Koreans will have access to blockchain-powered digital IDs by 2024

South Koreans may soon allow citizens to use blockchain-based digital identification (ID) instead of physical cards as soon as 2024, as the nation further embraces blockchain technology.

According to an Oct. 17 report by Bloomberg, a government plan would see digital IDs embedded as an app in mobile devices in the future, working in the same way as physical citizen registration cards.

The digital IDs are expected to launch in 2024, with around 45 million residents expected to adopt the technology within two years.

Hwang Seogwon, an economist at Korea’s Science and Technology Policy Institute, said the digital IDs could be used in finance, healthcare, taxes and transportation, while Korea Digital Government Office Director General Suh Bo Ram said the technology could help businesses that haven’t. nevertheless transferred completely online.

The plan would also see the government adopt a decentralized identity system, meaning the government would not have access to information stored on phones, including the digital IDs used, how they are used and where, according to Suh.

Such technology is not new to the tech-savvy nation, which ranks first among all nations in using technology for life, business and government, according to the Portulans Institute, a US think tank.

Nor would it be the first blockchain-based digital ID solution to be implemented in the country either.

As of August 2020, over one million South Koreans had implemented a blockchain-powered driver’s license, which operates via Korea’s PASS smartphone application.

Shortly after, in September 2020, a South Korean government agency – the Korea Internet & Security Agency (KISA) – began pilot testing of a similar system.

Related: Are decentralized digital identities the future or just a niche use case?

While South Korea is considered a leader in all things blockchain and Metaverse, other nations are expected to soon follow suit.

A June 2021 study by market research firm ReportLinker estimates that the blockchain identity market will grow an additional $3.58 billion by 2025 – a compound annual growth rate of 71%.

However, Brenda Gentry, blockchain advisor and CEO of Bundlesbets.com, recently told Cointelegraph that no matter how capable and decentralized the ID management system is, it will still require recognition from public authorities or companies:

“If the issuing authorities do not recognize the validity of the blockchain IDs, the same cannot be used to avail the majority of public services. This, in my opinion, is the biggest limitation.”