Nokia (NASDAQ: NOK) has filed a patent application in China for a device that encrypts and indexes digital assets in the latest push by a telecoms operator into the blockchain world.
The China National Intellectual Property Administration (CNIPA) confirmed that the Finnish telecoms and consumer electronics giant had filed the patent for a “device, method, and computer program” that encrypts digital assets.
A translated version of the patent revealed that the patent describes a method for “encrypting a digital asset with the first key,” “providing the encrypted digital asset and an index for the encrypted digital assets to the first network function” and “provide the first entity with the identity of the digital asset of said encryption.”
Nokia’s system will rely on symmetric and asymmetric encryption—the former uses a single key for encryption and decryption, while the latter relies on a public and private key combination for enhanced security.
The Helsinki-based firm is a pioneer in mobile telephony and, in the early 2000s, was the world’s largest mobile phone company. It was then overtaken by American and Asian brands and has since been reinventing itself by venturing into the latest technologies.
Blockchain and digital assets are among the new technologies Nokia has tried its hand in. In 2023, it ventured into the metaverse in a research capacity and has since expanded the initiative. Its Technology Strategy 2030 report, published in March 2024, revealed that it intends to invest heavily in infrastructure to support a surge in demand from metaverse applications, Web3, and artificial intelligence (AI).
However, its new patent application might be its most significant in the digital asset world. Security in the sector is one of the most pressing needs as criminals find novel ways to target investors, and an encryption device from a worldwide giant could be a great leap for the industry. In 2024, criminals reportedly stole $2.2 billion worth of digital assets, a 21% surge from the previous year, according to a new report by Chainalysis.
Nokia joins other telecom giants targeting the digital asset sector as the industry’s growth has burgeoned in recent years. Japan’s largest wireless carrier, NTT Docomo, launched a digital asset wallet earlier this year, while its South Korean counterpart launched its wallet last year. Others, like Spanish giant Telefonica and Germany’s Deutsche Telekom (NASDAQ: DTEGY), have been utilizing blockchain technology for security and verification.
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