5G is a revolutionary mobile telecommunications technology that promises 20 times faster speed than today’s 4G technology. The unique characteristics of 5G can be used to support new business models and services that make seamless interactions among multiple parties, such as mobile operators, enterprises, telecom providers, government regulators, and infrastructure providers.
Meanwhile, blockchain technology has evolved into an enabling, disruptive, and transformational technology that is being adopted across a wide range of industry vertical domains. Blockchain is being used to register, authenticate, and validate assets and transactions, govern interactions, record data, and manage multiple parties’ identification in a trusted, and secure manner.
The blockchain technology needs a large network capacity like 5G to operate at its best. Another benefit of 5G is that it is quite capable of supplying the necessary network capacity. 5G could be the enabler that leads to the widespread adoption of blockchain in areas such as trade financing, logistics, healthcare, education, and so on.
While 5G by itself has the potential to grow the already profitable micropayments market, 5G combined with blockchain technology might take digital and micropayments to an entirely new level.
What Exactly is 5G Technology
5G is the next-gen network that offers faster speed than previous generations. 5G will improve the efficiency and productivity of many industries with its unbeatable speed.
5G will have a significant impact on customer and business relations. While previous cellular generations were only focused on faster internet speeds. 5G is going to give an ultimate user experience.
- It has a massive network capacity and a more uniform user experience.
- 5G technology is developed with enhanced mobile broadband (eMBB), massive machine type communication (mMTC).
- Ultra-reliable low latency communication (uRLLC) to optimize business and daily functions.
The global 5G infrastructure market was estimated by Next Move Strategy Consulting to be worth over $1 million in 2021. The market is anticipated to be worth 131.4 billion dollars by 2030.
What is Blockchain Technology
Blockchain is a method of recording data that makes it challenging or impossible to alter or hack, and it protects the system from fraud. Distributed Ledger Technology (DLT) refers to a decentralized database that is governed by numerous users.
A blockchain is a type of distributed ledger that distributes and copies transactions among the network of computers involved. Blockchain is a framework for storing public transactional records (known as “blocks”) across multiple databases in a network connected by peer-to-peer nodes. This type of storage is also called a “digital ledger.”
The digital ledger can be described as a network of computers sharing a Google spreadsheet where transactional data are kept according to actual purchases. The intriguing aspect is that while everyone may view the data, it cannot be altered.
DLT makes it possible to conduct extremely secure transactions without a centralized authority. For a user, this means that the decentralized DLT would continue to handle and maintain the transaction ledger even if the banks’ central servers were compromised or rendered inoperable. Both the underbanked and the unbanked could benefit greatly if blockchain networks can offer payment alternatives. 10% of people worldwide are cryptocurrency owners.
The radicality of 5G’s growth is expected to revolutionize mobile technology by supporting new businesses and services that require seamless interaction between mobile operators and smart cities’ IoT application providers.
For 5G to achieve its full potential, a secure aspect of transformational technology is required. Decentralized manner, it can be beneficially leveraged for 5G networks.
Blockchain adoption as a secure technology presents itself as a centralized solution for 5G IoT-operated applications that will meet the demands of smart technologies. The combination of 5G and Blockchain will significantly shape the foundation for proper device communication.
Blockchain, as a distributed database system, every blockchain development company will keep track of any record pertaining to any transaction, perfecting adherence to the various IoT functions. As a result, Blockchain would greatly facilitate user interaction via 5G IoT networks, allowing users to interact and transact with guaranteed data provenance and authenticity.
The General Impact on 5G and Blockchain
Blockchains like Bitcoin are expanding their on-chain capacity with larger blocks, while Ethereum is doing the same through sharding. While Ethereum’s Plasma network continues to develop, we are also watching the Lightning Network’s steady development as it goes live, along with side chains like Liquid from Blockstream. Fortunately, the rollout of 5G and layer two blockchain infrastructure are happening at the same time, supplying the required scalability and coverage for an IoT-oriented economy.
All asset tracking, movement, and use relating to network operators and service providers are handled by the decentralized structure of blockchain. While a centralized database is more of a snapshot of data at a single point in time and does not provide reference to earlier information in the event of conflicts, the blockchain structure allows users to view any asset’s history and associated information at any time.
Implementing Smart Contracts
Additionally, 5G can immediately enhance the performance and usefulness of blockchains.
Smart contracting is one such illustration. Smart contracts on the blockchain frequently rely on oracles. These oracles supply the contract with outside information. Naturally, internet access is required to communicate this information. 5G can enable these oracles in remote places where they would not otherwise be possible for applications like supply chains.
You must view 5G, IoT, and blockchain as delivering complementary value propositions rather than being completely independent to fully understand their benefits. This technology stack, coupled with second-layer technologies, edge computing, VR technology, augmented reality, and IoS, is poised to produce an enormous amount of value while also fundamentally transforming working conditions, employment, and leisure time with the correct architecture.
A blockchain’s immutability prevents changes from being made once it has been formed. Network operators can thereby increase trust among themselves by enabling trust between nodes because they now have reliable data to rely on. Blockchain will consequently enable asset visibility for all parties involved in the network site lifetime, facilitating secure asset tracking between cross-functional teams.
With the advancement of technology, organizations are looking for new ways to reduce the underlying costs of asset management while increasing long-term business profitability. To overcome the challenges of evolving network technologies, Leaders and decision-makers must go beyond traditional methods.