Busan, the second-largest city in South Korea, is building a blockchain network compatible with major blockchain platforms like Ethereum and Cosmos, as reported by Cointelegraph from News1 sources. The goal is to implement blockchain-based services to transform Busan, which has a population of 3.6 million people, into a blockchain city. Authorities have allocated $75 million to the project.
Busan Blockchain
News1 reports that the city of Busan has been carrying out various blockchain-based projects. However, using different blockchain mainnets for each business proved to be an inconvenient user experience. This is why Busan authorities have decided to develop a mainnet that can become a national blockchain standard while also being compatible with global blockchain mainnets. Since Ethereum and Cosmos are public blockchains that allow anyone to view transaction data, Busan also aims to develop an open blockchain, as stated in the newspaper.
In addition to developing the blockchain network, the city plans to launch its own digital asset exchange in November. To do so, it will select a company in October. The chosen consortium will announce a detailed business plan in November. Initially, the exchange will not trade virtual assets but will only offer blockchain-based product transactions, such as precious metals or commodities.
Tokenizing Commodities
The goal, as reported by News1, is to tokenize products so they can be traded transparently on the blockchain. Items traded through the Port of Busan, such as gold, silver, copper, and oil, will be tokenized and traded. Existing infrastructure, such as logistics warehouses and certification systems, will be used in this process. In the future, there are plans to tokenize and trade global intellectual property (IP) rights and carbon emission rights. Busan authorities also intend to form the “Busan Blockchain Alliance (BBA),” a business alliance aimed at turning Busan into a blockchain city.