The widespread rollout of 5G technology will have more than an impact on mobile connectivity speed – it’s also going to bring blockchain and crypto to every consumer.
If 2020 wasn’t already interesting enough so far, the widespread rollout of 5G techOpens a new window , the next digital cellular network standard, will assuredly add to the intrigue of the next decade. 5G networks are the next iteration in rapidly advancing cellular technology that is significantly faster than current 4G networks that predominate in many developed regions of the world.
These networks support your text messages, phone calls, and basically every interaction with the Internet on your phone when not in the comforts of a WiFi network. The infrastructure and coordination costs of rolling out fast cellular coverage are exceptionally high, so it’s not surprising that 5G has a high bar of expectations after years of R&D.
Originally launched in 2019, the next year is expected to be the more deliberate delivery and expansion of 5G network technology. Mobile carriers like Verizon and AT&T are already launching low-band versions of 5G in select cities, which will only accelerate — particularly once people realize the advantages.
And 5G presents quite the advantages for everyone plugged into the Internet, from small businesses to a regular consumer and smartphone addict.
But how does this apply to facilitate the adoption of crypto? Three ways: speed, bandwidth, and power consumption.
Learn More: 5G Networks Are Coming, So is a New Set of Security VulnerabilitiesOpens a new window
Speed & Latency of 5G
The 5G technology standard was crafted specifically with mobile broadband applications, video streaming, gaming, and enterprise application considerations. Think of 5G as the backbone that today’s digital world of TikTok, YouTube, mobile gaming, and industrial IoT services desperately needs to meet the progressive demands of consumers and businesses. 4G has done an admirable job, but it’s time to step aside.
For some context, 5G is scary fast. Speeds in early testing (both indoor and outdoor) reveal download speeds, with high-frequency bands, that can reach 1-2 Gb/s. Compare that to most average WiFi speeds, which range from 50 to 100 Mb/s, and your phone is basically transmitting data in real-timeOpens a new window while you’re walking down the block. That means you can download movies, stream HD videos, and interact with remote devices seamlessly — no lag. Buffering is thing of the past.
But latency, the time it takes data to upload and reach a target from one device to another, might be 5G’s killer application.
For example, Google’s recently launched gaming platform, StadiaOpens a new window , streams HD gaming to user devices. Games require low-latency because of the hyper-responsiveness to have a pleasing user-experience. With 5G, gamers could tap into Ultra-HD gaming via phones or other hardware without a WiFi connection. That’s an enormous improvement from the 720p Nintendo 64 days of the early 2000s.
Imagine the consequences for streaming services like Twitch and e-Sports — particularly in the Asian market, where e-Sports reign supreme. Cloud gaming is no longer a distant dream, it is an imminent reality. And China is already striving to dominate the 5G market. US Attorney General William Barr’s recent heated statements about China taking the lead from America is a testament to that notion.
For crypto, 5G opens a variety of promising doors.
Learn More: What Is 5G? A Complete ExplainerOpens a new window
5G and Crypto
Crypto wallets may be the most underrated tool of the industry. The market is saturated with them, but only a few really provide the tangible UX that will onboard “normies.â€Opens a new window The bigger opportunity, though, rests with the ability of crypto wallets to expand their functionality, operating as gateways to a new world of digital financial infrastructure and beyond.
And 5G networks are the backbone for that vision to manifest.
The low-latency of 5G will enable the UX of crypto wallets to work seamlessly while complex functions churn in the background. Obscuring the complexity of crypto from the user has always been one of the biggest challenges to onboarding more users, and 5G can go a long way in breaking down that barrier.
For example, users can transition between DeFi lending apps, DAO voting, and swap between NFT assets in real-time. Not to mention the mobile gaming, which with platforms like Decentraland and Gods Unchained, is sure to make its way to streaming to users on their phones in due time.
Imagine crypto wallets functioning as mobile financial wallets that are plugged into the Web 3.0 and all of its promising landscape of streaming, gaming, and IoT interaction. Users could even tether IoT hotspots like Helium to their wallet, virtually streaming money while providing a service to urban areas.
In particular, the potential of blockchains with 5G and IoT hinges on the expanded bandwidth and ability to support the power consumption required of vast IoT networks. The limited bandwidth of 4G tempered IoT innovation, which is set to explode with 5G. For example, IoT devices can generate data on blockchain networks (not just users) while functioning as oracles on the network — third-party data providers that act as inputs to triggers on the network.
Without the bandwidth improvements of 5G, blockchains integrated with IoT devices were limited in their ability to interpret external data and react. That’s no longer the case with 5G, and it will be fascinating to watch as enterprises and consortium blockchains tackle problems from supply chain tracking to micropayments using IoT blockchain networks with 5G.
We believe the next generation of cellular technology forms the foundation for bringing more users into crypto. Gone are the days of latency problems ruining the UX of crypto apps. For DeFi and tokens to go mainstream, they need the right infrastructure that targets precisely what younger generations want — fast, byte-sized interactions on their mobile phones.
5G provides that backbone.
From helping doctors interact with robotic tools for surgery in real-time to more precise asset tracking in supply chains, 5G is the highly anticipated technology of a year already shaping up to be one for the ages. And it’s the foundation of speed and low latency that crypto needs to catapult into the mainstream.
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