Blockchain technology was first conceived by the tech market as the means to protect Bitcoin and other digital currencies. With the growing years, the applications of blockchain in the tech market have been manifold and it is gradually encompassing the telecommunication industry, medical fields, and real estates.
Blockchain is a technology that runs cryptocurrencies. More specifically, it is a set of distributed ledger records that are programmed to track and record any valuable information, ranging from financial records to medical records or assets ownership. Here in this article, we shall talk about some of the applications of blockchain technology, which is rapidly transforming the telecom industry.
The processes such as Operation Support System (OSS), Business Support System (BSS), number portability databases, and many more can be easily streamlined using blockchain technology. As such, billing can be validated without any hassles. Moreover, if a receiving operator shares the blockchain technology with the porting customer’s operator, the migrating customer can be quickly boarded on the network soon after receiving the porting request.
Blockchain technology eases the device connection to be provided to multiple hotspots and Wi-Fi locations based on the compliance of certain terms and conditions. Automatic bill generations and payments thereof have also become easy and less hassle-free due to the implementation of blockchain technology in the telecom industry. Purchase of digital assets and innovative technological gadgets like mobile phones, online gaming consoles, loyalty points, gift cards have come within reach of ordinary users with the help of blockchain.
Blockchain’s ability to record data on an immutable yet secure network can solve issues like user privacy and identity thefts. The fact that blockchain technology keeps all the data in an encrypted form secures the storage of all the customers’ information. This also prevents the chances of fraud, which, according to a survey, costs $38 billion yearly. Subscribing the customers’ data on blockchain prevents the misuse of data by hackers. Since telecom operators are required to verify user identities regularly, they can use the blockchain records by providing online identity management services.
Mobile wallets enable hassle-free small payments among subscribers without the need to carry cash or cards everywhere. This has been possible only because of the adaptation of blockchain technology by the telecom sector. Telecom operators have already started experimenting with mobile wallets and the kind of peer-to-peer payment platforms can be used to transfer funds among individual users. It also helps the businesses to accept the payments for goods delivered or services rendered.
Digital Id verification is perhaps the most important application of blockchain technology in the telecom industry. This will become a more important aspect in the telecom industry as these companies start deploying blockchain technology in the various financial aspects of the customers’ needs. Identity verification technologies are costing billions to these telecom companies, so these companies are thinking of switching to blockchain technology.
Rid of middleman involvement
The involvement of intermediaries at the various levels of business increases the overall costs of the services that the telecom companies become bound to charge their customers. However, using blockchain technology helps these companies to get rid of these middlemen, thereby reducing the costs to a manifold. According to a popular telecom service provider in the US,
“Blockchain will provide a secure platform, the possibility to omit third-party intermediaries, and security measures against fraud and cybercrime.”
Dynamic 5G Networks
The difficulties that the telecom companies are facing to build the complicated 5G networks can be made easier by the adaptation of blockchain technology. The technology can be used to autonomies and regulate the network.
Therefore, blockchain technology helps the telecommunication industry to meet its challenges on innovation in the competitive market by reducing the costs simultaneously, that too, within an affordable price range. It holds historical records of the users without tampering of any data, and therefore, helps in managing the various aspects of the users’ accounts. Blockchain has the potential to revamp the telecom industry keeping the transparency and trust factors intact.