Don’t Risk Making the Same Mistake Twice: Why Tokenisation and Quantum Resilience Are Key to Future-Proofing Cloud Security

Written by: Susan Brown - Founder & CEO of Zortrex Ltd 19th October, 2024

As the world rapidly approaches the quantum computing age, digital rights management (DRM) and cloud providers face a critical juncture. The lessons of the past such as the downfall of Aereo serve as a stark reminder of the dangers of failing to adapt to new technological and legal landscapes. Today, with the quantum computing revolution looming, traditional encryption methods will soon be rendered obsolete. Without adopting tokenisation and quantum-resilient technologies, cloud providers and businesses are leaving themselves dangerously exposed to security and compliance risks.

This article explores how the combination of ZortrexCube, TokenisedAPI, and tokenised proxies offers a future-proof solution for managing digital rights and securing content in an era where quantum computing could easily break current encryption methods. As industries like IT and OT converge, multi-trillion-dollar companies are increasingly vulnerable to data breaches and legal liabilities if they fail to act now.

The Aereo Case: A Cautionary Tale of Legal Gaps and Technological Failure

Aereo was an innovative company that allowed users to stream over-the-air television broadcasts via individual antennas. Despite its potential, Aereo ultimately failed when the Supreme Court ruled that its service violated copyright law by retransmitting public performances without the proper licensing. At the heart of the issue was bailment the concept of temporary control over a user’s property, which became a critical point in determining liability. Aereo’s technology allowed users to decide what to stream or record, but the court found Aereo liable as if it were a cable service, holding them responsible for copyright infringement.

Aereo’s failure wasn’t just a legal loss it was the consequence of a legal system unprepared to manage emerging digital rights issues. Fast forward to today, and the risks have only increased. The uncertainty around bailment and digital rights continues to be a major issue for cloud providers, who host vast amounts of user-generated content, from media to personal data. As we edge closer to quantum computing’s full capabilities, the need to adapt and implement new technological frameworks becomes more urgent.

Bailment and the Legal Risk for Cloud Providers

The concept of bailment where a company temporarily holds users’ property is becoming a significant concern in the digital age. When cloud providers host or transmit copyrighted content, even when users retain control, the liability for what happens to that data or content is murky. If a company is found responsible for how that content is accessed or used, as in the Aereo case, it can face significant legal consequences.

Today, with the convergence of IT and OT sectors, the risks are even greater. These industries rely on cloud infrastructure to run critical operations, and any breach in security or liability due to data exfiltration can result in catastrophic losses. Quantum computing adds yet another layer of complexity to this issue, as it threatens to break the cryptographic standards currently used to protect these digital assets.

Quantum Computing: An Imminent Threat

Quantum computing is poised to break traditional encryption methods like RSA and ECC, which are used widely across industries to secure everything from financial transactions to digital content. These encryption methods rely on the computational difficulty of factoring large numbers, a problem that quantum computers can solve exponentially faster than classical computers. Once quantum computing is fully developed, today’s encryption will be rendered ineffective, leaving sensitive data exposed.

In this new landscape, failing to adopt quantum-resistant technologies is a gamble no business can afford. Companies that rely on traditional encryption are leaving their assets vulnerable to quantum decryption, which could lead to massive data breaches, intellectual property theft, and operational disruptions. For cloud providers hosting sensitive data or copyright content, this is an existential threat.

ZortrexCube: Quantum-Resilient Security for the Future

ZortrexCube offers a solution by providing quantum-resistant security that does not rely on traditional, mathematically linked encryption techniques. Unlike RSA or ECC encryption, which are vulnerable to quantum attacks, ZortrexCube uses no keys, salts, or hashes, making it immune to the decryption capabilities of quantum computers. This technology is essential for any company looking to future-proof its infrastructure against quantum threats.

For cloud providers, ZortrexCube provides the foundation for securing digital content and protecting users' data from future vulnerabilities. As businesses move their operations online and rely on cloud infrastructures to handle sensitive data, securing that data with quantum-resilient technology like ZortrexCube becomes critical.

TokenisedAPI and Tokenised Proxies: Automating Compliance in the Quantum Age

Beyond security, TokenisedAPI and tokenised proxies allow cloud providers and digital platforms to automate digital rights management (DRM) and ensure compliance in real-time. Here’s how they function:

• TokenisedAPI acts as the bridge between cloud services and tokenised digital content stored on the blockchain. It verifies whether a user holds the appropriate token to access, stream, or share content. This automation reduces the risk of human error and ensures that content usage complies with copyright laws and licensing agreements.
• Tokenised proxies enforce the rules embedded in the tokenised assets, controlling access in real-time and ensuring compliance with geographic, time-based, or usage restrictions. For instance, if a user tries to access content in a region where it's not licensed, the proxy blocks that access, automating a critical compliance measure that was a point of contention in the Aereo case.

IT-OT Convergence: Managing New Risks

As IT (Information Technology) and OT (Operational Technology) systems converge, multi-trillion-dollar industries are becoming more reliant on cloud services to manage both operational and informational infrastructures. The risks associated with this convergence cyberattacks, data breaches, and infiltration are significant, especially in industries like energy, manufacturing, and logistics. Without robust quantum-resistant solutions and automated compliance systems, these industries are vulnerable to devastating financial losses and operational disruptions.

Quantum-resistant technologies like ZortrexCube, combined with tokenised APIs and proxies, offer a secure and automated way to manage digital rights, reduce the risks associated with data breaches, and ensure compliance in a highly connected world. Companies that don’t take proactive steps to adopt these technologies are placing their data, operations, and intellectual property at significant risk.

Conclusion: Don’t Make the Same Mistake Twice

As we face a quantum-driven future, the risks to data security, digital rights, and cloud infrastructure are too great to ignore. The downfall of Aereo offers a cautionary tale of what can happen when businesses fail to address the legal and technological complexities of emerging technologies. Failing to adopt tokenisation and quantum-resilient technologies today is a gamble no company can afford.

If regulations aren’t keeping up, it’s on companies to adopt proactive security and compliance measures and on policymakers to fast-track the development of regulatory frameworks that address the unique challenges posed by quantum computing. We can't afford to wait the future is arriving faster than we think.

With ZortrexCube, TokenisedAPI, and tokenised proxies, businesses can protect their content, ensure compliance, and future-proof their systems against the quantum computing revolution. Don’t risk making the same mistake twice embrace these technologies now to secure your digital future.