China's bright minds are embarking on a mission that would give them the upper hand in the telecoms business: to develop a Fifth-Generation SIM card that runs on blockchain technology.
China Telecom's masterplan to create a breakthrough innovation through the enormous power of blockchain - the software that forms the backbone of digital currency - will give it an edge to compete against its Western rivals in 5G tech, Sina News reported.
The strategy will enable the Chinese telecommunications behemoth to take advantage of the growing popularity of cryptocurrency in the midst of an aggressive delivery of 5G technology across continents.
The company's research division released a white paper that outlined key steps during the sidelines of the recent China International Smart Industry Fair. The paper underscored significant details of a SIM card that will enhance support for virtual assets like Ether and ERC20 tokens.
China Telecoms blockchain supported system will be compatible with nearly all types of smartphones. The research paper further noted important plans to transform a mobile phone into a decentralized platform and seeks to create a highly secure framework whenever a client buys a gadget.
Fifth Gen is considered as the next step in global technology that allows for faster download and smooth flow of data. It is seen as the main driver for the Internet of Things (IoT) services, which include automated cars running on Virtual and Augmented Reality software, smart cities and networked smartphone units that revolutionize the industry.
In the next decade, China and other major telecoms companies will focus on pouring more than $400 billion in the fifth-generation technology, based on reports by the China Academy of Information and Communication Technology.
The rapidly evolving telecoms era, 5G in particular, is predicted to boost the transmission and volume of data as a huge number of IoT-enabled and other gadgets benefit from the faster bandwidth.
However, privacy and security issues will be there, as well as state regulators make sure protocols are followed. China, for its part, is known for its adherence to rules and regulations, especially with digital currency.
The paper also highlighted that blockchain has evolved as the only technology that allows people to safeguard their sensitive information in the soon-to-launch 5G system irrespective of the flow and variety of data dimension.
Furthermore, 5G is seen to boost the security features, scalability, and worldwide mobility of the telecommunications market, which is forecast to drive the broad acceptance of other similar tech and be able to help clients to transition from an economy-of-scale platform to demand-driven operations and efficiently migrate to 5G by providing flexible automation.
