The city of Busan, the second most populous city in South Korea, is preparing to use Ethereum and Cosmos blockchain technologies in its project called “Blockchain City”. The Asian city has been dedicated to developing its blockchain capabilities and plans to intensify its efforts in this area.
According to the city’s publication, the project is expected to be completed by 2026 as part of the Busan Digital Asset Exchange (BDAE) and Future Schedule Plan. The South Korean city has been experimenting with different implementations of blockchain technology.
Busan is looking at ways to offer services such as digital vouchers and create opportunities for companies to operate on the blockchain. However, the experiments hit a snag due to differences between networks and “uncomfortable user experience (UX)”.
According to the city, operating on Ethereum and its various sidechains differs significantly from applications that run on networks such as Cosmos, Cardano, Tezos, Solana and others. These blockchains have different costs and transaction speeds, requiring tools that many are not willing to master.
Therefore, Busan decided to focus its efforts on Ethereum and Cosmos to standardize its blockchain initiatives. The implementation of this project called Blockchain City will cost around 100 billion Korean won, equivalent to R$364 million.
As with Drex in Brazil, Blockchain City’s plans also involve RWA tokens. Tokenized assets and related financial products have attracted attention from different sectors. Banks, exchanges and financial service providers recognize the potential benefits of implementing these products.
In a document published on September 8, the United States Federal Reserve (Fed) stated the following about the potential benefits of tokenization: “The programmability of tokens and the ability to leverage smart contracts enable additional capabilities that can be incorporated into the tokenized asset , which could also benefit the markets for the underlying reference assets,” he said.