Busan's Blockchain City: Ethereum and Cosmos Collaboration
Busan, the bustling metropolis of South Korea, has set its sights on becoming a cutting-edge hub for blockchain technology. In a local report, it was revealed that Busan, the second most populous city in South Korea, is gearing up to leverage the capabilities of Ethereum and Cosmos for its ambitious project, aptly named "Blockchain City." This forward-thinking move comes as Busan aims to double down on its blockchain endeavors, marking a significant step toward the city's digital transformation.
Scheduled for completion by 2026, the Blockchain City project is an integral part of the Busan Digital Asset Exchange (BDAE) and Future Schedule Plan. Busan has been actively exploring various implementations of blockchain technology to improve its services and provide businesses with innovative solutions. However, these experiments encountered challenges due to the disparities between different blockchain networks, leading to an "uncomfortable user experience."
Blockchain enthusiasts are well aware that operating on Ethereum and its multitude of sidechains varies significantly from using networks like Cosmos, Cardano, Tezos, and Solana. These networks differ in terms of transaction costs, speed, and the complexity of the tools required to navigate them. To streamline its blockchain initiatives, Busan has made the strategic decision to focus primarily on Ethereum and Cosmos, seeking to establish a standardized framework for its ambitious "Blockchain City" project.
The implementation of the "Blockchain City" project comes with a hefty price tag of approximately 100 billion Korean won, equivalent to around $74 million USD. The project will be centered around the BDAE, which is poised to play a pivotal role in Busan's blockchain ecosystem.
While the BDAE was officially launched in November 2022, it has yet to commence its operational activities. The company is gearing up to unveil its comprehensive business plans at an upcoming event scheduled for this November. These trading venues will grant users access to a wide range of commodities, raw materials, and various other assets through tokenized products. Looking ahead, the BDAE also envisions offering access to tokenized global intellectual property (IP) rights as part of its long-term strategy.
The concept of tokenized assets and related financial products has garnered significant attention across different sectors. Banks, cryptocurrency exchanges, and financial service providers are recognizing the potential benefits of incorporating these products into their offerings. In a recent paper published on September 8, the US Federal Reserve (Fed) highlighted the advantages of tokenization, emphasizing the programmability of crypto tokens and the ability to leverage smart contracts. These attributes enable additional features that can enhance markets for the underlying reference assets, potentially lowering barriers to entry for a broader set of investors and promoting competitive and liquid markets.
In addition to the groundbreaking "Blockchain City" initiative and the BDAE, Busan has plans to launch a blockchain innovation fund. This fund aims to foster the development of blockchain technology and related infrastructure, further solidifying Busan's commitment to becoming a global leader in blockchain innovation. With Ethereum and Cosmos at the forefront, Busan's journey towards becoming a futuristic "Blockchain City" is poised to reshape the landscape of blockchain technology in South Korea and beyond.