1 Table of content

BLOCKCHAIN
TECHNOLOGY REPORT

Lecturer: Nguyen Vu Quang

Subject: Computer in Business
Group: 06 – CC02
Group member:
Duong Tram Anh 2052834
Trinh Tran Phu An 2052367
Nguyen Thi Hien 2052998
Cao Anh Hao 2052970
Huynh Hoang Dang Khanh 1952771
2 Table of content
2 Table of content

A. INTRODUCTION.............................................................................................................................2
B. Understanding blockchain................................................................................................................2
1., What is the blockchain?...................................................................................................................2
2, How the Blockchain works?..............................................................................................................2
3, History of the blockchain..................................................................................................................2
3.1, How Blockchain was born?..........................................................................................................2
3.2, The first day..................................................................................................................................2
3.3, Bitcoin Network............................................................................................................................2
3.4, A Brief History of Blockchain........................................................................................................2
4, Outstanding Features of Blockchain................................................................................................2
4.1, Outstanding features of Blockchain Technology:.........................................................................2
4.2, Advantages of Blockchain.............................................................................................................2
5, Disadvantage......................................................................................................................................2
6, Blockchain applications in business.................................................................................................2
6.1, Cryptocurrencies..........................................................................................................................2
6.2, E-government................................................................................................................................2
6.3, Healthcare....................................................................................................................................2
6.4, Energy..........................................................................................................................................2
6.5, Supply Chain................................................................................................................................2
6.6, Banking.........................................................................................................................................2
6.6, Other Business Sectors.................................................................................................................2
7, The future of blockchain in Vietnam...............................................................................................2
7.1, Agriculture....................................................................................................................................2
7.2, Manufacturing..............................................................................................................................2
7.3, Urban planning.............................................................................................................................2
7.4, E-commerce..................................................................................................................................2
C. CONCLUSION..................................................................................................................................2
D. REFERENCES..................................................................................................................................2
3 Understanding Blockchain

A. INTRODUCTION

A blockchain is a distributed software In any case of the sort of blockchain

network that serves as a digital record as convention that is conveyed, blockchain
well as a means for transferring assets innovation holds a great guarantee to
securely without the use of a third party. convert centuries-old trade models,
Blockchain is a technology that enables clearing the way for higher levels of
the digital exchange of units of value, authenticity in government and making
similar to how the internet promotes the modern openings for citizens.
digital flow of information. Anything
B. Understanding blockchain
may be tokenized, from money to land
rights to votes. 1., What is the blockchain?

There are several different types of Over the past decade, business and in
blockchain technology available today. some cases whole sectors have been built
Some blockchains were created to the on the simple principle of trust between
requests of a little group for it is easier multiple parties such as bank. However,
with limited access to the network. Some this business of trust is gradually being
were designed for purposes of huge replaced and transformed with the advent
customer’s needs such as a social of blockchain technology. Pioneered by
network, e-government and so on. Bitcoin, the virtual currency, this new
financial model has potential uses that
Aside from safe value transmission,
extend far beyond digital currencies.
blockchain technology also provides a
permanent forensic record of transactions Blockchain can be defined simply is a
and a single version of the truth - a type of database that can record value
network state that is completely visible and transactions between parties in a
and presented in real time for the benefit secure and permanent way. It allows
of all users. customers and vendors to connect
directly, eliminating the need for
 Understanding Blockchain 4

intermediaries to complete the Blockchain technology based on a

transaction. By distributing identical “distributed ledger”, a decentralized
copies of a database across an entire database of transaction that is completely
network, blockchain makes it very open to anyone. Rather, it was built on
difficult to hack or cheat the system. The the old traditional ledgers that is used to
advantage of blockchain is that it works recognize transactions over a period of
for almost any type of transactions that time (figure 2).
involves a value, such as money, goods
Traditional ledgers are administered by a
and property.
designated administrator such as an
accountant and owned by one entity such
as a company, organization, or group.
The administrator has the authority to
make changes to the ledger without the
involvement of all stakeholders in the
Figure 1: Centralized vs Decentralized vs ledger.
Distributed Network; Source: Researchgate
In contrast, blockchain is a distributed
2, How the Blockchain works?
ledger among a network of stakeholders
that cannot be updated by any one
administrator. Instead, it can only be
updated with the agreement of network
participants which is called
“decentralized consensus”

