Busan Aims to Become a Blockchain City with a $75 Million Development Plan

South Korea’s Busan, the country’s second-largest city, is embarking on an ambitious journey to transform itself into a blockchain city. The city administration has unveiled a $75-million development plan to create a public blockchain network that will be compatible with major blockchain platforms like Ethereum and Cosmos.

Integrating Blockchain Services on a Single Platform

The initiative aims to amalgamate various blockchain-based services from different mainnets onto one unified platform at the city level. Busan has earmarked a 100-billion-Korean-won ($75 million) budget for the development of an open blockchain that aligns with global standards, under the Blockchain Innovation Fund (BIF). The fund is designed to bolster Busan’s blockchain industry and infrastructure, with investments being sourced from public financial institutions in Busan. Nearly 100 private companies have expressed interest in contributing to the BIF.

A Unified Approach to Blockchain Development

The development of this public blockchain is part of the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule plan. Busan City has been exploring various blockchain use cases in its trade-free zone. However, the deployment of different blockchains for different projects has led to inconveniences for businesses, prompting the need for a unified, city-level public blockchain compatible with global networks.

Establishing Blockchain Trust Framework

Busan City is actively participating in establishing the Blockchain Trust Framework technology standard, led by the Korea Internet & Security Agency. This project is focused on enhancing the quality of private services and fostering interconnectivity between services by setting benchmarks for blockchain technical systems, performance, and security levels. This standard will also be instrumental in implementing public services within Busan City.

Future Developments and Expansion

The comprehensive blockchain development plan includes the launch of the Busan digital asset exchange in the first half of 2024. This exchange will list not only digital assets but also tokenized securities representing precious metals and raw materials like gold, copper, and oil. The city administration envisions the future tokenization and trading of global intellectual property rights and carbon emissions rights.

Busan’s $75-million development plan is a significant step towards realizing its vision of becoming a blockchain city. By developing a public blockchain network that is compatible with mainstream blockchain platforms, Busan is positioning itself as a hub for blockchain innovation and integration. The city’s commitment to creating a unified platform for blockchain services and its focus on establishing global standards underscore its dedication to fostering blockchain technology’s growth and adoption. The long-term vision of tokenizing various assets and rights indicates the city’s foresight in leveraging blockchain technology for diverse applications, potentially setting a precedent for other cities globally.