The Blockchain-Enabled Future of Telecommunications Intro to Blockchain And The Blockchain-Enabled Future of Telecommunications John Carpenter Global Blockchain Summit Government Blockchain Association

Agenda Introduction Background What is blockchain? How does it work? Relevant Use Cases

John E Carpenter Co-Founder Denver Blockchain Week and the Global Blockchain Summit, October 3rd & 4th In Westminster, CO. Founder, ClueChain, Blockchain Consultants President, Denver Chapter of The Government Blockchain Association (GBA) Speaker, Consultant, and Certified Blockchain Trainer For GBA Blockchain Certification Courses Organizer Of The Hyperledger Meetup For Colorado Member Of The Accord Project (Smart Contract) Technical Working Group Board Member for UBTS International (International Telecom Company) • Serial Entrepreneur and Licensed Attorney in Colorado

Blockchain Technology In 2019 Some people are like this…… Others are like this…..

Government Blockchain Association Working Groups Contract Management Financial Oversight Cryptocurrency Economic Analysis Cybersecurity Education Land Titling Government Ontology Legal & Legislative Telecom Working Groups Healthcare Software Product & License Management Smart City Supply Chain Voting

Blockchain Basics www.GBAglobal.org

Some Blockchain Terms Genesis Block: The first block of data in a blockchain. Block: A chunk of data to be added to a blockchain once a consensus is reached. Consensus: When all of the nodes reach a consensus, the next block is written. At least 51%, but could be higher. Node: A computer or ASIC (Application Specific Integrated Circuit). Mining: Being rewarded for solving a cryptographic puzzle on a Proof of Work consensus blockchain. Public Key: Hexadecimal Key Given Out For Transactions Private Key: Hexadecimal Key To Be Kept Private and Secure

2008 – Bitcoin Whitepaper Eight Pages That Changed the World, October 31, 2018 Was The 10 Year Anniversary Of This White Paper

What Impact Will Blockchain Have? As the Internet Disintermediated Information Brokers News & Media Travel Services US Post Office Blockchain Will Disintermediate Value Brokers Banks & financial Institutions (digital currencies) Third party payment processors Insurance companies (parametic insurance, blockchain title insurance) Legal Service Providers Third party certification services (notaries and witnesses) Government registries (real estate, vehicles, business, voting, vital records, probate)

How Blockchain Works

How Blockchain Works A deeper dive into how the Blockchain actually works. Play Video https://www.youtube.com/watch?v=r43LhSUUGTQ 11 www.GBAglobal.org

Blockchain Platforms Ethereum Hyperledger R3 Corda Public Blockchain-Includes Smart Contracting Features Companies used Ethereum Request For Comments (ERC-20) tokens for many Initial Coin Offerings (ICOs) in 2017. Coding Language is Solidity Supported by Consensys (Over 1,000 Employees Worldwide) Hyperledger Permissioned Blockchain Part of the Linux Foundation Open Source Community Can be configured for Smart Contracts and Supply Chain Supported by major Enterprise IT companies (IBM, Oracle, VMware, Intel) R3 Corda Focused on Financial Transactions Other Popular Platforms Ripple, Quorum, Hashgraph, Digital Asset (DAML)

Other Types of Blockchain-like Solutions. Standard Blockchain Sharding is another form of trying to speed up a blockchain on Ethereum. IOTA-Tangle Hashgraph

Blockchain Legislation Colorado Legislation SB 18-086-OIT, Department of State, and Department of Regulatory Agencies assess the costs and benefits of using blockchain technology. HB-1426-Which Virtual Tokens Are Recognized as Securities Other States, like Wyoming, are aggressively creating legislation around promoting the adoption of Blockchain technologies as an economic driver for the state. Banking Blockchain Companies, Real Estate Records, Open Blockchain Token Legislation

Blockchain For Inter-Carrier Settlement

The Current Settlement Issue Telecom operators open their networks to enable their customers to communicate across network boundaries (interconnect). Operators cross-charge each other for the interconnect services (invoicing) Interconnect operators share Call Detail Records (CDRs) for the purpose of verifying cross charges and settling balances. The verification process is: Cumbersome Inefficient Lengthy Costly Error Prone Missing CDRs and discrepancies are common problems.

CDR Settlement Timing Issues ● Billing Cycle – Monthly ● Billing Generation & Distribution – 5th of every month ● Bill Reconciliation – 2-3 days ● Dispute Identification & Confirmation – 15-45 Days ● CDR reconciliation process – 90 – 180 Days ● Dispute Analysis and resolution by Partner – Months to Years

Blockchain Solution Benefits ● Better visibility between partners belonging to the same channel. ● Build transparency and trust across deals and financial transactions. ● Ensure financial and legal compliance in transactions. ● Increase direct control by reducing intermediary dependency. ● Eliminate insecurity in transaction manipulation. ● Immutable settlement within seconds.

Blockchain Business Architecture Settlement Framework for for Operations Support Systems (OSS)/Business Support Systems (BSS).

Technical Architecture Framework for Implementing Blockchain for Carrier Settlement Using Hyperledger

Conclusion

Blockchain Offers A Better Way Of Doing Intercarrier Settlement Inefficiencies of the intercarrier settlement process within the telecommunications industry are well documented. Over the years, network operators have lost billions of dollars due to disputes over billing data discrepancies and mismatches and also due to delayed revenue recognition. A blockchain solution simplifies the settlement process by creating a trusted, single source of truth for the call detail records generated by the participating carriers, and eliminates the root cause of data mismatches and discrepancies.

Questions? John Carpenter-john@cluechain.com ClueChain Blockchain Consultants Global Blockchain Summit Denver Blockchain Week www.GBAglobal.org

September-October, DenverBlockchainWeek.com

October 3 & 4 2019, Westminster, CO www.GlobalBlockchainSummit.com