The recent news reports of a series of successful, major cyber attacks specifically targeting Equifax, Deloitte and HBO, and the successful global cyber attacks earlier this year, have resulted in almost incalculable damage. However, collectively, these attacks have had the following positive impacts on our negotiations:
- a recognition and acknowledgement by the victims of these attacks that they have no current ability to prevent these attacks and the resulting damage. Even the most sophisticated implementations of end-to-end encryption, including Transport Layer Security (TLS) 1.1, Public Key Infrastructure (PKI) and/or Pretty Good Privacy (PGP), and of the latest versions of smart firewalls, intrusion prevention systems and anti-virus and anti-malware, are not able to prevent these attacks; and
- a fear by the large corporations with whom we are negotiating that they may be next to be specifically targeted and that none of them have the means to withstand such a cyber attack or protect themselves or their customers from the potential catastrophic results.
During our discussions and negotiations, these large corporations have deepened their understanding of the critical difference between the other cyber security approaches and Validian’s radically innovative approach, which in summary is:
- other cyber security technologies each try to limit (which they call prevention), a particular type of breach. However, these cyber security technologies do not work together seamlessly so there are gaps between them that are exploited. Once a breach inevitably occurs then corporate, customer and/or partner data is at risk of improper access or theft.
- conversely, Validian assumes there will always be a breach and/or there already is a breach and protects the complete life cycle of data seamlessly during transport, storage and usage against all forms of intrusion, impersonation and interception even if the host device, server, data base, network, operating system or OSI stack has already been compromised by known or unknown cyber attacks including but not limited to intrusion and improper internal or external access, impersonation, spoofing, phishing, man-in-the-middle, man-in-the-browser, ransomware, zero-day vulnerabilities, malware and viruses.
Furthermore, these ongoing discussions and exchanges of information have enabled each large corporation to identify internally which area of operations it wants to focus on Validian-enabling first. As a result, we now have several large corporations each focusing on one of the following areas:
- mobile messaging and social media
- automotive connectivity
- e-commerce
- electronic payments
- ride sharing
- the Internet of Things
“We are pleased with the progress of discussions and the level of interest of each large corporation in arranging a strategic partnership with us. These discussions and negotiations are continuing into November, with the structure of a strategic partnership now ranging from licensing to exclusive rights in a particular market sector to acquisition,” commented Bruce Benn, Chief Executive Officer of Validian.
Why VLDI is “Radically Innovative”
At the core of the Validian Protect solution is one central premise. Every network has been compromised. Right now solutions are designed to detect a breach as quick as possible to prevent the spread of it. When the plague was sweeping across Europe in the 1700’s they did the same thing: detect it, quarantine it, and try to save whomever they can. This analogy should show the medieval approach that has been taken toward cyber security. The reason VLDI is different is due to its cyber immunity. Using the plague example, VLDI could walk into a plague infested city freely using modern 21st century technology of the “internet within the internet.” VLDI creates its own realm and protects the applications and the complete life cycle of data seamlessly within a virtual closed system regardless whether the data is being transferred or stored or in use. Users can manipulate the data, use it, share it, and do whatever they want in this environment regardless of how compromised the host device, operating system, network, servers or databases may be. The malware won’t be able to infect, access or steal the data because there are no communication protocols allowing access into this realm.
The most valuable asset that a company possesses is its data. Think about a company that doesn’t have access to it financials to fine tune production efficiencies. What would happen if companies no longer had access to their customer sales pipelines? Where would retailers be if they didn’t have the buying habits of each customer? This meta data is at the heart of what cybersecurity companies are trying to protect yet failing miserably in their execution. According to Identity Theft Resource Center (ITRC) data breaches have jumped 29% over 2016 in the first half of 2017. Validian “protects the complete life cycle of data seamlessly during transport, storage and usage against all forms of intrusion, impersonation and interception.” A major issue that cybersecurity firms haven’t solved is protecting data when it is being used. Data can be protected via end-to-end encryption for the transport of data over the internet and via separate encryption for storage, but not when the data is being created, read, edited or manipulated on a compromised device or network. Then it is vulnerable to the laundry list of attacks like “impersonation, spoofing, phishing, man-in-the-middle, man-in-the-browser, ransomware, zero-day vulnerabilities, malware and viruses.” Validian Protect preserves the complete life cycle of data thereby protecting what people value most.
Moving Forward…
VLDI has had over a year to think about various licensing agreement structures. The talk about potential exclusivity raises the bar of speculation on this stock to a new level. The targeted hack of Equifax resulting in the theft of critical personal information of more than 145 million people has stoked the fears of large corporations throughout the world that they may be next. The tone of this press release indicates the floodgates may open and the fact that no one is chattering about it means a lot is happening behind the scenes because companies don’t telegraph what they are doing in cyber security. The mysterious omission of government business might lead to an announcement in short order. The company already has revenue and is on the cusp of signing some sort of exclusive contract in a particular sector. This type of deal would involve a significant upfront fee and back end royalties. It’s conceivable that the annual payments to Validian under an exclusive contract would be more than the current market capitalization of $3.25 million. Multiple market players in each sector ensure a bidding war for use of the software. VLDI is undervalued by orders of magnitude of its current market capitalization given the solutions that it represents.
About Validian Corporation
Validian Corporation (OTCQB VLDI) is a leading innovator in cybersecurity technology that encompasses and seamlessly protects applications and the complete life cycle of data within its virtual closed systems, providing secure access, retrieval, transfer, receipt, storage and usage of digital information on all devices, operating systems and technology platforms regardless of any type of known or unknown cyberattack or vulnerability or if the host device or network has been hacked or improperly accessed, infected with viruses or malware, or otherwise compromised. Validian technology enables the next generation of secure Mobile Messaging and Communications, Cloud Computing, Cloud Storage, Distributed Computing and Web Application and WebPortal Access and Usage, Software Defined Networking, the Internet of Things and SCADA, for computers, servers, data bases, intelligent sensors, tablets and SmartPhones on wired, wireless and mobile networks.
The Company provides solutions that can be customized to the client’s business process to ensure end-to-end authenticity, integrity and custody of high value digital assets. Validian is a U.S. public company with offices in the U.S. and Canada. Visit www.Validian.com for more information on its digital asset solutions.
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