Samsung SDS enters blockchain service business

The Korea Times

The Korea Times

Business

Wed, December 6, 2023 | 00:48

Samsung SDS enters blockchain service business

Posted : 2017-04-06 16:10

Updated : 2017-04-06 20:04

Song Kwang-woo, vice president of Samsung SDS' finance consulting and distributed ledger technology, introduces blockchain security platform Nexledger during a press conference at the company's headquarters in Jamsil, southeastern Seoul, Thursday. / Courtesy of Samsung SDS

By Yoon Sung-won

Samsung SDS launched its enterprise blockchain security platform Nexledger, Thursday.

The system integrated affiliate of Samsung Group also released digital ID and payment services based on its blockchain security technology. The company said it targets not just the finance industry but also the manufacturing, logistics and information and communication technology (ICT) sectors.

"Based on the benefits provided by blockchain technology, all valued assets can be digitized and protected," said Song Kwang-woo, vice president of Samsung SDS' finance consulting and distributed ledger technology, during a press conference at the company's headquarters in southern Seoul, Thursday. "Blockchain technologies are expected to be adopted by public organizations, manufacturing and logistics businesses as well as financial institutions. They can also improve internet of things (IoT) services, intellectual property management, distribution channel control and cooperative work projects."

A blockchain platform, or distributed ledger system, is a security technology that protects financial transactions from cyberattack. Compared to conventional financial transaction storage systems, which centralize the data in a server system, blockchain technology distributes the ledger data to all clients. By doing so, the blockchain system can check each copy to prevent counterfeit data. This technology was first introduced for the virtual currency bitcoin.

"Conventional financial transactions between unreliable parties come with uncertainties," Song said. "Blockchains transparently verify transactions through networks and encode and store them in a widely distributed public digital ledger, which cannot be manipulated arbitrarily. For this reason, it has been highlighted as a key factor of the Fourth Industrial Revolution."

The Nexledger has open source architecture for higher compatibility with Samsung's cloud system as well as ones by third-party providers such as Amazon Web Service and Microsoft. Based on the cloud network, the blockchain platform supports diverse application services such as real-time transaction monitoring, user authentication security, payment settlement, mobile finance concierge, global warranty and trade finance, according to Samsung SDS.

Song claimed clients can save time and money with Nexledger to secure financial transactions.

The company has test-run Nexledger under a joint project with its group affiliate Samsung Card since last October.
It also said Nexledger can be provided either as a service or as an on-premise system to meet the different needs of clients.

"In terms of profit model, we aim at providing it in the form of blockchain as a service," Song said. "But clients from the banking industry in Korea want to build on-premise systems to optimize it for their business environment. We will come up with a proper earnings model that satisfies both ways."

Samsung SDS started researching blockchain security technologies in 2015 by establishing a dedicated unit. It joined global blockchain development consortium Hyperledger last year and has invested in U.K.-based cybersecurity startup Darktrace and Korean blockchain platform operator Blocko.

yoonsw@ktimes.com