Israeli Authorities Adopts Distributed Ledger Technology (DLT) for Cybersecurity
In a bid to ensure secure information transmission, verify the authenticity of messages, and prevent fraud in the capital market, the Israel Securities Authority (ISA) has integrated blockchain technology into its systems, reported The Times of Israel on October 3, 2018.
ISA Joins the DLT Bandwagon
Per sources close to the matter, the ISA has announced it has successfully integrated blockchain technology, the building blocks of bitcoin and other cryptos, into its “Yael” system which it uses to send messages to bodies under its regulation.
The immutability property of the burgeoning distributed ledger technology (DLT) will be put to great use in improving cybersecurity and fix existing loopholes in its information systems. The ISA has also made it clear that DLT would make it impossible for firms to delete its messages or “deny that a message was received from the ISA.”
According to the ISA, its newly deployed blockchain solution was developed only three months ago by Taldor, which is the nation’s leading information technology firm established in 1986.
With the successful integration of DLT into its Yael information transmission system, the ISA has reportedly said it would go ahead and embed the revolutionary technology in a few systems shortly.
The organization plans to further deploy blockchain technology in its online voting system to enable investors to participate in ISA meetings remotely. Once successfully integrated, the ISA says it would also add DLT to its Magna system, which is primarily used record reports by agencies under the ISA.
Blockchain Gaining Traction in Israel
The director of the ISA Information Systems Department Natan Hershkovitz reiterated that the agency is not oblivious to the fact that blockchain technology is disrupting a vast array of industries across the globe. Hershkovitz concluded that:
“Implementing DLT in the ISA’s information systems make it one of the leading global authorities in securing the information sent to the public and its authenticity, and one of the leaders in Israel’s public sector.”
While nations like South Korea, Japan, and even Malta have formulated a robust regulatory framework for their cryptocurrency and blockchain ecosystems, Israel is yet to come up with clear guidelines to govern its cryptospace even though it’s actively planning to launch own crypto.