How blockchain technology is disrupting the telecoms industry
October 18, 2021
Telecommunications has always been at the forefront of embracing disruptive technologies to create new business models and revenue streams, but the TMT sector is yet to harness the full potential of blockchain technology. Within the telecoms industry, blockchain has the potential to make a significant impact on everything from interconnects, partner management, identity management and mobile payments, as well as internal improvements to operations and automation. While major telecom operators such as Telefonica, Swisscom and AT&T are beginning to develop their own operational projects, none of this is yet at significant scale.
But things are changing. An Accenture survey of executives across 20 industries and 27 countries, showed almost 20% of communications industry respondents ranked distributed ledgers/blockchain as the technology they expect to have the greatest impact on their organisations over the next three years. According to another report from Deloitte ’Blockchain @ Telco’ points to the wide range of applications in telecoms: “Blockchains permit trust to be intrinsically embedded into a technological solution, thus enabling smooth partnerships and transactions with potentially little friction between the various stakeholders.” The report highlighted four use cases to illustrate the potential of blockchain for Communications Service Providers: Fraud Management, Identity-as-a-service and Data Management, 5G enablement, and secure IoT connectivity.
A recent study by Greyhound Research, a leading global analyst firm, found that nearly 50% of all Communications Service Providers globally are actively discussing the use of blockchain or implementing it for select use cases. Recognising this growing interest, Haidrun has launched its new enterprise blockchain platform targeted at the telecoms industry. Private blockchain technology is ideally suited to the delivery of high value trusted digital services such as streaming, managing digital rights and Domain Name System (DNS) services as well as the more mundane but critical tracking of home equipment. Haidrun’s private blockchain provides the confidentiality and performance to support the management of device identity as well as the security for IoT, Edge and 5G services.
Haidrun can also help simplify and reduce the cost of operations (network) and business systems, OSS and BSS, including partner, enterprise and customer management. Using a blockchain platform will help tackle contracts, settlement, supply chain and SLAs, while support for smart contracts can be used to streamline roaming agreements and significantly reduce fraud.
Flexible and scalable
The Haidrun platform is a flexible and scalable private blockchain, built on an advanced architecture that uses AI engines to help accelerate intelligent business automation and deliver secure and transparent transactions. Haidrun also removes much of the complexity and expense of public blockchains and supports simple interoperability with third-party systems using standard APIs to provide a platform for trusted collaboration.
Private blockchains are more suitable for enterprises for reasons of scale, accountability and cost and can be run locally or as-a Service. While the telecoms industry has often embraced disruptive technologies, it is yet to harness the full potential of blockchain technology at scale. Much of this is down to the basic architecture of public blockchains where no single entity in charge and anyone can interact with the blockchain. In contrast, private blockchains retain control, eliminate illicit activities, provide a high degree of regulation and avoid the variable costs and performance fluctuations associated with public platforms.
Importantly, private blockchains do not need to use cryptocurrencies or native tokens for the network. Any association with cryptocurrencies, good or bad, is not part of the private solution. All of which means that less energy, fewer resources and fewer participants are required to run the private blockchain, resulting in reduced costs on a far more predictable scale.
Support of smart contracts
Haidrun ensures enterprise scalability with three core features: container technology, dynamic block sizing and a new advanced blockchain protocol, Larad, which uses a fast and efficient voting-based, consensus algorithm. Working together with the platform’s integrated AI engines, these features deliver the next generation of smart contracts and with standard REST APIs they can easily integrate and interoperate with other enterprise systems, databases and blockchains. Haidrun’s fundamental value proposition for the telecoms industry is to unlock the real business benefits of blockchain to provide the fast, secure, scalable and cost-effective solutions that digital commerce demands.
According to a report published last year by PwC, blockchain technology stands to boost the global economy by $1.7 trillion in the next decade and we believe that enterprise blockchain deployments will deliver much of these gains.
Speak with our industry-leading experts today on how we can implement blockchain technology in telecoms for you.