China Telecom and Conflux Introduce “Blockchain-Enabled” SIM Cards

China Telecom and Conflux have merged launches a blockchain-enabled SIM card, called “BSIM,” the companies said in a statement today. The aim of the product is to lower the “barriers to entry for Web3 and Metaverse”.

Hong Kong will host the first BSIM pilot program

China Telecom has teamed up with blockchain protocol firm Conflux Network to launch blockchain-enabled SIM cards known as BSIM, according to a press release on Wednesday. The SIM cards will be “the largest blockchain hardware product ever seen globally,” Conflux said in the release.

China Telecom, the second largest telecom operator in China with over 390 million subscribers, is expected to roll out the first BSIM pilot program in Hong Kong later in 2023. The operator is then expected to follow up with more pilots in major mainland China locations such as Shanghai.

“BSIM will dramatically lower the entry barrier to Web3 for China Telecom’s 390+ million mobile phone subscribers, while making transactions faster and more secure. By making telecom users’ personal digital assets more secure, the goal is to make mobile phones more secure.”

– Conflux Network wrote in the press release.

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How is BSIM different from traditional SIM cards?

Conflux said the BSIM card integrates its Tree graph, dual proof of stake (PoS) and proof of work (PoW) technology, enabling optimal system performance for any blockchain. By leveraging the hardware security benefits of SIM cards, BSIM offers enhanced protection of users’ private keys, which is seen as a safe and convenient Web3 solution.

The release explains that the product will manage and store users’ public and private keys on the card and perform digital signatures “in a way that the private key does not leave the card.” It also enables encrypted storage and key retrieval, among other features.

While the BSIM card is not physically different from a traditional SIM card, it offers a number of significant advantages, such as 10-20 times more storage space and significantly higher data power. Furthermore, it allows users to securely store and transfer digital assets and display them in multiple applications.

While crypto is still banned there, China and Chinese companies have been actively betting on Web3 and the metaverse in recent years. Last year, Beijing released a document outlining plans to develop a $7.5 billion virtual human industry over the next three years using Web3 technology.

Meanwhile, China’s special territory of Hong Kong has been trying to restore its status as a financial and crypto hub after years of turmoil. The city unveiled plans to legalize crypto trading in 2023, attracting interest from traditional institutions such as Singapore’s banking giant DBS.

Would you like to see a US-based carrier launch a similar product in the US? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.