The Luxembourg-based firm has announced a partnership with the University of Luxembourg to come up with improved security for cryptocurrencies.
Need for Better Security Solutions
Cryptocurrencies are gradually going mainstream and the number of users, investors and traders are growing rapidly. This is evident from the growth of digital asset firms and exchanges.
However, the growth has been accompanied by an increase in the incidents of security breaches and theft of digital assets from exchanges.
To develop better security measures for digital asset platforms, Luxembourg-based VNX Exchange has partnered with the University of Luxembourg.
VNX Exchange is a marketplace and trading platform for tokenized venture capital assets.
The development was reported by Luxembourg Times earlier on Friday.
Objective of the Partnership
According to the Alexander Tkachenko, VNX founder and CEO, the goal of the collaboration is to ensure security of the platform.
Tkachenko said:
In creating a secure and regulatory compliant marketplace for the transparent trading of tokens representing digital assets we aimed to introduce modern security mechanisms that could totally secure our platform and could impact the global cybersecurity market.
Tkachenko calmed that the solution could bring down the cost incurred on cybersecurity globally by half.
Researchers at the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) will work with VNX to create a secure platform by developing better mechanisms for network security.
Current Security Issues
The team at the university intends to build new security frameworks to improve the security of transactions and the custody of the digital currencies.
Dr. Radu State, an expert in network security at SnT, said:
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.
Dr. State believes that heterogeneous systems that issue tokens still have “unresolved challenges”. Citing an example, he stated that the software layer which has the contracts that control the transactions should have no vulnerabilities.
He also believes that the blockchain infrastructure and the database needs to have better security.
Tkachenko noted:
I believe that blockchain technology is the next big step in the financial sector’s evolution.
He further concluded:
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.
An enhanced security framework for digital exchanges will be good not only for the cryptocurrency firms but also the users at large.
What are your thoughts on this partnership? Let us know in the comments below.
Images courtesy of AdobeStock and Wikimedia Commons
