Nokia takes a major step toward securing cryptocurrencies with a new encryption patent.

Nokia Technologies Co., Ltd. reportedly filed for a patent on Dec. 23, 2024, under the title “Device method and computer program” to improve the encryption of digital assets. The patent was submitted to the National Intellectual Property Administration in Jun. 2024 and was given publication number CN 119155674 A.

Nokia is making a big move by entering the rapidly growing field of digital asset encryption, which is becoming crucial in the blockchain and cryptocurrency sectors.

According to the abstract of the patent, this proposed system described in the patent will allow user devices to securely encrypt digital assets using a “first key,” which is employed to encrypt the assets and ensure their security.

This key is likely part of a symmetric or asymmetric encryption system, where a single key (symmetric) or a pair of public/private keys (asymmetric) is used to ensure that only authorized parties can decrypt and access the digital asset.

The process of transforming data or information into a code to stop unwanted access is known as encryption. Encryption guarantees that only people with permission can access and manage digital assets like Bitcoin and other cryptocurrencies. In the case of Bitcoin (BTC), for instance, encryption ensures that only the private key holder can access and manage the coins stored in a wallet. In the absence of encryption, any digital asset can be susceptible to theft and hacking.

Following the application of the ‘first key’, a “first network function” is then provided with the encrypted assets and an index that monitors the encryption process for further handling, which may involve processing or verification.

To ensure the secure and traceable management of digital assets across networks, the system also features a mechanism for identifying these encrypted digital assets.

This identification is subsequently sent to a first entity for validation or authorization, with the first network function acting as a trusted node or service that processes the encrypted assets and performs tasks such as additional verification.

The patent serves as an identification process that ensures that the assets are traceable and can be validated by the right parties before they are transferred or used in a transaction.

The advancement and security of digital asset management depend heavily on patents like Nokia.

With a long history in networking, telecommunications, and technological innovation, Nokia is a leading worldwide technology company. The company’s portfolio of hundreds of patents spans decades and includes many technology fields, encompassing digital asset encryption, 5G networks, mobile communications, and the Internet of Things.