Blockchain creates new standards for decentralized mobile networks

Bitcoin has brought many changes to many industries, from education to healthcare, and is now disrupting traditional mobile networks in a variety of ways. Along with the introduction of Bitcoin came the technology that made cryptocurrency viable: blockchain. An unfalsifiable digital register constantly verified by a network of computers, blockchain is a technology that offers security in the form of smart contracts, essential to provide decentralized mobile networks to life.

The future of telecommunications lies in personal autonomy

The idea of ​​decentralized mobile networks – or DeWi for short – was not something that was possible until the recent blockchain revolution. The idea is that consumers have a stake in the network instead of having it entirely owned by a mobile carrier or DeWi company. This would mean the end of the cell phone company monopoly in many parts of the world when it is fully deployed.

Currently, it is difficult to transform the landscape from cell towers to home nodes, as DeWi is doing. By purchasing an antenna from a DeWi company, consumers essentially become a network node or point, meaning DeWi only works if enough people adopt the idea.

There are incentives to attract more consumers because these network nodes also allow users to farm DeWi tokens – this means users are rewarded for building a decentralized network together. For example, Helium, one of the pioneers of DeWi, rewards its users with tokens for each authentication or proof of coverage, as well as for the amount of data they transmit for the network.

Helium uses LoRaWAN which provides coverage within a 16 km radius and can be easily implemented even in rural areas. Another advantage of DeWi is the affordable price and flexibility because users are no longer tied to a particular network.

eSims are part of the digital revolution of decentralization

SIM cards are crucial in today’s landscape, but they are increasingly disappearing, especially since many smartphones today support eSims, which is short for Built-in sim. Although eSims are also viable on traditional mobile networks, the rise of modern technology has opened new doors for eSims, such as the ability to break free from traditional telecom operators. Without the invention of eSimdecentralization of networks may not be possible. But in a way, the two innovations go hand in hand, one to ensure accessibility and the other to facilitate that accessibility.

But why should users move from traditional networks to DeFi when eSims already offer them flexibility and convenience? The simple answer lies in price, as DeFi is touted to be much more profitable and affordable in the long run. It is also much more secure than traditional networks, where users must register with a company and have their data collected.

Blockchain technology is known for its airtight security in which smart contracts can be securely configured and prevent fraudulent behavior as well as protect user data from malicious cyber threats. The frequency of data leaks today encourages users to be vigilant about the companies in which they place their trust.

The fact that mobile network companies track their users’ data across platforms, recording their behaviors and personal data, creates a huge security risk. Meanwhile, decentralized networks won’t have the same type of reach nor will they have access to recording this data like everything else would. automated on the blockchainwithout having to enter personal information into a database, as smart contracts will do this on both ends, securely and anonymously.

What’s next? Collaborative efforts to make connectivity more accessible and stable

Deloitte recently reported that decentralized networks could potentially save telecom operators up to $15 billion per year in fraud reductionbut implementing decentralization has several benefits for telecom providers.

Where traditional telecom operators rely on cell towers, decentralization creates new technology that can provide better coverage at lower cost. This innovation could give rise to new ideas for telecom operators on how to better serve the community, especially those in rural areas. Additionally, the wide distribution of these nodes also means that coverage will be able to remain consistent and not subject to single points of failure, ensuring that users are not affected by connectivity issues.

A projection of $1.37 billion Growing growth has been reported by MarketsandMarkets and the eSim market is also expected to reach $4 billion by 2027.

The combination of eSIM and blockchain represents a revolutionary change in mobile network infrastructure. By decentralizing networks, users will benefit from lower prices and increased security.

As blockchain adoption becomes more widespread in the telecommunications sector, we should expect decentralized networks to become more readily available and supplant traditional carriers as the dominant option, although it is also exciting to see how these innovations will continue to drive new transformations. the wireless network landscape across the world and how traditional providers will evolve alongside these emerging options.