Post-quantum cryptography provider PQShield raises $20 million

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Today, UK-based post-quantum cryptography provider PQShield announced it has raised $20 million in Series A funding to enhance product development and expand internationally.

The move comes amid growing concerns that quantum computers will eventually have the processing power to decrypt the encryption keys that support everything: bitcoin to secure applications, end-to-end messaging services and even national intelligence.

While it will be years before quantum computers have the capacity to decrypt encryption keys, it is worrying that the US National Institute of Standards and Technology (NIST) is developing a process to migrate to post-quantum cryptography.

Post-quantum cryptographic security solutions such as PQShield will provide technical decision-makers and organizations with future-proof encryption that cannot be easily broken by quantum computers.

The need for post-quantum cryptography

As quantum computers evolve, there is a growing need for post-quantum cryptography to prevent these devices from decrypting secure applications at will.

“Although today’s quantum computers do not have the computing power to break through current cryptography, the technology is developing at a rapid pace. Intelligence agencies are concerned that a powerful quantum computer in the wrong hands could pose a devastating threat to global security. The question is not if, but when,” said PQShield CEO and founder Ali El Kaafarani.

“Today, virtually every organization, government and device in the world relies on public-key cryptography that will be rendered useless by large-scale quantum computers. The sheer processing power of quantum machines will easily solve the math problems underlying these public key algorithms, putting sensitive information at risk,” he said.

That means a quantum computer used by a cyber-gang or a state-sponsored entity could perform a fake hack into systems, decrypting the encryption mechanisms used by entities such as collaboration platforms, government agencies and national intelligence databases.

PQShield addresses this challenge by developing secure cryptographic solutions for messaging platforms, apps and mobile technologies, as well as smart cards and embedded security chips, to protect sensitive data from quantum computers.

Becoming a Growing Force in the Post-Quantum Cryptography Market

PQShield is part of the post-quantum cryptography marketwhich researchers estimate will reach $9.5 billion by 2029 as web browsers replace RSA, ECC, and Diffie-Hellman algorithms with PQC encryption, and as more PQC-as-a-service offerings come onto the market.

One of PQShield’s competitors is: KETS quantum security, which designs quantum secure communications solutions and recently became part of a £9 million ($12.1 million) Data Center of the Future project designed to fund industrial quantum development in the UK.

Another competitor is crypto labswhich recently developed the world’s first space-compatible Quantum Random Number Generator to securely encrypt satellite data, after raising £5.5 million in starting capital the year before.

However, Kaafarani believes that PQShield’s quantum solution stands out from the crowd as a proven quantum secure cryptography solution.

“With roots in the University of Oxford Mathematical Institute, PQShield is the only cybersecurity company able to demonstrate quantum secure cryptography on chips, in applications and in the cloud through out-of-the-box and custom cryptographic secure IP elements, IoT firmware, public key infrastructure (PKI), server technologies and end-user applications.”

Addition led the funding round for PQShield with the participation of investors including Oxford Science Enterprises and Crane.

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