10:09 | 30/08/2019 Science - Technology
(VEN) - The blockchain concept, which appeared around 10 years ago, has gained popularity the world over. In the digitization era, the impacts of blockchain can be seen in many sectors in developed countries. Is Blockchain the future of AI-based life? Dr. Chris Berg of the RMIT Blockchain Innovation Hub, Australia, spoke to Vietnam Economic News about the potential, trend and future of applying blockchain technology, in particular to the financial sector.
What are the sectors that can apply blockchain technology?
Blockchain technology is being used in fields as diverse as cryptocurrencies, the financial sector, supply chain management, health, and cultural industries.
How would the blockchain impact the finance sector? What do you think is the current trend and how will it develop in the future? How can safety be ensured in applying blockchain technology in the finance sector and avoiding bubbles?
The financial sector will be significantly disrupted by blockchain technology. Blockchain allows for greater control over assets and allows holders of those assets to make more complex exchanges.
For stock exchanges, blockchain can be used to automate and streamline pre-trade, trade, post-trade and custody, and securities servicing, functions of stock exchanges. Some benefits of blockchain-enabled stock exchanges include cost reductions, better information security, faster settlement times and improved information search and gathering functions.
In insurance markets, blockchain can be used to potentially process claims more effectively, mitigate fraudulent activity, and manage third-party transactions more fairly, moving from a pooling function to a matching function.
As an experimental technology, it is hard to forecast risks but we should focus on allowing businesses and startups to discover this technology’s best uses.
So would it be more suitable to apply blockchain techonology to fintech companies or traditional financial institutions?
We’re seeing a great deal of investment from both traditional financial institutions like banks and new fintech start-ups. But this is a disruptive technology and has the potential to transform how established firms do business.
So do you think the private sector should take the lead in applying blockchain technologies?
There are a number of exciting possibilities for government use of blockchain, but it is more likely that the great innovations in this space will come from the private sector.
What are the skills that human resources of an organization need to develop to apply blockchain technologies?
Blockchain adoption requires technical skills – blockchain development can be very different from traditional database engineering – and the ability to identify areas of disruption – which is more of a business strategy skill.
What do you think are the issues that confuse countries/organizations and make them hesitant about applying this technology?
The big problems about adoption are lack of skills and regulatory barriers that make it hard to experiment with new technologies.
So how sustainable do you think blockchain application will be in the future? Will it gain in popularity?
Distributed ledger technologies like blockchain are likely to be a permanent feature of business and the economy. It is possible, however, that in years to come, the word ‘blockchain’ is not such a point of interest for the general public – but that will only be because the development of the technology has meant that it is infused into the back office functions of firms around the world.
What about blockchain application in Vietnam? How do you see its prospects?
I’m optimistic about blockchain adoption in Vietnam. Middle income and developing countries can use technologies like blockchain to leapfrog financial digitization. However, to do so they will need to have a public policy and regulatory framework that allows for experimentation and entrepreneurial activity.