Blockchain poised to replace the public banking certification system
The public certification system, which has long inconvenienced Korean online banking users, is on the verge of shutting down for the first time in 21 years. The news became known when the Democratic Party of Korea proposed a revision to the Electronic Signature Act at its last plenary session of the 20th National Assembly on May 18. The revision would abolish the nation’s public certification system and promote its privatization. #What are the chances of it passing? The prevailing view says the passing of the revised bill at the plenary session is very likely. Public opinion has favored the abolition of public certificates for a long time, and as the coronavirus outbreak led to growth in the digital infrastructure, both the ruling and opposition parties seem to agree on the bill's passage. Thanks to this trend, a number of digital-related bills, including revisions to the Electronic Signature Act, are expected to pass, along with a revision to the sex crime act designed to toughen punishment for digital sex crimes following the “Nth Room” scandal. #What happens after the bill passes? If passed, the bill will go into effect once an enforcement ordinance is finalized. The revision to the Electronic Signature Act does not include an exclusive replacement of other authentication methods to replace the abolished public certification system. In other words, private operators of the subsequent certification system that get more choices from the public will have a competitive advantage in the market. #Blockchain-based authentication? Mobile-based biometric authentication is drawing attention as a post-public certification system method. In particular, the system pays attention to the blockchain-based authentication method, which is represented by Decentralized Identifiers (DID). In January, the Military Manpower Administration introduced a simple certification method based on blockchain. The Military Manpower Administration wanted to establish a system that would simplify identification without a public certificate. Also on April 29, Initial, a blockchain-based mobile certification service developed by three domestic mobile carriers, Samsung Electronics, and major financial institutions, was registered on the app store. As a result, DID-related companies, including RaonSecure, have shown gains in the stock market. RaonSecure is a security and digital authentication solution company that developed a blockchain-based authentication method in cooperation with the Military Manpower Administration.