Traditional services such as simple voice calls and messages are losing their popularity as there appeared more cost-efficient and high-quality services with expanded functionality such as WhatsApp, for example.
Realizing the demands of their clients, operators are trying to do their best to introduce 5G services within their networks as soon as possible. Customers want to get the most advanced services and carriers have nothing to do but to provide them, otherwise, they will lose the market competition.
Some operators have chosen not a very widespread but very promising strategy for their development that presupposes implementation of blockchain technology.
Though this technology is mostly associated with cryptocurrencies, it’s not the only its use case. Today the interest to blockchain from the side of various industries is extremely high as well as the expenses on this technology.
Mobile industry is not an exception, numerous carriers have already openly demonstrated their interest to the opportunities that are provided by blockchain. For example, Orange, Telstra, and Verizon have become investors in projects related to blockchain.
Some other operators, as AT&T for example, have filed their patents that are related to the application of this technology in telecoms.
Nevertheless, experts believe that it is just a beginning of operators' journey in the world of blockchain. It is predicted that within 5 years the estimated value of blockchain deployment in the telecoms sector could reach US$1 billion
What blockchain may bring to the industry
Being a distributed ledger technology blockchain is decentralized. It applies algorithms and encryption methods to securely record and store transactions and data on its network. The data are saved in blocks which ensures transparency and full protection from alterations.
Carriers may use these capacities of blockchain to ensure much faster launch of their new products and enhance their competitiveness. With the help of blockchain it is possible to improve the processes of the product development cycle, streamline and facilitate them.
Data management can be executed by smart contracts while DApps (decentralized applications) are able to operate business processes automatically.
Blockchain to speed up product development
As it has been revealed by analysts, blockchain-based systems are able to facilitate and speed up product development, increase the efficiency of developer’s work and enhance transparency. Blockchain allows to eliminate a lot of extra tasks related to paperwork and organizational issues.
According to the research, the blockchain-enabled approach to the product development is able to cut off development cycle time by 34 percent, ensure a 29 percent growth of productivity, and enhance the quality of work by 11 percent.
What we will observe in the future
The benefits that blockchain can bring to the mobile market and to the industry in the whole are obvious. Especially, the advantages are significant in the sphere of product development.
The mobile landscape has changed drastically. The demand for 5G is growing. Now, to satisfy the demands of their clients and not to lose the competition, mobile operators need to find new approaches to their business and a blockchain-related approach is definitely a good one to change the situation for the better.