Busan, the second most populous city in South Korea, is poised to become a pioneering hub for blockchain technology with its ambitious project “Blockchain City.” Leveraging the power of Ethereum and Cosmos, Busan aims to revolutionize service offerings and business operations by standardizing blockchain initiatives.

Busan’s Vision for “Blockchain City”:
To embrace the transformative potential of blockchain technology, Busan is set to complete the “Blockchain City” project by 2026 as part of the Busan Digital Asset Exchange (BDAE) and Future Schedule Plan. Despite previous experiments facing challenges like network disparities and uncomfortable user experiences, the city now seeks to consolidate its efforts by focusing on Ethereum and Cosmos.

Standardizing Blockchain Initiatives:
The decision to concentrate on Ethereum and Cosmos aims to overcome the hurdles of transaction costs, speed, and tool complexity associated with alternative networks such as Cardano, Tezos, and Solana. By streamlining blockchain infrastructures, Busan hopes to offer smoother user experiences and enable businesses to harness the benefits of blockchain technology.

The Cost and Scope of the “Blockchain City”:
The implementation of the “Blockchain City” project comes at a price tag of approximately 100 billion Korean won ($74 million USD). The project’s operations will revolve around the Busan Digital Asset Exchange (BDAE), which is yet to roll out its services. The BDAE plans to offer users access to tokenized commodities, raw materials, and other assets, paving the way for future inclusion of tokenized global intellectual property rights.

Tokenization Gaining Momentum:
Tokenized assets and related financial products have garnered significant interest across various sectors. Institutions such as banks, exchanges, and financial service providers recognize the potential benefits of embracing these products. The US Federal Reserve recently noted in a published paper that tokenization enhances liquidity, enables programmability through smart contracts, and can lead to more competitive and liquid markets.

Supporting the Development of Blockchain Technology:
In addition to the “Blockchain City” initiative and the BDAE, Busan is set to launch a blockchain innovation fund. This fund will bolster the development of blockchain technology and associated infrastructure, nurturing the growth of this emerging industry.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.