With the explosion of distributed ledger technology (DLT) as a safe and secure solution for the transparent handling and sharing of information across organizations, many are quick to jump on the DLT bandwagon. With blockchain’s industry value estimated to hit $23B by 2023, it’s hard to keep track of the blockchain-based financial solutions taking off left and right, such as ICOs and STOs.
Proponents of the distributed ledger technology known as blockchain consider it to be one of the best ways to secure transactions. But while blockchains have many desirable features –– such as transaction efficiency –– there are still other conditions to consider when it comes to leveraging its technology.
The publication of DTCC’s most recent paper on the matter outlines key risks associated with the use of the DLT technology, and an acknowledgment of the many security risks still associated with its use for both small businesses and enterprises alike. As the industry grows though, so do its risks.
As security concerns related to the use of blockchain have continued to raise alarm bells across the nascent industry, the growing consensus among blockchain security experts highlights the need for blockchain-compatible security solutions that will directly address the threat of data theft and exploitation.
The excitement surrounding the use of Initial Coin Offerings (ICOs) over the past few years has been tainted by an onslaught of hacks, scams, and pivotal mistakes committed by investors. As it turns out, one of crypto’s biggest appeals — limited oversight and government regulation — also proves to be its greatest vulnerability.
But crypto assets are a new dawn. With the inception of the Security Token Offering (STO), the cryptosphere is beginning to reach true legitimacy in the financial world. Today, services such as Tokensoft’s offer a full suite of technology and consulting services for investors –– helping them maintain, trade and manage the entire lifecycle of a digital security.
Earlier this month TokenSoft announced its partnership with Tel Aviv-based cybersecurity firm Hub Security to provide clients of its transfer agent access to military-grade HSM protection. The military-grade hardware update ensures investor’s tokens and assets are safe and secure with Hub Security’s next-gen HSM and independent OS for the encryption, management and distribution of keys.
“TokenSoft’s new partnership with Hub Security allows us to provide members with top-tier, military-grade protection for their tokens, keys and assets –– accessible from anywhere in the world,” said Mason Borda, TokenSoft’s CEO.
Hub Security’s miniHSM device is the first of its kind to attempt to address the threat of data theft and exploitation head on. Built uniquely for the use of tokens, cryptocurrencies and other blockchain-based products, the device offers scalable, air-tight security that can support any blockchain-based digital asset.
HUB Security’s combination of hardware and software solutions includes ultra-secure internal signing authorization flow with a multi-signature vault, hardware firewall, access control, and a deep neural network learning system designed to anticipate and prevent cyberattacks.