'Blockchain must be target of research'

Science minister stresses significance of blockchain over digital token

By Kang Seung-woo

The Minister of Science and ICT You Young-min made it clear Friday that blockchain technology should not be on a par with cryptocurrencies.

“Concern has been increasing over a cryptocurrency bubble, and those worries are spreading to blockchain,” You said at a press conference at the ministry in Gwacheon, Gyeonggi Province. “The two things should be handled separately.”

Blockchain is an emerging electronic ledger technology and it was recently thrust into the spotlight as it underpins bitcoin and other virtual currencies.

“Blockchain is one of the main projects that the Ministry of Science and ICT will be heavily committed to next year,” You said. “If blockchain is simply regarded as cryptocurrency, there would be negative effects on the technology, which could prevent further improvement.”

His remarks came as cryptocurrencies, mainly represented by bitcoin, have swept the nation, raising concern over a dangerously speculative bubble. As a result, the technology, expected to be worth billions dollars in the next decade, is on the back-burner.

A Swiss-based financial services company said in a recent report that blockchain will go beyond digital tokens, bringing tremendous growth and efficiencies to certain industries.

“While we are doubtful cryptocurrencies will ever become a mainstream means of exchange, the underlying technology, blockchain, is likely to have a significant impact in industries ranging from finance to manufacturing, healthcare and utilities,” it said.

You also said it is necessary to share essential facilities between the nation’s three wireless carriers to speed up the commercialization of the fifth-generation technology and ease the investment burden.

Korea is seeking to provide 5G network services at the PyeongChang Winter Olympics, scheduled to run Feb. 9 through 25, 2018.

“We are yet to decide the range of the essential facilities, but I still believe it is a good idea that the three telecom firms share them,” he said.

“Essential facilities” include telephone poles, optical-fiber cables and cable ducts. In Korea, most of these are owned by KT and the Korea Electric Power Corp. (KEPCO).

“It would not be easy to get the nod (from KT and KEPCO), but the sharing will ease the financial burden of the mobile providers _ otherwise, each has to spend money,” You said.

The idea is part of the Moon Jae-in administration’s national political agenda and the ministry is exploring ways with industry officials and experts to implement it.