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[CUBE NEWS] The Future of Blockchain 3. Utilization of Blockchain Technology | 블록체인의 미래 3. 블록체인 기술의 활용 현황

3. Utilization of Blockchain Technology
So how long will it take for blockchain technology to become widely used in our society? Experts predict that it will take more than five years for blockchain technology to peak in most industries. Gartner, a U.S. IT market research and consulting firm, said in its 2017 Blockchain Heap Cycle report that the market and public interest in blockchain-related technologies such as distributed ledgers, virtual currency wallets and consensus algorithms are at its peak. In addition, most IT consulting agencies predict that blockchain technology will reach the peak of innovation in two to three years, and be commercialized in five to 10 years, so that stable services can be delivered around 2025. Among the areas where blockchain technology can be used especially effectively are financial areas such as banks and investment services, health care including insurance and health care, logistics and distribution sectors and public services.
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Active attempts to employ Blockchain as a Service (BaaS)

Recently BaaS, Blockchain as a Service, has been rapidly increasing, especially with multiple studies on the application of blockchain in the Smart City. The development of automobile technology using several blockchains was announced today, at “SMART CITY” The 2018 Korean Institute of ITS Conference held in Jeju Island, South Korea. More than 250 Smart city’s traffic-related papers have been published in this conference. Korean Government agencies including Korea Expressway Corporation and The Korea Transport Institute, along with SK Telecom, LG Electronics, Naver and Cube Intelligence presented their research on the Smart city transportation. 

Cube Intelligence UK attracted attention by introducing their research during the special session. Cube is currently developing a vehicle security service, especially suited for autonomous and connected-cars, that employs blockchain.

Professor Young Yoon at Hongik University, an established expert in the field of AI and blockchain, has introduced the development plan for Cube’s Over-the-Air (OTA) technology that can remotely update autonomous vehicle software using a blockchain system by combining blockchain and AI technology. Cube has announced their research and development of blockchain application, that enables to collect a large volume of autonomous driving vehicle data while ensuring the integrity and privacy. Furthermore, Cube’s application will efficiently update autonomous vehicle software through OTA (Over-the-Air) in large-scale using a P2P method.

The autonomous vehicle, in particular, requires confirmation whether the large volume of data received through multiple sensors simultaneously has been hacked. Cube’s blockchain technology will demonstrate zero-configuration technology that seamlessly constructs these large volumes of data into a well-distributed Big Data platform. Moreover, they will establish a Data Affinity-based computing technology that employs parallel analysis on various physical locations of the data. Cube’s aim is to not only construct a distributed publish/subscribe overlay network that will enable selective collection of vehicle data and dynamic updates, but also connect through V2X (Vehicle-to-Everything) to provide a foundation for future services.

Professor Gi-Yeon Hwang at Hongik University, a specialist in the field of blockchain traffic policy, presented a variety of recent services that use blockchain including few cases of BaaS. Professor Hwang said that the second-generation BaaS has the advantage of significantly lowering transaction costs by enabling a variety of P2P businesses without a third-party intermediary, but instead using an embedded application such as smart contracts. He further added that in Korea, there is a need to develop a versatile BaaS, including vitalization of public transportation and utilization of unused urban space, through a regional-based consortium blockchain of local governments and private companies. In addition, in order to strengthen the global competitiveness of Korean BaaS, it is necessary to review the deregulation of the use of cryptocurrency in Korea.

A study on the legal aspects of the blockchain-based business was also presented. A specialist in blockchain related regulation, Hongik University’s law school Professor Choong Ke Lee, stated that a token can be classified according to their function; A Payment Token that performs a payment function similar to currency, an Asset Token that represent business-related equity and other assets, and an Utility Token with a license for an app or service running under blockchain-based infrastructure. And amongst the three tokens mentioned above, only the Asset Token is subjected to the regulation on public offering of securities under the Capital Market Act.

A Cube Token was mentioned as an exemplary example of a Utility token that is used to access the service or to use the service, but a token that does not represent a business-related equity or other assets.