Xage, a cybersecurity startup employing blockchain technology, gets major funding from General Electric (GE), one of the world’s leading multinational industrial conglomerate, in a recent $12 million Series A, led by March Capital Partners.
The major reason behind this funding is to enable this startup to employ a stable security fabric for the IoT framework, currently being employed across industries in the world, using blockchain technology on the industrial grounds. ‘Industrial Internet of Things’ framework, or IoT, manages most of the operations on the micro level in almost all the industries across the world, and hence, a security blueprint is needed to prevent this skeleton of operations from the outside cyberattacks. Through its project, Xage, aims at providing a security overlay to the IoT framework being used across almost all the major industries around the world. This funding can also be seen as a consequence of all the cybersecurity attacks happening across different industries around the world, frequency of which has increased quite considerably in the recent past.
For IIoT technologies to successfully take hold, we need to deepen and broaden the integration of comprehensive cybersecurity within industrial systems. Duncan Greatwood – CEO Xage Security.
Xage’s cutting-edge innovation is the employment of blockchain framework in the industrial cybersecurity network. Its major goal is to suppress the dominance of single point failure on the industrial scale. Blockchain technology enables the modern frameworks, being proposed for industrial security purposes, to avoid the possibility of a single point failure affecting and taking down the entire industrial system. Xage, also, incorporates the services of a tamperproofing framework in its cybersecurity framework. Providing digital fingerprints to all the machines and devices across the IoT network enables it to expand the security capabilities beyond limits.
Xage distributes authentication and data across all the devices of the network, which creates a very intricate tamperproof security wall around and inside the system. The CEO of Xage also stated;
We believe that every industry can be made more efficient and more secure. With this support, we will continue developing and implementing a foundational security solution that enables industrial innovation.
GE aims at using Xage’s security framework across all the major industrial networks, including the domains of power, energy, healthcare, telecommunication etc. The Managing Director of Investing at GE, Abhishek Shukla, stated in the same fundraising;
For industries to benefit from the IoT revolution, organizations need to fully connect and protect their operations. Xage is enabling the adoption of these cutting edge technologies across energy, transportation, telecom, and other global industries. We are excited to support Xage’s innovative approach.
On a distributed network of devices, the digital fingerprint of all the devices connected to the network is distributed across each node involved in the system. If a certain malicious attack takes place on a single node in the system, it’s indication is echoed around the entire system, and hence, it is detected by all the devices connected to the network, which enables the remaining devices to avoid the anomalies causing the failure. The lack of a central node controlling the entire network eliminates the possibility of cyber-attacks spreading the entire network through a single mainstream channel.
The major challenge behind the implementation of cybersecurity across the industrial scale IoT is the usage of machines and parts from different sources. A diverse collection of machines originating from different manufacturers and implementing different protocols makes the entire network more difficult to manage. Each manufacturer provides its own implementation and security protocols, and this remains a challenge for all the blockchain cybersecurity startups across the world.
Before this venture, General Electric has also been involved in other projects employing blockchain technology. GE is consistently exploring to incorporate blockchain technology in its workflow. In order to employ blockchain technology to shape up the supply chain mechanism of the future, General Electric Transportation wing announced its participation in Blockchain in Transport Alliance (BiTA). BiTA aims at uniting all the major spearheads of the transport industries across the world on a single forum in order to make the idea of incorporating the groundbreaking and ever-expanding blockchain technology in the freight industry a reality. Monica Caldas, the Chief Information Officer for GE Transportation stated;
We understand the importance of using data and analytics to drive outcomes for our customers. As a company, we’ve defined what it means to be a Digital Industrial leader – employing these technologies first internally to drive productivity and then applying those learning for our customers’ benefit as well.
GE alliance with BiTA clearly indicated the intent of this organization to incorporate blockchain technology in other parts of the industry other than transport. In the same announcement, Laurie Tolson, Chief Digital Officer for GE Transportation stated;
We look forward to bringing our applications to BiTA as we collectively seek to leverage the potential of blockchain across the industries we serve.
All in all, in the light of the increment in the frequency of all the cyberattacks that are happening in industries all around the world, the need for a state-of-the-art and cutting-edge security framework is ever-increasing. GE’s aims at embedding the blockchain technology, presumably the technology of the future, in its workflow pipeline in order to attain a world-class security framework for IoT. Xage, world’s first ever blockchain-based cybersecurity startup aimed at providing a security net over the Internet of Things (IoT) framework currently being employed across almost all the major industries around the the world, is the right platform to invest in the light of all the vulnerabilities shown by the IoT framework to all the different kind of cyberattacks in the recent past. GE’s inclination towards blockchain-based technologies also seems to be increasing over time, and as it seems, in the near future, other conglomerates will also follow suit, as blockchain technology emerges as the technology of the future.