Trend of blockchain application in global communication and network security

China's key blockchain infrastructure, Changan Chain, has successfully embedded a high-performance anti-quantum cryptographic module, which will be able to counter known traditional cryptographic attacks and quantum attacks, it was reported in early June. On the surface, this achievement is not only the "wrestling" between blockchain and quantum computing, but also the "fusion" of the two cutting-edge technologies, which also represents an important development direction of network security.

Globally, blockchain applications in the field of communication and network security (" communication/security ") have shown a rapid growth trend. According to Capital Lab's "Global Blockchain Application Market Report 2022", its application activity ranks fifth among industries.

This is mainly driven by several factors: the rapid development of 5G, Internet of Things, satellite communications and other technologies has driven the growth of related blockchain applications; With the increasingly prominent network security problems, the role of blockchain technology in security response, as well as the security solutions required by the blockchain platform itself, are increasingly valued; Various types of mobile operators and their service providers have increased the application of blockchain technology in various industrial links.

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According to Capital Lab, there were 77 blockchain application cases in the global communication/security field in 2021, covering the five application scenarios of communication network construction/service, data/storage protection, identity management, AI/ Internet of Things, and on-chain security. Among them, communication network construction/service application accounted for the highest proportion, reaching 30%; Followed by data storage/protection applications (22%) and identity management applications (18%).

In terms of regional distribution, the US has the highest application activity in this field, accounting for 29% of application cases. China is next at 22 percent.

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The following new trends emerged in the communication/security blockchain application market this year:

1. "Blockchain + Internet of Things" : a growing application ecosystem

With the rapid development of the Internet of Things, blockchain vendors continue to expand their application market in this field, and have initially formed the application ecology of the Internet of Things device identity management, Internet of Things device communication and transaction, Internet of Things data security, integrated software and hardware solutions, etc. These applications extend trust between people and between people and machines to trust between machines. Among the many application cases in 2021, IoTeX's "Machine Economy" solution is the most representative and forward-looking. The solution aims to build integration between iot devices, blockchain, DeFi, ARTIFICIAL intelligence and machine learning to form a decentralized autonomous economic system that breaks the data monopoly of big companies and returns revenue generated based on data to the legitimate owners.

It can be predicted that the integration of blockchain and the Internet of Things will provide a reliable foundation for the construction of Web3.0 and the meta-universe, and will gradually become an application field with considerable market scale.

2. "Blockchain + ARTIFICIAL Intelligence Community" : An emerging field of blockchain applications

Even less relevant application cases can be judged that based on sharing, incentive and security protection mechanism of the artificial intelligence/machine learning community is becoming the emerging field of application block chain, related institutions rely on block chain of innovation practice will also to a certain extent, promote the development and application of artificial intelligence/machine learning.

This year, there were two notable examples: IoTeX, a decentralized networking platform, partnered with Swiss AI company Scaleout to launch the first machine learning model owned by a community of contributors using blockchain technology; In addition, Nokia has launched the Blockchain-based Nokia Data Marketplace, which aims to facilitate the secure sharing of Data and ARTIFICIAL intelligence models, as well as the trusted exchange and monetization of Data through private blockchains, trusted contracts and secure transaction mechanisms. It should be noted that this case also provides another valuable observation perspective for the budding and growth of the emerging mode of "digital assets" in various industries.

3. The market for "on-chain security" applications is heating up

With the rapid growth of the blockchain application market, security risks related to blockchain are spreading and breeding. In this context, "on-chain security" has become an indispensable and increasingly important application theme.

This category of applications covers blockchain security audit, smart contract audit, node security assessment, cross-chain security and interoperability, as well as risk prevention strategies related to cryptocurrency, DApp, DeFi, NFT, predictor and other applications. In addition, on how to resist network attacks based on Quantum computing, IDB Lab, Cambridge Quantum, QAN Platform and other institutions have proposed relevant solutions.

4. Distributed Identity (DID) : Provides security from the bottom up

From the identity of individuals and institutions to the identity of Internet of Things devices, the concept of identity in the age of blockchain continues to expand. Accordingly, Decentralized identity identification (DID) has become the core tool of identity management in this era. It is because of the application of DID that the depositing, empowerment, verification, circulation and transaction based on block chain can be realized and block chain can be implemented in various industries. It can be said that DID based on block chain is a major upgrade of traditional identity management mode, and is also the underlying foundation leading to "value Internet" and "Internet of Everything".

In addition to the application of DID in government system and financial system, the biggest changes in this field in 2021 are as follows: Major blockchain platforms, such as Qtum, SETL, Polymath, Algorand, are working with identity management services to introduce new identity management solutions, including related apis and SDK suites, It aims to improve its management capabilities in privacy protection, fraud prevention, cyber attack prevention, transaction/interaction, compliance/supervision and other aspects.

5. Space: New space for blockchain security applications

In 2021, blockchain applications related to space technology will proliferate. There are three types of applications:

Data security protection -- Secure data and transactions on the blockchain by deploying blockchain network nodes in space without relying on land-based infrastructure, such as the project being developed by SpaceChain, an open source satellite network developer, in partnership with SpaceX, Spire Global, Eurasian Space Investment (ESV) and others.

Data product development and trading -- Based on data collected by satellites and combined with blockchain technology, shareable/tradable data products will be launched, such as China's "Guangmusatellite" to provide global data support in the field of sustainable development.

Device communication and Transactions -- Data communication and transactions between satellites or iot devices, such as a blockchain payment test conducted by jP Morgan using earth-orbiting satellites, showed that smart devices can automate payments with each other using blockchain technology.

6. From 5G to Aerostat: New Forms of communication Network construction and Operation

In the network and communication industry, with the influx of more new service providers and the growth of blockchain applications, the construction, operation and service modes of mobile communication networks have taken on more new forms. For example, World Mobile, a blockchain Mobile network service provider, is promoting the 5G network construction plan based on blockchain technology, sharing economy and token model in Africa, and thus extending its cooperation with relevant countries in government infrastructure construction. Helium, a decentralized wireless service, is using the same technology and model to build its 5G wireless network in the U.S. market.

In addition, this year's communication market also appeared "blockchain + location services" a new application type. For example, IoTeX, a de-centralised networking platform, and Quadrant, a geolocation data intelligence company, have launched blockchain-based and NFT mobile location services respectively. It is expected that such services will provide a building block for metasurverse developers and create a new market for applications.

7. Mobile operators expand blockchain application scenarios

In this year, mobile operators around the world have been highly active in the application of blockchain technology, involving a wide range of application scenarios, such as number transfer network, inter-operator scheduling, inter-operator settlement, user subscription management, compliance management, combating telecom fraud, communication infrastructure management, communication security guarantee, contract performance and so on.

Among them, it is worth paying special attention to that, with the rapid development of 5G and the Internet of Things, as well as the continuous growth of global data traffic, the collaboration and cooperation between operators and between operators and emerging telecom technology providers has become an important topic of blockchain application in the communication market. Taken together, these applications demonstrate the unique capabilities blockchain can provide for data sharing and distribution across organizations, and will drive operational efficiencies for operators themselves and the industry as a whole.

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