As each transaction
occurs, it is recorded as a

Figure 2: A traditional ledger from the 1910s

“block” data
detailing creditor payments
Those transactions show the movement
of an asset that can be tangible (a
5 Understanding Blockchain

product) or intangible (intellectual). Each is added instead of change any data of

block in the chain contains a number of the previous block.
transactions. A majority nodes(user)
Transactions are blocked
must verified and confirm the legitimacy
together in an unchanged
of the new data before a new block can
chain: a blockchain
be added to the ledger to make sure that
it hasn’t been tampered with. Every time Each additional block strengthens the
a new transaction occurs on the verification of the previous block and
blockchain, a record of that transaction is hence the entire blockchain. This renders
added to every participant’s ledge. An the blockchain tamper-evident,
interesting property here is that once delivering the key strength of
some data has been recorded inside a immutability. This removes the
blockchain that becomes very difficult to possibility of tampering by a malicious
change it. actor — and builds a ledger of
transactions you and other network
Each block is connected to
members can trust.
the ones before and after it

A block has a hash which is similar to

fingerprints to distinguish each block. It
identifies a block and all of its contents
are unique. Once a block is created, it’s
hash is being calculated. Whenever
changing something inside the block will
cause the hash to change. The front block
is linked logically with the after-hash
block. Additionally, when new
information is added or changed, a new Figure 3: Illustration of a blockchain
transactions; Source: DHL
 Understanding Blockchain 6

3, History of the blockchain not trust. He points out that traditional

currencies have a fundamental flaw in
3.1, How Blockchain was born?
that they are based mostly on
Bitcoin, like many other virtual
currencies, have not been known
originally who created but some
information have a clue that individual
known as Satoshi Nakamoto. Blockchain
is the technical platform in question.

Nakamoto originally revealed his

assumptions about the health of the
innovation on a website dedicated to
economy they represent. People simply
studying the social impact of peer-to-
assume that the US economy is stronger
peer technologies. This gifted mysterious
Figure 4: Satoshi Nakamoto - Bitcoin Founders
person briefly defined the concept in a Source: Google
February 2009 post, as well as sharing a
and healthier than the economies of
link to one of his articles. He went into
Vietnam and China, hence the US dollar
great depth, scientifically, about that
is stronger than other currencies like the
endeavor there ...
Vietnamese Dong or the renminbi.
Specifically, he calls it the Open source
3.2, The first day
P2P e-cash System Bitcoin, a completely
distributed or decentralized system that Researchers Stuart Haber and W. Scott
does not have a central server or a central Stornetta provided a feasible
server. no middleman because computational technique to timestamping
everything is encrypted based on proofs, digital records such that they are not
7 Understanding Blockchain

corrupted in 1991, laying the

groundwork for blockchain technology,
broken, inconvenient, or obstructive. The
8 Understanding Blockchain

Figure 5: Stuart Haber and W. Scott Stornetta

system stores timestamped messages on Bitcoin's anti-double-spend feature is

a cryptographically secure blockchain, provided by a peer-to-peer network
and the Merkle tree was added to the protocol for tracking and authentication
architecture in 1992 to make it more transactions, which is based on the proof
efficient. Allowing a block to collect text of work Hashcash algorithm. Instead of
is one way to do this. The technique was using a hardware-based computation
never deployed, and the patent expired in function like RPoW, Bitcoin's anti-
2004, four years before Bitcoin was double-spend feature is provided by a
invented peer-to-peer network protocol for
tracking and authentication transactions.
3.3, Bitcoin Network
In a nutshell, miners use a proof-of-work
In late 2008, a person or entity using the technique to "mine" Bitcoin for rewards,
pseudonym Satoshi Nakamoto uploaded which they then verify with
a white paper on a decentralized, peer-to- decentralized nodes in the network.
peer electronic cash system called
Bitcoin on a cryptography mailing list.
9 Understanding Blockchain

When Satoshi Nakamoto mined the first people for payments, including a large
bitcoin block on January 3, 2009, he and growing remittances market.
received a reward of 50 bitcoins. Hal
The second breakthrough was
Finney was the first Bitcoin recipient; on
blockchain, which was simply the
January 12, 2009, he received 10 bitcoins
understanding that the technology that
from Satoshi Nakamoto in the world's
underpins bitcoin could be removed from
first bitcoin transaction.
the money and applied to a variety of
other interorganizational collaborations.
Almost every major financial institution
in the world is now researching
blockchain, and 15% of banks are
projected to use the technology in 2017..

