Application of Blockchain technology in telecommunication technology

Blockchain technology is considered a pioneer technology, making an important contribution to the business and management processes of organizations and businesses. Not only contributing to changing the potential of the fields of health, insurance, finance, education, Blockchain also opens a big revolution to the telecommunications industry. Today's article, E-GROUPS Vietnam would like to introduce to readers the application of Blockchain technology in telecommunications.

Telecommunications industry situation in 2019

Currently, the main way to connect people through phones and the Internet. However, experts say that the telecommunication industry is now obsolete because it is mainly based on the Subscriber Identification Module (SIM) developed in 1991. However, a good signal is the SIM card. is gradually being replaced by eSIM cards, a type of digital chip that functions similar to sim cards today. Even so, eSim is unable to fully solve installation issues. In addition, roaming issues when calling, fraud risks and privacy issues have motivated telcos to turn to blockchain technology.

Free telecommunications?

We know that, in capitalist societies, there is very little free stuff. However, there have been a number of telecom companies that have come up with an operating model in which subscribers are not only free, but they even get rewarded for participating in the model. This idea was made possible thanks to digital advertising. Basically, subscribers become token holders and there's no need to pay for mobile data and services, and telecommunications companies receive advertising revenue.

No more roaming calls

As with unnecessary high fees, roaming is something most customers don't want. Tourists often incur high fees abroad because they usually only have two options: buy a prepaid SIM card or turn on roaming. However, Blockchain technology can completely solve this problem. Telecommunication company Bubbletone is developing a separate blockchain for mobile operators and service providers that allows direct interaction with subscribers, eliminating roaming globally.

The company introduced Global Insurance, a platform where participants place orders and offers, and operators can distribute SIM cards among customers - allowing them to upload mobile profiles of they via SMS or encrypted data channel to buy the service pack.

And they will only pay local rates when using their current SIM. IBM has now provided a solution for roaming. The idea is not to eliminate fees, but to avoid disputes between related parties that may arise on the grounds of payment for mobile services. The application of decentralized mobile and data services eliminates the boundaries between countries, providing users with the opportunity to communicate globally. This model will be more effective than regular prepaid packages for tourists, as costs are reduced while average revenue per user and lifetime value will increase.

Privacy responsibilities

Users are increasingly concerned about the security of personal data (or in other words, their privacy). After allegations of the sale of user data by large corporations, people are increasingly paying attention to activities on the Internet. The encrypted messaging service is nothing new. International giants like WhatsApp, Telegram and Viber are the leaders in this field. However, the blockchain takes privacy to a new level: Private keys do not allow third parties to access anyone else's messages, making the user's activities absolutely confidential.

Detect and prevent fraud

According to Deloitte research, the telecom company loses $ 38.1 billion a year due to fraudulent activities. Most telecom frauds occur when people use fake identities to buy services. Blockchain implementations are subject to change: Mobile devices will be tied to the owner's identity, but instead of broadcasting the International Mobile Subscriber Identity, the owner's public key will be used. Neither the operator nor any other third parties need to know the private key.

Meanwhile, the risk of roaming fraud can be reduced by implementing a licensing blockchain - that is, limiting the parties that can access and transact on it - between the agreed operators. forward roaming.

Data transfer for the Internet of Things

The Internet of Things simply means that all devices can connect to each other. The connection can be made via Wi-Fi, telecommunication networks (3G, 4G), Bluetooth, ZigBee, infrared. The devices that can be connected to each other include smartphones, coffee machines, washing machines.

However, this also causes some devices of strangers to interrupt communication quite high. Dishwashers may not have any secrets, but medical devices or smartphones connected to the IoT often handle sensitive, confidential information. And of course no one wants this information to be exposed. And blockchain can create a safer environment for data transfer. Moreover, blockchain helps reduce the costs associated with IoT maintenance. Iota, an open source digital ledger, aims to power the IoT with free micro transactions and data integrity.

The company provides a secure and scalable solution for a machine-free economy. Huawei, a major telecommunications company, has developed an IoT connectivity management platform, ensuring connectivity between people and everything. The company provides IoT and NarrowBand IoT edge computing, which is suited to cases where the reliability of data transmission is more important than its speed. They offer broader coverage, lower data rates, costs and power consumption, as well as increase the average revenue per user for different industries.

Mobile payment is more secure

Paying bills via the internet is still an option for many. Blockchain allows secure transactions, which is why many payment services rely on distributed ledger technology. Beluga Pay is a startup focusing on instant payments made on blockchain. The service allows users to pay and be paid with Beluga identifiers, cryptocurrencies or BBI tokens.

Utrust, another blockchain-based cryptocurrency payment platform, guarantees complete buyer protection to buy both goods and services. Swisscom, a Swiss-based telecommunications service provider, in addition to providing mobile, TV, telephone and internet services to individuals, designing and organizing distributed ledger solutions for enterprise.

While blockchain deployments are still facing significant resistance among the masses when it comes to creating payment conditions, the telecom industry's chances of improvement are almost limitless - and if something that can make it more efficient, faster, cheaper and more secure, then that's blockchain.

Epilogue

The application of Blockchain technology in the telecommunications technology industry in the 4.0 era helps businesses have many business opportunities. is a way for businesses to grow quickly and conveniently. Therefore, businesses need to consider carefully in conjunction with software providers and website developers.

E-GROUPS Vietnam is always a trusted address of every customer because we always ensure the quality of e-commerce services better than customers' wishes. Please contact us to receive a quote on blockchain websites design. If there are any concerns online consulting team is always ready to assist customers.

Contact information

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Address: 22 Quach Vu Street, Hiep Tan Ward, Tân Phu Distrist, HCM City

Phone: (+84)86 705 74 79

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