Korea Gets a Blockchain Security Upgrade

Korea Gets a Blockchain Security Upgrade

The Korea Financial Investment Association has claimed to create the world`s first commercial blockchain used for customer security by financial companies.

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The Korea Financial Investment Association has claimed to create the world`s first commercial blockchain used for customer security by financial companies.

In October this year, Korea Financial Investment Association, KOFIA, introduced the world`s first blockchain-based joint authentication service for the financial industry dubbed “Chain ID”, as stated in their official press release. Chain ID is an authentication service for online equity transactions and fund transfers. User convenience has also been enhanced by the platform, according to KOFIA.

Some of the advantages of the solution are listed as follows:

  • strenghtened security through safe storage of the key certificate
  • various authentication methods including PW/PIN fingerprints
  • increased convenience with streamlined registration procedures
  • pan-industry service that would be possible after introduction of the service to other industries

In a conference, KOFIA chairman Hwang Young-key stated that the decentralized identification service was developed by the help of smart contracts and the private blockchain platform used by a consortium of investment companies and blockchain start-ups led by them.

The consortium was formed an year ago and claims to be the first such consortium in Korea. It is a collaborative agreement between 26 financial investment companies and 5 IT companies that gathered together in October 2016. The consortium signed a memorandum of understanding for its first project that involved the establishment of a joint authentication platform for the capital market. The trial service was tested with the help of 11 KOFIA member companies like Daishin Securities, Meritz Securities, Shinhan Investment Corp., Yuanta Securities Korea and others.

“Korea’s financial investment industry will take the lead in establishing the global standard and become the first mover in the 4th Industrial Revolution era, leveraging on the world’s first successful commercialization of the blockchain-based joint authentication platform”, said Hwang.

The consortium is hoping to widen the adoptation of Chain ID across the entire financial investment industry in a period of an year, while hoping to expand to other financial industries such as banking, insurance and credit card next year.

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