Blockchain Technology Readiness for Cambodia - PDF

Ministry of Industry, Science, Technology & Innovation Phnom Penh, Cambodia Website: https://www.misti.gov.kh First eBook Edition: 2023 ISBN: 978-9924-600-21-3 © Ministry of Industry, Science, Technology & Innovation (MISTI) 2023 This work is subject to copyright. All rights are reserved by MISTI. No part of this report may be reproduced, distributed, or transmitted in any form or by any means, or stored in database or retrieval system, without the prior written permission of the copyright owner. The publisher, the contributors and the editors are safe to assume that the recommendation and information in this report are believed to be true and accurate at the date of publication. Neither the publisher nor the contributors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Ministry of Industry, Science, Technology & Innovation address is: 45 Preah Norodom Boulevard, Sangkat Phsar Thmey III, Khan Daun Penh, Phnom Penh, 120203, Cambodia Foreword Science, technology, and innovation have played a pivotal role in socio-economic development of most developed nations. Therefore, emerging technologies stand at the forefront of strategic development priorities. As the minister of Industry, Science, Technology & Innovation and Chair of National Council of Science, Technology & Innovation, I am delighted to see scientists exploring the technological advancements, particularly in the realm of blockchain technologies. I am fully convinced that this scholarly effort in highlighting actual situation of Blockchain technologies and its way forward in Cambodia’s context are dynamically contributing to technology development ecosystem in the Kingdom. Once privacy and security are considered, blockchain technologies become integral to our daily business operations. The adoption of this technology is expected to increase in the coming decade. The discussions with contextual analyses, particularly in the current conditions of developing nations like Cambodia, provide meaningful insights for policymakers, researchers, practitioners, and the private sector. It is timely to bring more understanding to the public since this technology is emerging and its integration to social development significantly relies on scholarly perspectives, including readiness for implementation, weighing advantages against disadvantages, analyzing regional and international trends, understanding the knowledge management and its application, among other relevant factors. In Cambodia, the technology is widely adopted in various sectors including finance and services. Its application is going to expand, and there is a positive shift in social trends toward it. The diverse academic backgrounds of the authors spur the knowledge within the domain to be more engaging for readers. This group of scholars possesses a broad understanding, not just from academic perspective but also from practical experiences in the application of technology. Furthermore, the contribution of authors from private sector brings more sound innovation to the development of blockchain technologies. Lastly, the insights by policymakers are a shared component in this book entitled “Blockchain Technology Readiness for Cambodia”. These collective efforts provide a steppingstone for blockchain development ecosystem in Cambodia since all axes of this technological prospects are brought in for the discussion. Finally, I urge all relevant stakeholders to put your best understanding to streamline your respective endeavor with new trends and future uses of blockchain technologies. I am strongly confident that the thoughtful substances in the book will surely bring innovation cycle for your respective institution. I would like to express my warm appreciation to the authors of the book for having your important ideas in written format. Your valuable contribution is well achieved for future generation. Phnom Penh, …………. December 2023 Minister of Industry, Science, Technology & Innovation HEM Vanndy i Acknowledgements This informative document was produced by the General Department of Science, Technology & Innovation (GDSTI) of the Ministry of Industry, Science, Technology & Innovation (MISTI) of Cambodia. First and foremost, the deepest thanks go to the contributors of each chapter, who have dedicated fruitful efforts in researching and capturing insightful information for this document. Without their commitment, this document would not have been made. A special thanks to Dr. Siev Sokly and Mr. Thul Rithy who accepted to be the first consumers of this document, and their feedback has been priceless. ii ខ្លឹមសារសង្ខេប បច្ចេកវ ិទ្យាបលុកច្េនបានច្េចច្ ង ើ ជានវានុ វត្តន៍បរវត្ត ិ កម្មម្ួយដែេមានសក្តតនុ ពេខ្លង ាំ កនុងបែិវត្តកម្ម ននវ ិស័ យ ទាំង ឡាយ ជាអាទ្យិ៍ ៖ ហិរ ញ្ញ វ ត្ថុ , ដសែច្ចវា៉ា ក់ ផ្គ ត្់ ផ្គ ង់ , កម្ម នត សា េ, សុ ខ្ ភិ បា េ, និ ង អភិ បា េកិ ចេ ។ ចាំណុចសនូេរបស់បុ លកច្េនគឺេកខណៈវ ិម្ជ្ឍក្តរ សនតិសុស និងសក្តតនុ ពេសច្មាប់ទ្យាំនាក់ទ្យាំនងឆ្លលត្នវ។ ច្បច្ទ្យស ម្ួយចាំនួនែូ ចជា ចច្កភពអង់ច្គលស, ច្អម្ើរ៉ាត្អារ៉ា ប់រម្ ួ , សាធារណរែឋច្បជាមានិត្ចិន, ហូ ង់, សិងហបុរ,ើ អូ ស្ត្សាត េើ, និងមា៉ាច្ សុើ បានច្េើកទ្យឹកចិត្តខ្លង ាំ ែេ់ឧសាហកម្មកុ នងក្តរច្ច្បើច្បាស់បច្ចេកវ ិទ្យាបលុកច្េន ដែេក្តរណ៍ច្នេះ អាចជាម្ូេដ្ឋឋនកនុងក្តរអនុវត្តសច្មាប់ច្បច្ទ្យសកម្ពុជា។ ឯកសារច្នេះបង្ហហញពើក្តរវាយត្នម្លច្គប់ច្ជ្ុងច្ច្ជាយកនុងក្តរច្ច្ត្ៀម្សលួនរបស់កម្ពុជា សច្មាប់ក្តរចាប់យក បច្ចេកវ ិទ្យាបលុកច្េន។ ឯកសារច្នេះ បកច្សាយសុើជ្ច្ច្ៅពើទ្យិែឋភាពបច្ចេកច្ទ្យសរបស់បុ លកច្េន, រុករកដែម្ច្ទ្យៀត្ពើ ករណើច្ច្បើច្បាស់ច្ផ្ែងៗ, កាំណត្់យុទ្យធសាស្ត្សតសច្មាប់ក្តរអនុវត្តឱ្យបានច្ជាគជ្័យ, រ ាំច្េចពើបញ្ហហច្បឈម្ច្ផ្ែងៗ ដែេពាក់ព័នធនឹងក្តរចាប់យកបច្ចេកវ ិទ្យាបលុកច្េន និងផ្តេ់អនុ សាសន៍ែេ់អនកច្្វើច្ោេនច្ោបាយ ក៏ែូចជា អនកពាក់ព័នធទង ាំ ឡាយ។ រជ្រដ្ឋឋភិបាេកម្ពុជាបានកាំណត្់នូវច្បសកកម្មច្បកបច្ដ្ឋយម្ហច ិ ឆតាចាំនួនពើរ រួមាន៖ ១) ក្តរឈាន ច្ៅជាច្បច្ទ្យសដែេមានចាំណូេម្្យម្កច្ម្ិត្សពស់ច្ៅឆ្លន២ ាំ ០៣០ និង២) ក្តរឈានច្ៅជាច្បច្ទ្យសដែេមាន ចាំណូ េសពស់ច្ៅឆ្លន ២ ាំ ០៥០។ ចាាំបា ច់ណា ស់ កម្ពុ ជាបានច្្វើពិពិត្ កម្មក្ត រអភិវ ឌ្ឍច្សែឋកិចេរបស់សួ លនច្ែើម្បប ើ នែុើ ច្ៅនឹងចកខុវ ិស័យច្នេះ ច្ដ្ឋយច្តតត្ជាពិច្សសច្េើវ ិទ្យាសាស្ត្សត បច្ចេកវ ិទ្យា និងនវានុ វត្តន៍ (វ.ប.ន.) កនុងក្តរច្េលើយ ត្បនឹង បញ្ហហច្បឈម្ែមើៗ ច្នេះ ជាអាទ្យិ៍៖ ផ្េជ្េះននជ្ាំងឺរត្ាត្កូ វ ើែ-១៩ និងជ្ច្មាលេះអនតរជាត្ិច្ផ្ែងៗដែេកាំពុង ច្កើត្មាន។ ច្ែើម្បច្ើ ច្ជាម្ដច្ជ្ងែេ់ចកខុវ ិស័យច្នេះ ឧបករណ៍ច្ោេនច្ោបាយម្ួយចាំនួនបានច្រៀបចាំច្ ង ើ មាន ែូ ច ជា៖ ដផ្នទ្យើ ប ង្ហហ ញផ្លូ វ វ.ប.ន. កម្ពុ ជា២០៣០, រច្បៀបវារៈច្សាវច្ជាវជាត្ិ ឆ្លន ២ ាំ ០២៥, ច្កបសណឌ ច្ោេ នច្ោបាយច្សែឋកិចេ និងសងគម្ឌ្ើជ្ើែេ កម្ពុជា ២០២១-២០៣៥, និងច្ោេនច្ោបាយពាក់ព័នធច្ផ្ែងច្ទ្យៀត្។ ែូច្ចនេះ ក្តរចាប់យកបច្ចេកវ ិទ្យាបលុកច្េន អាចមានបរសា ិ ថ នសម្ច្បកបម្ួយកនុងបរបទ្យកម្ព ិ ុ ជា។ បច្ចេកវ ិទ្យាបលុកច្េនច្ត្ូវបានច្គច្ម្ើេច្ ើ ថាផ្តេ់នូវែាំច្ណាេះច្សាយសច្មាប់ក្តរង្ហរជាក់ដសតងជាច្ច្ចើន ញ តាម្រយៈក្តរទញយកច្បច្ោជ្ន៍ជា អត្ិប រ មាព ិ ើប ណា ត ញវ ិម្ជ្ឍក្តរ និង អាេ់ច្គគរ ត្កាំ ើ បា ងាំ កូ ែ។ នវានុ វត្តន៍ ច្នេះធានាថាសមាជ្ិកទាំងអស់កុ ងបណា ន ត ញអាចទញយកបាននូវព័ត្៌មានែូចោន ច្ដ្ឋយម្ិនចាាំបាច់មានអនតរក្តរ ើ ឹ ែ៏អសាេរយ និងច្ដ្ឋេះច្សាយនូវគនិភ័យពើក្តរដកលងបនលាំនិងក្តររ ាំខ្ន។ េកខណៈពិច្សសច្នេះជាម្ូេដ្ឋឋនននកតើសងឃម្ ម្ួយសច្មាប់វ ិស័យជាច្ច្ចើនែូ ចជា៖ ហរិ ញ្ញវត្ថុ, ក្តរច្គប់ច្គង់ដសែច្ចវា៉ា ក់ផ្គត្់ផ្គង់, សុ ខ្ភិបាេ, ច្សវាកម្មសាធារ ណៈ, និងវ ិស័យជាច្ច្ចើនច្ផ្ែងច្ទ្យៀត្។ កនុងវ ិស័យហរិ ញ្ញវត្ថុ គច្ច្មាងអនុវត្តន៍ែ៏ច្េចច្ធាលចាំនួនពើរបាននិងកាំពុងច្បាេះ ជ្ាំគ៊ានច្ៅម្ុស។ គច្ច្មាងទ្យើ១ «បាគង» ដែេផ្តួចច្ផ្តើម្ច្ដ្ឋយ្នាោរជាត្ិននកម្ពុជា មានច្ោេច្ៅជ្ាំរុញកម្ពុជាជា iii សងគម្ដែេម្ិនច្ច្បើច្កដ្ឋស់ច្បាក់ និងពច្ងើកបរោបនន ិ ហិរញ្ញវត្ថុ តាម្រយៈក្តរច្្វើសមាហរណកម្មអនកផ្តេ់ច្សវា កម្មហិរញ្ញវត្ថុទាំងឡាយច្ៅកនុងច្បព័នធរួម្ម្ួយច្ដ្ឋយមាននផ្ៃកម្មវ ិ្ើចាំហ (API)។ គច្ច្មាងទ្យើ២ «បលុ កច្ផ្» ជាវ ិ្ើ ច្ដ្ឋយច្ច្បើបុ លកច្េនជាម្ូ េដ្ឋឋនសច្មាប់ក្តរច្ផ្ៃរច្បាក់េលងដែន។ កនុងក្តរច្គប់ច្គងដសែច្ចវា៉ា ក់ផ្គត្់ផ្គង់ ក្តរច្ច្បើច្បាស់ ចាំនួនពើរច្ត្ូវបានច្េើកច្ ង ើ ។ ករណើទ្យើ១ «ឧសាហកម្មច្ច្គឿងបនាលស់ស័វយច្បវត្តិ» យកម្៉ាូដែេននក្តរច្គប់ច្គង ដសែច្ចវា៉ា ក់ ផ្គ ត្់ ផ្គ ង់ ដ ែេមានម្ូ េ ដ្ឋឋ នបលុ កច្េន ច្ែើ ម្ បើច្ បើ ក ក្តរកាំ ណ ត្់ អ ត្ត ស ញ្ហញណ និ ង ដសវ ង រកច្ច្គឿងបនាល ស់ សវ័យច្បវត្តិ, ច្្វើឱ្យច្បច្សើរែាំច្ណើរក្តរដសែច្ចវា៉ា ក់ផ្គត្់ផ្គង់ និងបងកឱ្យមាននវានុវត្តន៍សច្មាប់ម្ូ៉ាដែេ្ុ រ កិចេ។ ករណើ ទ្យើ២ «ឧសាហកម្ម វាយនភណឌ » ច្ច្បើច្បាស់ប ច្ចេក វ ិទ្យាច្នេះច្ៅទ្យើច្កុង ដ្ឋក្តក ននច្បច្ទ្យសបង់ក្តលដែស។ សច្មាប់វ ិ ស័យសុខ្ភបា ិ េ ករណើគួរឱ្យកត្់សមាគេ់ចម្បងម្ួយគក្ត ឺ រច្ច្បច្ើ បាស់បច្ចេកវ ិទ្យាបលុកច្េនកនុងច្បព័នធច្គប់ច្គងវា៉ា ក់ សាាំង ច្ៅច្បច្ទ្យសមា៉ា ច្ សុើ ។ ក្តរអនុ វ ត្ត ច្ នេះច្្វើ ឱ្ យច្បច្សើ រ ច្ ើង នូ វ កិចេ សិ ត្សាំ ច្ បឹ ងដច្បងរបស់ រ ដ្ឋឋ ភិបា េកនុងក្តរ ច្បយុ ទ្យធ ច្ បឆ្លាំង នឹ ង ជ្ាំ ងឺ កូ វ ើែ-១៩ ច្ដ្ឋយជ្ួ យ សច្ម្ួ េ ែេ់ ក្ត រដចកចាយច្ច្គឿងឧបករណ៍ សុ ខ្ ភិ បា េ និ ង អាំច្ណាយសបបុរស្ម្៌ច្ផ្ែងៗ, ពច្ងឹងក្តរតាម្ដ្ឋន និងសនតិសុសទាំងវា៉ា ក់សាង ាំ និងអនកទ្យទ្យួេវា៉ា ក់សាង ាំ , និងសតុក និងច្រៀបចាំឱ្យមានព័ត្៌មានពើវា៉ាក់សាង ាំ ច្ពេេលងដែន។ ករណើចុ ងច្ច្ក្តយគឺទ្យសែនាទនសតើពើ «ក្តរច្រៀបចាំរដ្ឋឋភិបា េឌ្ើជ្ើែេច្ដ្ឋយច្ច្បើបុ លកច្េន» ដែេច្ច្បើកុ នងវ ិស័យច្សវាកម្មសាធារណៈ។ បច្ចេកវ ិទ្យាបលុកច្េន ច្ត្ូវបានច្ច្បើច្ែើម្បើ ធានាសនតិសុសក្តរសតុកទ្យិននន័យរបស់្ុរកិចេ ច្បជាជ្ន និងរដ្ឋឋភិបាេ, សច្ម្ួេែាំច្ណើរក្តរជាេកខណៈអត្ិពេ កម្ម, ក្តត្់បនថយឱ្ក្តសដែេអាចមានអាំច្ពើពុករេួយ និងក្តររ ាំច្ោភបាំពានច្ផ្ែងៗ, និងពច្ងើកទ្យាំនុកចិត្តកុ ងក ន ិចេ ក្តរដ្ឋឋភបា ិ េ នង ិ ច្បព័នធរបស់រែឋ។ ក្តរច្្វើសមាហរណកម្មច្ដ្ឋយច្ជាគជ្័យននបច្ចេកវ ិទ្យាបលុកច្េនអាច្ស័យជាចម្បងច្េច្ើ បសិទ្យធភាពននយុទ្យធ សាស្ត្សតអនុ វត្តន៍។ ច្ដ្ឋយច្ម្ើេច្ ញ ើ ពើ្ម្មជាត្ិែមើច្ថាមងននបច្ចេកវ ិទ្យាបលុកច្េន ត្ច្ម្ូវក្តរចាាំបាច់ច្នាេះគឺក្តរបណុ ត េះ ាំ ក្តរង្ហរម្ួយដែេសាៃត្់ជ្ាំនាញ តាម្រយៈកម្មវ ិ្ើបណុ ត េះបណា កមាលង ត េ និងអប់រ ាំច្គប់ច្ជ្ុងច្ច្ជាយ។ ទ្យនៃឹម្ោនច្នេះ ដែរ កិចេសិត្សាំច្បឹងដច្បងគបបច្ើ តតត្ចម្បងច្េើក្តរយេ់ែឹងរបស់សាធារណជ្ន, ជ្ាំរុញក្តរចូេរួម្ឱ្យបានសកម្ម, និង បច្ងកត្ ើ ច្បព័នធច្អកូ ូសុដើ ែេភាាស់ឱ្យមាននវានុវត្តជ្ន នង ិ ្ុរកច ិ េែមើកុ ងច្សុ ន ក។ ក្តរបាត្់បង់នូវក្តរសាគេ់ននបលុកច្េន និងសក្តតនុ ពេរបស់បច្ចេកវ ិទ្យាច្នេះ អាចជាឧបសគគែេ់ឧសាហកម្ម និងអនកច្្វើច្ោេនច្ោបាយ កនុងក្តរទញ យកឱ្យអស់េទ្យធភាពពើសក្តតនុពេននបច្ចេកវ ិទ្យាច្នេះ។ ជាងច្នេះច្ៅច្ទ្យៀត្ ក្តរបច្ងកើត្ឱ្យមានច្កបសណឌគត្ិយុត្តរង ឹ មាាំម្ួយជាកិចេក្តរចាាំបាច់ ដែេម្ា៉ាងគឺបណុ ត េះនវានុវត្តន៍សច្មាប់បច្ចេកវ ិទ្យាបលុកច្េន និងម្ា៉ាងច្ទ្យៀត្គឺក្តរពារផ្េ ច្បច្ោជ្ន៍របស់អនកច្ច្បច្ើ បាស់ នង ិ វ ិនច្ិ ោគន ិ ។ ច្បច្ើ បព័នធច្អកូ ូសុច្ើ នេះមានត្ុេយភាពេអច្ហយ ើ ម្ូេដ្ឋឋនច្គេះឹ នន ក្តរបស្ត្ញ្ហាបបច្ចេកវ ិទ្យាបលុកច្េននង ឹ ច្កត្ ើ ច្ដ្ឋយច្ជាគជ្័យកនុងវ ិស័យច្ផ្ែងៗ នង ើ មានច្ ង ិ ឧសាហកម្ម។ ក្តរចាប់ យ កបច្ចេ ក វ ិទ្យាបលុ កច្េនដែេមានបញ្ហហច្បឈម្ជាច្ច្ចើ ន កនុ ងច្កបសណឌ អនុ វ ត្ត ន៍ ផ្ត េ់ នូ វ អត្ថ ច្បច្ោជ្ន៍ែ៏ច្ច្ចើន។ បញ្ហហច្បឈម្ទាំងឡាយអាចច្ត្ូវបានច្ដ្ឋេះច្សាយ េុ េះច្តាដត្មានម្ូ េដ្ឋឋនននច្បព័នធអុើន្ឺ ណិត្ច្េបឿនច្េឿន, ក្តរផ្តត្់ផ្គង់ថាម្ពេច្ែរម្ួយ, និងក្តរចាំណាយនែលច្ែើម្ច្ច្ចើនសច្មាប់អនុ វត្ត។ ជាងច្នេះច្ៅ ច្ទ្យៀត្ កងវេះអនកជ្ាំនាញយេ់ចាស់ពើបច្ចេកវ ិទ្យាបលុកច្េនច្ៅដត្ជាឧបសគគកុ នងក្តរចាប់យកឱ្យបានទ្យូ េាំទ្យូោយ iv សច្មាប់ច្បច្ទ្យសជាត្ិ។ ម្ា៉ាងច្ទ្យៀត្ កតើបារម្មណ៍អាចច្កើត្មានច្េើកច្ម្ិត្ននបណា ត ញបលុកច្េន, គមាលត្ច្យនឌ្័រច្ៅ ដត្មានកនុងក្តរចាប់យកបច្ចេកវ ិទ្យា, បញ្ហហច្កើត្មានពើបរោបនន ិ ហរិ ញ្ញវត្ថុ និងភាពទ្យុ កចិត្តបានននកិចេសនាឆ្លលត្ នវ។ ច្េស ើ ពច្ើ នេះច្ៅច្ទ្យៀត្ សនតស ិ ុ ស នង ិ កតបា ើ រម្មណ៍ច្េឯ ើ កជ្នភាព ច្ៅដត្ជាបញ្ហហច្បឈម្ម្ួយ ដែេទម្ទរឱ្យ មានែាំច្ណាេះច្សាយច្គប់ច្ជ្ុងច្ច្ជាយកនុងច្ោេច្ៅចាប់យកឱ្យអស់េទ្យធភាពនូ វសក្តតនុ ពេននបច្ចេកវ ិទ្យា ក៏ែូច ជាក្តត្់បនថយគនិភ័យច្ផ្ែងៗ។ ទ្យសែនាទន នង ើ ច្ដ្ឋយអនកជ្ាំនាញចងអុរបង្ហហញឱ្យច្ ញ ិ ក្តរវ ិភាគដែេបានច្រៀបចាំច្ ង ើ ថា ច្បច្ទ្យសកម្ពុ ជាច្ត្ូវដត្ច្រៀបចាំច្បព័នធច្អកូ ូសុើោច្ាំ ទ្យម្ួយ ដែេរួម្មានក្តរច្រៀបចាំឱ្យមានយុទ្យធសាស្ត្សតជាត្,ិ ក្តរច្្វឱ្ ើ យច្បច្សើរច្ ង ើ នូវកច ិ េសហច្បត្ប ិ ត្តក្ត ិ ច្ហដ្ឋឋរចនាសម្ព័នធែ៏ច្បច្សរើ ម្ួយ។ ជាងច្នេះច្ៅច្ទ្យៀត្ ច្កសួងឧសាហកម្ម វ ិទ្យាសា ិ រ, នង ស្ត្សត បច្ចេកវ ិទ្យា និងនវានុវត្តន៍ ច្ត្ូវច្រៀបចាំឱ្យមានច្កបសណឌគត្ិយុត្តច្ែើម្បធា ើ នាឱ្យមានផ្េជ្េះជាវ ិជ្ាមាននិងបរ ិ ោបននននបច្ចេកវ ិទ្យាបលុកច្េនកនុងកច្ម្ត្ ិ ម្ួយដែេអាចច្គប់ច្គងបាន។ ជាងច្នេះច្ៅច្ទ្យៀត្ ច្កុម្ច្បឹកាជាត្ិវ ិទ្យា សាស្ត្សត បច្ចេកវ ិទ្យា និងនវានុវត្តន៍ ជាសាថប័នសម្ច្សបម្ួយច្ែើម្បើច្េលើយត្បនឹងបញ្ហហច្បទក់ច្កឡារបស់បច្ចេក វ ិទ្យាបលុកច្េន។ ជាចុ ងបញ្េ ប់ រជ្រដ្ឋឋភបា ិ េកម្ពុជាច្ត្ូវមានគច្ច្មាងច្រៀបចាំកមាលង ាំ នង ិ ច្កុម្ក្តរង្ហរជាបនាៃន់ម្យ ួ ច្ែើម្បច្ើ េលយ ើ ត្បនង ឹ ត្ច្ម្ូវក្តរខ្លង ន ជ្ាំនាញបច្ចេកវ ិទ្យាបលុកច្េន។ ាំ របស់អក ក្តរណ៍ច្នេះទម្ទរ ក្តរច្រៀបចាំច្កុម្ ក្តរង្ហរថានក់ជាត្ិដែេែឹកនាាំសច្ម្បសច្ម្ួេច្ដ្ឋយច្កុម្ច្បក ឹ ាជាត្ិវ ិទ្យាសាស្ត្សត បច្ចេកវ ិទ្យា និងនវានុវត្តន៍ ច្ែើម្បើ ច្ត្ួត្ពិនត្ ិ យវឌ្ឍនភាពននបច្ចេកវ ិទ្យាបលុកច្េន។ កនុងច្ពេជាម្ួយោនច្នេះដែរ រជ្រដ្ឋឋភិបាេគួរច្តតត្យុទ្យសា ធ ស្ត្សតច្េើ ក្តច្រៀបចាំ ឱ្យមានក្តរអភិវ ឌ្ឍម្ូ េ្នម្នុ សែ ដែេជាម្ូ េដ្ឋឋនសច្មាប់ សាថប័ន ឧត្តម្សិកាកនុងវ ិស័ យ វ.ប.ន. ច្ែើម្បច្ើ ច្ត្ៀម្សលួនច្គប់ច្ោន់សច្មាប់ក្តរច្សាវច្ជាង នង ិ អភវិ ឌ្ឍន៍ច្បកបច្ដ្ឋយសម្ត្ថភាព។ v Executive Summary Blockchain technology has emerged as a transformative innovation with the potential to revolutionize various sectors, including finance, supply chain, manufacturing, healthcare, and governance. Blockchain, at its core, is a decentralized, secure transaction ledger technology that ensures data integrity and immutability through cryptographic mechanisms. It offers transparency, decentralization, security, and the potential for smart contracts. Several nations such as the UK, the UAE, China, the Netherlands, Singapore, Australia, and Malaysia have followed a broad approach to encouraging industry to trial blockchain – an approach which could be applicable in Cambodia. This document presents a comprehensive readiness assessment of Cambodia for the adoption of blockchain technology. It delves into the technical aspects of blockchain, explores its divers use cases, outlines strategies for successful implementation, highlights challenges associated with blockchain adoption and provides recommendations for policymakers and stakeholders. The Royal Government of Cambodia has set two ambitious missions: becoming 1) an upper-middle- income country by 2030, and 2) a high-income country by 2050. Aligning with this vision, Cambodia is diversifying her economic development, particularly focusing on science, technology, and innovation (STI), in response to recent challenges, notably the impact of the COVID-19 pandemic and the recent international conflicts. Numerous policy instruments have been established including Cambodia’s STI Roadmap 2030, National Research Agenda 2025, Cambodia Digital Economy, Society Policy Framework 2020-2035, and other related policies. Hence, the context of Cambodia is favorable for blockchain technology adoption. Blockchain technology offers an appealing solution for a wide range of applications by leveraging a decentralized network and cryptographic algorithms. This innovation ensures that all participants within the network can access identical information, consequently negating the necessity for intermediaries and mitigating the risk of fraud or tampering. This inherent characteristic holds immense promise in various sectors, such as finance, supply chain management, healthcare, public services and more. In financial sector, two notable cases come to fore: firstly, the “Bakong project” initiative by the National Bank of Cambodia, which advocates for a cashless society and bolsters financial inclusion by integrating multiple financial service providers into a unified system through an open API. Secondly, “Blockpay”, a blockchain-based remittance model streamlining cross-border money transfers. For supply chain management (SCM), two use cases are highlighted: the first, a case study in the auto parts industry, wherein a blockchain-based SCM model is proposed to enable the identification and tracking of automotive spare parts, optimize supply chain process and instigate business model innovations. The second instance unfolds in textile industry in Dhaka of Bangladesh. For healthcare sector, a noteworthy case study details the deployment of blockchain technology in the Vaccine Management System in Malaysia. This application enhances the government effort in combating COVID-19 by facilitating the distribution of medical supplies and charitable donations, bolstering traceability and security for both the vaccines and their recipients, and storing and generating vaccination information for cross-border travel. Lastly, an illustrative case study delves into the concept of “Building a Digital Government Powered by Blockchain” within the public service sector. The blockchain technology is harnessed to secure storage of government, citizen, and business data, streamline labor-intensive processes, reduce the likelihood of corruption and abuse, and amplify trust in government and online civic systems. vi Successful integration of blockchain technology relies on the effectiveness of implementation strategies. Given the relatively nascent nature of blockchain, there is a need to cultivate a proficient workforce through comprehensive educational and training programs. Simultaneously, efforts should be dedicated toward raising public awareness, fostering active engagement, and creating an ecosystem conducive for local startups and innovators. The dearth of familiarity with blockchain and its potential can constraint the involvement of both industry and policymaker in harnessing the technology’s full potential. Furthermore, the establishment of a robust regulatory framework is paramount; one that not only nurtures blockchain innovation but also safeguards the interests of consumers and investors. In this delicate balance, the foundation for blockchain’s successful assimilation into various sectors and industries is laid. The adoption of blockchain technology, while offering a spectrum of advantages, does not come without its share of challenges. These challenges encompass prerequisites such as high-speed Internet connectivity, a consistent power supply, and substantial implementation costs. Moreover, the shortage of experts well-versed in blockchain technology in Cambodia poses a hurdle to its widespread adoption. Additionally, concerns arise regarding the scalability of blockchain networks, the persisting gender disparities in technology adoption, issues of financial inclusion, and the reliability of smart contracts. Furthermore, security and privacy concerns remain at the forefront, demanding comprehensive solutions harness the full potential of blockchain while mitigating associated risks. Insights gained and analyses conducted by experts indicate that to rapidly advance positive socio- economic development through the integration of blockchain, Cambodia must establish a supportive ecosystem, including the adoption of a national strategy, enhanced collaboration, and improved infrastructure. Moreover, the Ministry of Industry, Science, Technology & Innovation needs to enact a comprehensive legal framework to ensure positive and inclusive impacts of blockchain at a manageable scale. Additionally, the National Council of Science, Technology & Innovation is identified as a suitable governmental entity to address cross-cutting