Korea getting a much-needed online banking upgrade

After nearly 20 years, Korea has finally upgraded from its old online banking security protocols to a new blockchain-powered one. Chain ID is Korea’s newest standard for secure online identification. The new technology has been developed by theloop, which is a Blockchain company whose technology is currently being used in banks, hospitals, and other industries, in order to allow for information to be shared safely and securely. Chain ID is a blockchain-based identification service in which customers can use the same certificates across any of the 25 banks and securities companies that have joined the Korean Financial Investment Blockchain Consortium.

Korea may have been recognized as the world’s most modern country when it comes to technology, but its online banking sector has remained stagnant since 1999. It was back in 1999 when the Korean government mandated the use of personal identification certificates, which was seen to be the most secure technology at that time. When compared to today’s standard, these government issued identification certificates are slow, unreliable, and incompatible with third-party software. In the age of smartphones, such a limited system seems more like a burden than a convenience.

Chain ID will be applicable in a variety of systems, including Android and iOS devices. The difference between Chain ID and the contemporary system is that Chain ID will not have to be registered with each and every financial institution. This is due to the decentralized nature of blockchain, which simply distributes the authentication process. Chain ID will start replacing the outdated government issued digital certificates starting in November. New blockchain certificates that are verifiable and interoperable will be provided to the citizens, significantly improving the online banking system in Korea.

The release of Chain ID was announced by theloop at an event hosted by the Korea Financial Investment Blockchain Consortium. The event was attended by CEOs, representatives from the financial regulatory bodies, and blockchain experts from all over the globe.

Jonghyup Kim, who is the CEO of theloop, commented that Chain ID is not simply about replacing the old online banking system of Korea. He explains, “it puts blockchain into the pocket of every Korean, setting the stage for widespread use of blockchain-based transactions in a new blockchain-powered financial eco-system. Blockchain is the future."

Korea is home to some of the world’s largest cryptocurrency exchanges in terms of volumes, therefore, the release of a countrywide banking identification system is a significant event in the cryptocurrency world.