An examination of Hamrah e Aval’s pioneering efforts in blockchain, focusing on the role of major operators and companies with substantial financial, hardware, software, and human resources in implementing and executing blockchain-based technological projects.
Nastaran Abadi: Senior Expert at the Digital Solutions and Smartization Department of Hamrah Aval
One major challenge facing blockchain technology in Iran is the lack of regulation. While many countries have embraced blockchain, Iran remains at the starting point, hindered by initial resistance to new technologies. Without progress, the country risks falling irreparably behind in blockchain technology.
Established companies with extensive technology experience can act as catalysts, facilitating the adoption of new technologies. For example, artificial intelligence has already permeated various industries, including finance, banking, industry, and medicine. The Internet of Things promises a transformative impact on companies.
Hamrah e Aval, Iran’s largest telecom operator with a 30-year history in telecommunications, is poised to lead in emerging technologies like AI, IoT, and blockchain. The Hamrah e Aval Research and Development Center (MCI R&D Center), established in February 2020, aims to foster innovation and support cutting-edge technologies in communications and IT. The center has plans to advance blockchain technology in the country.
In this context, we spoke with Nastaran Abadi, a Senior Expert in the Digital Solutions and Smartization Department at Hamrah e Aval, and a member of the company’s Research and Development Center.
Abadi discussed the necessity of entering the blockchain domain, explaining that blockchain is a cutting-edge technology that has gained global acceptance over the past two decades. Many countries have entered this field, creating significant value and revenue streams. Key features of blockchain, such as immutability, transparency, and independence from third-party trust, make it an ideal choice for many applications, including financial systems. Blockchain can maintain user privacy while decentralizing the management and control of data and assets, reducing the power and risks associated with centralized systems.
Regarding Iran’s position in blockchain technology, Abadi noted that recent years have seen blockchain courses introduced at universities, which students have embraced due to the tangible and practical nature of the technology compared to other, less immediately applicable subjects. However, Iran still lags behind leading universities globally in terms of blockchain education. Domestically, blockchain businesses mainly operate in areas like exchanges, education, and media, with few focusing on practical blockchain projects in industries such as finance, transportation, and healthcare.
Several obstacles hinder the development of new technologies, including blockchain. These challenges include the lack of clear and structured regulations, the inherent contradictions between blockchain’s decentralized and transparent nature and existing laws, resistance from industry players to transparency and the elimination of intermediaries, and the lack of user awareness about blockchain’s benefits. Additionally, there is difficulty attracting investment and ensuring proper user education and responsibility in a decentralized system, which requires at least basic knowledge of the system and its risks.
Abadi also addressed common barriers faced by both Iran and the global community in blockchain technology. While these obstacles are present worldwide, the critical issue is how they are addressed. Every new technology encounters various hurdles, from regulatory challenges to public acceptance. Blockchain, being a disruptive technology, not only creates new business opportunities but also transforms existing ones by removing intermediaries. Many countries have successfully navigated these challenges, gaining acceptance from both the public and investors.
Abadi discussed the importance of regulation and legislation for new technologies like blockchain, noting that while blockchain is highly effective and beneficial across various sectors, it also poses certain risks. In a blockchain-based financial system, user anonymity can facilitate crimes such as money laundering and smuggling. Therefore, many countries have enacted laws, such as anti-money laundering and counter-terrorism regulations, requiring businesses like exchanges to identify and verify their users. Additionally, blockchain-defined assets like governance tokens might be subject to traditional asset regulations, such as securities laws. Thus, effective regulation is crucial, not only to legitimize the technology but also to address emerging issues in this field.
Regarding the role of a company like Hamrah e Aval, which has a large user base and is one of the largest stock market companies and operators in the country, in advancing blockchain technology, Abadi explained: Hamrah e Aval, with its financial, hardware, software resources, and human expertise, is well-positioned to define, implement, and execute blockchain-based technological projects. Additionally, access to Hamrah e Aval’s subscribers is a significant advantage in terms of targeting the user community.
Abadi also discussed Hamrah e Aval’s blockchain projects, stating: The company has developed a consortium blockchain platform that can serve as a foundation for various blockchain projects. This platform was unveiled at this year’s Elecomp exhibition. Currently, decentralized applications such as Hamrah Token, loyalty tokens, a stablecoin backed by SIM cards, decentralized lending, decentralized exchanges, and decentralized governance have been implemented on this platform. However, the platform has not yet officially launched. Several other blockchain projects are also planned as part of Hamrah e Aval’s future roadmap.
She also mentioned Hamrah e Aval’s policy of supporting blockchain projects and startups, stating that Hamrah e Aval is ready to support blockchain-related ideas and businesses, especially during the research and development stage. The company is also prepared to collaborate with these businesses to help expand the blockchain ecosystem in the country.