issues related to blockchain. Finally, to cope with the growing demand for blockchain technology experts, Cambodia needs to swiftly implement task force and workforce planning. This involves creating a national-level task force, led by the National Council of Science, Technology & Innovation, to monitor blockchain technology development. Simultaneously, the government should strategically focus on human capital development, laying the foundation for higher education institutions in science, technology, and innovation to be well-prepared for research and development competence. vii Contents FOREWORD........................................................................................................................................................................... I ACKNOWLEDGEMENTS.................................................................................................................................................... II ខ្លឹមសារសង្ខេប..................................................................................................................................................................................... III EXECUTIVE SUMMARY....................................................................................................................................................VI CONTENTS....................................................................................................................................................................... VIII EDITORIAL TEAM.............................................................................................................................................................. X CONTRIBUTORS.........................................................................................................................................................................................X LIST OF TABLES.................................................................................................................................................................XI LIST OF FIGURES............................................................................................................................................................. XII LIST OF ABBREVIATIONS............................................................................................................................................ XIV 1. INTRODUCTION............................................................................................................................................................. 1 1.1. OVERVIEW OF BLOCKCHAIN TECHNOLOGY................................................................................................................................. 1 1.2. BENEFITS OF BLOCKCHAIN TECHNOLOGY FOR CAMBODIA’S DEVELOPMENT........................................................................ 4 1.3. ORGANIZATION OF THIS DOCUMENT............................................................................................................................................ 7 2. UNDERSTANDING THE CONTEXT............................................................................................................................ 8 2.1. SOCIO-ECONOMIC FACTORS OF CAMBODIA................................................................................................................................ 8 2.2. EXISTING TECHNOLOGICAL INFRASTRUCTURES IN CAMBODIA............................................................................................ 11 3. FOUNDATIONAL COMPONENTS.............................................................................................................................13 3.1. BLOCKCHAIN INFRASTRUCTURE................................................................................................................................................ 13 3.1.1. Background on Blockchain Technology.................................................................................................................13 3.1.2. Blockchain Classification..............................................................................................................................................14 3.1.3. Components of Blockchain Technology..................................................................................................................15 3.1.4. Consensus Models............................................................................................................................................................24 3.1.5. Forking.................................................................................................................................................................................27 3.1.6. Smart Contracts...............................................................................................................................................................29 3.2. DIGITAL IDENTITY SYSTEMS...................................................................................................................................................... 30 3.2.1. Identity Management.....................................................................................................................................................30 3.2.2. Blockchain-based Identity Management Solutions............................................................................................33 3.2.3. Discussion...........................................................................................................................................................................36 4. USE CASES AND POTENTIAL APPLICATIONS IN CAMBODIA........................................................................38 4.1. FINANCIAL INCLUSION................................................................................................................................................................ 38 4.1.1. What is Financial Inclusion?.......................................................................................................................................38 4.1.2. Digital Financial Inclusion...........................................................................................................................................39 4.1.3. Driving Financial Inclusion with Blockchain........................................................................................................39 4.1.4. Case 1: Project Bakong..................................................................................................................................................40 4.1.5. Case 2: Blockchain-based Remittance Model.......................................................................................................42 4.2. SUPPLY CHAIN MANAGEMENT (SCM)..................................................................................................................................... 45 4.2.1. Blockchain-Powered Smart SCM: Case 1 - Auto Parts Business Case Study.............................................46 4.2.2. Blockchain-Powered Smart SCM: Case 2 - Textile Industry............................................................................52 viii 4.3. HEALTHCARE AND PUBLIC SERVICES....................................................................................................................................... 54 4.3.1. Blockchain in Healthcare.............................................................................................................................................54 4.3.2. Case Study: Vaccine Management System (VMS)...............................................................................................55 4.4. BLOCKCHAIN IN PUBLIC SERVICES............................................................................................................................................ 58 4.4.1. Case Study: Building a Digital Government Powered by Blockchain..........................................................58 5. IMPLEMENTATION STRATEGIES FOR CAMBODIA..........................................................................................62 5.1. CAPACITY BUILDING IN CAMBODIA........................................................................................................................................... 62 5.2. PUBLIC-PRIVATE PARTNERSHIPS IN CAMBODIA.................................................................................................................... 64 5.3. REGULATORY FRAMEWORK IN CAMBODIA.............................................................................................................................. 66 6. CHALLENGES FOR CAMBODIA................................................................................................................................68 6.1. TECHNOLOGICAL CHALLENGES IN CAMBODIA........................................................................................................................ 68 6.2. ECONOMIC AND SOCIAL CHALLENGES IN CAMBODIA............................................................................................................. 69 6.3. SECURITY AND PRIVACY CONCERNS IN CAMBODIA................................................................................................................ 