Ronald Coase, a Nobel laureate in economics from 1991 defined intrinsic value of corporations. He said that corporations retain its intrinsic value because the transaction cost of individuals bartering is larger than the organization and maintenance of a corporation. Since the times when ordinary John and Jane make exchanges in person, transaction cost steadily rose as scope, concerning parties, and structures of transactions became complex due to advances in production technologies, transportation, and communications, internet technology. As transactions have been processed remotely, there incurred enormous costs to trust the counterparts of the transaction. Countless trust costs have incurred with full of intermediary entities. For instance, there are agents and credit rating agencies to verify the party who participates in a transaction; measures to verify and attest value or qualities of goods; there are financial institutions to maintain stability in payment and settlement processes. Though the world is embracing more and more digitized transactions because of the internet, their scope is limited to specific fields such as online shopping, distribution of contents or booking lodgings during travels; they only take up around 4 percent of domestic consumptions. It is not surprising, because digitized transactions require substantial costs to accredit appropriately. Therefore, it is still common to engage in transactions related to properties (real estates or cars) face to face using various verification methods (identifications, attestation documents for ownership, quality assessments) and inspecting the current state of the property of interest. Business to business transactions are mostly done offline.
The blockchain is the technology that can revolutionize said structures and costs of transactions. By creating trust in the digital world, It is projected that blockchain enables many types of digital transactions that cannot be done before, and bring radical changes in transaction costs, the essence of corporate management.
With the basis of trust built with blockchain, parties in transactions can be identified, and assets up for transactions can be digitized, and they can be more efficiently automated through Smart Contract. Also, Blockchain technology can create new compensation scheme that can process payments and settlements easier and faster through tokens inside of Blockchain network.
We project that blockchain technology becomes a central infrastructure in the trend of the 4th industrial revolution in association with different ICTs such as 5G, AI, IoT/Big Data or Cloud Computing. Open Blockchain Industry Association intends to encourage the application and utilization of blockchain technology to discover new growth engine in Korean industries. To achieve such an end, we make efforts to vitalize Korean blockchain industries by opening forums for related businesses to share the information and finding out projects that private and public sectors can jointly contribute and commit, We devote ourselves in improving ICT competitiveness of Korean corporations by enhancing the literacy in blockchain industries.
Specifically, the Association intends to establish an ecosystem for the blockchain industry by founding an Open Lab to encourage communication between individuals and corporations engaging in blockchain research; perform as network hub between private and public sectors so we can convey opinions and requests of blockchain industries to the government with respects in updating regulatory systems; provide training program, which is essential to advancing and revitalizing the blockchain industry, then furthermore perform the role of an incubating center for new businesses by providing various supports to aspiring industry gurus.
We would like to invite your participation and interests. Whether you are the management of a corporation, developer, researcher, student, or government official, if you are interested in a renovation of existing businesses or discovering new business opportunities, please do not hesitate to contact us.