Blockchain in the Telecommunication Industry: A Beginning of New Era
The blockchain technology is currently one of the most widely debated topics. The fast-changing technology has the potential to bring about revolutionary levels of transparency. As it is still a relatively young technology – industry-wide standards and regulation are still in their infancy. Despite this, it has the potential to generate lower costs and a better user experience.
Telecom operators have, in the past, suffered a number of disruptive technologies. This has resulted in lost revenue opportunities and hiked up operating costs. The technology is growing fast. Now is the ideal moment for telecom operators to investigate the opportunities and challenges it may present.
Getting rid of the middle-man
Blockchain tech such as Ethereum has the power to cut out risky third-party financial institutions. This would make the transaction process easier, safer and fairer. It will also save telecom companies and customers a lot of money. It comes at the expense of confidentiality, but that seems like a small price to pay.
The technology appears at a time when online security is a major global concern. A secure transaction can remove the element of risk and guarantee transparency. It does this by making the database public so that all transactions can be verified. Anyone trying to edit records will be caught red-handed. The public nature of it means everyone is an equal player in the system – with full control over the data. Trust no longer relies on any one person or authority.
One of the biggest problems the telecom industry is currently facing is preventing and detecting fraud. Annual losses are around $38 billion.
Obtaining a SIM card or services based on stolen identity information can be tackled using public-private cryptography. Native to the blockchain, it can link an identified device to a subscriber’s identity. The technology works by broadcasting a phone-generated public key. The device creates this public key from a secure private key. The private key is linked to only one device – making it difficult to steal.
Another solution is to create unique virtual identifiers for each subscriber. These identities can then be encrypted and stored in a blockchain. Providing authentication services to both subscribers and business partners is a great way to gain revenue.
This perk allows users to avoid giving out personal details to service providers. Particularly when setting up accounts and generating passwords. Being able to avoid subscribing from scratch is also more likely to get people to try new services. Logging in through your Facebook account is a prime example of this. It can also be used to rubber-stamp personal documents such as airline tickets, driving licenses and passports.
Blockchain has the power to change the way the telecommunication industry works. Embracing this technology offers a path to fairness and increased revenue streams. In short, this is an industry that could do with a bit of shaking up – and blockchain is just the thing to do it.