“I am researching about ways to converge blockchain technology with personal identification and credit rating process. Although it may take some time, this will be the first example of integrating blockchain technology to credit rating market in South Korea.”
Professor Lee Hyo-chan of KCB (Korea Credit Bureau) Research Institute is currently researching into ways of applying blockchain technology.
Although his research is still in an initial phase, his plan is to enhance personal identification and credit rating service through blockchain technology just like an American company called Bloom Protocol. However, he is expecting that it will take some time to commercialize his research results.
“Although financial industries are pushing for ways to apply blockchain technology to personal authentication process, there are many tasks that need to be solved such as abuse of black markets and intervention by governments.” said Professor Lee. “It is expected that it will take some time to substitute current payment and settlement systems with blockchain systems.”
He looked at possibilities of using blockchain and cryptocurrency for settlement-based payment markets negatively.
“To vitalize blockchain businesses, there are tasks that need to be solved such as various regulation barriers and money laundering.” said Professor Lee. “It is important to create joint platforms for certain areas such as authentication.”
However, he is predicting that ICO (Initial Coin Offering) markets will become catalysts that will provide synergy to startups and others. He emphasized that an environment where there are guidelines that can properly operate private systems and where financial authorities supplement their systems must be accompanied.
KCB, which is the largest credit rating company in South Korea, is also looking into ways of applying blockchain technology to diversify its services.
Its research institute has started relevant research while benchmarking a model from an American credit rating company.
“Increase in number of people who are financially underprivileged has also become a social issue in the U.S. due to modernized credit rating methods.” said Professor Lee. “Bloom Protocol solved such problem by combining blockchain technology with credit rating process.”
KCB has also started relevant research to commercialize a similar business model.
“To commercialize such new business, one must establish trust with its consumers.” said Professor Lee. “It is necessary to create comprehensive exchanges with public confidence as trust between investors and exchanges is breaking apart due to recent hacking incidences.”
He emphasized that there need to be comprehensive cryptocurrency exchanges that can be trustworthy just like South Korean stock exchanges.
“Legal regulations and guidelines must work together.” said Professor Lee. “We are also going to look for ways to use blockchain technology for reputation system in the future.”
He explained that his goal is to create a financial system that can be more trustworthy and used more conveniently by people in South Korea.
Staff Reporter Gil, Jaeshik | osogil@etnews.com