China Telecom introduces blockchain in 5G systems

Leading Chinese telecommunications company China Telecom will integrate blockchain into 5G systems to improverevenue sharing, billing, and payment efficiency.

In an interview with Securities Daily, laboratory directorBlockchain and Digital Economy China Telecom Group Liang Wei said that 5G technology has already played a role in changing China's digital economy, and blockchain is being integrated into these systems due to its many technical capabilities. Wei noted that the integration of DLT into 5G systems will facilitate secure resource allocation and efficient collaboration among connected devices. He said:

“Blockchain will help achieve a more efficient andsecurely distributing 5G resources and tracking their use. Decentralized protocol exchange and payments can be made automatically using smart contracts. ”

Wei believes that the integration of blockchain in 5GIt will improve the quality of international roaming services, as the information of users of each mobile network operator can be transferred safely and unhindered on the blockchain without the participation of intermediaries, which makes it possible to automatically bill and pay.

The director of the laboratory notes thatsmart contracts on the blockchain will also make network segmentation more efficient and effective, as they will process the requests of each user. Network segmentation involves dividing the network architecture into segments to support a wide range of use cases.

“The combination of 5G and blockchain technologies — Thistrend of the future. DLT and 5G improve performance and complement each other. Such 5G-based implementations can provide unlimited opportunities for creating IoT applications,” — Wei added.

Telecommunications companies are increasingly usingbenefits of blockchain. In February, members of the CBSG consortium carried out the first transactions based on the proof-of-business (PoB) approach on the CCPS blockchain payment platform. The transaction took place between telecom operators from Taiwan and the United States. In the same month, four major telecom operators announced the trial use of a blockchain-based solution to manage roaming discount agreements.

In addition, in December, the largest South KoreanTelecommunications service provider KT Corporation has announced its collaboration with China Mobile to simplify the provision of 5G roaming services using blockchain.

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