Nokia Patents New Encryption Technology to Defend Against Crypto Vulnerabilities

• Nokia has patented advanced encryption tech for digital assets, addressing crypto security flaws that caused $2.2 billion in losses in 2024.
• The patent highlights Nokia’s blockchain innovation, part of its pivot from mobile phones to emerging tech like 5G and secure data trading.

Nokia has taken a decisive step into the crypto sector, filing a groundbreaking patent with China’s National Intellectual Property Administration. This new encryption technology aims to strengthen the security of digital assets, a much-needed solution given the increasing prevalence of crypto vulnerabilities.  

Nokia Files Patent for Digital Asset Security, including Device and Program for Encrypting Digital Assets

If their encryption is as unbreakable as the legendary Nokia 3310, digital assets will be in safe hands pic.twitter.com/H50nsPF53p

— BrotherHood (@BHVenture) December 24, 2024

The patent offers an innovative system that uses a first key to encrypt digital assets, making them nearly impenetrable to unauthorized access. Once encrypted, assets such as Bitcoin or Ethereum become inaccessible to anyone lacking the private key. This method not only shields assets from hackers but also offers the potential for encrypted transactions where decryption occurs only post-confirmation.  

If successfully developed, this technology could address a significant issue plaguing the cryptocurrency industry. Reuters recently reported the urgency of such innovation, with crypto hacks costing the industry over $2.2 billion in 2024 alone—a 21% surge attributed to the market’s expansion.  

Nokia Reinvents with Blockchain and 5G

Nokia’s focus on encryption isn’t an isolated effort but part of a larger narrative. The company has pivoted from its past dominance in mobile phones to explore emerging tech sectors, from blockchain to 5G innovations. Back in 2021, Nokia launched its Data Marketplace, enabling enterprises to trade data and AI models using blockchain technology securely.  

The recent patent represents another feather in Nokia’s cap as it builds a robust portfolio. While there’s no guarantee that the patented system will evolve into a full-fledged product, its approval showcases the concept’s viability and could inspire further advancements in securing digital assets.  

Nokia isn’t the only legacy player exploring blockchain applications. Microsoft’s 2021 patent for a human-powered crypto-mining system and Apple’s patents hinting at blockchain usage underline a growing trend among traditional firms. Yet, some industry leaders, like Mastercard, are going beyond patents by actively developing crypto-related technologies, ranging from fraud detection to smart contract-powered transactions.  

A Larger Ecosystem Takes Shape

Globally, telecom companies are also jumping into the blockchain and crypto bandwagon. Taiwan Mobile obtained a Virtual Asset Service Provider (VASP) license in July 2024, enabling it to operate a digital asset exchange. Meanwhile, South Korea’s SK Telecom is gearing up to launch a cryptocurrency wallet aimed at strengthening its Web3 ambitions.  

This isn’t Nokia’s first venture into blockchain. Its 2021 Data Marketplace initiative marked an early success in enterprise-level blockchain applications. In 2023, the company took a creative turn, collaborating on a 5G-enabled microbrewery project that used AR and digital simulations to enhance brewing processes.  

While Nokia’s journey into digital assets aligns with a broader industry shift, its timing is impeccable. With network traffic projected to grow 22–25% by 2030, the company’s efforts to expand its tech stack and infrastructure could shape the future of secure data and asset management.