How Will The Combination Of 5G And Blockchain Transform The Entire Telecommunication Market?
Blockchain and 5G telecommunication networks will have a tremendous impact on the entire global telecommunications market. However, there are certain challenges along with the major benefits being brought in with the adoption of Blockchain IoT over 5G networks. Such challenges have to mitigated during the adoption phase
5G and blockchain are two technologies which would have a tremendous impact on the world of telecommunications and mobile technology. The rollout of 5G has already started in select cities of the United States. The global coverage with a steady rollout is expected by the year 2020. With the combination of 5G and blockchain, the readers can expect the following:
With the combination of internet of Things, 5G and blockchain would add a significant amount of value to the society. These technologies come with several advantages and offer several possibilities. They also face several challenges which would be faced by these technologies:
IoT – with 5G and Blockchain :
The technological experts of the world have noted that IoT has a lot of potential to fulfill. However, there are two major hindrances in its way – security and overall capacity. With the inception of 5G, IoT devices have greater flexibility and a wider application in terms of deployment.
The IoT requires a very high speed network with low latency:
The term latency refers to the time gap between a single signal send/receive to the next. Low latency is a requirement for IoT devices to communicate smoothly without facing a significant amount of lag. This is one of the problems IoT devices might face in course of their lifecycle.
In order to open up the usage of another cutting edge technology called the Internet of Skills. In order to unlock the potential of this technology, the latency of a network has to be reduced. The generation 5 mobile networks have the potential to deliver data at a much higher speed and lower latency compared to the 4G networks. This will allow the IoT devices to function with their full load bearing capability.
Other benefits of 5G is inclusive of energy savings, cost reduction and higher capability:
The power of the 5G networks will enable even the tiniest of the IoT devices to function fully within the framework of the connected networks easily. By the year 2025, 5 G network telephony would enable 100 billion IoT connections approximately.
With 5G having a profound impact on the IoT market; there are a few reasons of concern which have to be addressed by the network itself. The low latency of the 5G networks also brings potential problems for the IoT devices with the connected devices space being invaded by rogue elements. These rogue devices have the potential to disrupt a given network in place.
Financial Infrastructure can be taken over by blockchain – with abundance of IoT devices, they can take advantage of the blockchain technology’s unique capability to secure, decentralize and impart immutability to a given network.
The decentralized blockchains can easily find usage as an underlying protocol layer with established security transactions and smart contracts among the network of interconnected IoT devices. In future; instead of the network clouds, secure hashing algorithms and secured blockchain blocks can be used to secure the data of IoT devices.
Scalability of blockchain technology is a major hindrance to be negotiated in the future for better deployment of IoT:
Digital ledger technology can play a major role in transforming the landscape of transactions. Distributed ledger can handle a large number of transactions in a single second. It is possible in real practice to delay most of the transactions to a tier 2 blockchain that runs on top of the primary one as the Lightning Network preferably on LTC or BTC.
All devices should have individual addresses. Thus, scalability and on chain transactions should improve on both the layers. The massive increase in the bandwidth of blockchains due to the decrease in the latency of networks provided by 5G has a major benefit for blockchain networks. The entire paradigm of blockchain adoption can be improved through the incorporation of 5G mobile telephony networks.
Read More: Blockchain And How It Can Change IoT
A probable workaround involves storing hashes of data on-chain with links that position to external storage areas:
Additional de-centralized protocols such as OrbitDB or the InterPlanetary File System can be used for the outer storage. External storage will be effective in terms of stronger security compared to other centralized alternatives. In case, if the data is manipulated with, the hash tag value will change, thus drawing immediate attention to a data breach.
This complete mixture of 5G, blockchain, and IoT will smooth the progress of the rise of smart homes, driverless vehicles, and smart cities. Within the coming era, several customary industries including mining, agriculture, and drilling, will definitely see the implementation of automation through an IoT system of millions of smart machines and sensors interacting over a high-speed 5G network.