A blockchain-based digital identification (ID) could soon replace physical cards in South Korea by 2024, as the nation embraces blockchain technology further.
Digital IDs Embedded as an App
In the future, digital IDs will be embedded as an app within mobile devices, similar to physical resident registration cards, according to a Bloomberg report from Oct. 17.
Around 45 million citizens are expected to adopt the technology within two years of the launch of the digital IDs in 2024.
Digital IDs can be used for finance, healthcare, taxes, and transportation, according to an economist at Korea’s Science and Technology Policy Institute, Hwang Seogwon.
Meanwhile the director-general of Korean’s Digital Government Bureau, Suh Bo Ram, said the technology could benefit businesses that haven’t completely gone online yet.
Adopting a Decentralized Identity System
According to Suh, the government will also adopt a decentralized identity system in which information stored on phones, including digital IDs, is not accessible to the government.
Technology like this isn’t new for the tech-savvy nation. According to the Portulans Institute, an American think-tank, it ranks first among nations in incorporating technology into its lives, businesses, and governments.
Furthermore, it wouldn’t be the first blockchain-based digital ID solution to be implemented in the country.
A blockchain-based driver’s licence was implemented by more than one million South Koreans in August 2020, which operated via Korea’s PASS smartphone app.
The Korea Internet & Security Agency (KISA) started piloting a similar system a short time later, in September 2020.
In all things blockchain and Metaverse, South Korea has been seen as the leader, but other nations are expected to follow soon.
According to a study from ReportLinker in June 2021, the blockchain identity market is expected to grow by 71% to $3.58 billion by 2025.