Combination lock image via Shutterstock
A new encryption-as-a-service company raised $3 million to bring standardized encryption techniques to the blockchain.
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.
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.