Busan Aims to Become a 'Blockchain City' with the Development of Ethereum-Compatible Mainnet

South Korea's second-largest city, Busan, is taking a significant step towards becoming a blockchain hub with the development of a public blockchain network that is compatible with mainstream platforms like Ethereum and Cosmos. The goal is to integrate blockchain-based services from various mainnets onto a single platform at a city level, ultimately transforming Busan into a 'Blockchain City'.

Allocating a Substantial Budget for Blockchain Development

Busan City has set aside a budget of 100 billion won ($75 million) for the development of an open blockchain network that adheres to global standards. This funding will be raised through investments from public financial institutions in Busan, with nearly 100 private companies expressing interest. The Blockchain Innovation Fund (BIF), a private fund supporting the growth of Busan's blockchain industry and infrastructure, will oversee the allocation of these funds.

Creating a Seamless Blockchain Experience for Businesses

As part of the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule, the public blockchain development aims to streamline blockchain technology usage within the city. Busan has already been actively testing various use cases of blockchain technology in its trade-free zone. However, the projects conducted on different blockchains resulted in a fragmented experience for businesses. By developing a public blockchain compatible with global networks like Ethereum, Busan seeks to provide a more seamless and user-friendly experience for businesses operating within the city.

Standardizing Blockchain Technology and Encouraging Interconnection

Busan City is also involved in the establishment of the blockchain trust framework (BTF) technology standard. Led by the Korea Internet & Security Agency (KISA), this initiative aims to improve the quality of private services and promote interconnection between services. The BTF will lay down requirements for blockchain technical systems, performance, and security levels. Moreover, the standard will also be utilized for public services offered within Busan City.

Long-Term Development Plans: Digital Asset Exchange and Tokenized Securities

Looking ahead, Busan's long-term blockchain development plan includes the establishment of a Busan digital asset exchange in the first half of 2024. This exchange will not only list virtual assets but also tokenized securities, including precious metals and raw materials like gold, copper, and oil. Furthermore, the project's administration aims to tokenize and trade global intellectual property rights (IP) and carbon emissions rights in the future, solidifying Busan's position as a leading blockchain city.