【Blockchain in Korea】GLOSFER CEO Taewon Kim: How to build innovative business model?
68days ago

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Editors note: The greatest value of blockchain technology is decentralization, a technology that prevents moral slack.


Coinin is the Korean blockchain media headquartered in Seoul, South Korea, it relies on industry head resources and community advantages to form a huge influence on the media. It is known as an upgraded version of the blockchain field 36Kr.

Coinin recently launched the "Blockchain in Korea" series in South Korea, visiting the top blockchain practitioners in South Korea and promoting exchanges and cooperation between China and South Korea. In the new phase of "Blockchain in Korea", Coinin invited Taewon Kim who is the CEO&CTO of GLOSFER to talk about "How to build an innovative blockchain business model?".

Guest introduction

The 36th phase of the "Blockchain in Korea", the Rotation host Ted Koo who is TEK&LAW Representative lawyer invited Taewon Kim, CEO & CTO of GLOSFER to talk about "How to build an innovative blockchain business model?".


Adjunct Professor, Dongguk University

Director, Korean Block Chain Industry Association

Vice Chairman of Korea Blockchain Startup Association

Representative Director of LC Company

Bachelor of Computer Science, Dongguk University


Ted Koo: You are currently the CEO and CTO of GLOSFER. How did you connect with the blockchain industry? What do you think is the greatest value of blockchain technology?

Taewon Kim: In 2012, we saw huge growth possibilities in the blockchain industry. In 2012, we established a company with five university graduates. GLOSFER is one of the first generation blockchain companies in the Republic of Korea.

At the time of starting a business, I never thought about earning how much money. "I don't know how to exit, nor do I understand the corporate value assessment. As the brother, I led my alumni to work together, we operate the company with the belief that we can accomplish the infinite possibilities of the blockchain we believe. The greatest value of blockchain technology is decentralization, a technology that prevents moral slack. Moreover, from the perspective of humanities, the blockchain is a technology that directly reflects democracy, so I think that before the blockchain is a technology, it is first of all a concept and idea.

Ted Koo: Please introduce the GLOSFER company. How is the current status of GLOSFER? What is the unlimited project ecosystem designed by GLOSFER?

Taewon Kim: GLOSFER is a company that develops blockchain related technologies. We are not only a development company, but also let the more people use it, so that the blockchain can serve the public, and it also carries out special business activities in various fields such as government, local government, and civil society. The Korean government has made a lot of efforts to cultivate blockchain talents. Six demonstration projects were selected last year, and 12 were selected this year. GLOSFER has been a demonstration project for two consecutive years.

The current progress of GLOSFER is not the blockchain service in the initial stage of the POC phase, but the services developed by GLOSFER are all commercialized. The world's earliest blockchain local government regional currency has been in operation for more than one year, the transparency evaluation target evaluation system, the marine fisheries department's port management system, the mental health care platform targeting anonymous medical treatment, blockchain-based Electronic contracts and so on are typical use cases of us.

The ecosystem goal pursued by the "Unlimited" project is to make the fastest and safest blockchains available to many developers and users, people are not aware that this is a blockchain service and infiltrate in real life. For this purpose, public & private blockchain platform HYCON built the main network before listing on the exchange , and it has been running for more than one year without any accident.

HYCON uses the development language of "TypeScript". Unlike the Ethereum platform, which must use "solidity", even junior developers can create Dapps using the familiar development language javascript. For scalability, it is preparing to convert to Lust, and Microsoft Azer Market Place will also add HYCON, which is very diffuse.



Ted Koo: The speed of transaction directly affects the user experience, so what is the speed level of HYCON TPS? What kind of problems have HYCON encountered in terms of capacity expansion? How do those issues solved? What do you think is the difference between traditional Internet technology and blockchain technology?

Taewon Kim: Currently, HYCON processing speed can process 200 transactions per second. The last sentence of this year's white paper is DAG, the Spector protocol can handle at least 3,000 or more if applicable.

