South Korea is one of the most tech-savvy countries in the world and has been progressive toward blockchain technology.
The country is expected to use blockchain-technology-based digital identification (ID) instead of physical cards for its citizens since by 2024. As per a report published today, the government seeks to use digital IDs embedded as applications within mobile phones in the coming times.
However, this is not the country’s first digital blockchain-based ID to be implemented. In August 2020, approximately one million South Koreans used a blockchain-based driving license operated by Korea’s Pass- a smartphone application. Later in September 2020, a government agency named Korea Internet and Security Agency (KISA) started testing a similar system. In September, South Korea also passed a Metaverse Industry Promotion Law to support associated industries and safeguard users’ rights.
Suh Bo Ram, the director-general of Korea’s Digital Government Bureau, said that the technology could benefit businesses that haven’t fully transitioned online yet. Further, he added Korean government looks forward to adopting a decentralized identity scheme under which the government will not have access to the data or information stored in phones, including the digital ID and the details of its use.
It is expected that the digital IDs in the nation will roll out by 2024, with around 45 million citizens well adapted to the technology. Hwang Seogwon, an economist at Korea’s Science and Technical Policy Institute, said that digital IDs could be used in finance, healthcare, taxes, and transportation.
Data from June 2021 suggests that the blockchain identity market can be expected to grow by over $3.58 billion, a compounded annual growth rate of 71% by 2025. The blockchain technology in the coming times is expected to be supported and integrated in various countries including Saudi Arabia, Colombia, UAE, etc. However, blockchain experts identify the various limitations blockchain technology has to face considering the validation and required authority from the government, irrespective of the proposed decentralized mechanism.