Many Vietnamese are confusing blockchain with cryptocurrency

Blockchain is appearing more and more in the daily stories of a part of Vietnamese. When the crypto market is volatile, they talk about blockchain more but there is confusion between these two concepts.

Bitcoin or other cryptocurrencies is just one of the applications of blockchain afp

In fact, blockchain (blockchain) can be seen as a vast technology platform. Simply imagine, this is where information is decentralized, stored in interconnected “blocks”, encrypted and scalable over time. These blocks are linked to prevent arbitrary data changes. Any information that wants to be changed will need the consent of the entire chain.

According to Mr. Pham The Truong – former General Director of Microsoft Vietnam, the concept of blockchain was born in 1991 and was actually born around 2008. This technology was introduced to Vietnam early and emerged in the financial field. , electronic money. He also did not hesitate to confirm that he used to confuse blockchain with virtual currency, but when he digs deeper, he realizes that this is a completely new principle for collecting, storing, operating data, bringing new safe and open and transparent.

“Blockchain is not only a cryptocurrency, but also a method to help people, organizations, enterprise communicate and transact with each other. It can be said that this is the foundation of many platforms on which people do and solve many different jobs,” explained Mr. Truong, adding that Vietnam has had many businesses in recent years. , an individual who invests in blockchain research and achieves success in fields from payments to real estate, is no longer the story of cryptocurrencies.

Explaining more about the phenomenon that Vietnamese people are confusing blockchain with cryptocurrencies, Kardia Chain co-founder and CEO Huy Nguyen said: “Most of the applications of blockchain that are developing are in the field of cryptocurrencies, GameFi People still have a negative view of blockchain because this technology in Vietnam is being applied too much to finance, but when it comes to money, people can lose money when they invest even though they have never invested. If you study it carefully, it’s easy to think that blockchain is risky and negative.”

Currently, some enterprise In Vietnam, blockchain applications have been started business in the fields of e-commerce, real estate, sports… “We do not lack the applicability of this technology in other industries such as agriculture and supply chains”, Mr. Huy added.

Blockchain brings many benefits in terms of governance, security and transparency of information afp

Talk more with YouthDr. Dang Minh Tuan – Chairman Vietnam Blockchain Alliance (VBU) assesses that blockchain has great potential in Vietnam, starting with the cryptocurrency market. But in the businesses he knows are applying this technology, but the community is not easy to see it. “The enterprise has already deployed it internally. For example, Apple, Microsoft, Amazon, IBM are all applications but the community does not have much information. They use blockchain for traceability, supply chain of goods, insurance… which has nothing to do with cryptocurrencies,” he said.

Because of this fact, VBU leaders see that Vietnamese people are mainly seeing cryptocurrencies as “blockchain” because that is the opportunity they can access and experience in the market. As for businesses, apply for their activities without communicating this story, for the purpose of reducing costs and increasing labor efficiency.

As an example in the manufacturing industry, blockchain is proving beneficial when it comes to transparency in the history of goods transactions, easy tracking of production activities, protection of intellectual property, simplification of the protection process. , check quality and allow businesses to use machines to control the maintenance process. However, one of the disadvantages is that the technology is still expensive and requires a lot of effort to operate at the present time. Specifically, the operation, application blockchain still requires a large investment and can be more costly in terms of cost and capacity obtained.

Mr. Huy Nguyen assessed: “Many large enterprises with financial capacity and new research should invest in. Meanwhile, small businesses will face quite large investment risks.”