English French German Italian Portuguese Russian Spanish

DT-Chain for Telecoms

E-Drachma Version One 28/04/2015

E-Drachma Version Two 13/03/2016

(Originally Called Telecoms Elite) E-Drachma Version Three 18/09/2013

Work in Progress:

 

Abstract:

Advances in information technology now make it possible for non-government entities, or governments themselves, to establish and run a permissionless ledger system at very low cost and launch it on very short notice. The workings of such a system is described and discussed. Such systems may ameliorate risk and fraud elements in the telecommunication sector via permissionless blockchain ledger.

 

1.0.0 Introduction:

Based on my interest back in 2013 to Blockchain technology (NOT BITCOIN) I started to look for the alternative solution other than Bitcoin which was NXT, My core interest was to use the blockchain to mitigate fraud within Mobile Money platforms and irrefutable ledger for transparency alongside an extra layer of security to the data.

The main focus was around Telecommunication sector due to my background in wholesale voip I therefore stepped back from Wholesale voip to gain a better understanding and doing proof of concepts around the technology until my old business got hit by corporate identity theft this now provided me the user case to prove the solution that is required not only was the false company european but it was a Tier one national operator and very large player in remittance corridor sector also.

1.0.1 The proposal:

Key elements to the proposal are as follows:

  • Digital and eruptable Smart contract.

  • Billing and Accounts.

  • Escrow.

  • Corporate Identity theft.

  • Credit Rating & Scoring.

  • Payments and Consolidation

  • Centralized or Decentralized or Permissionless

1.1.0 Centralized?

1.2.0 Decentralized?

Public (non-permissioned) blockchains utilize two types of algorithms to achieve consensus across a network of nodes, operated by parties generally unknown to each other. These are “Proof of Work” (POW) and “Proof of Stake” (POS).

POW, used by Bitcoin for example, involves nodes performing complex and costly mathematical calculations that use significant amounts of electricity when voting. Trying to launch an attack against the network consensus i.e. attempt fraud, is in theory more costly than the amount that can be gained by the fraud.

POS requires a node to put up a bond in order to participate. Each transactional block requires the participating nodes to post an amount of the blockchain currency to back up a consensus vote. If the node attempts to manipulate or commit fraud it loses its bonded currency, again implying a cost to aberrant behavior.

1.3.0 Permissionless?

In a Permissioned Blockchain there is no need for complex computations or financial gambles. Each node is a known participant, subject to legal agreements, issued with a cryptographically verifiable identity (private key) secured within a hardware device attached to the node. Any aberrant behavior has consequences agreed to by participants, and this may also result in the invalidation of permissions.

2.0.0 Disruption to the telecommunication sector

Digitization is rewriting the rules of competition, with incumbent companies most at risk of being left behind.

Digitization often lowers entry barriers, causing long-established boundaries between sectors to tumble. At the same time, the nature of digital assets causes value chains to disaggregate, creating openings for focused, fast-moving competitors.

2.0.1 Technology has progressed so far could this be a viable option

2.1.0 Building confidence

Proven test user case to be applied along with larger companies using the private network for internal use.

Mitigating against fraud and being proven to prevent fraud will build gradual confidence in the network

2.2.0 An intermediate solution

The fastest solution is to digitize agreements between companies along with invoicing will be the fastest approach in building the trust factor of the network.

2.3.0 Long term solution

Longer term is to implement credit rating and scoring application between companies that is controlled based on their trade history going forward alongside this for small operators P2P multisig escrow services that have no central point of weakness such as EMS and Vertecto have had in the past.

2.4.0 Gradual increase of adoption

Adoption will increase as larger companies set the mark as an industry standard once the companies start seeing the value and benefits that secure their business against fraud and bad actors alongside discovering the use of the network as a private internal network that also enhances and reduced costs on big data

3.0.0 Who can adopt such a network

3.1.0 National Operators

National operators can adopt such network at various levels that come to be apart of the network using the service or supporting the global network as master node along side using the Sub nodes for their own internal private network.

3.1.1 Carrier exchanges

Voip carriers regardless the size of their service or jurisdiction all play key element in supporting the network alongside mitigating against fraud and bad actors in the industry due to most of them coming from this end of the industry

3.1.2 Credit providers

Simple and solution to evaluate the risk factors on lines of credit based on payments history and rating.

3.1.3 Insurance providers

Using such a network would provide insurance companies a trusted and secure rating mechanism on companies when providing insurance against lines of credit.

3.1.4 Registration obligated:

Building the Digital identity of the participating company and trade history is ongoing

  • Shareholder

  • Company registration

Set fee to be charged for initial due diligence

3.2.0 Smart Contract

  • Access Critical Data Feeds

  • Use Payment Networks

  • Connect to IT

3.2.1 Interconnect Agreements

Digitizing agreements over the network blockchain is one step towards a company building its profile and rating.