Figure 6: Overview of bitcoin network The third breakthrough was the "smart
contract," which was embodied in
3.4, A Brief History of Blockchain
ethereum, a second-generation
We’re now in the midst of another quiet blockchain system that inserted small
revolution: blockchain, a distributed computer programs directly into
database that maintains a continuously blockchain that allowed financial assets,
growing list of ordered records, called such as loans or bonds, to be represented
“blocks.” Consider what’s happened in rather than just bitcoin's cash-like tokens.
just the past 10 years: With hundreds of projects on the way to
market, the ethereum smart contract
The first major blockchain innovation
platform currently has a market cap of
was bitcoin, a digital currency
around a billion dollars.
experiment. The market cap of
bitcoin now hovers between $10–$20 The fourth key breakthrough, which is at
billion dollars, and is used by millions of the forefront of blockchain thought right
now, is known as "proof of stake." The
 Understanding Blockchain 10

security of today's blockchains is things and go head-to-head with the

provided by "proof of work," in which major payment middlemen (VISA and
the group with the most total processing SWIFT) of the banking world.
power makes the decisions. These
4, Outstanding Features of
organizations are known as "miners,"
Blockchain
and they run massive data centers in
exchange for cryptocurrency payments. 4.1, Outstanding features of Blockchain
The new methods eliminate data centers Technology:
in favor of complicated financial
instruments that provide a similar or Better Transparency

even better level of protection. Later this

One of the major difficulties in the
year, proof-of-stake systems are likely to
current industry is transparency.
go live.
Organizations have attempted to

The fifth major innovation on the introduce more rules and laws in order to

horizon is called blockchain scaling. promote openness. However, there is one

Right now, in the blockchain world, factor that prevents any system from

every computer in the network processes being completely transparent:

every transaction. This is slow. A scaled centralization.

blockchain accelerates the process,

An organization can use blockchain to
without sacrificing security, by figuring
create a completely decentralized
out how many computers are necessary
network that eliminates the need for a
to validate each transaction and dividing
centralized authority, increasing the
up the work efficiently. To manage this
system's transparency.
without compromising the legendary
security and robustness of blockchain is A blockchain is made up of peers that are

a difficult problem, but not an intractable accountable for carrying out and

one. A scaled blockchain is expected to validating transactions. Although not

be fast enough to power the internet of every peer participates in the consensus
11 Understanding Blockchain

method, they have the option of because other nodes will deny his request
participating in the validation process.To to write transactions to the network.
provide validation through
Blockchain networks are also immutable,
decentralization, the consensus method is
which means the data, once written,
used. Each node preserves a copy of the
cannot be reverted by any means. This is
transaction record once it has been
also the right choice for systems that
validated. The blockchain network
thrive on immutable data, such as
handles transparency in this way.
systems that citizens age.
When it comes to organizations,
Reduced Costs
transparency has a greater impact.
Governments can use openness to Businesses are currently spending a lot
develop government processes and even of money to improve their current
conduct voting, as previously mentioned. system's management. That is why they
aim to save costs and invest the savings
Enhanced Security
in something new or bettering existing
In comparison to previous platforms or procedures.
record-keeping methods, blockchain
Organizations may save a lot of money
technology employs greater security. The
by embracing blockchain to reduce costs
consensus mechanism must be used to
connected with third-party vendors.
agree on any transactions that are ever
There are no vendor expenses on
recorded. Each transaction is also
blockchain because there is no inherited
encrypted and contains a hashing
centralized player. Furthermore, when it
algorithm to link it to the previous one.
comes to authenticating a transaction,
The fact that each node has a copy of all there is less contact required, minimizing
transactions ever conducted on the the need to invest money or time to do
network adds to the security. As a result, basic stuff.
any malicious actor attempting to modify
True Traceability
the transaction will be unable to do so
 Understanding Blockchain 12

