How is Blockchain Changing the World and Vietnam?

Blockchain market trends

Digital technology is dominant worldwide. The old mainframe digital technology has handled data in batched, digital data is now managed on the Internet in real time. Blockchain incorporates digital technology into real-time management of computing systems. It has the ability to change all facets of the digital economy, including business, healthcare delivery, shopping, education and learning, entertainment, and staying connected with a social world.

At its core, blockchain is simply a distributed database, with a uniform copy stored on multiple computers. This facilitates transactions (financial or non-financial) between individuals (or companies) who do not know or trust each other. It's almost impossible to cheat, because every transaction is recorded in many places and the details of those transactions are clearly visible to everyone. Companies are now using blockchain to track fresh tuna caught from leaving the hook in the South Pacific Ocean until they reach the shelves, to speed up claims processing and medical records management. International. Total investment in blockchain by businesses and governments in 2019 could reach $ 2.9 billion, up 89% from last year, and will reach $ 12.4 billion by year. 2022, according to International Data Corp. When PwC surveyed 600 "blockchain savvy" subjects last year, 84% said their company was blockchain-related.


Blockchain topic:


How does the world react to Blockchain?

There are 3 types of crypto asset management in the world. The first type is management but classified supervision: "utility token" and "security token". Distinguish the use and security functions of the token. The US Internal Revenue Service (IRS) considers encrypted assets to be commodities, not currencies. Each state applies different policies, but must register if the token is used as a security, and must be approved by the US Securities and Exchange Commission (SEC). The second type is centralized regulation, centralized regulation: license scheme. On April 1, 2017 Bitcoin was recognized as legal money. Exchanges must be registered and approved by the Japanese Ministry of Finance and the Japan Financial Services Agency (FSA). The third type is Self-regulatory organization. Crypto currency has not been recognized as a payment instrument and there is no specific regulation on crypto assets. Exchanges only have to register as e-commerce companies. The South Korean Blockchain Association issues its own requirements through the Digital Assets Exchange Self-regulation Control Project (self-regulation Control Project).


Legal system compared to the advancement and development of Blockchain technology

With the rapid development of technology, the legal system cannot keep up with trends, it will always lag behind technology. We can build a legal framework for organizations and private enterprises to conduct new technology trials with a certain limit, under the supervision of specialized agencies. For example, for banking services and Fintech companies, they can test new payment and transaction methods, for a 3-6-month test period, if they find it meets the requirements. legal conditions allow, ensure the interests of customers, they will ask for permission to bring wide application.

(Related: Application of Cryptocurrency in Cross-Border Payment)


What opportunities and challenges are for Vietnamese businesses to access Blockchain?

Opportunities for businesses to access blockchain are many, because this is a technology that is shared with all communities, depending on the fields and business lines that Vietnamese businesses can leapfrog. Blockchain applications are best suited for businesses.

There are currently two major challenges for businesses to access blockchain. First, because Vietnam's basic sciences have not really developed, this makes it difficult for businesses to access some high-tech platforms.

Second, the biggest challenge for businesses today is the lack of high quality human resources in the information technology industry. This has led to Vietnam always lagging behind other countries in the world when approaching new technologies. For example, cloud computing, in the world they have approached since 2000 but Vietnam did not start developing this application until 2008.

With the mentality of Vietnamese people wishing to profit business in a short time, leading businesses to apply blockchain is mainly Fintech companies. The investment in technology research is not really the immediate potential of businesses.

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Blockchain Market Shares, Market Strategies, and Market Forecasts, 2018 to 2024


Author Pham Hoang Thu Uyen