In order to speed up the processing, a large number of modules are generated in a short time to increase the number of modules, the transaction is increased, and the processing speed is also accelerated. For this reason, the goal of HYCON is to apply DAG and Spector protocols. DAG, the spector protocol is a concept that exists only in the form of papers around the world, but at the end of last year, the HYCON team successfully implemented the technology.

In order to enter this stage, an update of the Ghost protocol is required, which is accomplished at the end of last October. The module generation time is shortened from 30 seconds to 15 seconds, and the processing speed is increased from 100 to 200.

I think the difference between the traditional Internet and blockchain technology is that once any system is "centralized", there will be internal moral slack, and there are limitations in cutting off these problems. So the "decentralized" blockchain technology is needed. By these methods, it is possible to prevent the data stored on the Internet from being easily exposed and the case of forgery.


Ted Koo: There is a contradiction between decentralization and processing speed improvement and there are many ways mentioned. Could you briefly introduce DAG, how does the Spector protocol solve this problem?

Taewon Kim: To put it simply, the technical and controversial debates about maintaining the core POW approach to the blockchain or restricting participants in other ways to ensure their stability are now in a confrontational state. What I want to say is that the DAG and Spector protocols are decentralized and fastest-processing technologies that we all know.


Ted Koo: The business model and economic model design of the blockchain has always been a big problem in the blockchain. How to build an innovative blockchain business model in your opinion? Could you share the GLOSFER’s experience or examples?

Taewon Kim: The innovative blockchain business model should be built to serve not only the blockchain industry but also used by the general public. In this way, the innovative blockchain business model ultimately needs to form a killer content. GLOSFER selected local self-governing entities in the field of crypto currency, business selection, port management, and mental health care and GLOSFER is confident to quickly find those killer content.

The most important thing we learned in about 5-6 years is that we should consider  the benefits of using a blockchain from the perspective of a commercial solution., rather than looking at commercialization services from the perspective of blockchain. For example, people play blockchain-based games because the game is fun, and people do not play game because it is a blockchain-based game.



Ted Koo: Many traditional enterprises are transforming to blockchain, what are their main issues in your opinion? How to expand the application of blockchain technology and solve the blockchain commercialization problem?

Taewon Kim: The existing group and conflicts of interest, as well as the initial attempt to introduce blockchains in order to save costs, and the resulting increase in costs, etc., have created many dilemmas in the process of introducing blockchain.

Many existing companies are transforming into blockchain, but there must be differences. The blockchain can be applied to any service, but the commercialization of the blockchain should not be applied unconditionally. We don't want to say "the sand can do anything" on the beach, but we want to show it by ourselves. To this end, it is necessary to introduce the contents of the blockchain used by the general public.

I also mentioned in the answers to the above questions. I think everyone should consider which services are available to the public, and then focus on whether the blockchain can solve problems or play the promoter role!

We cannot continue to get the special benefit of the blockchain when we using it to make something!


Ted Koo: The turnover of the digital currency exchange increased from US$44 billion to US$63 billion, and the price of bitcoin also rose sharply. Some people think that this time the bitcoin’s skyrocketing will become the starting point of a real bull market. Do you think the market will continue to rise? What do you think about the reasons for the current surge in bitcoin price?

Taewon Kim: Bitcoin’s increase and sharp decline last year, seemingly cold winter but in fact every year, the price of bitcoin has an upward trend. This shows that bitcoin and blockchain technologies are becoming more popular, and their supply and demand are being reflected. April Fool's Day also had a saying that the US Futures Exchange Commission permit the CFTC license, as before, if the price rises, everyone will analyze the various reasons and connect them together.

But compared to last year, the side of quality has changed completely. Many investors who have experienced panic are cautiously entering the market. From individual to institutional, the proportion of investors has also changed considerably. Therefore, I think that if there are no major unfavorable factors, this is the first year that the expected value of technical value is reflected on the price.

Ted Koo: Recently, Vitalik Buterin said at the blockchain meeting organized by the Korean National Assembly that blockchain technology and cryptocurrency are inseparable, and the public blockchain relies heavily on cryptocurrency. The South Korean government has repeatedly said that it will separate the support of blockchain technology and the regulation of the cryptocurrency industry. What do you think about the separate regulation of technology and cryptocurrency?