With blockchain, companies can focus store transactions. The streamlining and
automation of processes also mean that
on creating a supply chain that works
with both vendors and suppliers. In the everything becomes highly efficient and
traditional supply chain, it is hard to fast.
trace items that can lead to multiple
The fact that everything is stored in a
problems, including theft, counterfeit,
decentralized ledger also makes it easy
and loss of goods.
for everyone to trust each other. In short,
With blockchain, the supply chain blockchain utilizes its unique way of data
becomes more transparent than ever. It storage to provide a highly efficient
enables every party to trace the goods process with trust, transparency, and
and ensure that it is not being replaced or immutability.
misused during the supply chain process.
4.2, Advantages of Blockchain
Organizations can also make the most
out of blockchain traceability by Disperse
implementing it in-house.
The system and data are resistant to
Improved Speed and Highly Efficient technical failures and malicious attacks
since blockchain data is often kept in
The last industrial benefit that
thousands of devices on a distributed
blockchain brings is improved efficiency
network of nodes. There is no single
and speed. Blockchain solves the time-
point of failure because each network
consuming process and automates them
node can replicate and store a copy of the
to maximize efficiency. It also eradicates
database. A single node falling offline
human-based errors with the help of
will not impair the network's security.
automation.
Traditional databases, on the other hand,
The digital ledger makes everything this
which rely on a single or a few servers,
possible by providing a single place to
are more susceptible to technological
failures and network threats.
13 Understanding Blockchain

is no longer essential with blockchain

technology because the dispersed
Stabilization
network of nodes verifies transactions
Confirmed blocks are exceedingly
through a process known as mining. As a
difficult to reverse, which means that
result, Blockchain is frequently
once data has been put to the blockchain,
described as a "trustless" system.
removing or changing it is extremely
tough. As a result, because every change By eliminating middlemen and third
is logged and permanently recorded on a parties, a blockchain system eliminates
distributed ledger, blockchain becomes a the danger of trusting a single institution
wonderful tool for keeping financial while simultaneously lowering overhead
records or any other data where audit and transaction fees.
trails are necessary. Publicity and spread
There are also many advantages of
For instance, a company can use blockchain such as:
blockchain technology to avoid
 With blockchain, business process will
employee fraud. In this case, blockchain
be better protected with the help of a
can provide a secure and reliable record
high level of security
of all financial transactions that occur
within the organization. Employees will  The hacking threats against your
have a harder time concealing suspicious business will also be reduced to a
transactions as a result of this. greater extent.

The system doesn't need trust  As blockchain offers a decentralized

platform, there is no need to pay for
Most traditional payment methods rely
centralized entities or intermediaries’
on a middleman – such as a bank, credit
services.
card firm, or payment provider – in
addition to the two parties involved. This
 Understanding Blockchain 14

 Enterprise blockchain technology  The transactions done are transparent

enables organizations to use different and hence, easy to track.
levels of accessibility.
5, Disadvantage

 51% attack
The Proof of Work consensus algorithm

Figure 7: A 51% attrack

 Organizations can do faster

that protects the Bitcoin blockchain has
transactions with the help of
proven to be very effective over the
blockchain.
years. However, there are a few potential
 Account reconciliation can be attacks that can be performed against
automated. blockchain networks, and 51% attacks
15 Understanding Blockchain

are among the most discussed. Such an Another disadvantage of blockchain is

attack is possible if an entity manages to that once data has been added to the
control more than 50% of the network's blockchain, it is very difficult to modify.
hashing power. This will eventually Although stability is one of the
allow learning to disrupt the network by advantages of blockchain. But it's not
intentionally excluding or modifying the always good. Changing blockchain code
order of transactions. or data is often very demanding and
often requires a hard fork. Where one
While it is theoretically possible, there
thread is aborted and a new thread is
has never been a successful 51% attack
born.
on the Bitcoin blockchain. As the
network grows, security will increase,  Private key
and it is highly unlikely that miners will
Blockchain uses public-key
invest large amounts of money and
cryptography to give users ownership of
resources to attack Bitcoin. Because they
their cryptocurrency units (or any other
are better rewarded if they act honestly.
blockchain data). Each blockchain
Also, a successful 51% attack will only
address has a corresponding private key.
be able to modify the most recent
Although the address can be shared, the
transactions for a short period of time.
private key must be kept secret.
Since blocks are linked via cryptographic
proofs (changing older blocks would Users need private keys to access their
require an invisible level of computing funds. That is, they act as their own
power). bank. If the user loses their private key,
the money is actually lost and there is
In addition, the Bitcoin blockchain is
nothing they can do.
very flexible and will quickly adapt as a
response to an attack  Inefficient

