Sure-fire security measures needed to dispel worries
South Koreans will be able to make financial transactions by just using their mobile IDs on their smartphones as early as this month. If the system goes into effect as scheduled, customers can open bank accounts and transfer funds using these IDs without needing their resident registration cards or drivers' licenses.
The Korea Financial Telecommunications & Clearings Institute (KFTC), a government organization tasked with expediting secure and convenient payment service, is reportedly in the final process of working with commercial banks to introduce a blockchain-powered ID system for mobile phones. Given the inconvenience while carrying fat purses that contain various physical ID cards as well as credit cards, mobile IDs will prove a boon to the broader populace.
The KFTC's digital ID system has adopted blockchain technology to ensure safety. Under the system, ID information for financial transactions will be installed on a blockchain network to generate decentralized identifiers (DIDs) after being encrypted, which participating institutions would store and manage. This system envisions transforming the centralized authentication system into a distributed system to enable joint identity verification, thereby blocking data tampering at the source.
The mobile ID system has the potential to be employed in broader areas. The government, in fact, says mobile IDs can be used to issue various public, educational and financial certificates, including for proof of employment, possibly from next year.
However, there are concerns about the possible loss of smartphones, so the KFTC is preparing a set of security measures. To begin with, users will be obliged to install a biometric authentication app on their smartphones to secure the stored encrypted data. Especially for financial trading, users will have to undergo more complicated blockchain-based verification procedures.
Yet these might not be enough to dispel worries. If mobile IDs are to be introduced safely, the government should come up with more sure-fire security guidelines and appropriate, detailed measures.
South Koreans will be able to make financial transactions by just using their mobile IDs on their smartphones as early as this month. If the system goes into effect as scheduled, customers can open bank accounts and transfer funds using these IDs without needing their resident registration cards or drivers' licenses.
The Korea Financial Telecommunications & Clearings Institute (KFTC), a government organization tasked with expediting secure and convenient payment service, is reportedly in the final process of working with commercial banks to introduce a blockchain-powered ID system for mobile phones. Given the inconvenience while carrying fat purses that contain various physical ID cards as well as credit cards, mobile IDs will prove a boon to the broader populace.
The KFTC's digital ID system has adopted blockchain technology to ensure safety. Under the system, ID information for financial transactions will be installed on a blockchain network to generate decentralized identifiers (DIDs) after being encrypted, which participating institutions would store and manage. This system envisions transforming the centralized authentication system into a distributed system to enable joint identity verification, thereby blocking data tampering at the source.
The mobile ID system has the potential to be employed in broader areas. The government, in fact, says mobile IDs can be used to issue various public, educational and financial certificates, including for proof of employment, possibly from next year.
However, there are concerns about the possible loss of smartphones, so the KFTC is preparing a set of security measures. To begin with, users will be obliged to install a biometric authentication app on their smartphones to secure the stored encrypted data. Especially for financial trading, users will have to undergo more complicated blockchain-based verification procedures.
Yet these might not be enough to dispel worries. If mobile IDs are to be introduced safely, the government should come up with more sure-fire security guidelines and appropriate, detailed measures.
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