Blockchain technology has already revolutionized some of the giant global industries, including but not limited to finance, international remittance, and supply chain management. This movement demonstrates that blockchains provide whole new ways to conduct business. But why do industries keep adopting this innovative technology?
It is due to the selling points of blockchains, which include trust, security, transparency, and autonomy across all units participating in its network. And one of the industries that joined the movement is the telecommunication industry. One of the priorities for telecom firms is to innovate while lowering costs in a highly competitive industry. Here are some examples of how blockchain technology can benefit the telecom industry.
Streamlining internal telecommunications operations
The groundbreaking technology of smart contracts came to exist due to second-generation blockchains like Ethereum. Smart contracts are highly secured programs that execute autonomously on a blockchain network when specific predetermined terms are satisfied. This innovative mechanism appeals to the telecom industry since it automates several internal activities like invoicing, roaming, and supply chain management.
They can handle all roaming billing with smart contracts. Moreover, it helps telco companies to prevent fraudulent traffic, thus saving a great deal of money. The clearinghouse has to validate the transactions between telecom firms’ ledgers in the existing system. But with the help of smart contracts, this process can become automated, making post-processing obsolete; consequently, companies save time. Furthermore, Telcos save money by spending less on auditing and accounting since the process is already automated.
Also read: How is Blockchain Technology Disrupting Leading Industries?
Creating innovative digital services
Telecom businesses can offer various new blockchain-related services to their clients, thus generating new revenue streams. Digital asset transactions are one example.
Transactions involving digital assets
Teleco businesses can take advantage of the inexpensive payments executed through blockchains to make micropayments for music, mobile games, and other such services possible. They could also benefit from the efficient P2P money transfer services brought by blockchain technology. India is one of the countries that saw this direction after the demonetization in 2016.
Their leading telecom, Airtel and Geo, provided digital wallets, which allowed customers to conduct P2P transactions. These organizations may make their wallets safer and less expensive by using blockchains to facilitate such transactions. The international remittance business is a multibillion-dollar sector; therefore, capturing a tiny portion of the market share might enable these companies to generate significantly more revenue.
Providing opportunities for collaborative ecosystems
Blockchains can be handy for several sophisticated transactions for telcos looking to be pioneers and offer the next generation of digital services. One example is online digital marketing. The currently clumsy and inefficient online advertising market is primed for change by startups like brave. Brave leverages the blockchain to build an advertising marketplace where people have control over how their data.
Telecoms are in a vantage position to accelerate crypto tech adoption in businesses such as advertising and the Internet of Things (IoT). By 2025, experts see IoT devices worth 1.6 trillion dollars, requiring millions of machine-to-machine payments to function.
Telecoms have a great opportunity to lead the way and usher in the next era of digital services, including crypto trading, knowing that there are billions of devices connected to the 5G network and the Internet of Things. Many people feel that such advances in telecommunications and technology will make crypto trading lighter.
Crypto trading platforms, for instance, have benefited from the said advancement. Nowadays, anyone with a smartphone can trade crypto. Some use exchanges, while others go to reputable brokers through platforms like BitiQ App. Learn how ActivatingATT and BitiQ work in the best interest of the customer.
Also read: How Blockchain Technology Needs To Be A Priority For Startups
Modernizing verification of digital identification
Businesses and state governments spend hundreds of billions of dollars every year on identity verification. Startups like Civic are already working on new blockchain-based identity verification methods. Telcos should step up as the leaders and early adopters of this new method to take advantage of these rising markets.
Customers already trust telecom providers, so they are in a strong position to introduce this new service to the public, not to mention that telcos already have access to a massive quantity of customer data. Thus, acting as a source of identity and authentication makes a lot of sense. They can develop new revenue streams by designing new solutions for customers and enterprises.
Closing Thoughts
The telecommunications industry is undeniably impactful in the progress of blockchain technology. These two industries are extremely intertwined. Telecoms can be a platform for blockchain tech to become more acceptable to the public since the former has already established its critical role in communications and technology in general.
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