In the third phase, 3air platform should become the go to platform for ISPs as it will provide them not only with identity, payment, community, governance, and marketing solutions but also potentially solve other issues all ISP providers are facing today.
The main benefits 3air should provide for ISPs in the future are:
- fraud prevention,
- IoT platform (device connectivity),
- service accessibility,
- bandwidth distribution,
- roaming capabilities.
With usability in mind K3 TV boxes may be programmed to contain a 3air wallet app with staking and voting capabilities.
While the TV boxes are idle, selected blockchain nodes could be run on them providing users with additional income.
Each telecom company faces fraudulent attempts to exploit loose security or security holes. Some users might abuse telecommunications products and services to steal money from customers or their communication providers. In the UK alone there have been over 25 million fraudulent call attempts in 2018, costing millions of pounds (BICS, 2020). Scammers can hack into systems and force high charges that usually become payments directly to them.
This form of Traffic pumping schemes can happen to mobile and landline phone or internet providers. Many different fraud techniques exist, including dial-through, International Revenue Sharing Fraud, the Wangiri fraud (One ring and cut), Call forwarding fraud, Multiple transfer fraud.
Telecom Service Providers are particularly vulnerable to fraud as fraudsters are able to manipulate regulatory systems in a way that are difficult to detect, trace, and prosecute.
One of the newest is called Wholesale SIP trunk fraud where fraudster actually sell wholesale trunking services using stolen credentials. Others include Toll free fraud that can affect any business that uses a toll-free number, False answer supervision, Location routing number fraud, Toll bypass fraud and Inter/intrastate tariff bypass fraud.
Schemes conducted over the telephone include Account takeover, Telecom denial of service and Vishing.
This can take a major drain on ISPs and mobile operators, not only in the form of chargebacks or other direct financial damages but also service outages because of infrastructure overload and reputation damages. Scams erode trust and decrease usability of data driven networks in general.
Blockchains unique properties are ideal for fraud prevention. Their distributed ledger is designed to be:
- Trustless – no trustworthy middleman is needed to prove the accuracy and truth of the stored information. Whatever is read from the ledger is considered the whole and only truth. The trust is provided by the code.
- Integral – there is a verifiable record of every transaction that has been made and those transactions can never be altered.
- Transparent – the blockchain ledger is public and can be read by each party that has access to it. It’s worth nothing to mention that data can at the same time retain a high level of privacy.
- Secure – with the decentralized design there is no one point of failure. This also means that no single participant can add, delete or in any way alter data.
With the combination of blockchain digital identities, service tokenization and IoT, security reaches a whole new level, easily preventing most of the existing fraud methods.
How blockchain digital identities help users prevent users from being exploited?
A common point of failure for customers are authentication services. Still the most common authentication system is the classical (archaic) username & password method. This method is not considered safe anymore and is also inconvenient. Users usually opt for using the same and unsecure passwords for multiple access points, making it easy for hackers to steal their identities. There are attempts for 2, 3 or n-factor authentications that are fairly secure but are becoming burdensome.
Blockchain DIDs allow for provable and easy authentication just with connecting your private wallet. At the current state of technology blockchain wallets are considered un-hackable. The drawdown is only the storage of private keys that will become easier with time and general blockchain user education.
IoT platform on the blockchain enables devices across the Internet to send and read data from tamper-resistant records. These data can be shared seamlessly between different devices and their users. Blockchain enables business partners and third-party contractors to share and access IoT data without the need for central control and management. Each transaction can be verified to prevent disputes and build trust among all permissioned network members.
There are many instances where ISPs can benefit of such a system and fraud prevention is one that we already mentioned. Another example are third-party repair contractors that can monitor devices for preventative maintenance and record their work directly on the blockchain. Also, operational records can be shared with government entities to verify compliance.
Service accessibility, tokenization and roaming
Each ISP provider or mobile operator needs to run its own database of users and their acquired services. Exchanging the existing centralized databases with distributed blockchain ledgers opens up additional value capture for the users and providers.
Automation of service acquiring and connectivity without the need of in-person authentication, authorization, and accounting. Not even a third-party trustee is needed as trust is built into the blockchain.
With a public ledger each party can verify previous transactions. This leads to less customer service request and mostly prevents expensive lawsuits.
Tokenization of services and bandwidth provides a revolutionary method of service and subscription acquiring and usage. With this our thinking of on-line services changes and completely disrupts traditional systems.
Tokenization of services and bandwidth provides ISPs and mobile operators with the ability to always sell all their services and bandwidth on the open market, thereby maximizing income and leveling usage spikes. Pricing is easier as the market can determine best value not only on monthly or daily timeframes but also intra-day lows and highs.
On the other hand, users get more control about their acquired services and fair pricing that is impossible to achieve with current models. Users can share or resell unused services and bandwidth to friends or on secondary markets. Device switching is easy on the blockchain.
Blockchain and tokenization renders additional roaming agreements obsolete as bandwidth and other services can be acquired on the open market. IoT allows for permissionless usage of the infrastructure connected to the tokenized service. Such services can be obtained by ISP providers, reselling them to their customers within packages or they can be obtained by the customers themselves on the open market.
It is a bold idea that can completely change how we view on-line services in general.
3air will set up a dedicated team of specialist to explore this area and develop a cutting-edge platform for on-line service providers.