Nokia Tackles Crypto Threats With Encryption Patent – Details

Nokia, a Finnish telecoms company, is joining the crypto revolution. According to reports, Nokia has developed a technology for encrypting digital assets and addressing vulnerabilities.

The Finnish company formally applied for a patent for the encryption of digital assets with the Chinese Intellectual Property Administration last June 2024.

The patent, with publication number CN 119155674 A, identifies a device method and computer program to protect assets from vulnerabilities.

Nokia’s latest move reflects its growing commitment to blockchain technology after decades of being associated with the production of mobile devices.

Nokia: Encrypting Digital Assets

The patent’s abstract proposes encrypting a digital asset by initially using a key. Then, the asset will have another layer of protection using encryption, meaning only the user who holds the key can access the asset.

For example, an encrypted XRP or ADA will not be accessible to anyone except the person with the private key to these assets. As such, these digital assets are protected from hacking.

The proposed encryption process extends to indexing, identifying, and verifying these digital assets. In short, only the person who holds the key can use these assets for any type of online transaction, and they can only decrypt them after the transaction is confirmed.

Nokia’s latest pending patent addresses the growing problem of holders and investors who have experienced crypto theft and hacking.

Nokia’s Entry Into The Blockchain Niche

Nokia is expanding into the blockchain niche and saw an opportunity in the vulnerability of digital assets. Chainalysis reports that over $2.2 billion was lost to cryptocurrency hacking in 2024, underscoring the need for new security measures.

Nokia’s new patent on crypto encryption follows its initial investment in the Data Marketplace for enterprises in 2021. The company’s Data Marketplace runs on blockchain technology and is an attempt to expand its portfolio and venture into blockchain.

While having a patent doesn’t guarantee that Nokia will eventually develop the system, this technology can be used as the basis for future developments.

Aside from Nokia, more traditional firms are now venturing into the cryptocurrency industry, reflecting the technology’s growing popularity and use cases. For example, Sony uses an existing blockchain technology with an R&D group working on Web 3.0. Other companies, like Apple and Microsoft, are creating their technologies and patents.

While many of these firms are still developing and researching blockchain products, a few companies are solidly invested in the technology. Mastercard is a perfect example, with two patents allowing trustless payment transactions through smart contracts and a system that converts cryptocurrencies to fiat.

Featured image from Reuters, chart from TradingView