How Has The Development Of Blockchain Changed The World? Besides the strong development of science – technology, artificial intelligence (AI), blockchain technology is also making significant strides and shows no sign of stopping. In fact, according to Deloitte’s 2021 global blockchain development survey, nearly 76% of surveyed executives said they expect digital assets to be an alternative.
The World before the development of blockchain technology
Blockchain technology allows the transmission of data completely based on an extremely complex encryption system, like the accounting books of a company. In this case, Blockchain is a digital ledger.
In the past and present, every technology was based on the centralization of data (the application provider managed the database). This means that the information you provide is collected and managed, so you need to trust the application provider, or not use any technology products.
For example, when using a bank application to transfer money, you must trust that the bank will not take over the money. This infringement, if desired, can be done easily by accessing and changing data. They have the right to manage and absolutely can do this.
Or when registering an account on a website, users must trust the website not to provide their data to third parties. There is a lot of sensitive information such as credit accounts, addresses, names, etc.
The world changed after the development of Blockchain
The possibilities of blockchain technology are truly endless. Therefore, the development of blockchain in recent years has brought us one step closer to a highly transparent, trusted decentralized internet. In addition, blockchain has the potential to revolutionize the way we exchange value, transfer ownership, and verify transactions.
Blockchain technology is currently being applied in many industries, from financial services, banking, and insurance to manufacturing, retail, healthcare, services… In the long term, the development of blockchain can enable paradigm transformation between industries.
Decentralized Open Source and Centralized Closed Source
Currently, the development of blockchain follows the trend of being distributed with open source code or centralized with separate source code managed by an organization or group of organizations.
Both decentralized open source and centralized closed source are expected to develop simultaneously. In it, governments and organizations will choose one method, while programmers, small-scale projects, and startups will choose another.
Distributed ledger technology
Blockchain technology today is closely related to the distributed ledger, which is said to be distributed based on the blockchain platform. Nonetheless, the distributed ledger can function without the use of blockchain. As startups and development activities are all based on the blockchain platform, this platformless ledger will become an emerging trend in the near future.
Blockchain in daily life
The use of Blockchain technology will increase in all aspects of our lives despite the open-source decentralized application built on newly created personal Blockchains.
Blockchain technology may not be able to replace existing intermediaries like banks, or companies like Google or Grab as predicted. However, even though intermediaries are not replaced, you can still encounter Blockchain technology from distributed Blockchain ledgers at work, smart contracts…
The biggest benefit of the development of blockchain is anti-fraud, especially in the internet environment. You don’t need to put your trust in an intermediary when initiating payments on the internet.
Do you buy goods and are afraid to buy the wrong goods? The goods-authentication network is released, immutable, and cannot be mutated because data is stored on blocks.
Participating in a charity program but afraid of the agent cheating? Blockchain technology will solve this worry. Degrees, certificates, certificates, … can also be included in the blocks so that they cannot be faked
Blockchain helps to create automatically activated smart contracts, and the substances of the contract cannot be changed.
New concept of money
The development of Blockchain technology also brings a new concept of money – cryptocurrency. Cryptocurrency is a currency that has many advantages such as not being governed by the government level, not being issued, and cost saving.
The data identified by the Blockchain is highly secure and reliable, which means that transactions can be processed much faster than in today’s world without compromising on security. In the future, when banks maximize finance in blocks, the transaction will be processed 24/7 & not interrupted by distance or working time.
Commonly, transferring money abroad is a problematic issue with high fees, slow processing times, currency can be blocked or flagged, and there are legal and tax subjects that must be considered. By developing a system of blockchain, people can transfer money across borders in just a few minutes and the commission rate is shallow.
Easy to operate
Blockchain technology can be applied to any field or industry because currently, the technology is completely dependent on “Trust” for the intermediary.
In fact, the development of Blockchain is gradually changing this. Thousands of applications using Blockchain technology have launched in recent years, marking the beginning of a change in the current internet: more freedom, and more safety.
