Blockchain-based Authentication
On October 31, the Korea Financial Investment Association (KFIA) launched the Chain ID, the first blockchain-based joint authentication service in the world.
“An increasing number of major global financial players are getting interested in the blockchain technology as a key part of Industry 4.0 and are trying to turn it into their business model,” KFIA President Hwang Young-gi said at the launching ceremony in Seoul, adding, “We are planning to reach the international standardization of the Chain ID by linking it to systems of many different countries.”
The Chain ID is a personal identification tool for financial transactions such as online stock trading and money transfer. Transactions at different institutions can be carried out after identification is conducted once. In addition, users can choose from various options such as password-based authentication and bio-identification. The certificate does not have to be updated for three years based on enhanced security.
The KFIA formed a special committee for the Chain ID in January last year and began to study the technology with association members in April. South Korea’s first blockchain consortium consisting of 26 financial and investment companies and five tech firms was organized in October last year, led by the KFIA, and the consortium opted for the development of the Chain ID as its first project. The Chain ID is joined by 11 consortium members – Daishin Securities, Meritz Securities, Shinhan Investment, Yuanta Securities, Eugene Investment & Securities, eBEST Investment & Securities, KB Securities, Kiwoom Securities, Hana Financial Investment, Korea Investment & Securities, and Hanwha Investment & Securities.