70 7. CONCLUDING REMARKS AND RECOMMENDATION........................................................................................72 BIBLIOGRAPHY.................................................................................................................................................................73 ix Editorial Team CHHEM Kieth Rethy, MD, PhD (edu), PhD (his) Senior Editor-in-Chief HUL Seingheng, Ph.D. Senior Editor KHUN Kimang, Ph.D. Editor Contributors 1. Introduction TEP Sovan, MSc. 2. Understanding the Context HUL Seingheng, Ph.D. 3. Foundational components KHUN Kimang, Ph.D. 4. Use Cases and Potential Applications in Cambodia Liew Voon Kiong, Ph.D. 5. Implementation Strategies for Cambodia SENG Molika, MSc. CHEN Sovann, Ph.D. 6. Challenges for Cambodia CHHEM Siriwat, MSc. YONG Monyoudom, MSc. SOK Kimheng, MSc. 7. Concluding remarks and Recommendation CHHEM Kieth Rethy, MD, Ph.D. (edu), Ph.D. (his) Publisher Ministry of Industry, Science, Technology & Innovation x List of Tables Table 3.1. Examples of input text and corresponding SHA-256 Digest Values (Yaga et al., 2019) 16 Table 3.2. Comparison between centralized ledgers and blockchain ledger (Yaga et al., 2019)...... 20 Table 3.3. Impact of Quantum Computing on common cryptographic algorithms (Table 2, Yaga et al., 2019).......................................................................................................................... 29 Table 4.1. Emerging Models for Cross-Border Remittance............................................................. 43 xi List of Figures Figure 2.1. Share in Gross Domestic Product (GDP) by major sectors from 2011 to 2021 (Statista, 2023). This chart shows that the GDP sectoral distribution is relatively stable over a ten-year period. 9 Figure 2.2. Cambodia Economic Growth from 2013 to 2022 (https://www.focus- economics.com/countries/cambodia). GDP and FDI stand for Gross Domestic Product and Foreign Direct Investment respectively. This figure shows that GDP and FDI dropped drastically in 2020 due to COVID-19 pandemic.......................................................................................................................... 9 Figure 2.3. Population pyramid of Cambodia in 2008 (shaded) and 2019 (MoP, 2021)................ 11 Figure 3.1. An example of a cryptocurrency transaction. Alice has $20 in her account, and she transfers $15 to Bob.............................................................................................................................. 18 Figure 3.2. An overview of block architecture in which Merkle tree is used in the block header. The block head contains the hash value of the previous block header, nonce value, timestamp, other information, and Merkle tree root hash value. The block data contains 4 transaction data which are stored in the leaves of the Merkle tree. Each of Data0, Data1, Data2, and Data3 is hashed into H0, H1, H2, and H3 respectively. Then, H0 and H1 are hashed together creating H4, and H2 and H3 are hashed together creating H5. Finally, H4 and H5 are hashed together creating the Merkle tree root hash value. 23 Figure 3.3. Generic chain of blocks. When created, Block01 contains the hash of previous block header. Block02 is created after Block01 and contains the hash of Block01’s header. Block03 is created after Block02 and contains the hash of Block02’s header. This structure makes it impossible to overwrite data in the block. Concretely, overwrite data in Block03 requires modifications on Block02, Block01, and other blocks that were created before Block01............................................... 24 Figure 3.4. Workflow diagram of a typical IdM solution............................................................... 31 Figure 3.5. Pictorial representation of a) Independent IdMA, b) Centralized IdMA, and c) Federated IdMA.................................................................................................................................... 33 Figure 3.6. The general architecture of uPort (Alsayed Kassem et al., 2019). IPFS, InterPlanetary File System. 35 Figure 3.7. The architecture of ShoCard (Alsayed Kassem et al., 2019)........................................ 35 Figure 4.1. The process of Cross-Border Money Transfer (Liew, 2020)........................................ 42 Figure 4.2. The remittance flows..................................................................................................... 45 Figure 4.3. The current auto parts supply chain management model. The shortcuts in the figure are: T1S1-Tier1 Supplier, T2S1-Tier2 Supplier, TC-Tan Chong (Name of Tan Chong Motors), DT- Distributor, DL-Dealer, C-Customer.................................................................................................... 50 Figure 4.4. Fabric Network............................................................................................................. 50 Figure 4.5. Blockchain Powered SCM. *Tan Chong is a fictitious name of a car assembler......... 51 Figure 4.6. An example in which Amazon Web Service (AWS) hosts a SCM blockchain network... 51 Figure 4.7. Textile Supply Chain Challenges in Bangladesh.......................................................... 52 xii Figure 4.8. Transaction Flow of Traditional SCM. The shortcuts in the figure are CP-Cotton Producer, GN-Ginner, TR-Trader, SP-Spinner, FM-Fabric Mill, DW-Dyeing & Washing, GM- Garment Manufacturer, RT-Retailer..................................................................................................... 53 Figure 4.9. Architecture of textile blockchain network solution that is hosted in Devo-Tech Cloud server. The shortcuts are CP – Cotton Producer, TX – Transaction, GN – Ginners, TR – Traders, SP – Spinners, FM – Fabrics Mills, DW – Dyeing and Washing, GM – Garment Manufacturers, RT – Retailers. Devo-Tech is the name of a technology park in Dhaka........................................................ 54 Figure 4.10. Vaccine Management System (Ministry of Science, Technology & Innovation, 2022). 56 Figure 4.11. VLT and PoV components in VMS (Malaysian Government, n.d.)......................... 57 Figure 4.12. Track and Trace (VLT) execution model (Malaysian Government, n.d.)................ 57 Figure 4.13. PoV execution model (Malaysian Government, n.d.)............................................... 58 Figure 4.14. X-Road, The decentralized public internet (source: https://e-estonia.com/)............. 59 Figure 4.15. National Digital Id Blockchain Net. NRD stands for National Registration Department. 61 xiii List of Abbreviations Amazon Web Service National Institute of Standards and (AWS)....................................................... 51 Technology Central Processing Unit (NIST)....................................................... 16 (CPU)........................................................ 11 National Registration Department Clinic Pharmacy Information System (NRD)....................................................... 60 (CPS)......................................................... 57 Original Equipment Manufacturer Decentralized Autonomous Organization (OEM)....................................................... 47 (DAO)....................................................... 28 Payment Service Institutions Decentralized Trusted Identity (PSIs)........................................................ 40 (DTI)......................................................... 34 Pentagonal Strategy – Phase I (PS-I).............. 4 Distributed Ledger Technology Pharmacy Information System (DLT)........................................................ 41 (PhIS)........................................................ 57 electronic medical record Post Vaccination & Proof of Vaccination (EMR)......................................................... 2 (PoV)........................................................ 57 foreign direct investment Practical Byzantine Fault Tolerance (FDI)......................................................... 10 (PBFT)...................................................... 37 General Data Protection Regulation Proof-of-Authority (GDPR)..................................................... 71 (PoA)........................................................ 26 General Department of Public-Private Proof-of-Stake Partnerships (PoS)......................................................... 25 (GDPPP)................................................... 64 Proof-of-Work general population census of Cambodia (PoW)........................................................ 25 (GPCC)..................................................... 11 Public-private partnerships Gross Domestic Product (PPPs)....................................................... 64 (GDP).......................................................... 8 Pusat Pemberian Vaksin health information exchanges (PPV)........................................................ 56 (HIE)......................................................... 54 Real-Time Gross Settlement Identity management (RTGS)..................................................... 40 (IdM)......................................................... 30 Royal Government of Cambodia Identity Management Architecture (RGC)......................................................... 4 (IdMA)...................................................... 