Tertiary institution Signs MOU with Cryptography Development Initiative in Nigeria

As the rest of Africa makes an effort to secure a position of relevance in the blockchain space, Nigerian based Nile university has gone into partnership with Cryptography Development Initiative in Nigeria (CDIN), the announcement was made in the official Twitter handle of CDIN on October 16.

Prof. Aras, the institution’s Vice-Chancellor(VC) of the university who spoke at the event, used the opportunity to express his pleasure in the new partnership as he believed that it would play a significant role in fortifying the students with the necessary skills needed to survive the digital space. Professor Can also bolstered the points made by the vice-chancellor by saying that this partnership was going to provide a reliable platform for students to sandwich their theory-based knowledge with helpful practicals.

CDIN happens to be a non-profit organization that aims at tackling the wide learning gap and practice of cryptography within Nigeria.

Mr. Fadele, who stood on the position of the spokesperson for CDIN, commended the warm welcome shown by the institution in a time when not many institutions recognize the need to value and integrate blockchain-related skills to the school system. The event was wrapped up with the formal signing of the MoU.

The efforts to integrate blockchain and crypto-related skills into the educational system, as seen in a report from Coinbase, have shown that rising interest of students in crypto and an increasing number of courses focused on blockchain, cryptocurrencies, or Bitcoin that are being taught across a range of disciplines. This increased interest in studying crypto at colleges and universities could pass for an indication that the future of money has a lot yet to be seen.

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China’s Cryptography Law Piques Local Interest and Stirs Global Market Reaction

On Saturday, Oct 26th, China’s top legislature voted to pass a national cryptography law that will come into effect on January 1st, 2020. The vote was passed just one day after Chinese President Xi Jinping stressed the necessity for China to leverage blockchain technology.  According to an announcement from the National People’s Congress (NPC) Constitution and Law Committee, the new law will encourage research and development on commercial cryptography technologies, while building up an inclusive standardized regulatory system for the market. The new regulatory framework aims to tackle emerging legal challenges in commercial cryptography applications as well as to establish the role of a central cryptographic agency—to lead public cryptographic work as well as create guidelines and policies for the industry.The cryptography law outlined in the latest draft proposal classifies cryptography into core, common and commercial cryptography which will be strictly managed by state authorities to protect China’s confidential information and state secrets. The law stipulates that the transmission, storage, and disposal of such information must use core and common cryptography for encrypted protection and security certification. For commercial cryptography, it excludes confidential information of the Chinese government and this category applies to citizens and legal entities.Furthermore, the cryptography law also encourages the cultivation of talents in cryptography, and proposes the inclusion of cybersecurity modules to national education and the training curriculum of civil servants in China. For local governments at or above the county level, they should include cryptography work in their Five-year plan for National Economic and Social Development, and incorporate associated expenses in their current fiscal budget.

The new law also features a section on legal liability related to misconduct ranging from punishments for outright theft and cyberattacks of encrypted information to harsh penalties for those who become aware of security threats or points of failure within the national encryption process and fail to act in the nation’s best interest.  Blockchain Search Trends on WeChatThe nationally adopted Chinese social app—WeChat, has recorded an immense increase in blockchain-related search topics on its platform. Prior to President Xi Jinping’s initial urge for his country to leverage blockchain, the word “blockchain” was searched for less than 800,000 times, and Bitcoin was searched for less than 600,000 times. On October 25th, the day of the Chinese president’s announcement, there were 9.2 million searches for “Blockchain” and 1.3 million for “Bitcoin.”

Although China still bans cryptocurrency trading and its national digital currency is not yet hatched, Xi Jinping initial announcement on the 25th also seems to have lit a fire within the global cryptocurrency and blockchain industry. Shortly afterward, all cryptocurrencies appeared to find new life against the recent market downturn and in majority have rallied to double-digit percentage price increases.

