Blockchain is the only optimal solution for telecom privacy concerns
Yes, blockchain is the future of telecom. Blockchain technology is an optimal solution for industries in which security matters a lot. Indeed, telecom is one of those industries in which data processing is involved, and so is security. Immutability and secure authentication is the most significant challenge the telecom industry is facing in this era.
It could only be solved with blockchain implementation throughout data processing. Large social media corporations are already selling users’ data, and it has increased privacy concerns among masses. Blockchain will take encrypted messaging services to the next level, as private keys implementation does not let third-parties access users’ activities.
The centralized, hierarchical structure of current telecommunication structures has been proven time and again to be ineffective. These existing structures result in numerous abuses of privacy every year. The recent string of cyberattacks on places as diverse as Florida public libraries to the Greek parliament have proven that blockchain is the way of the future.
Whether social media data or health care records, people have become increasingly aware in recent years of how companies breach and sell their personal data. With a blockchain, only the select individuals with a private key would have access to private information such as credit card or social security numbers. If these companies were to switch to a blockchain structure, it would be much more difficult for companies to abuse their users’ personal information.
While blockchains are not “unhackable” as some people have claimed, it is far more difficult to hack into a blockchain than a traditional telecom structure. Since the blockchain is decentralized, all participants in a blockchain can see its transaction history, but stripped of specific user information. If someone were to hack into a blockchain, they would need to somehow hack the blockchain as it exists on at least 51% of individual users’ histories, as opposed to just hacking a single hierarchical system.
The future is blockchain for telecommunication companies and any other sector. To understand why and how the blockchain technology will change the way of doing business, we have to face the evolution of modern technologies.
Since 2015, with the launch of Ethereum, the global open-source platform for decentralized applications, it is clear that blockchain technology is the game-changer. Individuals and organizations can create digital value and self-operating computer programs with the logic of a traditional contract. Even the execution and authorization of payments is ensured. Absolutely exciting! But why was it such a revolutionary innovation? Because it cuts out every kind of middleman—meaning no third party service is needed. The execution of a contract can now be decentralized.
Since the bitcoin blockchain, we don’t need banks any longer. We can store or transfer money ourselves. Then Ethereum took us 3 steps further. First of all, because every business can now grow via ICO (Initial Coin Offering), IPO’s (Initial Public Offering) became outdated. Secondly, we don’t need a notary to execute a contract. And thirdly, we no longer have to use unsecured and untrusted cloud services to distribute valuable assets. The launch of smart contracts was very inspiring. It was the starting point of rolling out blockchain technology to sectors other than financial services. That implies the telecom sector and many others. Now they can profit from fast and secure transactions.
Let’s look at some applications we’re currently setting up for telecom companies. The German Telekom, for example, is working on various use cases. One is an automated interconnection payment system between telecommunication providers. Another case is an IoT (internet of things) for client identity management.
Other telecommunication companies around the globe are working on other use cases. They’re creating Apps based on blockchain technology to disintermediate common business structures. Furthermore, blockchain can significantly reduce losses due to fraud—especially when it comes to roaming fraud. Hence, a lot of decision-makers in the telecom industry have realized that the use of blockchain technology is minimizing their costs as well.
Finally, the realization of 5G networks cannot be done without the use of blockchain. As an enabler for a new generation of access technology, the selection mechanism required for the realization of modern networks like 5G is called blockchain as well.
Blockchains are a useful tool that will almost certainly become an integral part of the telecom industry. This is because telecom companies need to share a large amount of information between them. Currently, there isn’t an efficient way to do this. Closed databases and data stores make it difficult.
Blockchains allow telecoms to openly and efficiently share pertinent data. Think SIM information, IMSI numbers, and partner agreement (i.e., roaming deals). This will lead to open standards that will allow for lower operational costs and easier entry to competitors. There are already a number of blockchain protocols dedicated to this industry.
Andrey Arkhipov is the Head of PR & Communications at Credits.com with more than 4 years of experience with blockchain business, including IT fintech projects, crypto exchanges, and social platforms. Andrey has been working on Credits’ blockchain platform since 2017.
High value and innovative
The telecommunications industry is undergoing one of the greatest changes in its history due to the advent of the Internet of Things and 5G. Both technologies support replacing voice with data. The voice used to be a driver of large volumes of transactions, but now data has an increasing share due to the role of machines in generating large volumes of IoT input.
The abundance and growth of data pose the challenge for carriers to store, manage and share this information to add value to the business. The blockchain can become a platform providing high value and innovative use cases, such as data access control (providing end-users with the opportunity to decide how and who should have access to the generated data), device identification (blockchain integration, IoT and device recording security to the network and the prevention of malicious use) or data exchange (creating accessible data markets where data providers receive rewards from data consumers).
The telecommunications industry is strengthening its global ecosystem and is looking for technology that fosters collaboration and creativity. The blockchain is perfect technology and can provide greater efficiency and new features that haven’t been explored yet, so we can surely say that blockchain technology is the future for the telecom industry.
Blockchain has an immense potential to solve most, if not all, of the challenges that the telecommunications sector is currently facing.
Most of [these problems] are because of its centralized operational structure. This centralized handling of data creates problems such as billing inaccuracies, high fees, and security issues as fraud and privacy concerns. The decentralized nature of blockchain technology could be the key to solving those issues.
With the use of private keys, blockchain can resolve security issues. Privacy is on a whole new level as these keys could encrypt data and act as virtual IDs tied to the owner’s identity. This technology adds another nearly unbreakable layer of protection and even decreases the process of authentication.
Privacy and accountability
Blockchain undoubtedly has a large part to play in the modernization of many industries, and telecom is no different. Blockchain is not suited for a number of things but is really good at doing two things in particular: privacy and accountability. Within the telecom space, there are plenty of opportunities for blockchain to replace existing data control mechanisms in providing enhanced security and to allow for more streamlined auditing of the way that data is transferred by telecom systems and networks.
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