Telefónica and IBM Will Apply Blockchain to Streamline Telco Processes
Telefónica and IBM announced a collaboration to implement blockchain technology to streamline core business processes. The initiative will focus on the key attributes of blockchain to address complex challenges in services delivered by Telefónica that register data and information from different sources regarding business and network processes.
The power of blockchain is applicable to the telecommunications business, which participates in an ecosystem with a large network of disparate organizations. Blockchain establishes a shared, immutable record of all the transactions that take place within a network and then enables permissioned parties access to trusted data in real time. By applying the technology to end-to-end telco processes, a new form of command and consent can be introduced into the flow of information that enables significant gains in efficiency and trust. By allowing participating members secure and authorized access to necessary details, blockchain also delivers enhanced privacy and confidentiality.
The initial project between Telefónica and IBM is aimed at improving the reliability and transparency of information collected by different networks when routing international calls. Using the IBM Blockchain Platform, Telefónica will work to track in real time the certainty and traceability of each international call and its attributes (mainly origin, destination and duration) in a decentralized platform to which all the operators in the chain have permissioned access. The solution is a clear example of how the application of blockchain technology within the telco networks, dramatically enhances the accuracy and immutability of the data generated while delivering different services.
Beyond voice, the solution can be applied to many other services, building a trustworthy network of peers involved in delivering a digital service such as data consumption, authentication processes, cloud computing or data storage. The network can then reach a consensus in real-time about the veracity and traceability of the information and data pertaining to the services usage that is generated and collected from multiple sources and systems, regardless the owner or the entity that is hosting or operating those systems.