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China Updates Smart City Infrastructure with Blockchain-Based City Identification System

Since President Xi Jinping’s call for an acceleration of blockchain development in China, the Middle Kingdom has not taken a backward step in the technology’s integration.

As reported by the Global Times on Nov. 4, China has integrated an independently developed blockchain-based identification system for its cities into its smart city infrastructure. The new identification system was jointly launched by three institutes in the city of Shijiazhuang.The blockchain-based system aims to improve the connectivity and data sharing between its developing smart cities. Specifically, these smart cities will be assigned a global digital ID, for which applications opened last Sunday.The foundation of the new system, which is based on blockchain, was developed within China. One of the developers, Zhang Chao, Director, Zhongguancun Industry & Information Research Institute of Two-Dimensional Code Technology offered comment saying, “The system will be independently distributed and managed by China, with a unified distribution rule, a resolution of distributed storage and tamper-resistant code.”

China’s smart city code system is based on node code, in line with international standards and will assign unique, global digital identification to cities.

He Kejia, Vice President of China Research Society of Urban Development explained the impetus for the unified code, “There was no unified code for industries and departments in today’s rapid development of the internet and emerging information technology, causing problems of data interoperability and application incompatibility.”

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China Gears Up for its Digital Currency and Implements New Crypto Law

As a part of its plans for releasing its central bank digital currency (CBDC) soon, China has implemented a law to govern cryptographic password management.  

According to China Money Network, the new “Password Law” has been implemented on Jan. 1, aiming to foster blockchain technology and provide legal grounds for the issue of digital Renminbi (RMB) on the blockchain.  

The crypto law was passed on Oct. 26, by the Standing Committee of the 13th National People’s Congress in China. Dividing passwords into three categories, including passwords, common passwords, and commercial passwords, will help to facilitate the country’s transition to blockchain technology. 

The report from the China Money Network read, “China is likely to adopt blockchain technology. In order to prevent data from being tampered with, it is necessary to protect each data with a password.” 

It was also suggested that the development of blockchain technology would be in sync with the progress of cryptography, as Chinese leaders will be proposing policies to accelerate the development of blockchain technology.  

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From Zero Mentions to a Dedicated Section in CINIC Report: How Fast is Blockchain Growing in the Chinese Internet Industry

The China Internet Network Information Centre (CINIC) recently published “The 45th China Statistical Report on Internet Development”. Compared to the previous issue, it is worth noting that the CINIC covered blockchain development as a dedicated section in the latest report. The report highlighted the rapid blockchain development of China in three aspects: regulation, technical development, and applications.

On Oct. 25, 2019, China’s President Xi Jinping said at the study session of the Politburo held on Thursday that the nation should accelerate the development of blockchain technology. China has been actively pushing to standardize the use of blockchain technology, with 29 provinces published guidance in leveraging blockchain as of 2019. In Jan 2019, the CINIC published the Provision on the Administration of Blockchain Information Services, which encourages blockchain industry organizations to strengthen self-regulation and establish data standards.

Technical Blockchain Development in China

The report also indicated some remarkable progress in research and development (R&D) in blockchain technology. The improvement in blockchain architecture design can be reflected by the increasing number of blockchain patents obtained. In 2019, there are 964 patents regarding data storage in blockchain, 420 patents on smart contracts, 101 patents on consensus algorithm, and 42 patents on cryptographic technique. In addition, the increase in cryptography and privacy solutions such as secure multi-party computation, homomorphic encryption and the zero-knowledge proof has accelerated the development of blockchain technology. 67% of blockchains support state secret algorithm in China. The report also indicated a sharp increase in Chinese institutions studying the interoperability of blockchain, from 12 in 2018 to 35. Among the 35 institutions, there are 8 national research institutes and 19 enterprise research institutes.

Accelerating Blockchain Adoption

The report highlighted that blockchain has been actively applied in government service, finance and supply chain industry in China. The Chinese government believes that blockchain enhances trust in the current social structure. In government services, as blockchain provides the audit trail for all transactions, it mitigates the risks of government in data sharing with enterprises. For example, Shenzhen provincial government issues an application that enables identity verification using blockchain, supporting 24 types of identity documents and more than 100 routine government services.