31 science, technology, and innovation Independent Aftermarket (STI)...........................................................iii (IAM)........................................................ 47 Science, Technology, Engineering, and information, communication, and technology Mathematics (ICT)........................................................... 4 (STEM)..................................................... 62 Know-Your-Customer Securities and Exchange Regulator of (KYC)....................................................... 20 Cambodia medical officer (SERC)...................................................... 66 (MO)......................................................... 58 Self-Sovereign Identity Ministry of Economic and Finance (SSI).......................................................... 34 (MEF)........................................................ 64 small and medium enterprises Ministry of Health (SMEs)........................................................ 6 (MOH)...................................................... 56 social manufacturing networks Ministry of Industry, Science, Technology & (SMNs)....................................................... 3 Innovation supply chain management (MISTI)....................................................... 8 (SCM)........................................................iii Ministry of Planning Sustainable Development Goal MoP........................................................... 10 (SDG)........................................................ 57 National Bank of Cambodia technical and vocational education and (NBC)........................................................ 40 training (TVET)..................................................... 62 xiv Vaccine Logistic Tracking (VMS)....................................................... 56 (VLT)........................................................ 57 World Health Organization Vaccine Management System (WHO)...................................................... 56 xv 1. Introduction It has been more than 20 years since the blockchain technology was proposed from the concept to real applications. In early 1992, Stuart Haber and W. Scott Stornetta developed a system for timestamping digital documents (Sarmah, 2018). This system is designed in a way that makes it difficult to tamper with. In 2008, the first blockchain technology concept was introduced by Satoshi Nakamoto in his paper “Bitcoin: A Peer-to-Peer Electronic Cash Systems,” (Nakamoto, 2008). The idea of Peer-to-Peer electronic cash system is to enable direct online payment from one source to another in the network without having to rely on any third-party. Since then, many works on blockchain concept have been done to produce a cryptocurrency network called the Bitcoin (Rathee, 2020). The success of Bitcoin led to the development of many other blockchain-based cryptocurrencies such as Ethereum, Litecoin and Ripple (Vujičić et al., 2018). In recent years, blockchain technology has gained popularity in other industries such as supply chain management, healthcare, and real estate (Mohamed & Al-Jaroodi, 2019; Bodkhe, et al., 2020; Hölbl, Kompara, Kamišalić, & Zlatolas, 2018; Saari, Vimpari, & Junnila, 2022). As the technology continues to evolve, we expect to see more innovative uses of blockchain in the future. This chapter undertakes an overview of blockchain technology, from the perspective of providing solutions for real-world problems. Section 1.1 provides non-technical description and explanation of blockchain technology applications in different sectors. Section 1.2 focuses on the benefits that blockchain technology offers for Cambodia’s development. The organization of this document is given in Section 1.3. 1.1. Overview of blockchain technology Blockchain, as the name suggests, is an ordered chain of blocks, each is a group of transactions issued by peer, making change of the information in the network. Blockchain follows the concept of decentralized databases, where multiple computers in the network maintain a copy of the same ordered chain. Every user in the network has access to the copy of ordered chain and exchanges information with each other directly based on the identical copied chains. This is different from the cloud technology, in which only the admin has access to the whole database and validates transactions between users (Saghiri, 2020). The procedure of a block being created and added into the chain can be broken down as following (Toorajipour et al., 2022): Initially, when a block is created, it is broadcasted to everyone in this peer-to-peer network. After everyone receiving the new block, it is their work to verifies the block to make sure that it has not been tampered with. This step ensures no other invalid modified of information on this network. Once the new block is checked and verified, everyone in the network adds this new verified block into their own blockchain. The consensus of the network is then created to agree about the validation of the new block. All the added blocks cannot be modified. In case that a block is found to be tampered with, it will be rejected from the network and block cannot be added. 1 For many years, blockchain has been a very popular and widely used topic. It has been adopted in many sectors not only in the financial sector, but also it is proved to be used in other sectors as well such as industrial IoT, agriculture, supply chain management, health, etc. (Borah et al., 2020) proposes a novel project called FARMAR which leverages blockchain technology to tackle the inefficiency and inconsistency in supply chain management (SCM) in the agricultural sector in India. They find out that the current common problems in the agricultural supply chain are the following: Corruption among middlemen is rampant. Lack of transparency throughout the chain as goods transit through the chain. Lack of accountability by all relevant stakeholders. So, blockchain technology is proposed due to the benefit of storing the information that can be distributed to farmer, middleman, and all relevance stakeholders with accountability, transparency, and security. With these features in place, it can be used to manage the entire agricultural supply chain while enforcing high standards of security and transparency. Another application of Blockchain is proposed in logistics transportation in food sector due to its features of traceability and transparency. As the global food market grows (Statista, 2022a), the challenges also rise such as data reliability, trustworthiness of the supply chain, the delivery standard for temperature and humidity during transportation, and the food storage. This information needs to be tracked, traced, and monitored correctly to ensure the quality and safety of product (Nasir et al., 2014). As such, blockchain technology has emerged as an effective form of support for food traceability, safety, and transparency (Centobelli et al., 2022). For instance, the study of (Kamble et al., 2019) suggests that encryption of messages and absence of central admin may enhance trust and security in the food industry while the study of (Acciarini et al., 2023) concludes that the adoption of Blockchain technology has positively influences purchase intention in the food sector. Concretely, from the company’s perspective, there is positiveness in adopting blockchain technology as all information produced along supply chains is auditable with details in real-time would increase the trustworthiness and the credibility of the company. On the other hand, the consumer can have full information of the products in this supply chain of agri-food. In healthcare industry, many applications of blockchain technology have been emerged. The major problem in the healthcare industry is to deal with the sensitive data of the patient. Generally, the medical record of the patient is digitized into electronic medical record (EMR) and is usually distributed in many systems from place to place. These multiple systems can be owned and operated by more than one healthcare service provider. There are many challenges in sharing EMRs among healthcare providers due to numerous problems including security and privacy issues, vulnerability to cyber-attack, which cause the data loss or destruction, and inaccuracy of data entry from paper to computer. Within these issues, blockchain technology can be used to secure the interchange of EMR among many stakeholders (clinics, hospitals, doctors, and patient himself/herself). One of the U.S. startups, Gem (G. Prisco, 2016), has developed a healthcare application called Gem Health network using the Ethereum blockchain technology. With the use of this shared network infrastructure, different healthcare specialists can access the same information, which can improve patient care and address operational inefficiency issues. It also helps limit medical negligence and prevent health issues in an early stage, which can lead to extensive savings in medical costs. It also allows medical experts to track the interactions between a patient and all their previous physicians, which provides a transparent view of a patient's entire treatment history and can help to build trust between all the stakeholders involved in their care (Mettler, 2 2016). The benefits of utilizing blockchain technology in healthcare domain can be the following (Jaroodi, 2019; Bell et al., 2018): Enable controlled sharing of EMRs among multiple healthcare stakeholders. The healthcare providers can interchange EMRs in a secure and controlled way. This would ensure that patients receive the best possible care, as their healthcare providers all have the same information. Facilitate patients’ ownership of their EMRs, while inhibiting their ability to alter them. The patients will have the right to access and control their own EMRs. However, they will not be able to alter or delete any of the information in their EMRs. This is important to protect the integrity of the data and to ensure that patients receive accurate and up-to-date information. Allow patients to control and securely share their health data while maintaining their privacy. The patients will be able to share their health data with others, such as family members, care providers, or researchers, while maintaining their privacy. This can be done by using secure and encrypted methods for sharing data. Enhance pharmaceutical supply chain management processes. The sharing of EMRs can be used to improve the efficiency and effectiveness of pharmaceutical supply chain management. This can be done by tracking the movement of medications through the supply chain and by identifying potential counterfeit or expired medications. Facilitate fine-grain analysis of patients’ data, medical innovations, and research results. The sharing of EMRs can be used to conduct fine-grained analyses of patients' data. This can help to identify new medical innovations and research results. The manufacturing sector is another major industry that has adopted blockchain technology. Blockchain is a cutting-edge information technology that has the potential to revolutionize sustainability in businesses and industries. A great deal of research has been conducted on how blockchain can be used to enable sustainable manufacturing in Industry 4.0, from technical, commercial, organizational, and operational perspectives (Leng et al., 2020). One key area in manufacturing where blockchain can be used is in logistics management as discuss earlier. Logistics management is essential for any manufacturer to ensure fair pricing and timely delivery of raw materials and supplies for production. Additionally, it helps ensure efficient and timely product delivery to customers. Blockchain can be used to improve logistics management in numerous ways (Jaroodi, 2019), including: Reducing time delays in the logistics process by providing a single, immutable source of truth for all data related to shipments. This can help eliminate the need for manual reconciliation of data, which can often cause delays. Reducing management costs by automating many of the tasks involved in logistics management. For example, blockchain can be used to automatically track the status of shipments and to generate reports on logistics performance. Reducing human errors in the logistics process by providing a secure and transparent way to track data. This can help prevent errors such as mislabeled shipments or incorrect delivery addresses. In another aspect, Blockchain can be used to enable social manufacturing networks (SMNs) among manufacturing enterprises. SMNs are a new way of manufacturing that allows enterprises to share and utilize their resources more effectively, fairly, and securely (Ding et al., 2016). This can help enterprises to build more personalized products and individualized services for customers, and to enhance their competitive capabilities. Overall, adopting blockchain in manufacturing sector can help (Leng et al., 2020): 3 manage the logistics and supply chain of the company more effectively thanks to data transparency of the entire chain process including supply of raw materials, delivery to customers, inventory management, business planning and production floor operation. reduce the cost of manufacturing by enabling enterprises to share resources therefore having fair pricing and effective expense. improve the quality of manufacturing by ensuring that the right resources are used to produce the right products in the production operation. speed up the manufacturing process by providing a secure and efficient way to track the sharing of resources and monitoring the entire process. Increase more personalized products and individualized services with multi-companies vertical and horizontal collaboration through data transparency and traceability. 1.2. Benefits of blockchain technology for Cambodia’s development According to Cambodia Industrial Development Policy and Plan 2015-2025, the Royal Government of Cambodia (RGC)’s vision is to transform and modernize Cambodia’s industrial structure from labor- intensive to skill-driven by 2025 by connecting regional and global value chains to develop regional production networks and interconnected production clusters, which enhances domestic industry competition power and productivity, and moving towards the development of technology-driven, knowledge-based modern industries. There are five priority sectors including: A new industry or manufacturing enterprise with high value-added product, creativity, and strong competitiveness, focusing not only on consumer goods, but also on production equipment such as machinery assembly, mechanical/electronic/electrical equipment assembly, transportation assembly, and natural resource processing. Small and medium-sized enterprises in various industries, especially those involved in drugs and medical equipment, construction, packaging, furniture manufacturing, and industrial equipment. Agro-industrial production for export and domestic markets Supporting industries for agriculture, tourism, textile, regional production chains linked to the provision of raw materials, especially for the garment sector, and production of spare parts and semi-finished products. Industries supporting regional production lines of information, communication, and technology (ICT), energy, heavy industries, cultural and traditional handicraft, and green technology. Technologies will play a very important role in supporting and fostering the strategic development of Cambodia in these priority sectors, and science and technology areas. Blockchain technology provides secure, transparent, and tamper-proof database, which can be used as a decentralized platform for building a strong foundation of administration infrastructure, and management systems supporting cross sectors development such as education, health, agriculture, industrial manufacturing, etc. This enables trust and accountability in government and private businesses in Cambodia. The first pentagon of “Pentagonal Strategy – Phase I” (PS-I) is about Human Resource Development. It is the foundation for improving general education, vocational and competence skills, entrepreneurship, creativity and innovation, and a healthy lifestyle. In Side 1 “Enhancement of quality of Education, Science and Technology”, RGC aims at strengthening comprehensive inspection of school management to ensure full time teaching as required by the curriculum and to improve the school 4 governance by preparing school monitoring system to ensure effective and timely response from the nation level. In addition, EduTech roadmap has mentioned about building next-generation technology- enhanced learning ecosystem, which focus on improving innovation and entrepreneurship skills. The primary objective is to rapidly integrate technologies into teaching at home and in schools to support students in acquiring skills and knowledge they need to succeed in life and careers in the modern workplace and society. This will result in building student’s capacity for STEM majors at university as well as encouraging multidisciplinary and multi-stakeholder collaboration between the government, industries, academia, and community. According to EduTech, management systems such as LMS, SMS, EMIS, and HRMS are introduced with a purpose to digitalize schools enabling the paperless institutions and to facilitate the interaction between students and teachers. This will give a bold benefit to education sector in terms of monitoring and managing of the school systems to produce human capital corresponding to industrial needs. Regarding technology, Blockchain is very suitable for developing management systems and digital learning platforms. Due to its potential features of transparency, decentralization, and security, blockchain can support educational sector in Cambodia as the following: Secured and transparent student records: Blockchain can be used to create a secure and transparent record of student academic records preventing fraud and ensuring that students have access to their accurate records. Distributed learning platforms: Blockchain can be used to create distributed learning platforms allowing students to learn from anywhere in the world and would also help to reduce the cost of education. Digital badges and micro-credentials: Blockchain can be used to issue digital badges and micro- credentials helping students to track their learning progress and employers to assess the skills of job applicants. Increased access to education: Blockchain could be used to create a more decentralized education system improving the accessibility to education for people in rural areas. Improved learning