South Koreans may soon allow their citizens to use blockchain-based digital identification (ID) instead of physical cards as early as 2024, when the country will further implement blockchain technology.

According to an Oct. 17 Bloomberg report, the government’s plan envisions digital IDs in the future being built into mobile devices as an app that works similarly to physical citizen registration cards.

Digital IDs are expected to launch in 2024, with around 45 million citizens expected to adopt the technology within two years.

Economist at the Korea Science and Technology Policy Institute Hwang Seogwon said digital IDs could be used in finance, healthcare, taxes and transportation, while Korea Digital Government Bureau executive director Soo Bo Ram said the technology could help businesses that are not yet fully operational. switched to online.

The plan also calls for the government to adopt a decentralized identity system, meaning the government would not have access to information stored on phones, including digital IDs used, how they are used and where, according to Su.

Such technology is not new for the tech-savvy nation, which ranks first among all countries in the application of technology in life, business and government, according to the American think tank Portulans Institute.

Nor will it be the first blockchain-based digital identity solution to be rolled out in the country.

In August 2020, over one million South Koreans implemented blockchain-based driver’s licenses that operate through the Korean smartphone app PASS.

Shortly after, in September 2020, a South Korean government agency, the Korea Internet & Security Agency (KISA), began pilot testing a similar system.

Related: Are decentralized digital identities the future or just a niche use case?

While South Korea is considered a leader in everything related to blockchain and the metaverse, other countries are expected to follow soon.

A June 2021 study by research firm ReportLinker estimates that the blockchain identity market will grow an additional $3.58 billion by 2025 – a compound annual growth rate of 71%.

However, Brenda Gentry, blockchain advisor and CEO of Bundlesbets.com, recently told Cointelegraph that no matter how decentralized an identity management system is, it will still require recognition from government agencies or companies:

“If issuing authorities do not recognize the validity of blockchain identifiers, they cannot be used to access most public services. In my opinion, this is the biggest limitation.”

Source: CoinTelegraph

LEAVE A REPLY