  • Bilateral agreement

  • Postpaid

  • Prepaid

3.2.2 Invoices & Billing

The provider relies on prompt and consistent payment to keep cashflow at optimal levels. Disputes and late payments – either as a result of disputes or other billing errors – thus need to be avoided at all costs.

Also of concern to the provider is erroneous pricing being applied, which may result in overcharging the customer (leading to disputes) or undercharging, which may result in losses.

 

3.2.3 Escrow Terms

Using smart contract and multisig wallets enables P2P escrow therefore reducing the risk of relying on a single central entity due to the network being distributed and supported industry companies globally.

Payment tool comes in the format of tokenized $ or other currencies on the network.

3.3.0 Credit scoring

Credit scoring can be achieved by companies when verifying receipt of payment this being cross referenced with settlement terms.

If a company pays on time they have a higher scoring if they delay payment there payment scoring goes down this therefore enables interconnected companies to view the risk levels if the companies scoring goes too low then partners have an early warning sign of the risk of doing business.

3.3.1 Settlement Terms

Payment terms and limits play a large roll most companies with their closed network of partner mostly lie about limits when verifying trade references.

By using blockchain technology and transparency aspect the system provides a history of trade reference.

3.3.2 Billing disputes

The provider relies on prompt and consistent payment to keep cashflow at optimal levels. Disputes and late payments – either as a result of disputes or other billing errors – thus need to be avoided at all costs.

Also of concern to the provider is erroneous pricing being applied, which may result in overcharging the customer (leading to disputes) or undercharging, which may result in losses.

 

3.3.3 Prepaid & PostPaid

The industry is full of manipulation creating an image larger than they are and also provides a services that enables transparency if the rating system displays the amount of agreements prepaid or postpaid

Example:

  • Buy Postpaid 10

  • Sell Prepaid 56

  • Buy  Prepaid 78

Due to the network service rating system is based on the Agreements between companies the rating system takes this information.

3.3.4 Corporate identity

Corporate Identity theft is growing and those doing it are getting smarter and going after bigger brands as they can obtain credit levels higher than normal based on name and reputation this has adverse effects in the company who ID is stolen and damages it image in the marketplace in more ways than one.

Affected companies than have fallen victim to such acts can fall under stress due to loss of cash flow which expands further if multiple companies have also fallen victim a domino effect in the marketplace.  

3.3.5 Trusted industry standard

3.3.6 Switch IP Ownership Authentication

One level of security and identification that is imperative from technical verification on IP address used by the switch this can mitigate against fraud when digital identity is involved and internal theft.

IP Address would be only viewable to the Interconnected party and encrypted, but on global scale the IP could be authenticated to say yes registered on the network or not this would then mitigate against fake companies and identity theft.

3.3.7 Employee verification

By authenticating employees such as Technical engineers, sales agents and accounts department enables security to interconnected partners and mitigates against fake companies and identity theft.

4.0.0 A profitable solution proposal

Due to the various application of the network that it provides supporting companies in various ways of internal private network to build over along with supporting the global network in which the masternodes earn royalties that are shared across the network masternodes therefore compensating that company.

This permission based node network also enables the companies to be in control of their own data internally which is not shared across the global network unless specified.

4.1.0 Objectives to overcome

Elimination of cowboy operators and syndicate companies that operate on fraud basis commonly DnB is used but it has been noticed how this can benefit bad actors and to obtain company information to create corporate identity theft.

By eliminating cowboy operators it provides a market liquidity and fair trade amongst existing companies that work on small margins but at high risk of non payers

4.1.1 Market demand

Market demand for such a solution is high specially if it can be cost effective as a service to reduce risks and eliminate bad actors

4.1.2 Market requirements

Simple and easy solution that can be adopted from small operators to Tier 1 mitigation against fraud is a large requirement due credit rating being easy to manipulate and current trade references can be manipulated.

4.2.0 Permissionless network

To be apart of the network the node owners would have to be verified there are 2 types of licences available.

  • Regular node to support the global network

  • Masternode that supports the global network and sub nodes to create a private network

4.2.1 Who secures the network

Participating companies that wish to support the network and create their own private chain or any build application over the top of the network this therefore secures the network and decentralizes it at the same time.

4.2.2 Tokenization of currency enabling cross border payments

5.0.0 Conclusion: better than no alternatives

FacebookTwitterDiggDeliciousStumbleuponGoogle BookmarksRedditNewsvineTechnoratiLinkedIn
Pin It

News Letter