 Modify data Blockchains, especially those that use

PoW, are very inefficient. Since mining
 Understanding Blockchain 16

is highly competitive and there is a mainstream adoption, but many

winner every 10 minutes, the work of industries are embracing the advantages
other miners is wasted. When miners and disadvantages of blockchain
fully concentrate their computing power, systems. The next few years will likely
they have a great chance of finding a see businesses and governments
valid block hash. The resources used by experimenting with new applications to
the Bitcoin network have increased find out where blockchain technology
brings the most value.
significantly over the past few years.
And now, it consumes more energy than 6, Blockchain applications in
many countries, such as Denmark, business
Ireland and Nigeria.
6.1, Cryptocurrencies
 Storage
Cryptocurrencies are one of the most
Blockchain ledgers can grow enormously common uses of blockchain technology.
over time. The Bitcoin blockchain Cryptocurrencies could also be used as a
currently requires around 200 GB of means of incentivizing people to
storage. The current growth in contribute ideas to cross-functional
blockchain size seems to be outpacing group projects.
growth in hard drives, and the network
In particular, Blockchain promotes its
risks losing children if the ledger
strengths in the management and sale of
becomes too large for individuals to
online assets, the most popular of which
download and store.
is Bitcoin. The use of cryptocurrencies
 Conclude focus as a payment solution.

Despite the disadvantages, blockchain

technology presents a number of unique
advantages and it is certainly here to
stay. We still have a long way to go to
17 Understanding Blockchain

(such as money, stocks, and land

property rights) and decentralized trade
Figure 8: The march of financial services firms
(peer to peer exchange).
into bitcoin and blockchain start-ups, 2014 to
February 2017 Source: CBInsights, Estonia is a leader in the digitalization of
cbinsights.com
government services. KSI is a blockchain
People use Bitcoin to send international technology developed in Estonia and
payments that are completed faster, more
utilized around the world to ensure that
securely, and with lower transaction fees
networks, systems, and data are secure
than traditional payment networks like
while protecting complete data privacy
SWIFT and ACH.
6.3, Healthcare
6.2, E-government.
Another industry where blockchain
One of the key drivers of the recent
technology could be beneficial is
excitement surrounding blockchain is e-
healthcare.
government. Citizens, corporations, and
governmental institutions have all Healthcare organizations could achieve
benefited from the significant increase of high-data volume and high-throughput
e-government services in recent years. transaction processing by utilizing
Blockchain technology may be used as a blockchain technology.
platform to develop creative applications
and manage information transactions
including the digitalization of assets
 Understanding Blockchain 18

Figure 9: KSI Blockchain protects database records and audit logs (Source: Ivo Lõhmus, Guardtime)
19 Understanding Blockchain

Furthermore, blockchain may be used to Smart Grid Data Integrity and

securely and privately share and manage Immutability.”
health data, ensuring anonymity and
Gridchain is also a software solution that
integrity among providers throughout a
is designed to support data security in a
patient's lifetime.
large-scale power grid. The goal of the
The most popular blockchain healthcare project is to make power grid
use at the moment is keeping their infrastructure more safe from any outside
sensitive medical data safe and secure, threats like hacking. It also enables
which is unsurprising. In the healthcare distributed intelligence and grid-edge
industry, security is a big concern. interoperability at the circuit level,
Between 2009 and 2017, data breaches thanks to a distributed grid data
exposed over 176 million patient records. exchange architecture.
Credit card and banking information, as
well as health and genomic testing
records, were stolen by the criminals.

6.4, Energy

Blockchain technology is used in order

to conduct transparent transactions in the
energy market between consumers and
Figure 10 - DoE awarded InfoBeyond to
prosumers (active consumers that both
investigate a new blockchain technology
produce and consume electricity) at local
namely, Gridchain
energy grids consisting of renewable
energy resources. 6.5, Supply Chain.

