Is More Secure and Stable Communication Possible by Using Blockchain Technology For eSIM?
As with all emerging technologies, blockchain faces a number of challenges that will lead to its broader implementation. As with any new technology, compliance with existing data standards in terms of security, privacy, and information sharing could prove to be the first hurdle for blockchain in telecommunications. Cryptographically immutable automation systems, whose blockchain technology ensures that participants are protected and trusted, will also address the inherent challenges associated with the abundance of data that suddenly flows abundantly across countless devices. Knowing this information will use blockchain applications as a secure identity system that solves many of the problems of distributed systems such as eSIM.
As its name suggests, the embedded SIM card or eSIM is built into the phone’s board.
eSIM will help operators and their customers to develop new business models and open up new business opportunities.
Telecommunications group Verizon is considering using blockchain technology to bolster the dynamic creation of virtual SIM cards. Contrary to the headlines, Verizon is not the first provider to try to use blockchain technology for a SIM card.
A 5G blockchain eSIM technology jointly developed by China Unicom, Gotell, and Webank was officially approved by the GSMA organization and officially released on April 20, 2020.
The existing physical SIM card delays consumers’ decision to switch providers, but a software-based SIM card makes it much easier for consumers to switch network providers. Blockchain technology can allow competing telecommunications operators to share the cost of their eSIM cards, allowing a very transparent pay-per-use scenario to be implemented immediately. Of course, as with any new technology, early users of blockchain SIMs should be aware of the benefits that the convenience of eSIMs can bring.
- The user picks a plan that she/he likes and places an order to buy it.
- The carrier sends her/him a QR code instead of sending a physical SIM.
- The user scans the code and activates the plan, which triggers the next step.
- The provisioning system sends a SIM profile (the same data stored in the physical SIM) into an eSIM slot on her phone.
Telecommunications companies could provide their subscribers with an eSIM embedded SIM app that creates a unique virtual identity that is encrypted and stored on the blockchain. For example, a subscriber could log on to Facebook or Google on a mobile device or store it via a telecommunications app. By integrating blockchain into a telecommunications operator’s eSIM, users could choose to switch telecommunications providers while they are on this decentralized platform. Blockchain-activated eSIM allows private keys to be generated on the fly, so your phone can be used for blockchain-enabled authentication and transactions without any problems.
The technology has enormous power to virtualize SIM cards, allows users to monetize their bandwidth, creates cheaper alternatives to telecommunications networks, and enables cryptocurrencies to make electronic payments for phone bills. Blockchain technology, for example, can enable people to “make money” and earn revenue by creating alternative communications networks that offer a cheaper alternative to telecommunications companies.
Additionally, by using blockchain technology;
- No data package can be changed
- No data package can be deleted
- No data package can be duplicated
- Proof of origin is recorded
- Proof of time is recorded
In addition to the above-mentioned use cases, blockchain will also be relevant in other areas, such as self-resolution — execution of smart contracts, processing of OSS and BSS, and payments based on digital asset transactions. All the above use cases offer a number of ways in which telecommunications companies can invest in the development and implementation of blockchain-based products.
Blockchain, as we all know, is a decentralized platform that allows users to use data and information without restrictions or restrictions. For example, telecommunications companies can upgrade their entire network and systems that work and operate on the blockchain, offering unlimited and unlimited benefits. If a centralized company like Apple or Google can use eSIMs to disrupt lucrative cash flows while offering consumers more flexibility, it is easy to imagine what this technology can do in combination with blockchain.
Blockchain can also be a force for disintermediation that directly connects third parties who can participate in the exchange of assets, data, and resources. The marriage of eSIM and blockchain is still in its infancy, as is blockchain technology itself.
Despite its proven capabilities, blockchain technology remains one of the threats that loom, and I am not sure that many in the industry should not be excited or concerned about its future potential, as mature business models based on blockchain technology are advancing at an ever-faster pace. Although the potential for blockchain opportunities is high, I do not expect blockchain to replace e-SIM cards, and nor should we expect them to be replaced.
In a nutshell, smartphones are quite easy to use and popular, and embedding blockchain — capable chips and applications in them — can likely be an important catalyst for the adoption of blockchain. I am confident that blockchain will find its place in this new telecommunications market, but how blockchain technology can help telecommunications companies increase their margins is just the beginning. As we enter the next phase of the global eSIM market, we will become increasingly interested in the use of blockchain technologies in telecommunications.