The adoption of a blockchain is crucial for the 5G economy

New generation technological tools and applications have the potential to redefine the economy. Adoption of a blockchain will have to be in the lead role.

Adoption of a blockchain in the lead role

There is no shortage of new technological applications and tools that look like a sci-fi movie. Self-driving cars, the Internet, intelligent devices for individual and institutional use, digital twins of physical devices and all other new ideas are fast becoming completely commonplace.

This means that no matter what particular tool is being explored, all of these new ways of doing business depend on the information being communicated. Simply put, data must flow in real time, encrypted or otherwise trusted.

When a smartphone function doesn’t work as it should, it’s annoying. However, if there is an attack on the software of self-driving cars, it can escalate in a very dangerous situation.

Although the policy of a full-fledged blockchain could still be a dream at the moment, there are several specific components of the 5G economy that are directly dependent on the successful implementation and integration of the blockchain.

What is needed

Let’s see how integral the main components of blockchain are in this next phase of economic growth and development.

Data security. This is perhaps the most visible link between blockchain and the 5G economy. In particular, as more and more types of data and information are communicated wirelessly between sensors, devices, and all kinds of other tools, it is important to keep this data safe. For example, self-driving cars may already exist, but hackers and other technological failures emphasize the importance of keeping these devices safe.

Block iterations. Blockchain is not developed and improved in a vacuum. It is actually a logical extension of current technological trends emphasizing data mobility, transparency and analytics. The digital economy requires a network that can scale, be flexible enough to process different types of information, and can work with existing technological tools.

Just as 5G technology builds on existing digital and technology infrastructure, blockchain already runs on existing ones and is overflowing with the development of other technologies. The recent launch of the blockchain and AI unit by the Central Bank of Korea shows how strong the combination of blockchain with other technologies can be.

Secure automation. Automation is a basic business trend. Although this trend did not cause a blockchain, the digitization of virtually every service due to 5G will only speed up automation. However, the automation of partial or non-standard processes does not create any economic value and may in fact cause more harm than good.

Blockchain-based smart contracts can provide a potential solution to this problem. As the contracts and the implementing clauses contained in them have to be reviewed as part of the conversion of regular contracts into smart contracts, the risk of erroneous events will be reduced. Especially in combination with other technologies, such as automated robotic processes (RPA) and artificial intelligence (AI) platforms, the consequences of blockchain automation are very positive.

Blockchain, while not a perfect tool, has the potential to address some of the problems that currently exist in the technology space. It could prove to be a secret ingredient needed to move 5G forward.

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