A podcast report by Coin Survey, 20th December 2018.
How could blockchain be applied to the telecom industry? And how would it affect business models and customers?
The telecommunications sector plays a paramount role and is a critical force for growth, innovation, and disruption across multiple industries.
With the sector evolution and the change in business dynamic from longer call model to data and content ecosystems, new challenges and equal new opportunity has spring boarded.
As we evaluate the marriage of communication industry with blockchain, the promise has the potential to disrupt Current Service Providers (CSPs) monopoly of information and infrastructure resources or scope of operations.
The programmable types of blockchain technology will change competition within the telecommunications, or telecom, industry and could change the business model immensely, herein.
According to Deloitte’s 2017 Telecommunications Outlook, “telecoms will not be able to achieve rapid growth without upgrading their network infrastructures.”
Private consortium infrastructure networks on Blockchain protocols owns and operated by various Current Service Providers (CSPs) collectively, will decentralize current monopoly and facilitate sharing economy in the communication area.
It will usher in trust, security, and transparency in this participating ecosystem with Blockchain’s core attributes of data immutable, verifiable and traceable.
The result is lower infrastructure costs for telecom providers, improved data security, better networks, efficient system and lower tariffs to customers.
The upgraded private distributed CSP infrastructures encompassing public and private companies within the telecom industry will provide various types of solutions such as:
- 5G network support,
- Internet of Things(IoT) securitization
- Identity management.
Interoperability will never be an issue on the blockchain.
Applications of Blockchain for Telecom
5G + blockchain
5G, the next-generation wireless technology, promises ultra-high transmission speed about 100 times faster than 4G, will be the connective tissue for the Internet of Things (IoT), autonomous vehicles, and mobile media, just to name a few.
Private decentralized consortium infrastructure networks following the consensus mechanism on a blockchain platform speeding up the construction of 5G infrastructure.
The consensus mechanism rewards these third parties or participating nodes in this infrastructure networks in cryptocurrency through self-compliance smart contract fairly and transparently by measuring their contribution to the network.
IoT + blockchain
The cost and speed up the realization of the IoT network ecosystem will be boosted by Blockchain DLT.
The future of the Telecom industry could very well be a decentralized future, where consumers contribute to a global mobile network and benefit from their contribution.
The Internet of Things brings in new avenues of revenue streaming for CSPs through digitally documenting every move, query, purchase, plan, and transaction embedded IoT sensors.
However, is bring equally new challenges where transactions among devices need to be managed securely before these systems can be implemented on a large scale.
A secure dynamic peer-to-peer distributed network solution operated by multiple CSPs, enabling highly secure transactions in real-time monitoring for IoT ecosystems.
Identity Management + Blockchain
A self-sovereign identity ecosystem put lights on new vistas, the promise of blockchain and ownership/ tokenization of personal data. This not only brings back full control to the end-user to manage their identity, and it offers a new revenue model for CSPs.
Using an eSIM (embedded SIM) the CSP creates a virtual identity using the public key identifiable information, such as name, address, etc. for a user. It then adds a digital signature using its own private key.
The verification process involving both public key and private key encrypted channels of communication for transaction authentication, in this participating ecosystem with Blockchain’s core attributes of data immutable, verifiable and traceable builds in trust, security, and transparency.
This parallels the arrival of new industries of tokenization of personal data or incentivization of time spend on social networks all running through a private infrastructure network on Blockchain protocols owns and operated by various Current Service Providers (CSPs) collectively, with stakes in the ownership and profits.
Moreover, Blockchain based Identity verification, data management/ authentication and storage services for both private clients and subscribers, will bring innovative channels of revenue streaming for CSPs.
What tomorrow holds?
The blockchain is not a panacea for all the problems and bottlenecks in the communication industry.
But it pictures a promise of a future of the Telecom industry that could very well be a decentralized future, where consumers contribute to a global mobile network and benefit from their contribution.