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Blockchain Technology Readiness for Cambodia

• Emerging technologies are strategic development priorities due to science, technology, and innovation playing a vital role in socio-economic development.
• As the Minister of the Ministry of Industry, Science, Technology & Innovation explores blockchain advancements, it highlights the actual situation of blockchain technologies relevant to Cambodia.
• The study in context dynamically adds to the technology sector in the country.
• If security and privacy are in place, blockchain can be used daily.
• Expect more technology in business operations in the next decade.
• Discussions with contextual analyses for countries like Cambodia can assist policy makers, researchers, practitioners and the private sector.
• An understanding of blockchain technology implementation, weighing its pros and cons, plus understanding knowledge management is important to social development.
• The technology is adopted in Cambodian finance and service sectors with a positive shift in social trends.
• The collaboration of authors from diverse academic and practical backgrounds provides a stepping stone for blockchain development in Cambodia.
• Stakeholders need streamline future uses of blockchain technologies to promote innovation.

Document Acknowledgements

• This document was produced by the General Department of Science, Technology & Innovation (GDSTI) of the Ministry of Industry, Science, Technology & Innovation (MISTI) of Cambodia.
• Thanks are given to contributors with special thanks to Dr. Siev Sokly and Mr. Thul Rithy for their feedback.

Executive Summary

• Blockchain has the potential to revolutionize industries such as finance, supply chain, manufacturing, healthcare, and governance.
• Blockchain ensures data integrity through decentralization and cryptographic mechanisms, offering transparency and security.
• Several countries, including the UK, UAE, China, Singapore, Australia, and Malaysia, encourage blockchain trials.
• A readiness assessment of Cambodia for blockchain adoption is presented.
• Analyzes technical aspects, use cases, strategies, challenges, and recommendations.
• The Cambodian government aims to be an upper-middle-income country by 2030 and a high-income country by 2050.
• The focus is on science, technology, and innovation (STI) to meet goals and adapt to challenges like the COVID-19 pandemic
• Cambodia's STI Roadmap 2030, National Research Agenda 2025, and Digital Economy Framework 2020-2035 support blockchain technology.
• Blockchain benefits applications that leverage a decentralized network and cryptographic algorithms.
• Ensures all network members access identical information, eliminating intermediaries and reducing fraud.
• The"Bakong project" from the National Bank of Cambodia promotes a cashless society by using open API .
• "Blockpay" is a blockchain-based remittance model streamlining cross-border money transfers.
• A blockchain-based SCM model helps identify and track parts, optimizes supply chains, and promotes business model innovations.
• Healthcare can be enhanced by facilitating the distribution of medical supplies, improving traceability, and managing vaccination data.
• Blockchain can secure storage, streamline processes, and reduce corruption in public service of data.
• Integrating blockchain relies on the effectiveness of implementation strategies.
• A skilled workforce is needed with education and training programs on the nascent blockchain tech.
• Lack of general blockchain knowledge can limit industry and policymaker involvement. Robust regulatory framework promotes both blockchain innovation protects consumers and investors.
• Adoption challenges include high-speed Internet, consistent power, and implementation costs.
• The number of Cambodian blockchain experts and scalability hinder adoption.
• Security and privacy need comprehensive solutions to harness the full potential while reducing risks.
• Rapid socio-economic development requires a supportive ecosystem with a national strategy, partnership, and infrastructure.
• MISTI should implement a comprehensive legal framework.
• The National Council of Science, Technology & Innovation can address cross-cutting blockchain.
• Skilled workforce needs task force led by the National Council of Science, Technology & Innovation.
• Human capital development supports higher education research competence for the country.

Introduction

• Blockchain technology was proposed over 20 years ago, with Stuart Haber and W. Scott Stornetta developing a system for timestamping digital documents in 1992.
• The first blockchain technology concept was introduced by Satoshi Nakamoto in 2008.
• Aims to enable direct online payment from one source to another without third-party reliance.
• Blockchain technology has gained popularity in industries like supply chain, healthcare, and real estate.
• Aims to provide solutions for real-world problems.
• Benefits and applications are provided.

Overview of Blockchain Technology

• An ordered chain of blocks forming a group of transactions.
• Blockchain employs decentralized databases, with multiple computers maintaining the same chain copy.
• Users can exchange information directly on the identical chains.
• Admin validates transactions between cloud tech users.The procedure of a block being created and added into the chain can be broken down with procedures of verification and added consensus.
• Blockchain is also able to tackle many challenges within various sectors and provide a benefit of storing traceable information among relevant stakeholders.
• In the Healthcare can utilize technology in medicine by sharing data securely to better help patients.
• Cutting-edge blockchain technology has revolutionized the manufacturing sustainable for industrial applications.
• Improve logistics and manage data for supply changes to produce fair prices and effective results.

Benefits of Using Blockchain technology for Cambodia

• The Royal Government of Cambodia (RGC) vision is to transform and modernize skill based industries by 2025 connecting regional and global value chains.
• The high value added product, creativity, and strong competitiveness should be prioritized.
• Small and medium enterprises (SMEs) in various industries, agro-industrial production, and industries supporting regional production lines
• Blockchain technology provides database used as decentralized platform for building a administration system.
• Enables trust and accountability in the public and business sectors.
• Blockchain can create a secure/transparent system to manage education.
• Distributed platform with reduce costs to more education.

Organization of this document

• Consists of 7 Chapters that each make contributions to the overall narratives

• Benefits of using blockchain for Cambodia

• Exploring Blockchain technical structures and functions

• Applications and uses of blockchain

• Challenges that come with Blockchain classified into 3 catagories -Technical -Socio-Economic -Security and Privacy