Bengaluru-based information technology services firm Mphasis has partnered with Israeli enterprise technology firm QEDIT to enable data compliance without infringing on privacy regulations by deploying the latter’s blockchain technology.
The agreement will see the companies using a privacy-enhancing technology called ZKP (zero knowledge proof) cryptography to enable their enterprise customers to use data without infringing on data privacy laws, a statement said.
Both entities will co-innovate and develop ZKP solutions under the Mphasis Sparkle Innovation Ecosystem to help enterprises fight fraud, verify identities and uphold compliance with local data privacy regulations, the companies said. This will help the clients of these companies while preserving full control over proprietary and confidential information, it added.
According to Mphasis, the blockchain is usually structured in a way that anyone with access to a blockchain transaction can view data provided across all nodes. This inherent principle of transparency is an obstacle for companies that wish to gain efficiencies using a shared ledger, but simultaneously need to protect confidential transaction details. Hence, this new solution can overcome this challenge, the company said.
QEDIT’s solution called Private Asset Transfer employs ZKPs, a cryptographic algorithm that enables one party to share the proof of knowledge with a second party without sharing the underlying data. Mphasis said that ZKP will become that horizontal layer of security for digital identification.
Mphasis said that its clients in the regulated industries, especially financial services, would want to deploy the solution, which can be integrated into large application projects.
“Blockchain is a critical technology that enterprises have been leveraging strategically. With this partnership, we aim to offer next-generation security applications on blockchain to our clients, which will enable them to authenticate asset transfers on a shared ledger without revealing any underlying, confidential, transactional information,” Dinesh Venugopal, president, Mphasis (direct and digital).
Mphasis serves six top global banks, 11 out of 15 top mortgage lenders and three top global insurance companies. Mphasis said that its global footprint will enable QEDIT to reach a broad array of industries, ranging from trade finance, supply chain, payments and insurance.
“We can accelerate our efforts to deliver innovative solutions that facilitate blockchain adoption and provide secure ways for companies to harness the full value of their data, without requiring them to expose or share private information,” Jonathan Rouach, CEO and co-founder of QEDIT, said.
The Blackstone-backed firm is strong in digital technologies. Last October, Mphasis signed a partnership with French data management solutions provider Oodrive for digital authentication of insurance contracts.