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DatChat purchase propels Spherix into cyber security market
Posted on Tuesday, 13 March 2018 14:42
Nasdaq-listed technology developer Spherix is picking up personal privacy platform operator DatChat for an undisclosed sum.
The acquiror also announced the establishment of a new subsidiary, Ether Mining, that will mine the Ether crypto-token, which fuels the Ethereum blockchain network.
As DatChat’s distributed network is built on Ethereum, this business will further solidify Spherix’s entrance into the cyber security market, which chief executive Anthony Hayes described as “a rapidly-growing sector based on the ever-increasing threats to privacy and confidential information”.
No further details of the deal, which is subject to customary closing conditions, have been released.
The buyer was established in 1967 as a scientific research company and now manages portfolios of technology patents across several industries, including recent expansion into the communications and telecommunication sectors.
Spherix had a market capitalisation of USD 8.11 million yesterday and, as of 30th September 2017, it had assets valued at USD 9.98 million.
DatChat was founded three years ago and recently launched its initial product – an encrypted communication application of the same name, which can be used on both iPhone and Android devices and enables the user to control messages after they have been sent.
The target’s ultimate goal, according to chief executive Darin Myman, “is to develop a digital rights management platform (DRM) for blockchain”, specifically for Ethereum.
This system will provide improved security for users and protection against hackers as the communications, much like the public ledger used to log cryptocurrency transactions, will not have a central point of storage.
Once it is finished, the technology could transform each message into its own permissioned, private and controlled micro-blockchain, which Spherix chief Hayes claimed would be the “next evolution” in the field.
Hayes added that this theoretical email application would allow for “permanent and ephemeral chains, content delivery, mining and third-party application development”.
© Zephus Ltd