VNX Exchange unveils security partnership with Luxembourg University
Luxembourg-based VNX Exchange has announced a partnership with the University of Luxembourg in a bid to improve the security of digital assets.
VNX Exchange claims to be developing the world's first secondary market for venture capital (VC) investments – using blockchain technology.
"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," Alexander Tkachenko, VNX founder and CEO, said.
He claimed the resulting technology from the partnership could halve the global costs of cybersecurity.
Researchers at the University of Luxembourg's Interdisciplinary Centre for Security, Reliability and Trust (SnT) aim to create a secure marketplace by developing higher levels of network security for crypto assets.
They will design new IT frameworks in a bid to improve the secure exchange and custody of digital assets on blockchain networks.
Dr Radu State, 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."
He said there were "unresolved challenges" for heterogeneous systems that issue tokens on the blockchain.
For instance, security at the "software layer" needs to ensure there are no vulnerabilities in the contracts that control the execution of individual transactions.
There also needs to be better security on the blockchain platform itself and the database.
"I believe that blockchain technology is the next big step in the financial sector's evolution," added Tkachenko.
"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.".
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