Is the telecom industry ready to adopt blockchain technology?
The telecom industry has used to be the peak of innovation. However, as times goes by, it is now under great pressure to revolutionize.
Social media sites, video streaming services, and apps impose a forceful level of innovative development that pushes down the telecom industry. With the coming of 5G, the industry can capitalize on blockchain technology to provide advanced and state-of-the-art products and services.
Impact of advanced generation
When we say a fifth generation or 5G telecom networks, it means higher data rates, fewer lags, and a vast network of associated devices. The fourth generation (4G) and Long-Term Evolution (LTE) networks signaled the generation of location-based services. The 5G service, on the other hand, is expected to drive presence-based services.
The telecom industry is naturally complicated. The biggest telecommunication projects ask for large-scale investments. Billions of dollars have been spent to revolutionize the present 4G/LTE networks. Several telcos still need to cast their capital spending into current technologies. Even without ROI, the requirement to heavily invest remains evident and continues to grow.
Merging and partnership
Major players in the same industry such as AT&T, merge with other companies. It also acquires stakes as a way of infrastructure sharing to stay in the business. This practice between the service providers within a district delivers their own responsibilities of transparency, on-time collaboration and involvement, and compliance to the predetermined T&Cs.
Benefits of blockchain technology
The blockchain technology has the capability to relinquish a proportionate playing field for the telecom industry regardless of its expanse. It gets rid of inscrutable middlemen and equally disseminates value among participants.
Moreover, smart contracts will help build new business models such as on/off rentals or pay-as-you-go. It is clear that the time of macro-sharing will be succeeded by micro-sharing. It will pave the way for a blockchain backbone to assist the telecom companies to get there.
The telecom industry should begin considering blockchain for effective supply chain management like other companies. It will establish a collaborative marketplace which involves partners and consumers, and the protection of data from fraud just like the native blockchain of Decenternet with the help of its net neutral Osiris web browser.
The telecom company KT Corporation in South Korea inaugurated a privately-operated blockchain network. Its objective is to exert blockchain technology throughout areas which include energy trading, data roaming, and ID verification.
The KT Network Blockchain can process 2,500 transactions per second (TPS) through the integration of its current high-speed commercial network. This is expected to increase to 10,000 TPS in 2018 and up to 100,000 TPS this year.
The company is also planning to do something with energy trading between July and December. Large businesses will participate as nodes to trade unused energy quotas throughout the distributed network.
Blockchain has a lot more to offer and its potential can benefit several businesses and industries. It would just take a little time before more advantages of the technology will be uncovered.