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Improvement of Blockchain Security in Korea's Banking and Financial Sector

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The Korea Financial Investment Association claims the world's first commercial blockchain used by firms for the security of customers.

The Korea Financial Investment Association (Kofia) has announced the establishment of Chain ID, a blockchain identification platform that will see a number of brokerage houses and banks. Business safely share customer information for online identification.

At a conference on Tuesday, Kofia's chairman, Hwang Young-key, revealed that the decentralized identification service was being developed with the aid of smart contracts and the blockchain platform privately used by a consortium of investment companies and start-ups. As reported by CCN in late 2016, the consortium sees 21 financial companies and five blockchain technologies working together to develop blockchain solutions for the industry, making it the country's first blockchain global consortium.

In essence, the service will allow customers to use the sharing of their certificates and blockchain data in all participating financial institutions of the Kofia consortium without the need of a central audit authority like the Korea Information Certificate Authority (KICA). Chain ID will see its launch in November via Android and iOS applications before deploying desktop versions.

Developed by Theloop, a Seoul-based blockchain startup, Chain ID is only the beginning of a radical adoption of blockchain systems in society, according to Jonghyup Kim, the company's CEO.

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The blockchain executive said:

The chain identification goes beyond simply replacing Korea's outdated bank certificates. He places the blockchain in every Korean pocket, paving the way for widespread use of blockchain transactions in a new blockchain-powered financial ecosystem. Blockchain is the future.

A first pilot project of the security and identification platform will be made available to 11 securities firms for a wider launch, according to a report from Korea Herald.

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In addition, the South Korean exchange trading company, Korea Exchange (KRX), has already launched a blockchain platform to allow start-ups to trade stocks. Nicknamed "Coinstack", the cloud-based platform saves documents with a focus on identity authentication and includes support for all protocols and applications built on cloud-based channels. Bitcoin and Ethereum blocks.

Image from Shutterstock.

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