Guy Zyskind and Oz Nathan, two Bitcoin entrepreneurs, have worked together with MIT’s Media Lab to come up with a prototype for Enigma. Enigma is a system that ensures complete privacy when data is shared on cloud-hosted services that is based on Bitcon’s cryptography.
There’s been a lot of interest from large venture capital investors in the Bitcoin technology, especially in the last few months. The interest is mainly due to the digital’s currency cryptography that allows for a decentralized currency that is not counterfeited.
The technology brought in a record number of investments during the spring with $116 million in funding. Still, the key point has been the blockchain and cryptography technology, which has many benefits besides helping Bitcoin. The more recent is the amalgamation of code and math so that anybody can share data on the cloud and still keep it private.
The design of the Enigma system is to provide “homomorphic” encryption, which allows data to be shared with third parties and used in calculations without it needing to be decrypted. This trick ensures that untrusted computers can run calculations on the sensitive information ensuring it’s not at risk of being hacked.