Taewon Kim: I think there is no necessity to discuss whether to separate. I think that as long as we confirm through the service, it will be fine.

From the perspective of economic law, it is not feasible to block the blockchain company and the cryptocurrency to create an investment environment. The private blockchain is not interested in rewards. The blockchain advocated by IBM, by Ethereum, and by the government all rely on decentralized technology to achieve trust and security. I think that apart from Public, Private, the actions of the participants are very important. Because an economic compensation model is needed if the blockchain technology hopes to work properly.

Although the government also advocates managing cryptocurrencies, on the other hand it advocates cultivating blockchain technology. So last year, six blockchain demonstration projects were carried out. This year, the demonstration blockchain projects number were doubled. The budget has also increased significantly from 4 billion won to 8.5 billion won. The business carried out by GLOSFER is the production of travel-related cryptocurrencies used by the Jeollabuk-do local government. I think we should use services to quell the debate.

Ted Koo: What is the latest activities and future plan of GLOSFER? In what ways does GLOSFER hope to cooperate with projects or institutions in China and South Korea?

Taewon Kim: GLOSFER is working hard to develop the technology of the public blockchain HYCON. In the private sector, various governments, public institutions, and civil society have carried out blockchain activities for the emergence of killer content. And the blockchain industry should not become an alliance that only belongs to us. To enter the traditional financial market and expand related industries, GLOSFER is preparing to launch a special case for technology in the Korean KOSDAQ market. Blockchain is an industry without boundaries. We hope to cooperate with various projects and institutions with common growth goals in the Korean and Chinese markets.

The formulation of the MOU should not be the end of both parties, but a clear rule. For example, I would like to say that our GLOSFER blockchain business capability is rank first in Korea. Many projects have developed good technical or business models, and if you know more, please contact us GLOSFER decisively. We can work together to make good technology commercially available to governments and businesses in the Republic of Korea.



Ted Koo: As a well-known person of the Korean blockchain, you may know a lot of outstanding practitioners in the blockchain industry. "Blockchain in Korea" interview program is launched by [Coinin], is dedicated to exploring high-quality blockchian projects and practitioners. Could you recommend three honored guests to our program?

Taewon Kim: Hyung-joo Kim, chairman of the Korean government's first licensed blockchain industry promotion association, and Rayeol Hwang, the biggest hope for a healthy blockchain market, also known as CEO of Hillstone Partners. Also known for ICON, Han-jin Kim the director of ICON Loop who is trying to understand the real and commercially available blockchain.

It is a great honor to participate in the interview hosted by the representative Innovator of Korea, Ted Koo, and pays tribute to the infinite development of Coinin and its efforts made for the development of the ecological community. We will continue to work hard to show how the government views the blockchain through services!


Ted Koo: GLOSFER, led by Taewon Kim also contributed to the society through practical blockchain services this year. I feel this is very fortunate to us. Support you!

Q&A Session

Q1: Which do you think is more important, technology or business model?

Taewon Kim: Although I am a developer, I will give an unexpected answer.

I think the business model is more important. What we have to do is not the technology but the product of technology integration. Therefore, we should abandon the way of thinking about the blockchain and designing the business in the center of the blockchain. And of course, when discussing and designing a business model, it is necessary to check whether it is technically feasible and to verify the Proto type in different sections of the business model design.

Q2: As technologies such as sharding develop, it says that can solve the problem of scalability of blockchain. How do you consider this opinion?

Taewon Kim: I believe that not only the development of sharding technology, plasma, light and etc., but also the development of many technologies can solve the problem of scalability. But fundamentally, if you can't overcome the expansion topic of a modular network, the blockchain may develop in a rather limited form. Therefore, I believe that together with the sharding technology, plasma, and Lightning, R&D is the most important for making the best efforts on the module network. This part will be considered as a factor to save money when the blockchain system replaces the decentralized processing system.


From: Coinin.com

This article is reproduced only and doesn't constitute an investment opinion

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