Page 105 - ITU Journal Future and evolving technologies Volume 2 (2021), Issue 5 – Internet of Everything

ITU Journal on Future and Evolving Technologies, Volume 2 (2021), Issue 5

RESOURCE TOKENIZATION FOR CROWDFUNDING OF WIRELESS NETWORKS

Dr. Volkan Sevindik
Digimetrik LLC., 11654 Plaza America Dr., Virginia, 20194, USA

NOTE: Corresponding author: vsevindik@gmail.com

Abstract – This paper presents a novel blockchain-based spectrum tokenization method used to
crowdsource wireless network deployment projects. Crowdsourcing is a method of financing certain projects
and ideas through the funds collected by individuals or businesses in an open marketplace. The method
presented in this paper finances the wireless network deployment projects belonging to service providers or
governments. The method tokenizes proposed novel wireless resource units, and sells these units to investors.
A new Value Unit Per User (VUPU) resource unit is introduced with a new pricing scheme depending on a
load of a base station. A novel Proof of Data Load (PoDLO) consensus algorithm is proposed which is used
to verify data and traffic load of a base station. Device Diversity Factor (DDF) and Subscriber Unique
Permanent Identifier (SUPI) Factor (SUF) are proposed new ways to determine the value of a base station
and a network cluster.

Keywords – Blockchain, crowdfunding, resource tokenization

1. INTRODUCTION infrastructure into investable pieces. The open
research question is how to tokenize wireless
As a telecommunication industry, we are at the resources so that it provides capital for network
verge of deploying 5G wireless networks. With investment, and it also provides income to its
increased Spectral Efficiency (SE) gains promised investors with a minimum risk.
by new wireless standards, 5G/NR standard also
promises delivering higher SE compared to 4G/LTE. The main purpose of this paper is to share research
Higher SE enables the transmission of more data to findings on blockchain-based crowdsourcing
subscribers, increasing revenue for service platforms. For that purpose, an automated network
providers. During network design, service tokenization method with blockchain is proposed.
providers calculate how much capacity is needed at Section 2 defines novel wireless network resources
certain markets, and coverging the whole market and a tokenization method, Section 3 defines
with superior data speeds is the key to success. With blockchain and smart contracts used in small-cell
mmWave spectrum and with above 6 GHz spectrum blockchain, Section 4 presents newly introduced the
bands, reaching to far distances is very challenging, Proof of Data Load (PoDLO) consensus algorithm
if not impossible. Therefore, wireless operators and defines a block creation rate formula, and
started to question the investment in 5G technology. Section 5 concludes the paper with important next
Unlimited data plans, decreasing outdoor data steps.
usage, and increased competition will force
wireless service providers to postpone their 2. WIRELESS NETWORK RESOURCES
infrastructure investments for future wireless
network technologies. In the near future, we will see 2.1 Network architecture
a plateau on wireless data speeds, and innovation Fig. 1 shows 5G network architecture and network
because of decreasing network investment. interfaces [1]. A base station is connected to a 5G
The other side of the coin is that retail investors or core network via an N2 interface, and this interface
individuals look for more tangible assets to invest. carries all control information from the base station
Therefore, a method of investing wireless to core network. N3 and N6 interfaces are used to
communication systems’ infrastructure can be carry user information. When a base station is
appealing to the general public. However, wireless deployed at a particular location, a backhaul
network resources should be defined and divided connection is needed to connect to the core
into investable pieces. Tokenization is an important network [1].
first step of converting a wireless network

© International Telecommunication Union, 2021 93