New details have emerged today regarding the blockchain research group being formed by three of China’s largest telecommunication network operators: China Mobile, China Unicorn, and China Telecom. 

According to the South China Morning Post (SCMP), the group will become a part of the Trusted Blockchain Initiative of the China Academy of Information Technology (CAICT). The largest international telecommunications equipment supplier, Huawei Technologies, will also become the deputy lead of the project. The group will assess different blockchain technology applications relating to the internet of things (IoT), identity management, network security, and operations management.

“In the next three to five years, we can expect to see more than 60 percent of telecoms services use blockchain technology,” said Allen Li, a former Huawei Engineer and co-founder of the Hong Kong-based startup, QLC Chain. Li believes that blockchain technology can significantly help these Chinese telecommunication giants reduce their operational costs in areas concerning identification and billing. He noted, however, that blockchain will have its greatest use when it comes to improving telecommunication network security.

South Korea also has a major telecommunications company join the blockchain wagon. Unhashed reported yesterday that KT Corp, one of the largest telecommunications companies in South Korea had recently launched a proprietary blockchain network. KT Corp revealed that their KT Network Blockchain currently has the capacity to handle 2,500 transactions per second and aims to have 100,000 transactions per second by the end of 2019.

KT Corp’s head of blockchain center at the Institute of Convergence Technology mentioned in The Korean Herald in May 2018 that, “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 without the need to rely on third-party OTT businesses.”

Furthermore, when it comes to the telecommunications industry, it’s not just security and operational improvements. Deloitte noted in their ‘How Blockchain can impact the telecommunications industry,’ report, that blockchain technology can even ensure that the next generation can experience the full benefits of the 5G Network.

The Chinese telecommunications industry and their decision to create a blockchain group have therefore come at a critical time for the three major telecommunication companies, as these firms prepare to roll-out the 5G mobile infrastructure in China over the next 2 years.

The Chinese Government has always been bullish on blockchain technology. According to a report by Jingdata, an institution that researches on blockchain development in China, the sheer amount of investment and financing that has gone towards blockchain related projects in January 2018, has reached $100 million—surpassing the record total set in 2016.

The Chinese Ministry of Industry and Information Technology mentioned in May 2018, that he is in major support of blockchain as a key technology to digitize the country’s economy, as seen in the SCMP. Xin Guobin, the ministry’s deputy director also stated that blockchain technology could help with security breaches, fraud prevent, cut costs, and solve the inherent weaknesses that plague existing credit systems today.

While there is a lack of explicit regulatory frameworks, the Director of the Chinese Blockchain Research Office, Li Ming, is keen on creating a clear and comprehensive industry standard for blockchain technology, especially since there are a large number of Chinese industries turning to the new tech. Ming is currently working on creating these national standards which will be released by the end of 2019.

The Brookings Institute believes that, with further regulatory clarity, China can become a leading figure in the blockchain innovation race.

The post New Details on China’s Telecom Blockchain Research Group appeared first on UNHASHED.

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