Financial institutions have adopted advanced key management systems to safeguard data, business applications, and transactions. However, with the emergence of blockchain and digital assets, current key management tools fall short in offering the required protection and adherence to regulatory standards. Consequently, to navigate these constraints, businesses have sidestepped stringent security measures, exposing themselves to potential threats by keeping blockchain keys on staff laptops for authorizing digital asset transactions.
The announcement, Overledger Authorise:
What is it:
Overledger Authorise addresses the challenge of enabling banks and institutions to integrate and manage digital asset and blockchain private keys with their current enterprise key management systems. This facilitates smooth transaction authorization across both existing systems and blockchains. The efficacy of Authorise was recently demonstrated in Project Rosalind, a prominent central bank digital currency trial spearheaded by the Bank of England and the Bank for International Settlements, involving various banks, institutions, and industry stakeholders. We are now expanding the accessibility of this technology.
The problem being solved:
In the blockchain realm, a private key acts similarly to a password, represented by an alphanumeric code. These keys are pivotal for authorizing and confirming transactions, making them essential for accessing blockchain-stored funds. However, complications can emerge due to various reasons, such as human mistakes, theft, and targeted cyber-attacks.
Traditional banking systems employ key management mechanisms that aren’t compatible with blockchain. Bridging these systems with blockchain would be a monumental endeavor. Authorise tackles this by integrating with pre-existing enterprise key management systems, streamlining the process of blockchain transaction signing and key creation. Whenever a business application or process initiates or endorses a transaction, Authorise orchestrates the required authentication, authorization, and verifications in tandem with existing key management systems, ensuring the transaction’s secure delivery to the intended blockchain. This approach eliminates the risks associated with storing keys on an employee’s computer and the cumbersome process of setting up and managing transaction endorsements for each network.
The creation and storage of cryptographic keys come with inherent risks and complexities, making them vulnerable to cyber threats, user mishandling, and various technical challenges related to transaction endorsement. Until this point, blockchain solutions had found it challenging to meet the security and ease-of-use standards set by conventional banking transactions.
Gilbert Verdian, CEO and founder of quants comments:
“Blockchain technology has the potential to revolutionise banking, but we cannot unlock its true potential without robust and future-proof solutions for cryptographic key management and transaction authorisation. This is where Overledger Authorise comes in. It brings central bank-grade key management and enterprise transaction signing capabilities to the blockchain ecosystem. By integrating existing enterprise key management systems to seamlessly connect and interoperate with multiple blockchains while maintaining high-grade security compliance, we have secured and simplified the adoption of digital assets for banks, institutions, and enterprise developers.”
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