In the financial industry, the use of smart contracts removes the need for a centralized party in the settlement process, which greatly reduces the settlement time and facilitates the trading of financial instruments. As of Dec 2019, the blockchain platform developed by the People’s Bank of China has processed over 90 billion in trade finance, including account receivables and cross-border financing transactions. The report also highlighted that the R&D of China’s central bank digital currency (CBDC) obtained official approval from the State Council, which provides a huge boost in developing China’s CBDC. In the supply chain industry, the CINIC stated that blockchain-based system facilitates upstream and downstream operations and facilitate the status of product tracking in real-time. The report highlighted a few use cases in Alibaba and JD.com for the authenticity of goods and services.

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JPMorgan Blockchain Spin-Off Kadena Releases Blockchain-Based App that Verifies Coronavirus Tests

According to the World Health Organization (WHO), there have been more than 9 million COVID-19 cases around the world and over 473,000 deaths as of press time. In light of the recent global crisis, the most important and highly anticipated medical milestone in the world today is the discovery of the COVID-19 vaccine.

COVID-19 testing remains one of the most stressed medical lab procedures today; pressurized with an unanticipated virus that threw our world into a pandemic. Some businesses are looking at integrating emerging technologies such as blockchain to fight the coronavirus.

Magic of the modern ages: Kadena

Kadena LLC, JPMorgan’s blockchain spin-off, provides an independent blockchain network, that could be used to run coronavirus tests. Kadena was the first blockchain company to come out of JP Morgan’s Blockchain Center for Excellence and announced the full launch of its public blockchain in January 2020.

The company’s distributed app (Dapp) will be used to confirm the authenticity of coronavirus tests by using QR codes to track the kits from the manufacturer to the healthcare provider. The medical personnel can then use the QR code, the test kit information, and the patient’s test results to create a patient’s record. This record can be stored on Kadena’s blockchain which can be accessed anywhere. 

In addition to ensuring data integrity, the Kadena App will also help researchers, academics, and government officials to understand the demographics of the spread of the disease. The Dapp is already available on Kadena’s testnet, and users with no prior knowledge of blockchain technology can use the app, developers who want to access the data stored on it can do so as well without using Kadena’s tokens or wallet.

Towards a COVID-19 free world

With the alarming rate of new cases, technological advancements have been emerging to help governments to detect new and record new cases. Chinese President Xi Jinping previously suggested that the fight against the new virus has highlighted the need for a better governance mechanism, suggesting blockchain technology should be integrated into the existing system to gain better insights into social circumstances.

The Public Health Blockchain Consortium (PHBC) has announced the launch of a monitoring blockchain aimed to verify communities and workplaces that are free from the coronavirus COVID-19, as well as other high-risk viruses, bacteria, and fungi. The Consortium consists of health authorities, universities, healthcare providers, and innovators who aim to collect and store anonymous health data on the blockchain, to improve the lives of people in the world. The blockchain monitor would help identify safe zones where there have been no confirmed cases of the coronavirus.

Canada’s Central Bank Digital Currency Won't Include Zero-Knowledge-Proofs

Bank of Canada researchers do not feel that the current state of zero-knowledge-proofs is mature enough to be integrated into their development plans for a Central Bank Digital Currency (CBDC).

What is zero-knowledge-proof? 

In cryptography (the art of writing or solving codes), a zero-knowledge proof is a way in which a party (usually referred to as the prover) can prove to another party (the verifier) that they recognize a value, dubbed X. The only knowledge that the verifier will have access to is that the prover recognizes X.  

Zero-knowledge-proofs and similar cryptographic approaches to blockchain network privacy are still very new in the modern world. Institutional banks are still currently working on revolutionizing the way things are done in order to better adapt to the modern digital age.  

