KT’s Innovation Rising High and Fast

As reported by E-Daily this afternoon in Seoul, KT CEO Changkyu Hwang announced that the company has launched the first successful commercial blockchain. He also claimed that the system will be able to handle 100,000 transactions per second (TPS) by 2019.

This blockchain system will be applied to all platforms on KT’s network including telecoms, finance, and energy sections. This network claims to be secure because of the ID-based internet integration which does not require repeated individual login.

ID-based internet functions fairly simply. If you want to access a portal site to check mail, you can login automatically. The system also lets users vote via blockchain on the date of garbage collection. These features prevent hacking since no personal information is transferred for network access.

Hyunguk Kim, CEO of KT Platform Business Planning Department stated, “KT will pursue innovative blockchain businesses based on the best ICT technology in the world.”

Existing public blockchain is not suitable for commercialization due to low TPS. Private blockchain has low transparency due to private data management and suffers from low security due to its highly consolidated structure. The new blockchain can help KT expand its global business by combining the new blockchain with next-generation tech such as Big Data, roaming, and AI. For example, KT already has a strategic cooperation framework agreement (SCFA) with companies in Japan and China to facilitate mobile roaming capabilities.

There is also an application to provide settlement transparency to copyright holders. This can help strengthen content security to create a basis for illegal distribution of copyrighted works.

KT also plans to contribute 1 trillion Won ($1 billion) to the growth of domestic blockchain market by 2022. They will promote development of the whole industry through opening differentiated blockchain platforms.

KT is a state-owned telecoms company based in Seoul, South Korea. It serves roughly 90% of the country’s fixed-line services and 45% of high-speed internet users. It launched Olleh as a mobile provider in the mid-1990’s and still operates that company to-date.

The KT system promises high performance and reliability. These claims have not yet been demonstrated publicly or tested independently. The public may need to wait for implementation in 2019 to see if KT’s claims are true or if they are just trying to cause a stir. If the claims stand true, this innovation could add tremendous public trust in blockchain technology since it could be seamlessly applied to existing systems and easily learned. We expect results some time next year.