Energy market: Gridchain- The award of Blockchain technology allows for the

the Department of Energy project was tracking of processes and the

“Gridchain: An Auditable Blockchain for identification of product origin.

 Conclusion and References 20

Blockchain technology ensures supply Possibility of automatic verification and

chain security. The food supply chain execution of agreement transactions
could benefit from blockchain when certain conditions are met through
technology. Blockchain as a logistics and smart-contracts blockchain-based
supply chain technology is still in its application.
early stages.
6.6, Banking
There are two main characteristics of
A number of financial companies are
blockchain technology that are important
currently putting block chain technology
for its implementation and meaningful
to the test.
use in logistics and supply chains/ supply
networks: secure, verified, and trustable By gathering nodes in a blockchain,
real-time information exchange that rather than having a central bank deal
makes it accessible to all members of the with payments, a blockchain application
supply network or anyone else might help banks handle international
(depending on the type of blockchain). exchanges and real-time payments.

Blockchain in KYC (Know Your

Customer/Client): The standard KYC
approach typically consists of three
components: IDV (ID Verification),
Application of client identification
program (CIP), Video identification

In any industry where identity

Figure 11: Characteristics and implementation verification is necessary, KYC utilities
areas of blockchain in logistics and supply based on blockchain technology will
chain. Source help save money and increase the
security of personal data.
21 Understanding Blockchain

6.6, Other Business Sectors. 7, The future of blockchain in

Vietnam
Construction management could benefit
from blockchain technology. Without the As you know, Vietnam is a developing
use of a centralized building information economy. The problem in Vietnam today
model, it can provide a reliable is how to keep up with the developed
infrastructure for building information countries in the world. This is the top
management, legal argumentation, and problem the country's leaders are facing,
secure storage of sensor data at all and that how to carry out the process of
phases of the life cycle, removing the industrialization and modernization with
requirement for a trusted third party. the most modern technologies to turn the
country into one of the major pillars of
A blockchain-based automobile security
the world is the most important mission.
platform that addresses the implicated
security and privacy challenges of future Contrary to other countries, because
connected vehicles. Vietnam is a latecomer, it will have a
relatively different approach to
The blockchain application has the
blockchain technology. Instead of
potential to enhance education as well.
investigating this technology from
Academic credentials must be
scratch, the government will take
recognized and verifiable over the world.
advantage of advanced applications in
Blockchain solutions in education could
the world for the specific conditions in
streamline verification procedures – thus
this country.
reducing fraudulent claims of un-earned
educational credits. In Vietnam, startups develop diversely in
different fields. Startups are all about
In education, blockchain systems could
technology as a foundation. Besides, the
simplify verification procedures,
companies have innovative development
reducing the number of false claims for
models with breakthroughs. And perhaps
unearned school credits.
it is not surprising that blockchain is one
 Conclusion and References 22

of the mainstream topics that many chain, manage throughout the farming,
businesses focus on. This predicts that in harvesting process of farmers and
the future there will be an explosion in distributing products to the market,
the number of technology businesses, which will increase the overall efficiency
particularly in the field of blockchain. of the harvested products at the output.
Vietnam then will be a lucrative land, a
promising place for the investment of
large conglomerates in the world.

The following are applications of

blockchain technology that can be used
in Vietnam’s future
Figure 12: Illustration
7.1, Agriculture
Vietnam is one of the developing Having those method, transparent
countries, agriculture still plays a crucial product information is traced, thereby
role in the economy. However, the improving the quality of products offered
explosion in information technology, in the market. Consumers will have the
along with international integration credence in those goods which can be
process that require the good quality of traced back to their origin. Besides,
agricultural products; the scarcity in automate some stages of care can save
agricultural land; climate change;… is a costs for farmers by eliminating
tough challenge for this South East Asian intermediaries, help lower burden for
nation. harvestors.

