Blockchain Heading Towards the Mainstream - Hype or Reality?

Blockchain Heading Towards the Mainstream – Hype or Reality?

Including limited interoperability, security concerns, and a lack of regulations, experts said.

There are many challenges to the spread of blockchain technology, especially in Vietnam. – VNA . Photos

Blockchain is a type of digital ledger technology in which data is stored in the form of “blocks” that are firmly linked together through cryptography.

Tran Thien Duyen, CEO of Techfarm Technology JSC, told Việt Nam News that “Blockchain technology is more than just a cryptocurrency; it is a revolutionary way to track transactions.”

By reducing information asymmetry and transaction costs, blockchain can help businesses, especially small businesses, overcome long-standing challenges of scale, opacity, and a lack of business history, according to Dwayne.

“While still in its infancy, blockchain is being adopted for a number of commercial uses and is likely to serve a wide range of purposes in the future.”

Nguyen Dinh Phuc, co-founder of blockchain company SotaTek, said that many Vietnamese developers are 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 that Vietnam has over other countries.”

Challenges

However, one of the biggest challenges preventing blockchain adoption into the mainstream is its 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 with each other, and the blockchain uses different encryption methods, so transferring data securely from one to the other is difficult,” Fok explained.

This has made mass adoption of the technology difficult, Doyen said, but developers around the world have been trying to solve this problem with interoperability projects such as Polkadot and Cosmos to interconnect multiple blockchain networks.

Another issue with security is the blockchain’s reputation for being safe and secure. There have been several notorious cryptocurrency hacks, such as the hack to steal $625 million worth of cryptocurrency from Ronin’s network of video game Axie Infinity in March of this year.

Decentralized finance (financial services that do not use traditional intermediaries such as banks) are public software and use open source code, which is available for anyone to review.

“Hackers can study the code to find exploitable vulnerabilities and steal cryptocurrency,” Doyen said.

Harpreet Singh Maan, CEO of Malaysian Blocklime and Chairman of ACCESS Malaysian Blockchain Association, said, “Blockchain is among the safest ways to conduct business, and most successful hacks are often due to negligence, bad code practices and poor security measures by startups/ companies, not outright failure of technology.”

He said that more education on risk management and appropriate standard operating procedures should be provided to companies.

The lack of a regulatory framework is a hindrance and also plays a major role in helping the blockchain launch into the mainstream.

Nicole Nguyen, Vice President of the ASEAN Global FinTech Forum said, “Vietnam continues to take a neutral stance on the technology itself, while recognizing the importance of blockchain in raising the country’s standing in the regional tech scene.

“There needs to be an accurate regulatory framework around blockchain to enable more mainstream applications in Vietnam.”

Maan said that regulatory frameworks are important, but that if the regulatory system is inexperienced with blockchain, it may hinder its development.

He proposed an open, collaborative, agile, regulation-based sandbox to help the industry develop.

On September 23-24, a global blockchain conference, BUIDL Vietnam 2022, will be held at the Independence Palace in HCM.

Experts from Vietnam and other countries will discuss developments in blockchain technology and the host country as an emerging hub for blockchain, with a special focus on solutions to help the technology take off.

Visitors can register for the conference at www.buidl.asia.

Source: Vietnam News

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