Seoul - Korea Telecom, South Korea's major telecommunications company, is adopting blockchain technology in order to introduce tighter security and improved transparency.
The introduction of blockchain infrastructure is part of Korea Telecom's overall digital transformation project. The state-owned company calls its overall strategy "Future Internet".
Enhanced security
The foremost reason for the adoption of blockchain technology is enhanced security, particularly in securing data from hackers. This arises because data will be transmitted through the blockchain network and users will be transmitting their own data with one another based on trust.
The decentralised and distributed ledger technology, based on algorithms and strong encryption, will ensure that digital transactions and data is recorded in a transparent, secure and anonymous way. For telecoms, blockchain is a good means for significantly decreasing the cost of fraud, for example, in reducing the risks that airs with roaming and in identity management.
Tokens for businesses and users
As well as boosting security, the scheme also presents an opportunity to businesses and consumers. Under the plans, businesses and households will be able to earn rewards for using their own data. This is instead of funds going to portal operators like Google. This is likely to be significant since Korea Telecom dominates the local landline and broadband Internet market, serving about 90 percent of the country's fixed-line subscribers and 45 percent of high-speed Internet users.
Outlining this further Korea Telecom's Seo Young-il told the Korean Herald: "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."
By OTT, this refers to over-the-top content (OTT) which is the audio, video, and other media content delivered over the Internet without the involvement of a multiple-system operator in the control or distribution of the content.
June 2018 implementation
Korea Telecom is set to launch a blockchain-enhanced data roaming service before June 2018, according to Coin Desk, through a collaboration with global network operators like Sprint (a U.S. company) and Softbank (a Japanese company).
The K-Coin
In preparation of the business and consumer reward aspect, Korea Telecom already incorporated the cryptocurrency platform K-Coin into its mobile coupon service. K-Coins are Korean entertainment utility tokens; these grant token holders future access to products and services like merchandise, premium content and movie-related events.
http://www.digitaljournal.com/business/blockchain-introduced-for-network-security/article/517998