outcomes: Blockchain could be used to personalize learning and provide students with more feedback. Moreover, HealthTech Roadmap of MISTI in 2022 points out three inter-related and reinforcing visions: 1) An Integrated One Health Approach, 2) Multidisciplinary Policy and Governance for Health Technology, and 3) Strengthened Research and Knowledge Sharing Capacity. Blockchain plays an important role with the target development of electronic medical record, advanced telemedicine infrastructure, and personal healthcare application. The potential benefits of blockchain in health sector could be: Improved Patient Care: Blockchain can improve patient care by providing doctors with more accurate and up-to-date patient information. Increased efficiency: Blockchain can help improve the efficiency of the healthcare system by facilitating information sharing and care coordination. Healthcare Supply Chain: Blockchain can be used to track healthcare supply chains ensuring that medical supplies are authentic and not tampered with. Healthcare Payments: Blockchain can be used to pay for healthcare services, which helps reduce fraud and facilitate patient payment. Tracking the spread of disease: Blockchain can track the spread of disease by recording the movement of people and goods. This helps identify outbreaks of disease and prevent its spread. The other main features of blockchain are traceability and reliability of the information to be shared with related stakeholders. This feature is important in agricultural sector. As mentioned in AgriTech 5 Roadmap (MISTI, 2022), blockchain is one key technology that reduces inefficiencies and waste, fights food fraud, and improves food safety. To be more specific, the use of blockchain technology will give numerous advantages in agricultural sector including: Track the movement of goods: By tracking the movement of goods from farm to market, it helps to ensure that products are delivered on time and in good condition. Reduce food waste: Blockchain can be used to track the movement of food, which can help reduce food waste. Improved crop yields: Blockchain can be used to collect crop yields and other agricultural data. This data can then be analyzed to identify trends and patterns, which can be used to improve crop yields and agricultural practices. Enhancing resilience: The resilience of agricultural sector can be enhanced by tracking weather patterns and other data which give a predictable outcome and help farmers adapt to changing climate conditions. Transparency: The record of all transactions in agricultural supply chain will be transparent and this will help build trust between farmers, suppliers, and consumers regarding pricing, safety, and quality of goods. Finally, to strengthen manufacturing sector, RGC has embraced four strategies (Cambodia Industrial Development Policy and Plan 2015-2025): 1) Attract foreign investment and private domestic investments with a focus on large industries, 2) Develop and modernize small and medium enterprises (SMEs) ensuring the technology transfer and industrial linkages, 3) Strengthen the country competitiveness by disseminating market information and reducing informal fees, and 4) Coordinating supporting policies (development of human resource, technical training, improvement of industrial relations, development of support infrastructure such as transportation/logistics, and information and communication technology (ICT), supply of electricity and clean water, and public, social and financial services). Correspondingly, blockchain can play a crucial role in assisting, modernizing, and accelerating these strategic activities. The details benefit of blockchain contributing to manufacturing sector can be explored as follow: Increased collaboration efficiency: Blockchain can help increase efficiency in manufacturing by facilitating information sharing with partners in coordinating the production process. Traceability in the supply chain: The flow of goods and services from suppliers to customers will be better planned, organized, and controlled. Additionally, it will result in improving efficiency, reducing cost, and ensuring the product or goods are delivered on time and in good condition. Track the manufacturing process: The movement of products throughout the manufacturing process can be tracked from sourcing raw materials to delivering the finished goods. This would give accurate production floor, stock inventory management, and demand forecasting and planning. Track the use of resources: Blockchain could be used to track the use of resources such as water and energy. This could help reduce environmental impacts and manufacturing waste and ensure that resources are used efficiently. Transparency: Blockchain can be used to create a transparent record of all transactions in the manufacturing supply chain. This would help to build trust between manufacturers, suppliers, and customers. 6 1.3. Organization of this document This document is structured into seven chapters, each serving a specific purpose in the overall narrative. This first chapter lays the groundwork by providing an initial overview of blockchain technology and its benefits for Cambodia. Moving forward, Chapter 2 delves deeper into the socio-economic factors and existing technological infrastructures in Cambodia, providing valuable insights to understand Cambodia’s context. Chapter 3 explores the fundamental building blocks and components of blockchain technology and identity management systems. Chapter 4 shifts the focus towards practicality, discussing real-world applications and scenarios where blockchain technology can be effectively utilized. Implementation is at the forefront in Chapter 5 where strategies and approaches for successfully implementing the blockchain technology are thoroughly examined. Chapter 6 covers the potential hurdles and obstacles that may arise during the implementation. These obstacles are classified into three categories: 1) technological, 2) socio-economic, and 3) security and privacy challenges. Finally, Chapter 7 brings the document to a close, summarizing the key findings, insights, and takeaways while offering potential recommendations for future actions to adopt blockchain technology successfully. 7 2. Understanding the Context 2.1. Socio-Economic Factors of Cambodia Cambodia is experiencing economic stability thanks to her strategic policies, but recent challenges, especially those due to COVID-19 pandemic, have prompted Cambodia to diversify her economic developments with an emphasis on science, technology, and innovation as a strategic driver for long- term growth. Cambodia has been relying on some important sectors including industry, tourism, agriculture, and construction. Lately, the service sector has been negatively affected due to COVID-19 pandemic, the uncertainty in supply chain caused by Russia-Ukraine conflict, and various environmental issues. Even though the service sector, especially tourism, is heavily affected by the pandemic, Cambodia continues to display good signs of economic stability. This is because the supply chain in agricultural and industrial sectors are not severely interrupted. Moreover, the service in the financial sector seems to be growing well due to various government policy interventions, notably Cambodia Digital Economy and Society Policy Framework 2020-2035 (RGC, 2020). After the pandemic, the country regains her composure and catches up with more diverse forms of economic development from the traditional economic pillars. In addition to policy intervention for recovery, the country has valued the significant role of science, technology, and innovation (STI) as a strategic sector for long-term growth. For instance, the Ministry of Industry, Science, Technology & Innovation (MISTI) was established during the pandemic in 2020. This structural transformation could add up more to transform the socio-economic development from conventional paradigm to skill-based economy. Cambodia’s Gross Domestic Product (GDP) sectoral distribution has remained relatively stable over a ten-year period (see Figure 2.1), with the service sector consistently above 30%, a slight growth in industry, and a slight decline in agriculture leading Cambodia to boost local food production. The economic share from industry is seen to be contributed mainly from labor intensive activities viz garment and footwear industries. On the other hand, agricultural activities are responsible in general as primary producers. The processed agricultural products have less business to serve local and oversea markets as seen in the research ecosystem report jointly made by MISTI and UNESCAP (MISTI and ESCAP, 2022). For this reason, one of the national research priority agenda among the eight fields is agricultural food processing, which is “Local food: 70 percent of Cambodia food consumption is produced locally”. It is noted in the eight-priority agenda include (MISTI, 2022): - ‘Local food’: 70 percent of Cambodia food consumption is produced locally. - ‘Reliable Energy Supply’: 90 percent of energy consumption is generated locally. - ‘Quality Education’: Education meets international quality standards. - ‘Electronic and mechanical spare parts’: Cambodia exports 70 percent of the electronic and mechanical spare parts produced in the country. - ‘Cloud-based services’: Cambodia’s cloud-based services development is on par with ASEAN. - ‘Electricity and potable water’: All Cambodians have access to reliable electricity and safe potable water. - ‘Carbon neutrality’: Cambodia becomes a carbon neutral country. - ‘Digitally-enhanced health’: All Cambodians have access to digitally-enhanced health services. 