Blockchain technology provides a distributed and decentralized solution to challenges facing future telecom network evolution, including issues with centralized architectures around response time, throughput, network problems causing revenue loss, and high costs of maintaining security and privacy. Blockchain uses smart contracts - automated programs stored on a distributed ledger - to securely and reliably manage operations like subscriber accounts, charging, and service level agreements in a peer-to-peer manner without a centralized authority. This improves performance, security, and scalability for high-speed 5G networks and the growing Internet of Things.

1. 1 © Nokia 2016
BlockChain in Telco
2016-10-18
• Kun Pang

2. © 2016 Nokia2
Challenges of future OCS evolution
• Problem Statement
• Real-time & accurate control is
hardly achieved especially for 5G
high-speed traffic.
• Almost unlimited group size due
to tons of IoT devices.
• IoT & Share Economy requires
new business model between
partners.
• Centralized architecture
• - response, throughput
• - networks problem,
revenue loss
• - vulnerable and the cost
of security or privacy is very high.
• - hard to maintain.
• - scalability.
• Broker-killing is on the move.
• Future Telco is not broker
anymore！
5G
• High Speed - Bill Shock
• Real Time - response
• Networks problem –
revenue loss
Security
• Security & Data Privacy
• Fraud Control
• Vulnerability
IoT &
Share
Economy
Maintenance
• Geo-redundancy
• Re-homing,
upgrade
• Reconciliation etc
- Big size
- Accuracy
- Busi Model

3. © 2016 Nokia3
 Derived from Bitcoin
 A killer technology for future digital world
Wikipedia “a distributed database that maintains a continuously growing list of data records secured from
tampering and revision…Each block contains a timestamp and a link to a previous block.”

4. © 2016 Nokia4
How BlockChain works in digital currency

5. 5 © Nokia 2016
How BlockChain fits in OCS evolution
OCS MODULAR APPS can be defined as SMART CONTRACTS
RatingChargingNotification Policy
Account
Main Balance
data Bundle data Counter
OCS can be deployed on
Private/Consortium BlockChain
in P2P networks
Account Privacy, Transaction Encryption, Transaction Authentication and Data Consistency as infrastructure
Group Hierarchy

6. © 2016 Nokia6
Smart Contracts fits in OCS service
OCS Smart Contracts
RatingNotification Policy
Group Hierarchy
Account
Management
Charging
Life Cycle
Management
 "a computerized transaction protocol that executes
the terms of a contract."
 It is deemed as an automated guarantee program or
network service on the BlockChain.
Example Smart Contract programed by
Solidity

7. © 2016 Nokia7
BlockChain Best-practice on OCS
Sub-A
1FYMZEHns
Lrouter/
Index Server
Group MAS
(Group Account)
PGW / HA
3ZHtgeVk
1. Smart Contract - Rating
Session QoS Profile etc
Group-1
3dGwYKQxh
4. Smart Contract
USU=60M,State = Served
1) Smart Contract – Account Management applied
2) Smart Contract – Life Cycle Management applied
3) Smart Contract – Rating applied, UB-2 GSU=100M
Highlights:
• No centralized server, all components and
logic are stored in P2P networks.
• Smart Contracts are also deployed in P2P
networks with BlockChain as infrastructure.
• As de-centralization is applied, no need to
deploy AGS/Lrouter etc. No recon etc.
• A series of smart contracts can be written
for the OCS internal service or service
between networks.
4) Smart Contract – Group service applied, money
reservation to group account
5) Smart Contract - Charging $1, with Group-1’s digital
signature
BlockChain Creation in
P2P networks
2. Smart Contract - Reservation
Price Plan, GSU=100M
State = wait for service
3. Smart Contract - Share
Value=$1, State=Reserve
5b. Smart Contract
Value=$0.6, Sending value
Bank
5GkjizyeaDi
6. Smart Contract - Recharge
Value=$100
State = wait for verify
5a. Smart Contract - Share

8. © 2016 Nokia8
Summary of BlockChain Technology
 Decentralization
 No Broker
 Reliability
 Security
 Traceability

9. © 2016 Nokia9
BlockChain Performance Improvement
P2P & Broadcast
• Use Private/Consortium BlockChain, not
Public
• Increase power and number of P2P
nodes
• Use high-speed networks
• Security & Data Privacy
• Fraud Control
• Vulnerability
Consensus Mechanism Transaction Verification
• Sharding: transaction segmentation
i.e. some nodes only verify parts of
transactions.
Encryption
• Use faster hashing algorithm, SHA256
• Use faster encryption algorithm e.g.
ECDSA/SCHNORR and support digital
signature.
• No PoW, No riddle, No bitcoin reward
• If no malicious node is assumed,
classical consensus algorithm
Paxos/Raft are even faster.