Blockchain technology that reduces transaction costs and changes the form of payment is said to be a major threat to the traditional banking industry.
The above comment was made by experts at Blockchain Conference 2018 organized by Vietstock and FundYourselfNow. According to Mr. Liu Yusho – Chairman and consultant of Vinaex.com, Blockchain technology creates reliable transaction, electronic record system, more accurate identification, automation then related use to smart contracts, creating a lightweight platform in clearing.
According to Liu Yusho, Blockchain technology records every trace of a transaction and cannot be reversed. Therefore, it cannot be changed by anyone once the transaction has taken place. The data of this technology is stored simultaneously on tens of thousands of computers of miners around the globe. So the possibility of data loss is almost nonexistent.
In the payment system, Blockchain makes transfers fast and instant without having to go through any intermediaries. Therefore, many people will look to Blockchain technology for payment.
Mr. Liu Yusho outlined a number of commonly used virtual currencies, based on the Blockchain platform. For example, Ripple, using Blockchain technology, aims to quickly settle financial transactions between the 7 largest banks in the world.
Or like Stellar, currently used by organizations in developing countries. Stellar is a platform released in 2014, positioned as the “future of banking” with the goal of providing instant, secure banking services at the lowest cost.
Blockchain is a technology that stores and transmits information using blocks that are linked together and expand over time. Each block contains information about the initialization time and is associated with previous blocks.
This technology is designed to resist data changes so it is highly secure. Attacks on centralized data systems of financial institutions such as banks, corporations, etc. will be very difficult to perform because to get information in a particular block, hackers will have to attack millions of machines. in the network at the same time.
Nguyen Duc Cuong, Vietstock Consulting Director, said that this technology is considered the foundation of the 4th wave of technology revolution taking place in the world and opens up new development trends for many fields. from banking and finance, retail, freight, manufacturing to telecommunications…
In addition, over the past time, Blockchain technology has been mentioned by the whole world, of which the most popular is the application to virtual money (digital money), the most typical is Bitcoin.
Mr. Liu Yusho, Chairman and consultant of Vinaex.com, said that a few years ago, the total capitalization of the virtual currency market was only 2 billion USD with less than 1,000 virtual currencies, in which, Bitcoin dominated. about 80-90% of the market; Currently, the market capitalization in this market has reached 600 billion USD with nearly 1,500 virtual currencies and Bitcoin currently dominates less than 35%.
Currently, Vietnam has caught up with the world trend very quickly in this modern field. Specifically, Bitcoin and some other keywords related to digital currency entered the Top most searched on Google in Vietnam in 2017.
However, according to experts, this technology itself also has many problems that justice makers must pay attention to and find solutions. Because Blockchain is highly private, illegal transactions are easy to arise, causing political instability.
“Therefore, although the trend is irresistible, it is necessary to understand better before applying Blockchain to banks properly,” an expert recommended.