The Blockchain is Creating New Standards for Decentralized Mobile Networks

Bitcoin has brought about many changes in many industries, from education to health, and is now disrupting traditional mobile networks through a variety of ways. Along with the introduction of Bitcoin was the technology that made the cryptocurrency viable: blockchain. A tamper-proof digital ledger that is constantly verified by a network of computers, blockchain is a technology that offers security in the form of smart contracts, which is key in bringing decentralized mobile networks to life.

The future of telecommunications lies in personal autonomy

The idea of decentralized mobile networks - or DeWi for short - is 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 wholly owned by a mobile operator or DeWi company. This would mean the end of mobile company monopoly in many regions of the world when it has fully rolled out.

Currently, it is a challenge to transform the landscape of cell towers into household nodes, which is how DeWi operates. By purchasing an antenna from a DeWi company, consumers essentially become a node or a network point, which means that DeWi only works if enough people adopt the idea.

There are incentives to get more consumers onboard, as these network nodes also allow users to farm DeWi tokens - this means that users are rewarded for building a decentralized network together. For example, Helium, one of the pioneers in DeWi, is rewarding its users with tokens for every authentication or Proof-of-Coverage, and also the amount of data that they transmit for the network.

Helium uses LoRaWAN which provides a 10 mile radius coverage and it can be easily implemented even in rural areas. Another benefit of DeWi is the affordability and flexibility as users are no longer tied to a particular network.

eSims becoming part of the digital revolution of decentralization

Sim cards are crucial in today’s landscape but they are becoming increasingly defunct, especially since many smartphones nowadays support eSims, which are short for embedded Sim. While eSims are also viable on traditional mobile networks, the rise of modern technology has opened up new doors for eSims, such as the option to break free from traditional telcos. Without the invention of eSims, the decentralization of networks may not be possible. But as it were, the two innovations go hand in hand, one to provide accessibility and the other to facilitate this accessibility.

But why should users make the switch from traditional networks over to a DeFi when eSims already afford them flexibility and convenience? The simple answer lies in pricing, as DeFi is touted to be much more cost effective and affordable in the long run. It is also a lot more secure than traditional networks, where users have to sign up with a company and have their data reaped.

Enhancing security and promoting privacy on the blockchain

Blockchain technology is known for its airtight security wherein smart contracts can be set up securely and prevent fraudulent behavior as well as protect user data from malicious cyber threats. The frequency of data leaks nowadays have users vigilant regarding what companies they place their trust in.

With mobile network companies tracking their user’s data across platforms, logging their behavioral patterns and personal data, it creates a huge security risk. Meanwhile, decentralized networks will not have the same kind of reach, nor will they have the access to log these data as everything would be automated on the blockchain, without having to key in personal details into a database as smart contracts will do that for 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 annually in fraud reduction, but there is more than one benefit for telco providers with the implementation of decentralization.

Where traditional telcos rely on cell towers, decentralization creates a new technology that can offer better coverage at a lower cost. This innovation may go on to spark new ideas for telcos on how to better serve the community, especially those in rural areas. Furthermore, the widespread distribution of these nodes also means that the coverage will be able to stay consistent and not subject to single points of failure, ensuring that users will not be affected by any connectivity issues.

A projection of $1.37 billion in growth was reported by MarketsandMarkets and the eSim market is also set to grow to $4 billion by 2027.

The combination of eSIM and blockchain represents a revolutionary shift in mobile network infrastructure. By decentralizing networks, users will enjoy lower prices with higher security.

As blockchain adoption becomes more widespread in the telco industry, we should expect to see that decentralized networks becoming more readily available and unseating traditional operators as the dominant option, though it is also exciting to see how these innovations will go on to drive new transformations to the landscape of wireless networks across the globe and how traditional providers will evolve alongside these up and coming options.