With the interference of blockchain, it 7.2, Manufacturing

seems to have a visible influence on the In the country's socio-economic develop-

face of agriculture in Vietnam. Farmers ment plan, Vietnam sets a goal of

together with the help of IT engineers basically becoming an industrialized

have built Blockchain applications to country by 2030. This is a period of great

help cooperatives track the Agricultural significance, a period of accelerating

23 Understanding Blockchain

industrialization and modernization, in disputes. Upgrading machinery with IoT

which the industrial sector plays an support, automating quality checks and
important role. However, industry also logging measurements directly into the
has a lack of synchronous development, Blockchain, which allows access to the
lack of connection between industries, time and location of moving parts to
leading to unsustainable development. make sure repairs are done on time.
The sustainability of Vietnam's
With those upgrades, it would automate
production and export development still
the process of recording, storing the
contains many potential risks, especially
production process, making transactions
in the context that the world's
and checking product quality, which will
developments are becoming more
leverage the status of Vietnam, make
complicated, faster, and more
Vietnam be one of the pillars of the
unpredictable than before.
world’s largest factory.

7.3, Urban planning

The reality of urban planning in Vietnam
is becoming more and more urgent
because the population migration is
gradually changing. Economic growth
Figure 13: Illustration inevitably leads to migration from rural
to urban areas, leading to a rapid increase
From those drawbacks, it poses a
in urban population. This is concentrated
challenge for this emerging industry. But
mainly in the two main urban areas, Ho
nowadays, there are many solutions
Chi Minh City and Hanoi City.
based on the application of blockchain
Economic development with population
that are waiting for corporations to be
pressure requires an increase in the size
used. Blockchain helps prove intellectual
of urban space corresponding to newly
property rights in decisions about
arising urban social and cultural issues.
whether to manufacture parts in-house or
When going out for work, for example,
buy them from a supplier, limiting patent
 Conclusion and References 24

in the morning, one can easily see that government. Also, blockchain supports
the traffic is congested with huge the government agencies and the public
amounts of vehicles. Unlike developed to interact digitally without the need for
countries, with usually use one or two intermediaries with an advanced and
types of transportation such as cars, sustainable urban management model
bicycle,…, in Vietnam, many type of
highly digitized.
transportation move in the same lane,
make the road much chaotic. 7.4, E-commerce
The era of digital technology 4.0, along
with the rapid development of the
Internet, the trend of online business or
online sales has brought economic
efficiency to many business lines in
Vietnam. The e-commerce market is
increasingly open with many models,
participants, and supply chains are also
Figure 14: Illustration
gradually changing towards a more
With blockchain, it is not a matter when
modern direction with the support of
this technology is integrated in any
digitization and information technology.
roads, any blocks of building that help
Especially, in the context of the COVID-
manage the population as well as the
19 epidemic, the e-commerce market is
amount of transportation moving at becoming more vibrant. The application
anytime, anywhere and any situations. of digital technology, building new
Designing the Blockchain model that distribution channels is becoming an
provides citizens with the basis to effective solution for Vietnamese
interact with public administration and businesses to overcome difficulties and
local communities based on the bring new opportunities on the basis of
authentication model and smart changing consumers' purchasing habits,
contracts between entities, citizens, and switching from traditional shopping
25 Understanding Blockchain

habits to buying goods through e- C. CONCLUSION

commerce.
In addition to the advantages mentioned
above, this inevitable trend will bloom
continuously and need to be strictly
managed by all levels of government.
Because they will be easily exploited by
high-tech criminal groups in money

Figure 15: Illustration

laundering, tax evasion, illegal trading,...
To deal with such crimes, a reasonable
And the entry of blockchain technology
and consistent punishment framework is
in this field is no longer so prominent in
required. Because blockchain is an
the world. But it is a different story
emerging technology, many inadequacies
when referring to Vietnam. This country
can occur and only by solving such
is a lucrative land for e-commerce immediate problems, we can control and
integrated with blockchain technology exploit this high-tech telecommunication
to be applied. Blockchain provides data in the future.
integrity for product and service rating
It is necessary to emphasize that future
systems of customers and prevents the
domination of blockchain technology is
manipulation of administrators from
unavoidable, just a matter of time. The
being able to delete, modify all available
role of the government is extremely
rating data for supplier benefit. And
important in shaping the legal framework
also, blockchain allows customers and
in line with future trends, which is the
retailers to access real-time purchase premise for the development of modern
history data, providing data records that science and technology. And enterprises
act as Blockchain warranties. will also contribute significantly to the
transfer of new technologies, making the
country's manufacturing economy more
and more thrive and develop.
 Conclusion and References 26

D. REFERENCES