Canada: Zero-knowledge-proofs and its impacts 

In Canada, zero-knowledge-proofs and similar cryptographic approaches to the blockchain network have yet to be improved. As mentioned in a recent report by the Bank of Canada, privacy is not the sole concern of blockchain development. 

Therefore, there need to be consultation methods put into place by a third-party entity. In cases like these, external banks are usually third-party entities. The next step after approval from the different institutional banks is then consensus. From there on, we can move forward. 

Project Jasper: Future of Distributed Ledger Technology in Canada 

According to the Bank of Canada’s recent announcement, Canada is ahead of other countries in terms of Research and Development for CBDC prototypes. Between 2016 and 2018, Canada came up with “Project Jasper,” which is an initiative aimed at understanding distributed ledger technology (DLT), and how it could transform the future of digital transactions across Canada. Entities that are part of the Project Jasper include Payments Canada, Bank of Canada, and other market participants. 

COVID-19: How CBDC Will Help 

During an open hearing by the House Committee on Financial Services yesterday, the honorable Christopher Giancarlo advocated for the use of CBDC as a viable solution to distribute COVID19 stimulus packages to citizens. Seeing as COVID19 is negatively impacting global economies worldwide, Giancarlo thinks that CBDC may be an effective measure in order to stimulate the economy.  

Takeaway

That’s one conclusion in a new staff analytical note published by Canada’s central bank. The Bank of Canada has been a leader in the research and development of CBDC prototypes. Between 2016 and 2018, as part of an initiative called Project Jasper, the bank explored the use of distributed ledger technology (DLT) for clearing and settling of bank-to-bank payments as well as securities transactions. 

DOJ Wants to Bypass End-to-End Encryption to Fight Child Sexual Exploitation – Cause for Concern for Tech?

While end-to-end encryption has long been leveraged to deliver privacy and data protection to tech users, US government officials are attempting to find a way to bypass it, under the pretext that illicit activity revolving around child sexual abuse run unmonitored on strongly encrypted platforms.

DOJ on why it wishes to monitor content

The US Department of Justice (DOJ), along with the Home Department of the United Kingdom, the Australian Minister for Home Affairs, India, Japan, and other government officials have come together to assess encryption – a process in cryptography used to secure sensitive data and protect it from being intercepted by unauthorized viewers.

US lawmakers are saying that although “encryption is an existential anchor of trust in the digital world,” certain aspects of this technology may pose a threat to the public, in particular to “sexually exploited children.” The DOJ alleges that since encryption inhibits legal and government bodies to assess content and review it, criminals, terrorists, and child exploitation rings use platforms with strong encryption to further their illicit activities. The international statement reads:

“We urge industry (encryption technology) to address our serious concerns where encryption is applied in a way that wholly precludes any legal access to content.”

The DOJ also said that tech companies should be responsible for unlawful content that leveraged their services, as it alleges that social media and communications platforms are often used to “groom children online.” DOJ cited an example from 2018, where statistics found that Facebook Messenger was leveraged in many instances to further child sexual abuse material. US government officials stated:

“In 2018, Facebook Messenger was responsible for nearly 12 million of the 18.4 million worldwide reports of CSAM (child sexual abuse material). These reports risk disappearing if end-to-end encryption is implemented by default, since current tools used to detect CSAM do not work in end-to-end encrypted environments.”

EARN IT Act – the quest to up web surveillance

The international statement backed by many law enforcement and government officials echo the sentiments of the attorney general of the United States, William Barr, who has been actively working on getting the EARN IT Act approved in the United States.

The bill targets encryption protection and decrees that government entities and law officials should have the right to assess user content on encrypted sites, to monitor activity, and put an end to child pornography and child abuse. If passed, it would hold platform providers and website owners accountable for content published on their network.

Blockchain and tech community bite back

Cryptography and industry experts have shunned the bill, criticizing it as a direct threat to privacy. As some blockchain and cryptocurrency platforms leverage encryption for digital transactions, the bill may hinder the crypto industry. Furthermore, internet-regulating bills would hold technology companies and website hosts accountable for content on their platforms. This may subsequently result in censorship and website surveillance being amped up on platforms, with website hosts avoiding legal complications.

