Data privacy startup StrongSalt announced Thursday the closing of a seed round from Valley Capital Partners. Backed by three encryption-related patents, StrongSalt will release its API product later this year at the AWS re:Invent 2019 conference in Las Vegas, Nevada.
A new encryption-as-a-service company raised $3 million to bring standardized encryption techniques to the blockchain.
StrongSalt “bakes” its encryption service into workflows and applications and pairs with both permissioned and permissionless blockchains.
“StrongSalt is chain-agnostic, as we can work with almost any blockchain”, StrongSalt CEO Ed Yu told CoinDesk. “We use blockchain mainly for three reasons: availability of data, reliability of data and shareability of data.”
Yu told CoinDesk blockchain technology is used for the security of sharing hashed data on the platform as well as with customers.
Raymond Choi of Valley Capital Partners said businesses need trustworthy security mechanisms, something that StrongSalt addresses. Said Choi:
“Currently, businesses have to sacrifice security for usability. Because StrongSalt’s innovative platform allows for complete data searchability without giving up sensitive information, it’s taking the stress off data management from businesses who can ill afford to drop the ball from being hacked.”
Valley Capital’s Steve O’Hara, who will be joining the StrongSalt board, said the current regulatory environment was the impetus for investing in the company.
“As the regulatory environment ramps up enforcement and forces business to conform to tightening laws, businesses won’t have an easy out if the technology isn’t viable or cost-effective”, O’Hara said in a statement.
Decentralized Storage Startup Storj to End Token Conversion Program
Holders of decentralized storage startup Storj Labs’ early SJCX token need to act soon to avoid losing their investments.
The firm announced Tuesday that its long-running token conversion program – in which it swaps users’ SJCX tokens, built on the Counterparty blockchain, to the newer ethereum-based STORJ token – will end on Jan. 1, 2020.
The firm said the number of conversions have been “sufficiently” low over the past six months to justifying the decision. The conversion period was originally set to end in mid-2018, but this period was extended for users who hadn’t made the swap.
Any remaining tokens held to fund the conversion program will be moved over to the Storj general reserve after the closing date, the company explained.
Storj’s tokens are used to incentivize those with spare computer storage to store and protect its enterprise users’ files.
The token conversion began two years ago when Storj announced its intention to migrate its decentralized cloud storage service to the ethereum blockchain. At the time, users could convert their tokens on a one-to-one basis.
In its announcement, Stoj said shift to ethereum meant lower transaction fees for STORJ holders, as well as improved security and programmatic payments. CEO Shawn Wilkinson previously told CoinDesk that reasons for the move also included the larger user network on ethereum and the lack of development on the Counterparty network.