Blockchain or Distributed Ledger Technology (DLT) is a technology that brings transparency and security. The blockchain in the telecom industry is expected to grow from USD 46.6 million in 2018 to USD 993.8 million by 2023 according to a recent Markets and Markets report. Many telecom companies around the world are adopting blockchains including AT&T, China Mobile, and Telefonica. Blockchain usually stores data for monetary transactions. Banks only operate during business hours, five days a week, so this technology provides a quick and easy transaction solution, any time of day.
One of the challenges faced by the telecom industry is the GDRP data issue. Telecom companies have to comply with the General Data Protection Regulations (GDRP). Thus, securing personal data would be essential for a telecom operator. That is why the use of blockchain will revolutionize the telecom industry because it provides improved fraud prevention. In fact, if a blockchain fell into the hands of a hacker, he would have access to a single copy, not the entire network. While anyone can see a blockchain, each computer has its own copy of a blockchain, which makes it difficult for hackers. New blocks are added chronologically and each block contains its own hash code- a math function that turns digital information into a string of numbers and letters. In order for a block to be added to a blockchain, a transaction must occur and it should be verified, stored in a block, and given a hash. If a hacker attempts to edit a block, he still needs to edit the following blocks in a chronological way. The following blocks still contain the old hash and hackers have to edit them to cover their tracks. These moves would take an enormous amount of computer time.
Blockchain offers the telecom industry an ideal solution for its requirements. This tool holds historical records of users while keeping them secured from hackers. Blockchain technology saves time and money for telecom companies by automating billing systems, accounting and auditing requirements.
By using blockchains, telecom industries gain the trust and loyalty of their customers. In fact, the centralized operational structure of telecoms creates inefficiencies such as expensive usage fees and security issues, which increase costs for customers.
Telecom industries can use blockchain to generate new sources of revenue. Telecom operators could provide their subscribers with an embedded SIM (eSIM) that will create a virtual identity for each user. This virtual identity is encrypted and stored in a blockchain.
5G implementation can also benefit significantly from the blockchain. This technology can secure the advancing nature of mobile banking networks. Blockchains along with 5G can transform privacy by providing trusted models thus making 5G protected from security breaching.
Moreover, blockchain technology would provide a solution for travelers, who do not want to purchase a new SIM card (abroad) or turn on date roaming services. According to CoinTelegraph, Bubbletone was developing a private blockchain for mobile operators and service providers. This blockchain would allow direct interaction with subscribers, eliminating roaming around the globe.