Today, we are announcing the launch of our new Blockchain Security Center, a full-service practice that represents the culmination of decades of experience securing our clients’ businesses. The Center’s goal is to enable our clients to securely transform their enterprises using the power of blockchain and other Digital Ledger Technologies (DLT).
We believe that Kudelski Security is well-positioned to serve enterprises as they venture into the world of blockchain and DLT. Our 30 years of leadership in cryptography, data protection, and secure system design prepare us to partner with clients on their most innovative endeavors.
Why Blockchain? Why Now?
Blockchain is exiting its honeymoon phase. The unprecedented boom of 2017 followed by the Great Crypto Crash of 2018 has shifted much of the mainstream opinion from “miraculous” to “frivolous”. This opinion shift is valid to an extent; blockchain is not the solution to every problem. The bubble surrounding the boom, much like the technology bubble of the early 2000s, was destined to pop at some point. However, not all is lost. While the starry-eyed optimism of technology enthusiasts coupled with the “get rich quick mentality” of the ill-informed got us here, robust and sensible solutions for the enterprise will lead the way on.
Looking beyond cryptocurrency, we believe that enterprises are the future of blockchain. Blockchain and related DLT allow business leaders to disrupt old processes in a way that will impact bottom-line results and shape future markets. We have seen blockchain enable our clients to rethink their businesses far beyond the typical cryptocurrency scenarios, and we are confident that the long-term impact of the technology will be great enough to one day be immortalized in textbooks.
There are plenty of known scenarios where blockchain can enable disruption and thousands yet to be conceived, especially in areas where provability of source, monitoring of transport, or assertion of delivery is essential.
* Blockchain can save lives by bringing much-needed trust and transparency to the pharmaceutical industry. For decades, the industry has been beset by fraud and errors throughout its supply chain. Raw materials flow through a series of unrelated players on their way to becoming consumable remedies. Once completed, these remedies are distributed through yet another series of unrelated parties before making it to patients. Smart contracts supported by closed consortium-based or private permissioned blockchains could serve as a reliable and efficient mechanism for tracking the flow of information, financial capital and materials throughout the entire supply chain. This implementation of the technology could ultimately improve the quality of medications given it to patients around the world and slow illegal trafficking.
* Blockchain-based identity verification systems will enable trust, provide transparency and reduce friction across business ecosystems, driving huge resource savings for enterprises. These trust-based mechanisms have the potential to reduce the burden of complying with know-your-client (KYC) and anti-money laundering (AML) regulations, making onboarding new clients cheaper and less time-consuming.
* The fine foods industry is ripe for disruption from blockchain, as counterfeit goods dilute brands, endanger consumers, and ultimately strain profits. Often these fine foods are traded
between unrelated parties on a low-trust basis. By the time the products make it to the shelves, consumers are left guessing about the legitimacy of the food they intend to purchase. Tracking the movement of these goods on an immutable ledger allows the entire value chain to justify higher prices by restoring the product’s credibility to the end consumer.
The Blockchain Security Center: Up Close
The Blockchain Security Center will deliver advisory, design, and development services for enterprises internationally and later on in 2019, we anticipate launching a suite of enterprise-focused solutions. Through our experience over the past several years we have noted that the most vulnerable point of most blockchain applications is on their periphery. Though the blockchains themselves may be secure, the architecture around them is typically susceptible to intrusion. The secure-by-design mentality of blockchain must transcend the ledger itself into the development of the full stack.
For the past two years, we have assisted start-ups and enterprises in their quest to validate their blockchain applications, build ecosystems around their existing blockchains, and craft their business models based on the promise of blockchain. Taking our program forward is Scott J. Carlson, the Head of Blockchain Security. Scott will be leading the new Center, bringing decades of experience in emerging technologies, enterprise architecture, and, most recently, blockchain security for the enterprise.
We look forward to working with you.