Want to be in the loop?
subscribe to
our notification
Business News
BLOCKCHAIN GOING MAINSTREAM - HYPE OR REALITY?
Blockchain technology is being adopted by governments and companies around the world, but there are still some challenges for blockchain to go mainstream in Việt Nam, including limited interoperability, security concerns and lack of regulations, experts have said.
Blockchain is a type of digital ledger technology where data is stored in the form of “blocks” that are strongly linked together through cryptography.
Trần Thiện Duyên, CEO of Techfarm Technology JSC, told Việt Nam News that "blockchain technology is more than just cryptocurrency; it is a revolutionary way of tracking transactions".
By reducing information asymmetries and transaction costs, blockchain can help businesses, especially small businesses, overcome long-standing challenges related to scale, opacity and lack of business history, according to Duyên.
“While still in its infancy, blockchain is being adopted for a number of business uses and will likely serve a wide array of purposes in future.”
Nguyễn Đình Phúc, co-founder of blockchain company SotaTek, said many Vietnamese developers were talented and open to new technologies.
“They may soon help bridge the gap between business and blockchain technology in a short period of time. It is one of the great competitive advantages Việt Nam has compared to other nations.”
Challenges
However, one of the biggest challenges keeping blockchain from being adopted in the mainstream is limited interoperability - the ability to share and access information across different blockchain networks without intermediaries.
"There is no universal standard to allow different blockchain networks to communicate to each other, and blockchains use different encryption methods and so transferring data securely from one to another is hard," Phúc explained.
Duyên said this made mass adoption of the technology challenging, but developers around the world were trying to solve this problem with interoperability projects such as Polkadot and Cosmos to connect multiple blockchain networks.
Another problem is related to security despite blockchain’s reputation as being safe and secure. There have been several infamous crypto hacks, such as the hack to steal $625 million worth of cryptocurrency from video game Axie Infinity's Ronin network in March this year.
Decentralised finance (financial services that do not use traditional intermediaries such as banks) programmes are public and use open-source code, which is available for anyone to review.
"Hackers can study the code to find exploitable vulnerabilities and steal cryptocurrency," Duyên said.
Harpreet Singh Maan, CEO of Malaysian blockchain company Blocklime and chairman of ACCESS Malaysian Blockchain Association, said, “Blockchain is among the most secure ways of conducting business, and most of the hacks that are successful are often due to negligence, bad code practices and bad security procedures by startups/companies, and not a direct failure of the technology.”
More education on risk management and proper standard operating procedures should be provided to businesses, he said.
The lack of a regulatory framework is a hindrance as well as it plays a key role in helping blockchain go mainstream.
Nicole Nguyễn, ASEAN deputy chairwoman of Global Impact Fintech Forum, said, “Việt Nam is still taking a neutral stance on the technology itself, recognising the importance of blockchain in elevating the country’s position in the regional tech landscape.
“There needs to be a refined regulatory framework around blockchain to empower more mainstream applications in Việt Nam.”
Maan said regulatory frameworks were important, but if the regulatory regime is inexperienced in blockchain, they could hinder its development.
He proposed an open, collaborative and agile regulatory-based sandbox to help the industry evolve.
On September 23 and 24 a global blockchain conference, BUIDL Việt Nam 2022, will be held at HCM City’s Independence Palace.
Experts from Việt Nam and other countries will discuss developments in blockchain technology and the host country as an emerging blockchain hub, especially focusing on solutions to help the technology go mainstream.
Source: VNS
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.