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 Blockchain Technology

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 your data to third parties. There is a lot of sensitive information such as credit accounts, addresses, names, etc.

The world changed after the appearance of Blockchain

• The possibilities of blockchain technology are truly endless. Therefore, the developments in recent years have 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, insurance to manufacturing, retail, healthcare, services… In the long term, blockchain can enable paradigm transformation between industries.

Anti-fraud

The biggest benefit 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.

You buy goods and are afraid to buy the wrong goods? The goods-authentication network is released, immutable and cannot bé 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

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 difficult 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 very low.

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, Blockchain is being 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, 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 gradually 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, LV are also offering NFT fashion collections. Many famous personalities like Messi, Pele, 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 the unique, the ego, possessing the unique values even in real life and on the internet.

However, besides the benefits, there are still scary risks if not equipped with enough knowledge about Blockchain technology such as:

Fraudulence

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, 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 the 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 need to prepare very carefully, 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.