The benefits of blockchain bring an explosion in demand in 2022-2023
The year 2021 marks the explosion of Blockchain technology. This is demonstrated by the following events:
Bitcoin Coin – The base currency in the financial sector of cryptocurrencies has hit the $60,000/BTC mark.
Decentralized Finance Platform (DeFi – Decentralized Finance) Built on the transparency of Blockchain technology. Manage and use money without intermediaries exploding in number of users. DeFi’s applications can be mentioned as Cryptocurrencies, banks, payment gateways,…
Digital assets using Blockchain technology (NFT: Non-fungible token) build unique, unreplicable assets. What the current internet can easily do by copying & pasting causes the value of assets on the internet to decrease.
And this movement is expected to explode even more in the next 3 years.
How to apply Blockchain in practice?
Many large enterprises have gradu ally realized the benefits of Blockchain technology. Paris Saint-Germain is also offering a fan-specific cryptocurrency. The number of users of DeFi applications increases day by day. Artists who provide NFT paintings guarantee value thanks to their uniqueness that cannot be reproduced on the internet. Big fashion brands like Gucci, and LV are also offering NFT fashion collections. Many famous personalities like Messi, Pele, and Muhammad Ali are also entering the market.
This outburst is understandable because:
2020-2021 were the years people face Coronavirus. All economic activities were halted, causing money to flow into the “Cryptocurrency” market. People gradually realize the benefits of Blockchain Technology over current technology.
No one wants their money to be managed by an intermediary and has to pay them. The young generation wants to show uniqueness, the ego, and possessing unique values even in real life and on the internet.
In Viet Nam, Blockchain technology is applied mainly in the fields of financial services (more than 83%), supply chains (40%), public services (30%), energy (30%), and education (30%)…
Opportunities and challenges for Vietnamese businesses
The development of Blockchain technology application brings many opportunities for Vietnamese businesses because this technology is shared with all communities. Depending on the fields and business lines that Vietnamese businesses have, they can grow by leaps and bounds.
However, when applying this new technology, businesses also need to overcome two big challenges.
Firstly, Vietnam has an underdeveloped basic science base, which makes it difficult for businesses to access some high-tech platforms.
Second, the biggest challenge facing Vietnamese businesses today is the lack of high-quality human resources in the information technology industry. This has caused Vietnam to always lag behind other countries in the world when accessing new technologies.
Besides, Vietnamese people always have the mentality of wanting to do profitable business in a short time, and the leading enterprises applying blockchain are mainly Fintech companies. Investment in technology research does not represent a company’s immediate potential. In addition, the problem of human resources will also be a big difficulty for businesses when the team of skilled Blockchain technology programmers in Vietnam is very scarce and the demand is large.
However, besides the benefits, there are still scary risks if not equipped with enough knowledge about the development of Blockchain technology such as:
In the past two years, scam and multi-level technology companies have grown fast. This is extremely dangerous, especially when our country does not have any laws on Cryptocurrencies.
Lack of knowledge when entering the market
Cryptocurrencies will make us lose. The market is still young, and very easily influenced by celebrities. An example of this is when the price of the Doge suddenly increased by 12,000% compared to the beginning of the year after just a few Tweets.
Whether you intend to participate or not, arm yourself with knowledge of Blockchain Technology. With its current potential, Blockchain technology has the potential to become the technology trend and economic and social change in the future.
Blockchain technology allows any asset or service to be represented and stored on the blockchain, thus democratizing access with transparency and high security. However, each country has different legal regulations on crypto assets, so the leading businesses in this field must prepare very carefully, and have a clear and long-term plan. If in the future, blockchain technology is fully applied and accepted by the government, crypto assets will become an inevitable trend of mankind.
Blockchain will bring benefits or just disadvantages depending on how each business uses it. If used well, businesses will quickly rise to the top in this fiercely competitive market.
To learn more about blockchain technology, readers can refer to other Twendee articles here!