Gov't urged to support blockchain technology
KAIST President Shin Sung-chul speaks during a policy forum aimed at considering ways of supporting blockchain technology at the National Assembly, Wednesday. / Courtesy of KAIST
By Jun Ji-hye
A head of the nation's top engineering and technology university called on the government, Wednesday, to nurture and support blockchain technology as part of efforts to find growth engines for the Fourth Industrial Revolution.
Korea Advanced Institute of Science and Technology (KAIST) President Shin Sung-chul said government support is more necessary than regulation at this time when global competition to take the leadership in blockchain technology-related industries has become fiercer.
He made the remarks during a policy forum held at the National Assembly. The university arranged the forum with Rep. You Seung-hee of the ruling Democratic Party, Rep. Song Hee-kgyoung of the main opposition Liberty Korea Party and Rep. Oh Se-jung of the minor opposition Bareun Mirae Party to discuss the direction of the development of blockchain technology.
“The whole world is now competing in taking the leadership in blockchain technology,” Shin said. “A national strategy is required to promptly respond to the rapid change in the technology paradigm and environment.”
He said suggesting the direction of scientific technology is one of the roles of KAIST.
Blockchain refers to a peer-to-peer network where many people participate to provide computing power for the security of the decentralized system. It has a built-in payment system _ well-known examples are those involving bitcoin and Ethereum.
Unlike conventional systems, blockchain does not need third-party intermediaries. It therefore has no single failure point, which is why blockchain is safer than middle-men-backed old institutions such as banks, brokerages and governments.
It is practically impossible to hack the system because of its unique structure and great computing power offered by distributed users. Even the combined computing power of the world's 500 most powerful supercomputers cannot match the bitcoin blockchain.
Oh Se-hyeon, executive vice president at the nation's top mobile carrier SK Telecom's blockchain business unit, who was present at the forum, said blockchain technology can be used in various areas of industry including manufacturing, finance and logistics as well as in the public sector.
“National-level support, not regulation, is necessary to vitalize blockchain technology-related industries,” she said, calling on the government to recognize the legal force of electronic documents as one of the first steps to support blockchain technology.
“It is an urgent task to come up with measures to help relevant parties voluntarily develop technology,” she said.
Kim Yong-dae, a KAIST Professor, added it is also an urgent task to nurture talented individuals who will contribute to developing business models and vitalizing business start-ups.
Rep. You said the Wednesday's policy forum was meaningful in that it suggested the direction of the government policy and tasks.
“Measures to improve laws and systems need to be explored to respond to new technology and business,” she said.