Nick Chong · 1 day ago · 2 min read
On June 10, the South Korean government integrated blockchain into the public sector. LG CNS and Korean Government Mint, KOMSCO, will work together to develop the “first public blockchain platform” and issue community tokens as a type of digital gift certificate.
National Digital Currency
According to Business Korea, the Korea Minting, Security Printing & ID Card Operating Corp. (KOMSCO) hired LG CNS, an IT subsidiary of LG Group, to develop the “first public blockchain platform in South Korea.”
KOMSCO plans to utilize LG CNS’ Monachain platform – a blockchain specializing in digital supply chain management, currency, and authentication – for the issuance of community tokens and digital authentication services to the public.
Monachain was developed specifically for commercial and public sector use:
“Digital community currencies provide functions to create digital wallets and issue digital gift certificates to personal mobile devices based on digital certification… The service is optimized for local governments’ issuing local currencies and giving welfare benefits.”
By choosing the Monachain platform, KOMSCO is able to distribute a variety of digital gift certificates directly to digital wallets in users’ mobile devices without building additional platforms.
The “local currency service” can be used to deliver and receive frictionless payments for welfare and government fines through an interconnected, anchored public distributed ledger platform.
Additional Blockchain Solutions to Government Inefficiencies
The Monachain to public sector integration offers additional solutions to identity verification, document certification, and data storage in a national landscape.
According to Business Korea, the public blockchain platform enables the following features:
“’Digital authentication service’ allows users to authenticate their identity through biometrics alone, including personal identification number (PIN) or fingerprint on mobile devices. ‘Document certification service’ enables to accurately distinguish whether a document is original or forged. Those who manage mainly paper documents can draw up, register, send and shred documents without forgery problems.”
LG CNS and KOMSCO plan to release their joint blockchain platform using LG CNS’ G-Cloud to offer universal access to public institutions, universities, and local governments to apply customized services for blockchain-based data storage, digital authentication, and digital currency distribution.
The formal announcement reveals that LG CNS and KOMSCO will engage in a formal contract by the end of June 2018 and begin development of the public blockchain platform for public use.