Financial institutions have established mature key management strategies to safeguard data, business applications, and transactions. However, with the advent of blockchain technology and digital assets, existing key management methods fall short in offering the necessary protection and compliance required by regulations and security standards.

To address these limitations, some organizations have resorted to storing blockchain keys on employee devices, such as laptops, for signing digital asset transactions. This approach bypasses robust security protocols and exposes them to risks associated with data breaches and unauthorized access.

Quant’s Solution for Enhanced Security

Overledger Authorise was developed by Quant to address the challenges of managing and integrating digital asset and blockchain private keys within existing enterprise key management systems. This solution enables seamless end-to-end authorisation of transactions across multiple blockchains and traditional systems, ensuring secure operations.

The Significance of Keys in Blockchain

In a blockchain context, a private key acts similarly to a password, facilitating the authorisation and validation of transactions. These keys are crucial for accessing funds on a blockchain. However, they can be vulnerable due to factors like human error, theft, or cyber-attacks.

Securing Transactions for Banks and Institutions

Banks often use key management systems that are not designed for blockchain applications. Integrating these systems with blockchain networks would require significant effort. Authorise simplifies this integration by working alongside existing enterprise key management systems to handle the signing of transactions and key generation.

When a business application or workflow initiates a transaction, Authorise coordinates necessary authentication, authorisation, and verifications with existing key management systems to ensure secure delivery to the intended blockchain. This approach eliminates the risk associated with storing keys on employee devices and streamlines the process of managing transactions across different networks.

Generating and managing cryptographic keys involves significant risks, including cyber-attacks, mismanagement by users, and technical complexities related to transaction signing. Prior to Overledger Authorise, blockchain solutions struggled to meet the stringent security and convenience requirements set by traditional banking operations.

According to officials from Quant, while blockchain technology holds immense potential for transforming the banking sector, achieving this requires robust and future-proof key management and transaction authorisation solutions. Overledger Authorise brings central bank-grade security and enterprise-level transaction signing capabilities to the blockchain ecosystem. By integrating existing enterprise key management systems, it facilitates seamless interoperability with various blockchains while maintaining high-security standards.