchain networks like Ethereum.
Additionally, Busan City has taken part in the development of technical standards for a blockchain trust framework in collaboration with the Korea Internet Security Agency. This project seeks to enhance the quality of privacy services and foster interoperability among services by outlining criteria for blockchain technology systems, performance benchmarks, and security levels. These standards will also be integrated into public services offered within the city.
Furthermore, the city's comprehensive blockchain development strategy encompasses the creation of the Busan Digital Asset Exchange, set to launch in the first half of 2024. This digital exchange will not only list digital assets but also tokenized securities, including precious metals and commodities like gold, copper, and oil. As the project progresses, the authorities plan to tokenize and facilitate trading in global intellectual property and carbon emissions rights.
