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Samsung Declared The First Working Blockchain Solution for South Korean Banks

Ann Sotnikova, Catherine Lange

Samsung SDS, the subsidiary of the largest technical conglomerate, announced its certification platform based on blockchain and aimed to simplify transactions between different banks.

The platform named BankSign was developed together with the Korea Federation of Banks. It will allow users to conduct transactions from mobile apps of different banks limited only by the required certification from one of them. The certification can be made with the usage of one of the traditional methods: patterns, password, and fingerprints. Coupled with the basic features of the blockchain, the possibility of data falsification is reduced to zero.

It is assumed that the security will be ensured by uniting banking systems into a single data-sharing network. In addition, a single certification of data will allow them to be used up to three years.

The representatives of Samsung SDS specialized in IT solutions said: “BankSign is the first application of the much-anticipated blockchain technology on banking services. The company will continue to expand its digital transformation business, which will bolster competitiveness of banks and financial institutions.”

International Coin Assembly Foundation President DaeShik KIM considers that BANKSIGN is a breakthrough technology.

“In Korea, many security solutions have to be installed to use financial and payment services because the financial costs that banks and businesses spend to maintain these systems are very high. And furthermore, individuals and businesses are experiencing great inconvenience.” - said to Bitnewstoday.com  DaeShik KIM.

Furthermore, the limitations of security solutions have prevented international payments from proceeding as desired and have limited international distribution and trade. But if security solutions are replaced with blockchains, we will be able to use a lot of financial payments safely and conveniently at a very low cost. It is expected to have a very positive impact on finance and industry as a whole.

But there is also other point of view. South korean startup investor and consultant Baron CHUNG believes that it is just a good PR: “ In my opinion, it is just a normal PR activity when IT service provider completed a solution development. It is nothing special because it is a private blockchain solution within the chain of banking service. It might have some better developed features compared to previous private certification but it won’t impact much on the blockchain industry.”

However we shall notice that it’s not the first meeting point of blockchain and banks. Earlier Bitnewstoday.com wrote that in the beginning of August The Agricultural Bank of China (world’s third largest bank by the way) issued a farmland loan worth $300,000 through the blockchain.

In addition, just last week the World Bank together with the largest Bank of Australia announced the release of the world's first blockchain-bonds totaling more than $73 million.

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