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[Audio] Good day everyone, I am Dung Luu Trung, Manager of R&D and International Cooperation at Vietnam Securities Depository ( VSD). Now I would like to share to you our idea on application of distributed ledger technology for securities depository at VSD..

Here are the content, which I would like to share to you

[Audio] First, we go to DLT in Overview. As you might know, Distributed ledger technology (DLT) is a digital system for recording the transaction of data in which the transactions & their details are recorded and stored in multiple places at the same time. Unlike traditional databases, DLT has no central data store or administration functionality. In DLT, each node processes and verifies every item, thereby generating a record of each item and creating a consensus on its veracity..

[Audio] With DLT, transaction's records are immutable or completely safe against hacker. Data are saved across computer network in viral way, so the transaction speed is very fast..

[Audio] Now I would like to make a comparison between conventional data storing and data storing with distributed ledger technology. As conventional technology, full ledger data is stored centralized in CSD main computer. Data can be duplicated stored in others backup computers too. Depository members (some where depository participant called) can access only part of ledger, which is related to member business. Although CSD main computer and backup computers are protected with firewalls, but hack or manipulation danger is still existing. With distributed ledger technology, data will be hashed (digital signed) and saved across (decentralized) CSD and DM computer network. Data hack or manipulation is impossible. But, can we simply apply the full distributed ledger technology like above showed picture?. No, so simply is not. We have to care about data privacy.

[Audio] As to protect data privacy, we are considering 2 options of DLT application for depository data storing at VSD. 1st option is fully decentralized dada storing. Full ledger (full data) are saved in every node. VSD is full node and DMs are permissioned nodes. VSD as full node can access the full ledger. DM as permissioned node stores all data but can only access certain ledger's data, which is related to its business and permissioned by VSD. This model is alike Hyperleger Fabric protocol..

[Audio] The 2nd option is limited decentralized data storing, where full data are stored only in limited number of main computers within VSD own network. DM as client can store and access to related data, which is permissioned by VSD like current common practice of data management at every CSD..

[Audio] Making a comparison on pros and cons between 2 options. With 1st option, data is 100% immutable, completely safe. No hack or manipulation is possible. However, there is concern about unauthorized data access or access key hacking. Because depository data of other member is also stored in every node, someone, who has access key, can access data of other DM. So, it is difficult to convince regulator that data privacy is being protected. With 2nd option, theoretically, data is not fully immutable. However, if data are stored in 5 or more nodes with in a private network, it can be considered as safe, almost immutable. Hack and manipulation are almost impossible. Because full data stay only in CSD own network and a DM can only store and access its related data. Therefore, data privacy is protected. Beside, because data are to stored in limited computers, the process speed is higher and importantly, there is no need to convince regulators on keeping data privacy..

[Audio] Therefore, our model of DLT application is the option 2. Full ledger will be store in an DLT network of about 5- 7 nodes. DM are allowed to stored and access related data like current data management model. The DLT model will be certified by third party, independent certifier to make sure that the data is safe, immutable.

[Audio] Thank you for your attention. We need your comments and would be happy to have and answer your questions. Thank you very much..