How Blockchain Is Shaping The Future Of Telecommunications

Blockchain technology is getting tremendous traction in the world. We want to look at the use of this tech in the telecom industry – the probable areas of use, what the leaders are doing and where Wipro can help it’s clients deploy in the future.

What is Blockchain?

We all associate Blockchain with Bitcoins. To be fair, that’s how it started – Bitcoins were/ are transferred through blockchain before other use cases were imagined and developed. And now this technology is fast evolving to disrupt the way transactions are being processed, users are being authenticated and payments are being executed. Fintech was one of the earliest industries to first adopt the technology. However, there are varied possibilities in almost every industry. In this document, we will see the implications and opportunities that are available in the telecom industry.

Blockchain is a shared ledger that is replicated across users in a particular network. The ledger maintains all the transaction details between parties. The entire system becomes highly secure, transparent and devoid of any restricting intermediary that we all depend on in any similar transaction-based network available. If a customer requests for a transaction (let’s say order bread from Amazon), this transaction will be transmitted in the Blockchain network through its own unique #. One of the nodes will identify the # and verify it and enable the transaction to be completed.

At no given point in time does the node get to know who the final end customer or vendor is. Hence, Blockchain is an incorruptible digital diary comprising of transactions (can be data, currency or anything of economic value). Each transaction is unique and gets recorded in a distributed system that can never be lost.

Telecom organizations in 2019 – How are things shaping up?

Interestingly, the way the telephone connects people hasn’t changed dramatically over the last 20 years. Yes, our SIM cards have grown smaller and we now have many ways to transmit audio, video and text over the internet, but the core telephone logic based on the SIM cards (which were developed way back in 1991) has not changed. What has completely changed is the way we treat data. The speed of transfer over the internet cannot be compared to three or maybe four years back. 5G, which is being tested currently, will allow ever higher data transfer rates, minimum network latency and a huge system of interconnect devices. We will see application of using IOT devices, sensors, facial recognition, AR, VR to achieve a variety of use cases previously unimagined.

Both providers and subscribers struggle with roaming, high fees, risk of fraud, privacy issues and so much more. After exploring potential solutions, decentralization (which is one of the core fundamentals of Blockchain) could be the key to solving those issues.