Winner, CryptoSoft Ltd: Securing the Future of Digital Bids

CryptoSoft Ltd is a company that develops security solutions for financial systems. Its technology addresses vulnerabilities in processes where a central entity collects confidential data from multiple clients. 

The company’s work is relevant in scenarios governed by regulations that prohibit the premature opening of submitted data. 

This year, FinTech Magazine has recognised the company’s work with its Project of the Year award for the development and implementation of Quantum Time Lock Encryption (QTLE). 

The project introduces a framework for securing time-sensitive information, aiming to create a cryptographically secure environment for the submission and opening of bids.

Aiming at industries where time-locked data is a component of operations, the software targets sectors such as e-procurement, auctions and betting. 

The technology provides a mechanism to ensure that encrypted information remains inaccessible, even to the collecting party, until a predetermined deadline. 

CryptoSoft Ltd's solution utilises a patented, post-quantum solution. 

This combines client-side encryption with a distributed consortial Blockchain system.

With security at the forefront of the project, the architecture is designed for key handling and assembly, preventing unauthorised access before a specified time.

The company has stated its objective was to create a system that provides cryptographic evidence to clients that their data is handled according to predefined rules.

A Solution for Timed Data Encryption

Secure encryption of data for a specified duration is the main theme of the project. In financial processes such as public procurement or auctions, participants submit confidential information to a centralised collector.

A risk in these processes is the possibility that the collector could access the bids before the official opening time, creating an opportunity for the misuse of this information. 

The QTLE system was developed to mitigate this risk. 

By using client-side encryption, the data is secured by the user before it is transmitted. The keys required to decrypt the data are subsequently managed by a distributed Blockchain system.

This decentralised approach to key handling ensures that no single entity, including the data collector, possesses the ability to assemble the decryption key prematurely.

The system's design is applicable to a range of use cases beyond procurement, including secret file sharing and digital time capsules. 

CryptoSoft Ltd's solution provides users with a guarantee that their locked file or data cannot be opened before the designated deadline.

As an example, in a public procurement process, neither the centralised entity nor any other party is able to see bids before the opening, thereby preventing fraud based on this secret information.

Development and Quantum Resistance

The development of QTLE was a multi-year research and development project, with the initial phase focusing on solving the theoretical and practical problems of Blockchain-based timed encryption. 

This work resulted in an implemented cryptographic system and a filed and approved patent. 

During the development process, the team also worked to ensure compliance with standards from different sectors, such as e-procurement regulations, to align the system with existing processes. 

A significant evolution of the project was the decision to make the system quantum-resistant.

The emergence of quantum computing presents a future threat to existing encryption standards.

A sufficiently powerful quantum computer could potentially break current cryptographic methods. 

In response, CryptoSoft Ltd adapted its system to be cryptographically quantum-proof. 

This involved incorporating quantum-resistant processes and filing for a new, extended patent. 

The final product was evolved from this extended patent, which provides security against both current and future computational threats. 

CryptoSoft Ltd reports that the project started as a technical challenge and concluded as a fully developed solution.

Impact on Financial Processes

The QTLE system addresses a general information security problem relevant to multiple financial sectors.

Its application can prevent specific types of fraud that occur in industries where billions of dollars are transacted annually.

In procurement and auction processes, the premature opening of bids allows for fraudulent activity. 

By implementing a system that makes this technologically impossible, the process offers participants assurance of fair treatment. 

CryptoSoft Ltd suggests that its technology impacts the fintech industry by providing a tool to enhance transparency and security.

The solution relies on a combination of innovative methods, including client-side encryption, a distributed consortial Blockchain, and quantum-proof cryptography. 

A core stated objective was to build a secure ecosystem for submitting and opening sensitive data. 

To demonstrate the system's capabilities, the company provides fully accessible online demos on its website. 

These allow potential users to test the time-locking process for their own digital data or to simulate an e-procurement or auction process. 

Access is offered without requiring registration or a manual demonstration request, providing transparency into the system's function.