How is blockchain technology being applied in Vietnam?

“Currently in Vietnam, blockchain is emerging as a financial story. I myself used to think that blockchain is digital money. But when I looked closely, I realized that blockchain is a completely new principle to collect, store, operate, bring safety, publicity and transparency.

Therefore, we need to avoid confusing blockchain with just cryptocurrency. Blockchain can become the foundation of many platforms. There, we can do a lot of things,” said Pham The Truong, former General Director of Microsoft Vietnam, within the framework of the launch event of the Vietnam Blockchain Association.

According to Huy Nguyen, co-founder and CEO of Kardia Chain, most of blockchain’s applications are currently in areas such as GameFi, DeFi, and finance. Some e-commerce businesses are also starting to integrate blockchain technology into their platforms. In addition, in fields such as entertainment and sports, many celebrities have also released their own NFT collections.

“Basically, we can completely apply blockchain to different industries. However, currently only large and financially capable enterprises can apply blockchain technology. For businesses For small businesses, financial risks are still quite large.

In the next few years, we will no longer talk about whether blockchain can be applied in other industries, but when it will become popular,” Huy said.

However, according to experts, the process of applying blockchain technology to industries is not a simple task.

“One of the problems of large enterprises when researching and applying blockchain technology is to properly appreciate the complexity and simplicity of blockchain solutions for business operations,” said Mr. Cris Duy Tran, Director. Director of the National Startup Fund, and Chief Strategy Officer of M3TA Inc., said.

Mr. Cris said that when the complexity is not properly assessed, we will not have the appropriate research and investment in infrastructure. On the contrary, if you think it is too complicated, it is not true to the value it brings, because in many cases blockchain is only effective at some stages and we do not need to use blockchain for the whole process.

In the past, blockchain applications were mainly focused on finance. However, a statistic of CB Insights shows that by 2021, the financial segment will only account for 40%, the rest will be companies in KYC, agriculture, and entertainment. The increasing appearance of projects also entails the great challenge of staff shortage.

Besides, a big barrier that prevents blockchain from becoming popular in Vietnam lies in the legality. The current reality shows that there are many Vietnamese businesses operating in the blockchain field that are forced to register abroad.

“In the past 10 years, special technologies such as blockchain, AI, and Machine Learning have developed very quickly and strongly. Engineers, personnel and the entire industry have grown faster than the legal corridor in countries. Blockchain desperately needs a guide and a legal corridor. However, in the world, there are currently only about 50 countries with a legal corridor for this issue,” said Mr. Truong.

Also according to experts, Vietnam is standing on par with the world in terms of blockchain. Even if it is possible to build blockchain applications, Vietnam can completely compete fairly with other countries in this field.

“All countries have the same starting point. Therefore, Vietnam has the opportunity to compete fairly and side-by-side with other countries, if we have a strategy, training process and legal corridor in place. .

Besides, we can also take advantage of resources from abroad, helping to increase demand in the market and attract investment in businesses,” Mr. Huy shared.