With number of advantages, blockchain technology also comes up with certain challenges. Let us discuss its advantages and limitations separately
Fremont, CA: Telco services, including the mobile services and fixed-network, are expected to thrive in the Asia-Pacific, Europe, and North American regions with investments up to $1.46 trillion by 2020. Both existing players and newcomers are finding ways to leverage this growth, and what could be the best than blockchain technology.
The potential of blockchain technology is disruptive, and deploying the solutions of blockchain in cloud platforms, communication service providers (CSPs) hope to enhance the network security and optimize the existing process. With number of advantages, blockchain technology also comes up with certain challenges. Let us discuss its benefits and limitations separately.
Fraud Prevention and Roaming
Roaming frauds can be drastically reduced with the adoption of blockchain through smart contract functionality. Permissioned (private) blockchain networks make the roaming agreements between operators transparent. Designated nodes act as validators or miners and verify each transaction broadcast on the network.
5G transitions are on the top in the priority list of the subscribers and network providers. With a considerable number of subscribers moving to 5G, blockchain streamlines this transition. CSPs will have to handle disjointed access nodes and diverse access mechanism to deliver the universal access those promised by 5G.
Identity Management and Authentication
Being decentralized by nature, blockchain brings additional value to identity management applications by bypassing intermediaries. Hence, customers only need a virtual ID to authenticate themselves, thus reducing the processes and increasing satisfaction levels.
IoT is one such technology that is being adapted continuously by businesses with each passing day. With this, network security is equally important, which businesses usually miss to forecast. There are always chances of data breaches, and here, blockchain comes to the rescue. It creates a tenable environment for data transmission by building highly secured self-managed mesh networks.Apart from all these advantages and opportunities, blockchain has some limitations when being adopted by telco industries
The use of blockchain services needs some specific guidelines as it involves self-executing smart contracts. These smart contracts need to be digitally verified, hence establishing a clear regulatory framework is essential while adopting blockchain.
The current telco industry sets structures, data standards, and transmission infrastructure. Hence, bringing blockchain applications to this existing framework will create significant challenges.Blockchain integrations have much to offer to the CSPs. Companies operating in this space have an opportunity to improve identity management, prevent fraud, enhance IoT security, and ease the transition to 5G.￼