BOLTS Technologies is developing technology designed to help blockchains transition to Post Quantum Cryptography (PQC), with its QFlex protocol enabling cryptography and digital signatures to be changed on a per-transaction basis without requiring structural changes to blockchain nodes. The company was spun out of NUTS Technologies to apply its cryptographic inventions to blockchain security. Pulse 2.0 interviewed BOLTS Technologies Founder Yoon Auh to learn more.
Yoon Auh’s Background
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When asked about his professional background and the experiences that eventually led him to BOLTS Technologies, Auh shared:
My professional background started with building Wall Street trading systems from the UI all the way to the exchange line drivers.
An opportunity to trade using basket trading systems came along, and soon I worked my way up to head trader for the Credit Suisse First Boston US Portfolio Desk.
That was followed by Head Trader work at Geode Capital, where I built a trillion-dollar AUM business for Fidelity sub-advising all their Spartan Index Funds.
That was followed by leading Magnetar Capital as Global Head Trader in Evanston, IL.
How BOLTS Technologies Started
When asked how the idea for the company came together, Auh explained:
I’ve always programmed computers since I was 14 and never stopped.
It bothered me that personal data privacy was basically non-existent and well-designed tools were not available for the average user nor even for enterprises.
That’s how NUTS Technologies started, and eventually we spun out BOLTS Technologies to direct some of our inventions towards safeguarding blockchains.
Creating New Cryptographic Solutions
When asked about his favorite memory from building the company, Auh reflected:
There is a joy in creating something from nothing. That’s what a new solution is.
We created so many new innovations in applied cryptography in a short time span. However, our team comes from finance IT backgrounds, and little did we know how innovative some of our work was to the existing applied cryptographic and cybersecurity industry.
The experience through NUTS & BOLTS has taught me the invaluable qualities of having different perspectives.
QFlex And Hyper Crypto-Agility
When asked about BOLTS Technologies’ core product and its capabilities, Auh detailed:
We took one innovation called QFlex and spun out BOLTS Technologies to help the blockchain industry overcome its challenges with transitioning to Post Quantum Cryptography (PQC).
We were so focused on keeping data secure for users that it took a NIST cryptographer to point out QFlex’s relevance to blockchains at the end of our successful NIST SBIR Phase I grant project, an extremely rare and prestigious small business innovation grant program selected by NIST annually from across all of their scientific and technology departments.
We showed NIST how we can use our production quality QFlex protocol to change cryptography on a per-message basis, including any PQC algorithms.
For blockchains, this means we can allow the user, or wallet, to use any digital signature(s) on any transaction, and the blockchain node can process any transaction protected by any digital signature(s).
There is a term used in the industry called crypto-agility to describe how systems can switch to new cryptography easily. But our version is really “hyper” crypto-agility because we allow it at any time and under control of the client.
The key feature here is that once QFlex is integrated, the node does not need any structural changes at all for new future cryptography.
Cutting Through Blockchain Noise
When asked about challenges facing BOLTS Technologies and the broader cryptography market, Auh noted:
I think our challenge is to cut through the noise of the blockchain world.
Also, applied cryptography is not something that most blockchain people know about. They know it’s important, but very few people know the essence of how it works and its vulnerabilities. So it’s difficult to find the right group of people to have discussions with.
As technologists, we may not have backgrounds from the NSA, RSA, Unit 8200, or any other cybersecurity company, but we have more than validated our approaches with some of the leading institutions and experts in the world.
There is a general bias towards more readily accepting innovations from people with the “proper” background. No different from VC bias towards serial founders.
Technology Evolution
When discussing how the company’s technology has evolved, Auh explained:
Our original QFlex methods are still intact. They were designed properly from the onset, and over the last 10 years, it really hasn’t changed much.
We are doing adaptations to integrate it to various blockchains in pilots, but the core of the technology stays unchanged.
Canton Network Pilot
When asked about some of BOLTS Technologies’ most significant milestones, Auh said:
We are currently in the middle of performing a QFlex integration pilot with the Canton Network.
It took us less than a day to create a QFlex-Bitcoin version.
Supporting Any Digital Signature
When asked about the company’s work with the Canton Network, Auh explained:
We are in the process of proving to the Canton Network how QFlex will allow them to be the first major blockchain network capable of handling any digital signature algorithm(s), in any combination, and completely under the control of its customers on a per-transaction basis.
Out of the box, our QFlex solution will allow Canton to address all jurisdictional cryptographic requirements around the world. This will be a growing problem for TradFi entering into the blockchain arena.
Funding And Seed Round
When asked about BOLTS Technologies’ funding and revenue metrics, Auh shared:
We have raised $1.1M pre-seed for BOLTS from our existing investors in NUTS. Now we are raising a $15M seed round.
We are pre-revenue, but QFlex has 38 patents globally.
In light of the Anthropic code leak, the difference in IP protection levels have been highlighted in the most extreme sense.
Trillion-Dollar Market Opportunity
When discussing the total addressable market BOLTS Technologies is pursuing, Auh outlined:
With the growth, acceptance, and adoption of blockchain systems by TradFi and the US Government, the TAM can get up to a trillion dollars.
Competitive Differentiation
When asked what differentiates BOLTS Technologies from its competition, Auh emphasized:
We have 38 patents, unimpeachable validations, and not vaporware.
We developed our approach for crypto-agility even before the term existed. Hey, even we didn’t know its applications to blockchains until just a couple of years ago.
Future Goals
When discussing the company’s future goals, Auh said:
Our goal is to integrate into as many blockchains as possible to help them solve the PQC transition problem once and for all time.
Solving The PQC Transition
When invited to discuss another issue facing the blockchain industry, Auh concluded:
There are many different approaches to solve the PQC transition problem by the blockchain industry.
The simplest and most short-sighted method is to choose a single PQC algorithm and change the entire blockchain codebase and all the wallets that interface with it. We believe this is not a good solution at all.
There is a reason why even the White House Executive Order on Digital Assets, STRENGTHENING AMERICAN LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY, specifically mentions “Cryptographic Agility” as a necessary technical approach to resist the threats posed by advances in quantum computers.
The real solution is to be able to adapt in real-time to your threats: hyper crypto-agility at the transaction level.
Spinning upon a phrase from JFK: Ask not what you can do for your transaction; ask what your transaction can do for you.
