Since cryptocurrency was introduced to the public, it did not take long for this decentralised system to attain fame and be associated with the different sectors and industries. After making an impact in the world of businesses, cryptocurrency eyes telecom partnerships in the previous years, hoping to develop how it works and improve its efficiency. Read on to know how cryptocurrency and blockchain will impact the telecommunications industry.
Blockchain & Telecomms: New Partnership
Ever since the development of Bitcoin, cryptocurrency and blockchain have always been hot topics and are one of the most widely discussed and hyped technologies. Aside from its potential profit schemes, it follows a decentralised system. This means that it is not in any way associated with third-party agents such as the government or the bank. These are just some of the reasons why many are so hooked on this new system.
As the telecoms industry continues to evolve and starts a new era, many companies are looking for ways or new technologies to restore, improve, and prepare their businesses to keep up with the ever-growing future. Experts believe that cryptocurrency and blockchain positively impact the future – from banking and healthcare to the businesses and the telecommunications industry.
When it comes to providing benefits for a company, such as streamlining operations, reducing costs, and developing new business models, one technology has been helping companies transform their business: Blockchain. For a smooth and efficient way to incorporate this new technology into their business, some investors engaged in platforms such as the BitiQ App. An example how telecommunications and blockchain coexist can be the ActivatingATT and BitiQ symbiosis. In this platform, crypto enthusiasts and telecom organisations get to experience faster data transfers and even downloading the whole blockchain is possible in just a matter of minutes. In addition, it connects investors to top partners in your area that can help you come up with efficient trading solutions and support.
How Crypto Impacts Telecommunications
Aside from competition from the top players in the market, traditional telecom operators face decreasing revenues and increasing costs. To avoid bankruptcy and to keep up with the technology and business industries, the need to reduce these costs and come up with new revenue streams to make their services more competitive is the priority of every standard level telecom company.
Before cryptocurrency was introduced, the telecommunications industry was already in the middle of gradual but significant transformation as it furthers to a new virtualised environment. The presence of blockchain entering the equation must offer some great benefits to their current situation as well as enable future opportunities. The impact of blockchain in the telco industry will likely be the greatest impact on a telco’s core management systems, which could succeed in reducing costs and earning gains.
1. Fraud Prevention
According to experts, one area where telecoms could benefit from the appearance of blockchain is fraud prevention. In a published survey by the Communications Fraud Control Association, a total of $38.1 billion in losses are due to fraudulent activities. They see blockchain-based solutions to minimise these issues once implemented. Two of the main issues revolving around fraud include identity and roaming fraud.
When it comes to identity fraud, blockchain has the power to change the process of how identity is validated and verified by device. Furthermore, roaming fraud could be controlled by implementing a permission blockchain between operators involved in the roaming agreement. Smart contracts can be utilised to allow verified authorisation, which reduces fraud and costs.
2. Identity Management
A telecom company could participate in blockchain-based identity management for the services it can offer to its partners. Through this step, authentication could be implemented across devices, organisations and applications – removing the need to create separate passwords for different online accounts. Utilising only a master identity key, a user could access all of their services which require verification.
3. IoT Connectivity
Predictions by the end of 2022 state that a percentage of ⅔ of 30 billion connected devices will be IoT devices, where 5G connection will play an important role. The problem is that IoT connectivity provides unique challenges, such as securing billions of interactions among machines and sensors to secure sensitive information. However, with Blockchain’s decentralised nature, security will be more scalable, and its validation process will help prevent unauthorised devices from disrupting systems through misleading information.
4. Streamlining SLAs Automation
Service Level Agreements or SLAs are important to the telecoms sector, but the monitoring process is inefficient and is prone to delays and mistakes. Despite all that, many telecom businesses are still investing in SLA automation, even though it still involves manual processes. Thankfully, with blockchain, monitoring will be more transparent and clarify SLA conditions.
Cryptocurrency and Telecom Challenges
After reading the impact that blockchain does on the telecom industry, you might wonder why not go all out and implement everything now? Well, while this option is a cost-effective approach, it certainly did not come without challenges. The top one of the issue list is its ability to scale, and the inefficiencies of the same tasks every node performs. Other challenges also include how blockchain would fit into regulatory frameworks and security-related issues.
Blockchain technology is getting tremendous attention and interest from various sectors and industries all over the world. Given the list of how it impacts the telecom industry, it’s not surprising why businesses are lining up and looking for ways to be associated with this new technology. Setup the ultimate bridge between cryptocurrency and telecommunications now with the BitiQ App. You have to sign up and create a free account to get connected to top partners in your area for an efficient trading experience.