5G Edge: The IoT Digital Bank | XENIRO Thought Leadership Series Part 2
In the 1st part of XENIRO thought leadership series, we discussed how the 5G + Multi-Access Edge Computing (MEC) + Distributed Ledger Technology (DLT) combination will transform operators’ 5G MECs into “Digital Banks”. Part 2 of this series, we will stimulate thoughts around “how” and “why” this is possible by questioning:
- Why do we need DLT (Automated Payment Platform) at the edge of the network?
- How will 5G MECs transform into Digital Banks?
- What does it mean for Mobile Network Operators?
- IoT Device proliferation: Many global research & advisory firms predicted 20+ billion connected devices, outnumbering humans 4 to 1 by 2020.
- IoT devices are becoming more intelligent & automated as we evolve, with built-in smart sensing, actuating, communication and computing capabilities. Possessing self-governing abilities to interact and transact with each other.
- Who provides IoT device connectivity and the mobile edge architecture?
- Who owns the backbone infrastructure for IoT?
- Who understands speed, scale and efficiency better than anyone else?
- Who mastered the art of performance & latency (Quality of Service)?
- Who possesses a distributed network infrastructure?
MNOs are already investing in heavy CAPEX for 5G NR, NFV, MEC and SDN, evolving towards a full cloud-based network environment. DLTs could be deployed as a platform within the MEC, where decentralized applications are orchestrated across single or clustered MECs, either locally, regionally or internationally. IoT device transactions are then processed through smart contracts and monetized on-demand, where operator’s MEC becomes the digital bank, turning into a “Profit center”, and essentially a revenue generating edge service.
The diagram below depicts how operator 5G MECs take on the role of a bank in processing billions of IoT device transactions, in comparison with the traditional banking institution.
- MNOs are essentially crafting a completely new ecosystem in the 5G era
- DLT deployment @ the edge will greatly accelerate ROIs in 5G.
- Decentralized Application (DApp) community will be ecstatic in building DApps on top of MNOs (Resilient, Flexible, Tactile) MEC infrastructure. Platform capabilities allow automation of DApp orchestration, with payments executed on the DLT. Attracting developers community and new users/enterprises onto MNOs edge services.
- Processing IoT transaction will require radio, compute, storage and networking resources at the edge (MNO resource monetization).
- Continuous recurring revenue in processing mass IoT device transactions, that truly transforms 5G MECs into a “Digital Bank”.
Stay tuned for Part 3, welcome to visit us @ xeniro.io