Nokia, a Finnish telecommunications company, is joining the crypto revolution. Nokia has reportedly developed technology to encrypt digital assets and address vulnerabilities.
The Finnish company officially filed a patent application for digital asset encryption with the Chinese Intellectual Property Administration in June 2024.
The patent, bearing publication number CN 119155674 A, identifies a device method and computer program for protecting assets against vulnerabilities.
Nokia’s latest move reflects its growing commitment to blockchain technology after decades of association with mobile device production.
Nokia: encryption of digital assets
The patent abstract proposes to encrypt a digital asset initially using a key. Then the asset will have another layer of protection using encryption, meaning only the user who holds the key will be able to 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. Thus, these digital assets are protected from piracy.
Translation of Nokia Technologies' filing CN 119155674 A. Source: CNIPA
The proposed encryption process extends to the indexing, identification and verification of 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 once the transaction is confirmed.
Nokia’s latest pending patent addresses the growing problem of cryptocurrency holders and investors falling victim to cryptocurrency 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 more than $2.2 billion has been lost to cryptocurrency hacking in 2024, highlighting the need for new security measures.
Nokia’s new patent on cryptographic encryption follows its initial investment in the enterprise data market in 2021. The company’s data market runs on blockchain technology and aims to expand its portfolio and venture into the blockchain.
Although having a patent does not guarantee that Nokia will eventually develop the system, this technology can serve as a basis for future developments.
More and more companies are venturing into blockchain
Besides Nokia, more traditional companies are now venturing into the cryptocurrency space, reflecting the technology’s growing popularity and use cases. For example, Sony is using existing blockchain technology with an R&D group working on Web 3.0. Other companies, like Apple and Microsoft, create their own technologies and patents.
While many of these companies are still developing and researching blockchain products, a few companies are investing solidly in the technology. Mastercard is a perfect example, with two patents enabling trustless payment transactions via smart contracts and a system that converts cryptocurrencies into fiat currency.
Featured image from Reuters, chart from TradingView
