Major companies partner on blockchain

Representatives from Samsung Electronics, SK Telecom, LG U+, KT, KEB Hana Bank, Woori Bank and Koscom pose after they signed an agreement to launch a blockchain-based identification platform last Friday. [SK TELECOM]

A blockchain-based identification platform is being developed by a number of major Korean companies, allowing individuals to strengthen control over their identities and no longer rely on relatively insecure technologies.

Samsung Electronics will be joined in the partnership by the three mobile carriers SK Telecom, KT and LG U+; KEB Hana Bank; Woori Bank; and Koscom, an IT company which is majority owned by the Korean Exchange.

With the new initiative, users will be able to retrieve their stored identification data and use it for a variety of purposes.

While each company will deploy the blockchain technology, their specific use will vary, according to the joint statement.

For instance, SK Telecom will use the system to manage the entry and exit of its employees, while LG U+ plans to apply it to an insurance service for cell phones.

Koscom will introduce the system for use on its trading platform for unlisted companies, while KT is looking to employ it in its digital currency project in a certain regions and in other 5G-network-based projects.

If fully implemented, people will be able request and get access to a wide range of certificates on their mobile devices, according to the statement from the companies.

The team said that the newly-developed verification method, which is powered by blockchain technology, will ensure greater security and help prevent theft of information.

Unlike conventional record-keeping systems built on a centralized ledger systems, a blockchain system can maintain a decentralized digital ledger of transaction data on a network of computers, known as nodes, making it more tamper-resistant and increasing the security of the data.

The participants added that they will foster more partnerships in the future to broaden the use of the system.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]