- Vodafone foresees mobile phones, especially through SIM cards, as central to accessing blockchain-based services and digital identities by 2030.
- They plan to link 5.6 billion digital wallets to SIMs for secure financial services, enhancing identity verification and encryption.
- Palmer of Vodafone sees potential in using layer-2 blockchains for financial apps, despite regulatory challenges, promoting significant interoperability and security.
Vodafone means business: the British multinational telco company wants a slice of the crypto pie. The company estimates that by the end of the decade there will be over 8 billion mobile phones. David Palmer, Chief Product Officer of Pairpoint by Vodafone told Yahoo Finance these mostly smartphones will become the gateway for people to access all kinds of services via the blockchain.
Within each mobile phone is a SIM card and we have focused on linking the mobile phone SIM card to digital wallets, identity and blockchains, using the cryptography we have in those SIM cards for that blockchain integration.
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Digital Wallets on Mobile Phones
Vodafone expects that by 2030, 5.6 billion digital wallets will be in use, allowing people to access financial services while also holding some form of identity and other credentials.
Palmer said he believes that integrating the wallet with the SIM card, which possesses the necessary hardware such as secure modules for functions like public-private key encryption and symmetric key encryption, as well as linking it to identity, is paramount.
As the wallets evolve to include identity and financial credentials, they become prime targets for hackers and other threats, he explained.
The Role of Blockchain and Layer-2s
According to Palmer, long-term these wallets and applications will use public blockchains such as Ethereum and Avalanche. He mentioned especially layer-2s which have become faster and more secure, particularly after the Ethereum fork.
Nevertheless, for the time being Palmer still foresees issues with financial institutions using public blockchains:
However, we do know that for financial services there are some regulations which prevent them from using public blockchains or writing to public blockchains because of sanctions.
David Palmer, Chief Product Officer of Pairpoint One workaround is what Palmer’s Pairpoint offers – acting as an intermediary. Palmer said if a company wants to access a public blockchain they can do so through Pairpoint via a private blockchain.
Pairpoint then records and executes smart contracts, utilising private blockchain features like account abstraction and cryptography to enhance security. Account abstraction simplifies usage and promotes interoperability, enabling movement beyond Ethereum addresses to other types of locations and accounts.
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Palmer said this fosters interoperability, such as bridging between blockchains and bank deposits or fintech APIs. He believes the approach holds significant potential for innovation and efficiency.
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