What is blockchain technology? Practical application of blockchain in life!

In recent years, blockchain has become a “hot” trend both globally and in Vietnam.

​This technology has great potential for applications in industries ranging from financial services to manufacturing and the public sector to education and the energy supply chain.

According to researchers, corporate revenues in emerging markets like Vietnam are expected to reach US$1 trillion.

In this article, let’s take a look at some practical applications of blockchain in everyday life!

I. What is blockchain technology?

Blockchain is a technology that encodes all data into blocks and connects them to form long chains. Whenever new information or a new transaction occurs, the old information is not lost, the new information is stored in a new block, and a new chain is formed by linking the old block with the old information.

In addition, blockchain information is not only placed on a single server but also automatically distributed and backed up to various servers connected to the blockchain system, so that anyone can view and confirm transactions. This helps prevent alterations and fraud, ensuring information transparency and security.

​Blockchain is a current technology trend, applied in various industries and fields. Currently, several countries and large companies are spending a lot of money and time researching and researching blockchain technology with its high utility and high confidentiality.

​II. Practical Application of Blockchain in Life

media and communications

Deploying a blockchain solution on a cloud-based platform will allow internet service providers in the telecom sector to optimize their existing processes.

At the same time, you can strengthen your network security and use your business model to review the entire operational process and each process such as roaming and identity management.
​This
will help us to improve and develop better services, improve the quality of our services and provide a higher quality service.

​​Here are some examples:

  • Anti-fraud in roaming: Roaming agreements between each operator are made explicit, and designated nodes act as validators (operators) to validate each transaction broadcast on the network.
  • Transition to 5G: Rules and agreements between different networks will take the form of self-executing smart contracts that can automatically connect devices to the nearest service provider while assessing connectivity continuity and service charges.
  • IoT: Provides secure data transmission by creating a highly secure, peer-to-peer, self-managed network.

medical care

Utilization of Blockchain Technology: Medical

​In the era of Technology 4.0, Vietnam and other countries around the world are promoting information digitization in data management processes in various fields, including in the medical and healthcare sector.

Among them, blockchain is used for asset management and storage of patient health information, inventory and order management, medical devices, and drug payments.

There are many smart devices that can monitor these services, but security breaches of patients’ personal information can still lead to huge damages, so blockchain is the best option as it is considered safe.
Below
are some details and examples.

  • Applications being developed include pathology monitoring and management (such as smart drugs and wearable devices that can measure health indicators and provide feedback) and capabilities to enhance quality control.
  • Drug and medical device supply chain management tracks drug inputs, origins, and expiration dates.
  • Increase transparency and automation in health screenings, treatment transactions, clinical trial provenance, and patient health data ownership.

education

Applying blockchain to education, the information stored in the blockchain is not just scored data, but also includes each individual’s training process, work experience, and recruitment experience.

It also helps candidates avoid cheating in the process of applying for scholarships, promotions, etc.

For example, fraud can be detected when presenting false information such as literacy, work experience, and discipline.

In addition, smart contract functionality allows the blockchain to automatically execute the conditions of training rules, handle rule violations, lift restrictions on the teaching process when necessary, and give appropriate feedback to students. I can. See
below ​

  • Assess and manage credibility in scientific research.
  • We record a secure database of academic data and scores from online learning systems to assess individual competence based on admission requirements.
  • Track and store student transcripts and degrees and training institution information.
  • Consider whether an individual/candidate is suitable for a teaching job and decide whether or not to hire the individual.

banking, financial services

Due to the nature of the banking and financial industry, power is currently centralized, making it easy for the security of user data to be compromised.

However, blockchain technology can easily solve these problems.

​Thanks to smart contract functionality, you can eliminate the need for intermediaries, reduce costs, speed up transactions, limit financial risks in the payment process, and improve information management systems using traditional technology. . See
below

  • We allow transactions without an intermediary to verify customer information and credit worthiness.
  • Money is exchanged via peer-to-peer transactions. This work is ongoing, so the ledger is constantly being updated.
  • You can manage risk and limit payment risk due to technical issues and bankruptcy risk before payment of the transaction.
  • Smart management systems enable continuous innovation, iteration, and improvement based on network consensus.

e-commerce

According to experts, the current retail market is gradually shifting to online commerce, especially with the development of e-commerce platforms.

This transition poses challenges in terms of security, supply chain management, the process of transporting goods to consumers, and the cost of traditional methods, creating many barriers between consumers and manufacturers.

Blockchain technology solves that problem with smart contracts, allowing parties to easily sign and link to many companies.

Eliminating middlemen also saves costs, and payment solutions are also implemented directly on your website or e-commerce platform.
Here are some usage examples:

  • Customer data information management.
  • Track serial numbers, QR information, and product status.
  • Building e-wallets, customer loyalty, gift cards, and UX-friendly payment systems.
  • Supply chain operations and management.

Agriculture

Utilization of Blockchain Technology: Agriculture

Food chains need to be more sustainable to increase consumer trust and loyalty, and effective traceability is key to increasing trust.

Distributed ledger systems help retailers and consumers store transaction information while increasing transparency throughout the production process from production to processing facilities.

​The food chain starts with suppliers, goes to supermarkets, retailers, and finally to consumers.

Data related to quality control, price control, financial management, and sales management are continuously updated to the blockchain.
Below are some examples of the main uses.

  • Product supply chain management, inventory distribution chain management.
  • Compliance with product information, care processes, and fresh food standards.
  • Traceability and life cycle of agricultural production.

logistics

During each step of the supply chain in the product lifecycle, data is generated and recorded as transactions, creating a permanent history of the product.

A blockchain is a tool for managing that huge data warehouse.

Blockchain can greatly help increase efficiency in sharing information about product production, transportation, storage, and depreciation with stakeholders.

We also solve logistics issues such as delivery delays, lost documents and documents, unclear product origins, and handover process errors between members in logistics activities.
Here
are some other usage examples.

  • Clear document certification with established traceability.
  • Smart packaging of food.
  • Combine artificial intelligence (AI) and the Internet of Things to monitor vehicles and transportation.
  • Reduce intermediary costs by applying intelligent contracts.

There are a wide variety of practical applications of blockchain in daily life, and this article only introduced a small part of it, but I hope you understand that it is a technology that will bring about major changes in various industries. ?
​Next
time, I will introduce the programming language used to implement such a blockchain, so please take a look at that as well.

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