8 Figure 2.1. Share in Gross Domestic Product (GDP) by major sectors from 2011 to 2021 (Statista, 2023). This chart shows that the GDP sectoral distribution is relatively stable over a ten- year period. Figure 2.2. Cambodia Economic Growth from 2013 to 2022 (https://www.focus- economics.com/countries/cambodia). GDP and FDI stand for Gross Domestic Product and Foreign Direct Investment respectively. This figure shows that GDP and FDI dropped drastically in 2020 due to COVID-19 pandemic. The vision of RGC to become an upper-middle-income country by 2030 and high-income country by 2050 is evidence that all policies and further structural transformation are supporting this national 9 endeavor. The launching of industrial policy 2015-2025 is obvious that the industry is to be shifted from intensive-based labor to skill-based labor (RGC, 2015). Other important policy instruments have been established to compliment the vision, which includes National Policy on STI 2020-3030, Cambodia’s STI Roadmap 2030, National Research Agenda 2025, Automotive and Electronic Roadmap, and many other related policies. The above policies are intervened to address challenges and ensure resilience growth. From 2021, Cambodian economy starts growing again after the pandemic. It is known that before COVID-19 pandemic, Cambodian economic growth rose to more than 7% for almost ten years as seen in Figure 2.2. The percentage of people in poverty has reduced significantly from 2009 to 2019. It was estimated that about 2 million people escaped from the poverty line per assessment by the Ministry of Planning (MoP, 2021). The stability of macroeconomics and the openness to foreign trade and investment are the major factors attributing to the growth in the last decade (World Bank, 2022). RGC has implemented policy initiatives to leverage economic conditions and support growth, focusing on recovery from the pandemic and long-term economic resilience, but unpredictable global challenges pose uncertainties that lead to RGC’s steps for structural transformation, including economic diversification and digital transformation for long-term growth. The industrial production was hit hard by the pandemic as seen in Figure 2.2. This decline in 2020 caused a significant decrease of GDP in the same year. The situation has some improvement in 2021 and 2022 for the overall GDP. However, the industrial production went down again for 2022. The GDP remains increasing, which explains that the other sectors such as agriculture or services shared more value in the overall economy. To elevate the economic situation and maintain economic growth, the government has launched many important operational policy initiatives. One of the major policy interventions in action is the Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021- 2023 (RGC, 2021). The main objective of the policy is to put Cambodia's economic growth in the near- and-medium terms, back on path to its potential growth and strengthen resiliency for sustainable and inclusive socio-economic development in the long term. It is important to note that this policy intervention addressed mainly the challenges due to the pandemic, while the new uncertain circumstances such as Russia-Ukraine conflict and instability in the financial sector in the United States has not been accounted for in the policy. Additionally, the new trading regulation due to Environmental Social Governance could pose another challenge in the trading ecosystem. For these reasons, the government has placed some significant steps for structural transformation for long term growth, which include economic diversification model and digital transformation. Cambodia aims to address slow growth in foreign direct investment (FDI) and industrial production’s share of GDP by attracting FDI in high-value-added sectors, developing local human capital, and promoting technology-based manufacturing among local small and medium enterprises for inclusivity and resilience. The growth in billion dollars of FDI has been increasing slowly, while the share of industrial production to GDP is also not significantly increasing during this last ten years as seen in Figure 2.2. Thus, the vibrant ecosystem of attracting FDI in the high-value-added sectors is the forefront endeavor for Cambodia. At the same time, the development of human capital for the industrial priority sectors needs to be made to ensure that knowledge/technologies are transferable to the local. After some period, the locals will be capable to domesticate the knowledge/technologies once the FDI is relocated to another sectors. On the other hand, mobilizing local resources for investment in technology-based manufacturing could be timely since FDI is always moving from one sector to another. Thus, promoting or upgrading local small and medium enterprises are indispensable for inclusivity and resilience purposes. 10 Demographically, Cambodia has a population dominated by the young age of between 10 to 40 years old. The population pyramids show this group of labor force got shrunk a little in 2019 per data from the general population census of Cambodia (GPCC) in 2019. In general, the tendency is getting smaller in the future per overall observation on demographic development mode of many countries around the world. This demographic change correlates strongly to the socio-economic development. As shown in Figure 2.3, the demographic dividend of Cambodia could have about more than ten years. Figure 2.3. Population pyramid of Cambodia in 2008 (shaded) and 2019 (MoP, 2021). 2.2. Existing Technological Infrastructures in Cambodia Blockchain applications rely strongly on the existing soft and hard infrastructures. Soft infrastructure refers to policy and operational instruments allowing this technology to be deployed officially and legally. Hard infrastructure refers in general to the technical competences and physical systems. Technological advancement of blockchain technology has been growing promisingly in private sectors, especially the financial transaction. In principle, the internet of things is fundamental in node networking of blockchain technology. This basic infrastructure is required for both physical systems and software management. At the same time, cybersecurity in physical and virtual space is undeniably needed to deploy blockchain technology. Blockchain infrastructure requirements are necessary for both software and hardware. These infrastructures are the general foundation for successful deployment of blockchain in the public and business sectors. The software requirements include 1) Solidity which is common languages built upon C++, Python, and JavaScript, 2) Geth (go-ethereum) – This is the gateway to the implementation of decentralized system – 3) Mist – This is made by developers, which required exceptionally memory capacity of at least 1TB – 4) Solc (Solidity Compiler) is outputs byte code as results from application solidity, which is used in smart contact development, 5) Remix IDE is a tool used for designing, testing, debugging, and deploying the smart contract system. On the other hand, the hardware requirement for blockchain implementation has seen to be diverse, which depends on application types, either public or private organizations. However, some common grounds of hardware infrastructure for blockchain could be 1) Central Processing Unit (CPU): It is known that high performance of processors is always fundamental in deployment of computational tasks. Thus, central processing unit is one of the major tools to be primarily assessed, 2) Blockchain and Graphic Processing Units: this is the supporting unit 11 to CPUs, mainly in the calculation performance, 3) Nodes and Clients: the computer as nodes for authenticating of transaction, recording, storing, or network governance, while the clients are the required computer programs, and 4) Cluster: this refers to failover protection, load balancers, container services, and monitoring and alerting services. Finally, the other most important factor is secure infrastructures. There are at least four aspects to implement the blockchain smoothly and successfully. They include 1) Infrastructure as a service, 2) Platform as a service, 3) Optimize participation: Hardware, nodes, and solution, and 4) Enterprise-Grade Security and Technical Support (ServerMania, 2023). 12 3. Foundational components Blockchain is a relatively new technology that possesses properties of transparency, immutability, traceability, and decentralization necessary for various applications (Wang & Jiang, 2020). Basically, it allows a community of users to record transactions on a shared ledger within the community, such that under normal operation of the blockchain network no transaction can be altered once published. This characteristic can be utilized to create identity management solutions that allow the user to take control over his/her own ident

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