The Korean Giant, Korean Telecom (KT) shook the telecom arena by announcing its very own blockchain network, primarily aimed at providing secure user authentication, international data roaming and energy trading.
In the same revelation, Korean Telecom also boasted the success of its blockchain by revealing a current stunning traffic of around 2,500 TPS (transactions per second). It was further elaborated that the organization would be able to handle a traffic of around 10,000 TPS by the end of this year, and by the end of next year, this figure is expected to go up to six figures.
The current goal of this telecom spearhead is to employ blockchain technology to perform user identity authentication across the network, so that this ever-emerging technology can be embedded in the module of international data-roaming, in order to provide state-of-the-art security across the network. The second half of this venture is aimed at incorporating this technology in the energy trading sector, in order to make the energy exchanges between corporations, acting as nodes over a distributed network, possible. Currently, in its pipeline, the major areas of focus by the Korean giant to employ this technology are security, media, finance, energy and corporate.
Previously, speaking to The Korean Herald, Seo Young-il, the Vice President and the head of the blockchain center at KT’s Institute of Convergence Technology, indicated organization’s interest in employing the blockchain technology in all of its sectors. He stated:
Blockchain will put an end to the current internet era and open a new one providing ‘super’ security and greater value for data. Blockchain will help overcome fundamental limits of the current internet network by creating a new trusted network.
With blockchain technology, the absence of a central module regulating all the devices on the network will make the security overheads applied on the users disappear. The participating parties will gain benefit by handling their own data, instead of delegating the data to a third party portal, such as Google. By employing the blockchain technology, a security fabric will be introduced connecting all the users, nodes, in the system bypassing any need for involvement of an external portal resource. As stated by Seo Young-il;
Today’s internet is no more than a dump pipe unilaterally used by over-the-top content providers. By using blockchain technologies, data will be secured from hackers as transmitted through the unforgeable blockchain network and users will be transmitting their own data with one another based on trust with no need to rely on third-party OTT businesses.
In today’s world, security and protection of the data is of utmost importance when it comes to different networking systems. Incorporating blockchain technology in the telecommunication embeds the feature of security and transparency of data across the entire distributed network.
Third party internet-based platform businesses, own all of the data that users send and receive using their portals. Information on the internet is sent in the form of packets that contain information regarding the user and sender. Portal providers, like Google, encrypt the data using their own methodologies and transfer it to the other end. Data containing information from both ends is transmitted over a channel owned by the third party, and this makes this entire pipeline vulnerable. Blockchain technologies revamps this concept of using third party portals, and provides a secure fabric to the users for sharing data with each other over a distributed, unforgeable network.
Although it might seem that the incorporation of blockchain technology will make OTT businesses obsolete, but other prospects for such resources to earn profits will be opened up through the newly implemented standards. Clarifying the situation of OTTs in this scenario, Seo Young-il said:
Some misunderstand that blockchain technologies will make OTT businesses disappear, but that’s not true. The technologies will help them find new value and profits, as they serve as ‘digitalized middlemen.’
In the hindsight of all the developments that are taking place in the international arena, building its very own blockchain is a huge step forward by the Korean giant. This trend of employing blockchain technology in various industries is growing more rapidly than ever imagined, and this trend is predicted to increase further as the modern man steps into the future. Talking about the prospects of employing blockchain technology in other aspects of the industry in the near future, Young-il stated;
Blockchain will be among the central technologies for digitalization in the ‘fourth industrial revolution.”