Blockchain helps build digital economy

Blockchain technology will play an important role in building the digital economy and the fourth industrial revolution. The Vietnam E-commece and Information Technology Agency (VECITA) under the Ministry of Industry and Trade and the Viet Nam E-commerce Association (VECOM) co-organised the Vietnam Blockchain Summit 2018 in Hanoi on Friday.

Up to 10 percent of global gross domestic product (GDP) will be saved by blockchain technology by 2025, it was heard at the summit.

Speaking at the forum, Dang Hoang Hai, VECITA director, said blockchain was a continuous series of information blocks using code technology to link and secure safety, thus effectively preventing data modification.

Blockchain is designed to resist data changes because information in blockchain can not be altered and can only be if there is consensus of all nodes in systems, explained Do Van Long, presidents office director of the Infinity Blockchain Lab (IBL).

Even if a part of the blockchain system collapses, other computers and nodes will continue to work to protect the information, he said.

Blockchain promises to be a breakthrough for the socio-economy, transactional and data-related activities that require transparency, sharing and information security, he said.

Blockchain technology can also be applied in many different fields.

For example, it can help improve some of Vietnamese weak sectors such as logistics or traceability.

Blockchain can also effectively support the implementation of e-government.

“With the efforts of the State, expert community and businesses which are researching blockchain, we hope to be in line with blockchain projects worldwide by 2020. In Vietnam we will also see a breakthrough of the technology like the birth of the internet,” said Long.

The Vietnamese Prime Minister issued Directive No.16 on enhancing the capacity to approach the fourth industrial revolution in May last year.However, to date, there has not been orientation at the macro level to lead research, training and application of blockchain technology in economic sectors.

Facing the challenges and great opportunities of blockchain in the global digital economy in general and Vietnam’s economy in particular, the VECOM has recommended the country to accelerate research and application of blockchain in economic fields, considering it as one of the fundamental technologies for the digital economy.

According to analysts, the global blockchain technology market is expected to increase 70 times in 2024 compared to 2015 with a value of $20 billion.

In Vietnam, businesses are starting to deploy research groups or pilot projects on blockchain including Viettel, Napas and TMA Solutions.

Experts also said that the Prime Minister issued a decision approving the scheme on completing the legal framework for management and handling of virtual assets, electronic money and virtual money.

One of the objectives of the decision is policy and legislative proposals should not affect creative and start-up activities, ensuring flexibility in line with changes of the ongoing development of information technology and e-commerce.

Speakers said the legal framework should consult with the online business community and stakeholders for their input.