Report: Global Blockchain Applications in Telecoms to Generate USD1.37 Billion by 2024
- Written by TechXO Team
- Category: BlockChain
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According to a report by Research and Markets, which was published on April 2, 2019, the global blockchain in the telecom market is forecast to reach a revenue of USD1.37 billion by 2024. The forecast also expects the market to grow at a compound annual growth rate (CAGR) of 77.9% during the forecast period.
Based on the report, the growth of blockchain in the telecoms industry will be based on the following factors:
1. Rising security concerns
With technology becoming more and more sophisticated, opportunists and people with criminal intentions are expected to circumvent security measures that are put in place for them. With blockchain’s security proven in a lot of industries, the telecoms industry trusts that blockchain will help with the rising security concerns in their own industry.
But blockchains are not as unhackable as once thought. Once lauded as unhackable, blockchains have now been subject to scrutiny after a series of hacking incidents were reported early this year. In January, the security teams at Coinbase noticed that someone had compromised the ledgers at Ethereum classic, a cryptocurrency that people can buy and sell through Coinbase’s platform.
The initial report released by the popular exchange platform said that a total of US$460,000 was spent after hackers rewrote the transaction history of past transactions that enabled the cryptocurrency to be used more than once. However, this quickly rose to a total of more than US$1 million through the course of a few days. All these were recorded and spread over 15 different transactions.
While no currency being managed by Coinbase or its clients were actually stolen from any of its accounts, a second popular exchange platform, Gate.io, has reported that US$200,000 was lost through the same method.
2. Demand for fraud management
Security concerns like fraud is also a rising threat in the industry, with hackers and scammers using identity theft, hacking, and other ways to get around the security measures imposed by telecom companies. Blockchain, arguably more secure than other measures that are already in place, is set to tighten these security measures to avoid costs brought about by hacking and scams.
3. 5G implementation
The growing number of 5G users and infrastructure in support of the breakthrough technology, the telecom industry is bound to fully implement the 5G technology and blockchain, yet another breakthrough technology is expected to complement 5G.
4. An increasing number of blockchain consortia
Around two years ago, the industry has seen an emergence of blockchain consortia, exploring the use of Digital Ledger Technology (DLT), achieving a common goal of the adoption of blockchain across industries.
Blockchain is said to contribute about USD1 billion to the telecom industry by 2021, a staggering increase from an estimated amount of USD46.6 million in 2018.
What is blockchain?
Blockchain is a digital phenomenon that has revolutionized how records are kept online. Starting out as a humble public ledger for the bitcoin in 2008, the ever-growing method of recording information has grown exponentially since its inception. The best feature of the technology stems from its secure design.
A single block in the chain cannot be altered retrospectively. This means that once a block has passed authentication and verification, no one is allowed to alter that block without the consensus of the network majority it operates in. Changes made within a block are reflected across the entire system. Furthermore, these blocks are secured through cryptography as well. This decentralized way of authenticating and the added cryptography has made the system very secure and safe from hacking.