APPLICATION OF BLOCKCHAIN TECHNOLOGY IN E-PAYMENT TRANSACTIONS IN VIETNAM

Abstract

Today, electronic transactions are becoming more popular than ever, accompanied by this trend of opportunities and challenges posing on technological limits. Block chain technology was born, powerful like the Internet, but unlike today's Internet, it stores identical blocks of information on its network. For this reason, a blockchain cannot be controlled by any single entity nor can there be a single point of failure. By storing data on the network, blockchain eliminates the risks associated with centrally stored data. Network blockchain lacks centralized vulnerabilities that computer hackers can exploit easily. Blockchain uses encryption technology to improve security. By allowing data and information to be widely distributed, blockchain technology has created the backbone of the new Internet, the web3 generation. Although it was originally devised for the Bitcoin digital currency, the business and technology community is finding many new uses for blockchain, one of which is online payment transactions. Knowledge of this new technology will be required not only by the developers but by all businesses. In the next 5 to 10 years, blockchain will change business models in all types of industries - and perhaps change the way people work and live. This article outlines the current state of blockchain application in digital payment transactions in Vietnam and outlines the challenges that Vietnam is facing when applying this technology.