South Korea has reportedly upgraded its online banking security courtesy of blockchain technology, thus upgrading the system for the first time in 20 years.
The new upgrades were made possible through CHAIN ID, a new secure online identification standard for Korea that was created theloop. The latter is Korea’s leading private blockchain solutions provider which particularly focuses on achieving a smart and connected society. Its blockchain technology has already been adopted by South Korean hospitals, insurance firms, security companies and banks to secure their data.
CHAD ID is an identification service that is based on blockchain technology and it is designed to allow customers to use a single certificate to access any of the 25 banks and security firms that are members of the South Korea Financial Investment Blockchain Consortium. South Korea has been at the forefront of new technologies in the TV, smartphone and fast internet industries. However, it has lagged behind as far as online banking is concerned because it has not made any changes to online banking technology since 1999.
The new changes were revealed through an announcement by the South Korean Ministry of Science and ICT revealing that the country would drop the long standing key certificate verification system. It has been widely used for personal identification but the Asian country plans to drop it in favor of up-to-date alternatives, especially those offered by blockchain technology.
“CHAIN ID goes beyond merely replacing Korea’s outdated banking certificates. It puts blockchain into the pocket of every Korean, setting the stage for the widespread use of blockchain-based transactions in a new blockchain-powered financial eco-system. Blockchain is the future,” stated theloop CEO, Jonghyup Kim.
The fact that the first nationwide banking identification system based on blockchain is being launched in South Korea is also quite groundbreaking for the company. It also aligns with the fact that the country is also class-leading in various technologies. Naturally, South Korea has also become a hub for cryptocurrency exchanges. The top five cryptocurrency exchanges based on trading volume are based in the Asian country. Theloop is also involved with the ICON Project which is one of the largest blockchain projects in the world because it aims to create a system that interconnects all the blockchains.
