Vodafone's senior management is looking to integrate blockchain technology with its operations. The concept of crypto wallets has also caught the attention of the UK-based telecom giant in recent times. David Palmer, Blockchain Initiatives Leader at Vodafone, talked about some of the company's plans during a recent interview with Yahoo Finance. Palmer hinted that blockchain networks, crypto wallets, smartphones and SIM cards can all come together to give a big Web3 twist to Vodafone services around the world.
In the next six years, Palmer will see billions of smartphones in circulation. During the same duration, the number of crypto wallets is also expected to see a big jump as the sector is already moving towards regulated adoption in various nations.
“By 2030 we expect there to be more than eight billion mobile phones in operation, many of which are smartphones that act as a point of contact for people to use apps and conduct business. Essentially, these mobile phones have will have SIM cards. So we've focused on linking the SIM card to the digital identity, linking the SIM card to blockchains, and using the cryptography that we have on those SIM cards for that integration,” Palmer said during his interview.
The head of Vodafone has projected that by 2030 around 5.6 billion digital wallets will be operational, acting as gateways between people and financial services. They would also be used to hold digital IDs and other credentials.
“We think about linking digital wallets to SIM cards, which have the necessary hardware, for example, the hardware security module, public-private key encryption, and a symmetric key enrollment that are absolutely critical. Because wallets are “extend and contain financial identities and credentials, they will be a target for hackers and others,” Palmer added.
As part of its plans to give its business a Web3 twist, Vodafone is considering using public blockchains like Ethereum and Avalanche, as well as private blockchains like Ripple and Hyperledger. The former, however, seems more interesting to Palmer, especially Layer-2 chains supported on popular parent chains like Ethereum itself.
Overall, Vodafone's plans to take a pro-Web3 approach to revamping its operations could end up making its services interoperable with Web2 and Web3. This could generate a large influx of capital into the company's coffers, putting it in a strong position to arrange a large $1.8 billion loan for its Indian subsidiary, Vodafone Idea. The company is reportedly seeking the loan to turn around its loss-making operations in India.
