Blockchain and 5G networks work together
With their massive increase in range and bandwidth, 5G networks can offer improvements to blockchain, ultimately increasing network participation and thus greater security and decentralization. Blockchain and 5G networks work together to support the greatly increased volume of transactions and payments that 5G enables.
- Coverage must be scaled to provide capacity, speed and latency on a global scale
- 5G networks will see an explosion in transactions and payments between devices. These new high volumes will drain the capacity of centralized and decentralized financial infrastructures
- Infrastructure spending must cope with the growing traffic
- Malicious devices will continue to cause chaos in the network.
Blockchain vs the pain:
- Blockchain ensures immutability, tamper-resistance and a consensus among distrusting entities
- Blockchain establishes an underlying protocol layer with robust security
- Blockchain protects identities through cryptography and secure hashing algorithms
- Blockchain-enabled smart contracts on 5G networks enhance functionality and performance.
5G will allow blockchain implementations on to run smoothly and efficiently while remaining in the secure environment it requires. The point of intersection on a data level of 5G and DLT will be enabled through IoT. 5G modules are likely to be smaller, less expensive and much more power-efficient.
These technologies can bring about smart cities. Connected and driverless cars are another development made possible by the use of 5G and blockchain, together with IoT.