Vietnam’s Deputy Minister: “Blockchain will shape the future society; Vietnam cannot afford to miss this opportunity.”

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Vietnam’s Deputy Minister, Nguyen Huy Dung, recently stated that the country actively participates in digital transformation. He emphasized that Blockchain is a “can’t-miss” opportunity. The following article summarizes key points made by Mr. Nguyen Huy Dung in his most recent interview.

The year 2022 will be full of opportunities in information and communication technologies.

The year 2021 laid the groundwork for a slew of significant changes, and the year 2022 will see these changes blossom and become widely accepted. In the field of Digital Transformation in general and ICT in particular, 2022 will be a good year full of opportunities. 

First, the digital transformation will continue apace in all fields, emphasizing Digital Government, Digital Economy, and Digital Society. People, organizations, and businesses will continue to benefit from an increasing number of more convenient digital services and of higher quality.

He emphasized that this process will help cut costs, save time and resources, and improve efficiency for the entire society.

Following that is the growth and expansion of the digital economy’s share of the economy. Many traditional economic models have been severely impacted, mainly due to the Covid-19 epidemic. The digital economy emerges as the best option for employees seeking new sources of income, particularly young workers who can try new things—for instance, putting agricultural products on an e-commerce platform, live streaming sales, and generating revenue from digital works.

The concept of a “metaverse” is another driving force that will shape 2022. This is a numerical conversion as well. Metaverse transforms the digital world into a new living space for people, where work, entertainment, and shopping experiences are as authentic as they are in the real world.

Mr. Nguyen Huy Dung is particularly enthusiastic about the Metaverse. He explained, “We can anticipate the proliferation of the first applications of this ambition in the metaverse by 2022, such as online meetings, e-learning, shopping, entertainment, and so on. Finally, and most importantly, the forces of digital transformation, digital economy, metaverse, and others are promoting the formation of a new generation Internet based on the blockchain platform, also known as web3 (a combination of web and blockchain).”

Blockchain technology solves the problem of human-to-human trust.

It’s challenging to directly build trust on a large scale, and trust in intermediaries isn’t always guaranteed because every human-run organization is inherently risky. Errors, corruption, abuse of power, and activities not by the functions outlined are all risks. Blockchain enables people to collaborate based on a new type of trust known as “digital trust,” which is defined as faith in the correctness of cryptographic algorithms.

Many other decentralized applications, such as DeFi (decentralized finance), DAO (self-operated organization), SocialFi (decentralized social network), and IPFS (InterPlanetary File System), are being developed and perfected on a global scale…

Many new solutions to old problems have emerged as a result of the development of decentralized applications. These decentralized models have proven to be highly optimized, efficient, and flexible compared to centralized systems.

“This is also a suitable model to connect with billions of IoT devices that will appear in our lives along with the popularity of 5G and 6G networks,” Deputy Minister Nguyen said. All of these advancements are helping to transform the Internet as we know it into a new version known as Web3.”

Blockchain is ushering in a new era of internet ownership: internet owned by users.

Many technology personnel have recently shifted from large technology companies to self-starting the blockchain field, similar to the internet boom period, DotCom companies. Large technology companies such as Microsoft, Meta (formerly Facebook), Google, Tencent, and others have blockchain departments and heavily invest in the field. This demonstrates that blockchain is no longer an experimental technology but rather a major technological trend.

The reduction or elimination of intermediaries not only aims to cut costs, save money, and speed up transaction times, but it also has another meaning: it prevents some organizations from monopolizing the market. Profits are shared among all participants in the cooperative network through an intermediary organization.

The Deputy Minister stressed the following: “If we understand the creative aspects of blockchain technology, we can see why the world is pouring money into blockchain applications to create new business models. And the new models of cooperation to replace the old ones that we have.”

For Vietnamese people, blockchain is a quick way to get into the digital economy.

When looking at Vietnam, it is clear that its culture is still primarily based on agriculture. As a result, traditional cooperation mechanisms based on standards, contracts, legal commitments, the role of intermediary organizations… are ineffective in many cases in Vietnam, leading to the observation that Vietnamese people have a difficult time cooperating. This is a disadvantage, making Vietnam a fertile ground for blockchain adoption.

The incredible growth of the internet in Vietnam has confirmed that Vietnamese people are excellent at learning new things and grasping them. Even though blockchain is a relatively new field, studies show that Vietnam has the highest cryptocurrency and blockchain acceptance index globally, nearly five times that of users in the United States. Not to mention Axie Infinity, Coin98, Tomochain, KyberNetwork, and other blockchain unicorn startups have emerged in Vietnam.

Vietnam, according to Deputy Minister Nguyen, has big plans in the Blockchain space. “In 2022, the Ministry of Information and Communications will develop a blockchain project and advise the government as one of the key tasks. Work with several other ministries and sectors to take early steps toward improving the legal framework for blockchain and related applications.”

“Technologies with the potential to completely transform the face of society, such as blockchain, only appear once every 20-30 years,” he continued. And in today’s world, 20-30 years is a very long time, equivalent to three to four technology cycles. This is a once-in-a-lifetime opportunity for us.”

 

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