VNX Exchange, a trading platform for tokenized venture capital assets and the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability, and Trust (SnT) recently announced their partnership to create a new standard of security for the market ecosystem for digital assets.
The technology thus created may be able to drastically reduce the costs of cybersecurity. It is probably due to a lack of custody (safeguarding of assets) that has prevented institutional investors and interested parties from investing in the crypto market.
The founder and CEO of VNX Exchange, Alexandre Tkachenko, is of the opinion that creation of a transparent and regulated market for trading tokens and other digital assets by introducing modern security mechanisms would not only secure their platform, but also impact the global cyber security market, which according to a Forbes report will hit $170 billion in 2020. He is also hopeful that the results of their collaboration with SnT will reduce the global expense of security by 50%. He said,
“We at VNX Exchange are very delighted to work with SnT on the development of a secure marketplace for our customers. Their past research activities in FinTech have left us confident in their abilities. I believe that blockchain technology is the next big step in the financial sector’s evolution. This evolution will require three things: regulatory clarity, investor protection, and compatibility with current market standards. We hope that this partnership will make major strides in securing all three.”
This partnership will catapult Luxemburg’s position as a financial regulator, financial technology hub and a leader in digital financial services. The primary goal of this collaboration is to develop higher levels of network security than the ones currently available for crypto assets.
They will design new IT frameworks facilitating the secure exchange of digital assets on blockchain networks. The research will also assess several distributed ledger architectures and facilitate the introduction of regulation and cybersecurity. Dr. Radu State, an expert in network security at the SnT said,
“This is an original use-case for blockchain. Working with VNX Exchange, we can provide IT solutions that will establish VNX as a global leader in its sector. Broadly, we need to address two aspects – protecting against criminals who might try to hack the system to steal money or information, and guaranteeing compliance with anti-money laundering and KYC regulations. The first is security at the software layer – you need to ensure that there aren’t any vulnerabilities in the smart contracts that control the execution of individual transactions. The second is ensuring the security of the blockchain platform itself, based on both the consensus algorithm and access rights. And the third is ensuring the security of the database, where you need to provide end-users with proof that the platform is working as it should, while keeping the data on the platform”.
VNX Exchange, at the Luxembourg House of Financial Technology Foundation, is a flagship initiative and public-private joint venture that innovates for Luxembourg’s financial services industry and connects the domestic and international FinTech community to develop solutions.