The combination of 5G, IoT and Blockchain will be ubiquitous.
The IoT sector has been partially held back mainly by different bottlenecks: data storage capacity, latency reduction and security. However, the combination of solutions such as AI, Blockchain and 5G solve the bottlenecks, enabling massive data processing, in a fast way, and in a secure way.
Essential support for IoT
The IoT sector has been held back by a number of bottlenecks, including data transmission capacity and speed. However, with the introduction of 5G networks, this problem could be solved, allowing IoT devices to be connected 24/7 without signal interruptions. 5G technology brings benefits such as a greater increase in speed compared to 4G (up to 10Gbps), lower latency, more coverage and stability, and certain improvements in bandwidth.
All these improvements make it possible to increase the use of IoT and apply new processes that were not possible before. When we talk about latency, we are referring to the time interval between the moment a signal is sent and the moment it is received, and this is very important for the IoT sector. For example, the Internet of Skills (IoS) would benefit greatly from 5G. IoS is the remote use of IoT machines by specialists and this requires minimal or no latency, allowing better accuracy, better margins of error and allowing less exposure to danger for the specialist.
5G and Blockchain T2T Support
Blockchain technology and 5G are two technologies that can help each other (Hence the term T2T - Technology to Technology). 5G technology thanks to its low latency and increased connectivity could make Blockchains more scalable while allowing greater node participation. With 5G, Blockchains could become ubiquitous and could become more efficient due to the data processing speed that could be brought. For example, Smart Contracts need an oracle to see the veracity of the data to be introduced in the chain; with the use of 5G, it would be possible to receive real-time information from this data provided by the oracles to execute actions within the Smart Contracts. In other words, blockchains will be able to benefit from 5G with an increase in the participation of nodes, shorter block times, greater scalability and an increase in the number of transactions and payments that can be made between devices.
On the other hand, the use of Blockchain technology for 5G is also key in aspects of security, reliability and decentralization. The great power of 5G technology, the reduction of latency and the high capacity to process data at an improved speed, will make IoT devices to be used more and more, thus generating a huge amount of data and a huge economy within the sector where a lot of money will be moved between different transactions. Blockchain technology can make these devices take advantage of the security, decentralization and immutability that it offers and in combination with 5G technology have a more real and secure scenario for end users who use these devices and companies that want to make use of these technologies.
The following shows what each of the technologies can mean economically separately. Can you imagine if we put them together?
Another type of Blockchain solution for telecommunications.
With the advent of 5G and the increased use of IoT devices, the amount of data on the move will increase and this process will become increasingly difficult, which is why an effective blockchain- based solution has been considered. The expected mobile data roaming revenue is $31 billion in 2022 and with annual growth rates of 8%. Blockchain can enable near real-time management of contracts and financial reconciliations, and through the automation and efficiency that a blockchain brings, allow for reduced third party onboarding and lower costs associated with the settlement process.
One example is that the company KPMG has partnered with Microsoft, Tomia and R3 to create a blockchain-based settlement solution for the telecommunications industry. By using Smart Contracts, it will be possible to reduce disputes between telephone companies and mobile operators thus reducing the long and arduous process involved in the traditional methodology due to its manual or outsourced process. These Smart Contracts can include the important information of correct tariff details, destination and agreement information.
5G and Blockchain will enhance new environments
Finally, another very useful use case that these two technologies will bring together is in the rise of the Metaverse. For the Metaverse to really happen it will require a unique user experience and the assurance that your data is secure, all of which can be achieved with 5G and Blockchain. One example is the partnership between Verizon and Meta, who have teamed up to realize the full potential of the Metaverse with the key piece of 5G to enable unique experiences in the Metaverse, from any location and with minimal latency.
"Over the next decade, the metaverse will enable immersive, interconnected and interoperable digital spaces that help people connect in ways not yet possible. These metaverse experiences will be delivered on every screen, at home, at work and on the go," Verizon wrote in a statement.
As we know, the metaverse will enable interaction in a virtual world without limitations and will also play a key role in the hybrid workplace of the future. Verizon and Meta believe that 5G UWB will be fundamental to enabling great user experiences in the metaverse.5G and Blockchain are the perfect union for many solutions and the massive reach of the IoT, Metaverse and Telecom sector will be driven by these. Enhanced connectivity, reduced latency, decentralization, trust, immutability, and real-time processing will make our world increasingly connected and improve our quality of life.