Blockchain-Based Digital Identification for South Koreans
South Korea is set to revolutionize the way its citizens identify themselves by potentially allowing the use of blockchain-based digital identification (ID) instead of traditional physical cards as early as 2024. According to a report from Bloomberg on October 17, the government’s initiative will embed digital IDs as applications on mobile devices, functioning similarly to existing resident registration cards.
Projected Adoption and Applications
With an estimated 45 million citizens expected to adopt this technology within two years of launch, the implications of digital IDs could be vast. Hwang Seogwon, an economist at Korea’s Science and Technology Policy Institute, outlined that these digital IDs could find applications across several sectors, including finance, healthcare, taxes, and transportation. Additionally, Suh Bo Ram, director-general of Korea’s Digital Government Bureau, noted that this transition would assist businesses that have yet to fully embrace online operations.
Decentralized Identity System
The plan involves implementing a decentralized identity system, which would ensure that the South Korean government does not have access to data stored on users’ devices, including the use and location of their digital IDs. This approach prioritizes individuals’ privacy and data security, setting a precedent for how digital identification might function in the future.
South Korea’s Technological Leadership
South Korea’s commitment to integrating technology into daily life is not new. According to the Portulans Institute, the nation ranks first worldwide in applying technology across various sectors, including government services. Moreover, the blockchain-based digital ID solution is not entirely uncharted territory; in August 2020, over one million South Koreans adopted a blockchain-powered driver’s license through the Korea PASS smartphone application. Following that, a government agency, the Korea Internet & Security Agency (KISA), initiated pilot testing for a similar system.
Global Implications and Market Growth
As South Korea takes the lead in blockchain and digital identification technology, other countries are likely to follow suit. A study by ReportLinker in June 2021 projected that the blockchain identity market will grow by $3.58 billion by 2025, boasting a compounded annual growth rate of 71%.
The Need for Recognition
Despite the promising advancements, challenges remain. Brenda Gentry, a blockchain advisor and CEO of Bundlesbets.com, warned that without recognition from government authorities or corporations, the potential of blockchain IDs could be limited. If the entities responsible for issuing public services do not acknowledge the validity of blockchain IDs, then the technology cannot be used effectively.
Conclusion
As South Korea prepares to launch its blockchain-based digital ID initiative, the integration of technology into public services is about to take a significant leap forward. The implications for efficiency, security, and individual privacy could set a global example, provided that necessary recognitions are established across industries.