DOJ wants to ramp up cyber security

However, direct implications of encryption technology proposals such as the EARN IT Act still remain unclear, as the DOJ is still assessing the tradeoff of circumventing end-to-end encryption platforms at the expense of user privacy to annihilate threats to public safety, such as child sexual exploitation. The US Department of Justice said:  

“While encryption is vital and privacy and cyber security must be protected, that should not come at the expense of wholly precluding law enforcement, and the tech industry itself, from being able to act against the most serious illegal content and activity online.”

Coinbase Establishes Open Source Cryptography: Kryptology

American cryptocurrency exchange Coinbase announced the launch of Kryptology, an encryption library that focuses on building complex encryption technologies.

The Coinbase team stated that it hopes to make Kryptology the standard for a powerful and usable encryption library. The encryption library will provide developers with an audited and easy-to-use API toolbox.

Cryptography is the driving force of cryptographic innovation which can make cryptocurrency no longer a digital code that can be easily copied.

Cryptographers use the zero-knowledge technology in ZCash to create private transactions and ensure that personal data is protected.

The most recent advancement in cryptography is the Boneh-Lynn-Shacham or BLS signature. This signature is used to verify the sender’s information while verifying the transaction, for dual security transactions.

Another advanced algorithm worth mentioning is the Shamir secret sharing or SSS algorithm. SSS refers to the distribution of secret values among multiple participants (called shareholders), and all participants must work together to reconstruct the secret. Therefore, the algorithm is very suitable for storing private keys holding decentralized financial portals or locking large amounts of funds in DeFi, mining pools, and smart contracts.

Skale uses BLS to create summaries to increase scale and reduce on-chain storage, and Mina and ZCash use Halo 2 and the new elliptic curve design Pasta to improve crypto wallets.

Coinbase is also working to put recent encryption technology into production. zkSNARKS and encrypted accumulator, FROST, and threshold signature.

Axiom Secures $20 Million in Series A Funding for Blockchain Data Access Innovation

Axiom, a smart contract platform, has successfully secured $20 million in a Series A funding round, according to official blog. The funding round was led by prominent crypto-focused venture firms Paradigm and Standard Crypto, with additional investments from Robot Ventures and Ethereal Ventures. This milestone marks a crucial step in Axiom’s mission to revolutionize the accessibility of authenticated data on blockchain networks.

At the core of Axiom’s strategy lies the innovative use of zero-knowledge cryptography. Unlike traditional consensus mechanisms that require all nodes to agree on a state of data, zero-knowledge technology enables a verification mechanism that does not reveal the data involved in the computation. This approach allows users to prove the accuracy of a statement without disclosing any underlying information, enhancing privacy and reducing costs associated with data management.

The funding will be instrumental in accelerating the development of Axiom’s first product, focusing on giving smart contract developers enhanced access to more on-chain data. The startup aims to address the challenges posed by the high costs of data in on-chain applications, which often lead to feature removal or complex contract designs to optimize data usage. By leveraging zero-knowledge proofs, Axiom intends to enable more efficient and privacy-preserving data handling, allowing on-chain applications to manage larger volumes of data at lower costs.

Axiom’s commitment to this technology was exemplified by the launch of its mainnet in 2023. This launch provided developers with unprecedented access to historical Ethereum data, enabling off-chain computations backed by zero-knowledge proofs. The application of zero-knowledge proofs extends beyond the realm of cryptocurrency, with potential uses in sectors such as banking, healthcare, energy, and voting systems.

Axiom’s successful funding round and technological advancements position the firm at the forefront of a potential industry shift towards more private and efficient blockchain data management. The implications of this technology are vast, with Axiom set to play a pivotal role in shaping the future of smart contract development and blockchain data accessibility.

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