Indian Startup Develops a Next-Gen Cybersecurity Solution on the Blockchain

A new innovative prototype startup powered by blockchain technology for cybersecurity has recently launched in India aimed at curbing the global phenomenon of cybercrime.

Mumbai-based Block Armour was thought up by Narayan Neelakantan, former CISO and Head of IT Risk and Compliance with India’s National Stock Exchange (NSE) and Floyd DCosta, who has a background in management consultancy and spent 11 years at Capgemini.

Representing a disruptive approach to reclaiming enterprise cybersecurity, Block Armour is attempting to do so faster and at a fraction of the current cost. According to U.S. market research firm Gartner [PDF], global expenditures for IT security rose by $148.5 billion from $65.5 billion in 2013 to $83 billion in 2016 with cloud security expected to grow by 50 percent.

And yet, despite a significant rise in global IT security spending, cybersecurity incidents continue to grow across industries with existing solutions struggling to keep pace.

Speaking to CCN, Neelakantan said that the dramatic increase in networked devices and the Internet of Things (IoT) has further complicated the situation while the use of yesterday’s technology to fight cybercrime is further compounding the issue. With cybersecurity challenges expected to get bigger, bolder and more complex in the years ahead, a solution is needed.

He said:

We have emerging technologies like blockchain and TLS technology as well as architectures like the Software Defined Perimeter that can be effectively used to reclaim cybersecurity. That’s exactly what we are bringing together at Block Armour.

Tackling Cybercrime

With the use of the Software Defined Perimeter, the team at Block Armour are planning to use digital signatures based on authentication for humans, devices and data.

According to Neelakantan, this then allows them to securely ring-fence critical infrastructure in addition to providing IoT related security.

As this is an issue that cuts across many industries the interest the team has received is expected to be high from those keen to have a solution that will provide the protection they need.

Whether it provides the answer is yet to be determined; however, given that such a platform could be available before the summer is bound to give many the confidence that Block Armour may provide the answer where others have failed.

Since the launch of the prototype, Block Armour has received positive feedback on the potential that it can achieve. As a result, the team are keen to bring the solution to the market with an alpha version expected to be launched in February and a beta version expected to launch in May 2017.

Images from Block Armour.

PayPal Invests in $48 Million Series C of Korean Fintech Payments Startup

South Korean Fintech firm Viva Republica has closed a KRW 55 billion ($48 million) Series C round of funding which saw participation from the likes of PayPal and other significant backers.

Viva Republic is the developer opf Toss, a  now-popular peer-to-peer payments application that launched in February 2015. Having launched as a P2P transfers app, Toss has since included other features including financing and credit monitoring for a more rounded, financial services application. Toss has made significant strides in a South Korean payments market that was described as “archaic” by chief executive SeungGun (SG) Lee. Toss has now partnered with 18 of Korea’s 19 major banks, granting it direct access to 98% of Korea’s banking customers and has become Korea’s leading payments app.Formerly a dentist, Lee grew frustrated of the web and mobile banking systems in Korea and set out to carve a simpler and straightforward means of personal banking.

Blaming “strict regulations and a traditional banking system” for the inefficient user experience in financial applications in spite of Korea’s traditionally technology-forward stance, Lee added in a statement:

Before Toss, users required five passwords and around 37 clicks to transfer $10. With Toss, users need just one password and three steps to transfer up to KRW 500,000 (approx. $430). The process is quick and simple.

Viva Republica claims that since its public release two years ago, Toss has racked up 6 million users and has processed over $3 billion in money transfers. Notably, Toss has grown 13-fold in the last 12 months alone.

The Viva Republica Team

It’s latest Series C round includes the likes of PayPal and Silicon Valley firms firms Goodwater Capital and Bessemer Venture Partners. Viva Republica has now raised over $77 million in total funding since its founding in 2013.

Viva Republica’s efforts to pull in backers outside Korea’s borders is a part of the company’s wider endeavor to expand in regions beyond Korea.

Speaking of PayPal’s participation specifically, Lee added:

They are the number one player in online payments globally. Their participation shows that they recognize our potential. With their help, we can advance to the next level, globally and at speed.

“We’ve done extremely well attracting millennials to Toss,” added Lee in press statements. “Now we’re developing services that will appeal to an older audience, for example, a range of financial management services.” The funding will be used to expand its services within the Korean market, Lee confirmed.

FinTech Disruption

Hosting the world’s fastest consumer broadband speeds, South Korea is also home to a population with the highest smartphone adoption rate (a staggering 88% in 2015 figures) in the world. With a solid technology infrastructure and a demanding, technology-hungry population, a lot of industries, including financial services, are ripe for disruption. Investors are taking notice.

South Korean messaging platform Kakao Corp gained a $200 million investment in its mobile payment subsidiary from China’s Ant Financial, the world’s most valuable Fintech company.

“South Korea is an important market for Ant Financial in its global expansion, and we see many opportunities in the market for innovation services and growth in mobile payments,” stated Douglas Feagin, president of Ant Financial International following last month’s Fintech mega-deal.

Viva’s Lee has brushed aside concerns of competition by Kakao Pay, which has over 14 million members in South Korea. Unlike Toss, Kakao is gearing toward mobile payments rather than mobile money transfers, according to Lee.

He further stated in an interview:

KakaoPay is primarily a B2B play, focusing on acquiring merchants. That strategy requires an enormous marketing budget that doesn’t leave much in terms of margins. Toss is a B2C offering, focusing on providing a range of financial services to its users.

Toss has now partnered with 18 of Korea’s 19 major banks, granting it direct access to 98% of Korea’s banking customers.

Images from Viva Republica.

Bitcoin Startup Snapcard Calls Curtains on Wallet Service

Snapcard, a bitcoin startup that launched in 2013 will shut down its wallet service at the beginning of May this year.

San Francisco-based bitcoin startup Snapcard began as service allowing bitcoiners to make purchases on websites like eBay and Amazon with the cryptocurrency in 2013. The startup soon diversified its services, launching a bitcoin payment processor and raising $1.5 million in a seed round led by prolific industry investor Tim Draper.

However, an announcement from the company this week has confirmed that it will cease operations of its wallet services platform. Users will no longer be able to access their accounts come May 1st, 2017. The company is urging users to migrate funds to other platforms.

The startup will shift its focus squarely on Masspay, a service that enables businesses and large organizations to send payments over the bitcoin blockchain, without assuming price volatility.

“Recently, our Masspay business has taken off and a significant amount of our team’s time has been focused on building features for that product,” Snapcard said in its FAQ.

An excerpt from its announcement offers an explanation behind the call to end its wallet offering. It reads:

We’ve come to a point where we need to make some decisions on our current product offering and what we’re able to manage. Our Masspay product has been aligned with the value that we bring to the community and that is something in which we will be investing heavily.

Buying and selling of bitcoin along with transfers to and from linked bank accounts will be disabled on March 20. Snapcard will also stop accepting wire transfers the same day.

The soon-to-be defunct web w0allet platform has forged partnerships to enable bitcoin reward programs from large companies in the past, using Masspay. A notable agreement from late 20115 saw Snapcard partnering UniPAY, a major payment service provider in Georgia to enable bitcoin as a payment option.

“We genuinely mean it when we say, it’s been a hilarious rollercoaster being part of this space as we’ve seen the price reach record highs,” the Snapcard team stated, ending with “We’ll see you all at the moon!”.

Image from Shutterstock.