Blockchain technology is actively developing, constantly offering new opportunities to its users.
State authorities are not standing aside from modern technology either. Blockchain is transparent.
On the one hand, it allows increasing control over the actions of users, which all governments strive to do, and on the other hand, blockchain increases people's trust, because the technology itself is very transparent and unchanged.
All actions are recorded in the blockchain. It is easy to verify them, but they cannot be changed or falsified. South Korean authorities plan to allow their citizens to use blockchain-based digital identification (ID) instead of physical cards.
This project will begin in 2024 as the country continues to actively adopt digital technology and blockchain.
According to an Oct. 17 Bloomberg report, in the future digital ID cards will be integrated into mobile devices in the form of an app that works similarly to physical resident registration cards.
Digital IDs are expected to launch in 2024, with 45 million citizens using the technology within two years.
The use of digital ID is very extensive. It is much wider than regular plastic cards. Moreover the digital IDs cannot be changed, counterfeited or lost.
It is assumed that digital IDs can be used in finance, health, taxes and transportation. With time the sphere of application of digital ID will only increase with the development of the underlying technology.
It is envisioned that the government will not have access to users' personal information stored on their phones.
This is far not the first digital ID solution based on decentralized blockchain technology used in the country.
In August 2020, more than one million South Koreans implemented a blockchain-based driver's license. These electronic licenses work through Korea's PASS smartphone app.
In September 2020, a South Korean government agency, the Korea Internet & Security Agency (KISA), began pilot testing a similar system.
Currently, South Korea is considered a leader in digital technology, blockchain and the metaverses
A June 2021 ReportLinker research showed that the blockchain identity market will grow by $3.58 billion by 2025. Meanwhile, the compound annual growth rate will be 71%.
Despite this rapid development of the technology, the issues of legal regulation of blockchain are the most urgent. Digital ID needs a strong legislative and regulatory framework.
If issuing authorities do not recognize the validity of blockchain IDs, they cannot be used to obtain most government services.