Kudelski Launches Blockchain Center

Kudelski Security, the cybersecurity division of the Swiss based Kudelski Group, has launched its Blockchain Security Center (BSC) to make its cryptography expertise available to the blockchain developer community.

The center will build on the company’s security services including products for revenue protection of video services under the Nagra brand. Kudelski says it will develop new products and foundational technologies that help integrate security into and around blockchain implementation for enterprises and public sector bodies.

Kudelski is rather vague at this stage over how blockchain will be aligned with its security business or just why it holds such great promise across all industries and sectors. It cites Gartner’s prediction that blockchain-enabled business will reach $3.1 trillion by 2030, even though that analyst firm believes the technology is overhyped at present.

Gartner’s official view is that “blockchain technical capabilities are evolving but fail to match the extreme hype and are not yet sufficient for mission-critical enterprise use.” This followed its annual survey of IT leaders published in May 2018 which found that just 1 per cent were already using blockchain and only 8 per cent plan to experiment with it in the short term. One third of the 293 survey respondents said they had no interest in blockchain and a further 43 per cent had no action planned.

This last group said they had blockchain "on the radar", which sums up where it is now, a promising development that is still immature and not yet ready to deliver on its promise. Gartner does though indicate it will take off eventually and so Kudelski believes its time will come, making it worth placing a stake in the ground now, with its CEO Rich Fennessy considerably more upbeat.

“Enterprises are exploring the technology in earnest, and new blockchain-based solutions are being developed every day,” said Fennesy. “Leveraging our cryptography expertise and experience in blockchain security consulting, we have made it our mission to improve blockchain security so that emerging solutions enhance overall enterprise cybersecurity, rather than generate new vulnerabilities.”

When it comes to combating video piracy, the role of blockchain may be more to reduce the effort required to access content legitimately rather than erect new technical barriers. "I personally believe that a lot of piracy comes from friction in the legal distribution mechanisms,” said Phil Gomes, blockchain leader at US marketing consultancy group Edelman. “Blockchain technology can enable more frictionless monetization of content to better compete with pirates."

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