South Korea’s largest telecom company KT has announced its new blockchain-powered network, referring to it as the first blockchain-based commercial network in the world, as reported by The Korea Herald.
The company is combining blockchain nodes to its high-speed network to offer ultra-fast service nationwide that offers greater processing speed, more security and transparency, a project KT’s Institute of Convergence Technology has been working on for more than three years.
Since blockchains suffer from low speed and capacity, KT has navigated around those roadblocks by integrating blockchain with their ultra-fast network — a network that truly is “ultra-fast,” not just a cheap sales pitch.
South Korea has the fastest average internet speeds in the world at 28.6 Mbps, according to Fastmetrics, blazing past runner-up Norway at 23.5.
The telco’s blockchain currently moves at a rate of 2,500 transactions per second, but is projected to hit 10,000 tps by the end of 2018 and 100,000 tps by 2019.
“The whole point of applying blockchain to networks is to address security and transaction issues by making the current networks more secure and trusted,” head of KT Blockchain Center Seo Young-il said.
Users’ data will be more secure as it will be stored on this new network, making it less prone to hacking. Instead of relying on IP addresses, an ID layer will be added via blockchain to protect users’ identities.
This announcement is just the first application of blockchain on the company’s commercial network as they plan on applying their blockchain technology to its soon to be rolled out 5G network, energy, and finance platforms as well as allowing local governments to accept payments with cryptocurrencies.
The country has heavy mobile phone usage and is one of the biggest gaming markets in the world. Combine those factors with forward-thinking technological strategy and it makes the country a ripe one for blockchain innovation and cryptocurrency adoption.
The South Korean mobile carrier is showing leadership in Korea by sharing its blockchain technology through its KT Blockchain Eco Alliance. The allied partners are looking to expand into a variety of sectors from AI to smart cars, adding to the likelihood of the Ministry of Science and ICT’s prediction that the country’s blockchain market will expand from 50 million won in 2017 (US$44 million) to 1 trillion won in 2022 (US$900 million).
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