Blockchain technology (the technology behind Bitcoin) has gained a lot of attention in the last years as we find more solutions to enter different industries. From real estate, voting systems, data, identity, to more traditional environments like banks and insurance companies. Ultimately, this new technology will work in all industries. We will show you why in a second.
Blockchain will not only disrupt these industries as it’s already doing, but will also merge with new disruptive technologies as well, such as Artificial Intelligence (AI), the newly-coined term ‘Fin-Tech’ or ‘Financial Technology’ which basically means creating new systems and solutions for payment systems, exchanges, wallets and creating basically new kinds of banks (Digital Banking).
For this specific article, we will describe how blockchain can impact the telecom industry in the next years. Just before I begin, the real breakthrough is that blockchain can be or has the potential to be used to “value” the information that exists in the internet.
Current core and VAS opportunities
Fraud Management: Between networks, blockchain can be implemented to reduce the possibilities of fraud, and therefore will reduce costs for fraud detections applications.
Identity as a Service: Telecoms can offer identity and authentication encryption services, through the implementation of blockchain an eSim solutions.
Future Telecom Trends
Besides the contributions it may give to 5G in terms of connectivity, blockchain may also enhance IoT devices’ abilities to communicate between themselves and provide micro-payments solutions.
Let´s take a quick look at fast solutions that can be implemented to Telecom using Blockchain.
OSS and BSS processes (such as billing, eSIM provisioning, and number portability databases) can benefit from hybrid blockchains, which have both public and private facets
Hybrid blockchains with public components could enable the implementation of databases that usually require costly integrations and trusted access settings.
Digital asset transactions
The extremely low transaction costs related to blockchains (compared to those of credit or debit card transactions, for example) make them suitable to micropayment-based business models for digital assets, including music, mobile games, gift cards and loyalty points.
Public blockchains are particularly useful in cases where high levels of transparency and security are required, such as smart city initiatives. South African start-up Bankymoon allows smart meter users to pay for electricity with Bitcoin.
It is no surprise that the Blockchain will take further leaps of disruption and we will continue to write about it.