How a Moldovan startup could help protect democracies

With EU accession on the horizon, LexChain is giving Moldova’s institutions a head start on data protection through blockchain-secured digital identity and encrypted storage.
How a Moldovan startup could help protect democracies

We just had our federal elections back in my home country, Australia, this weekend, and while its geographic isolation and lower global profile make it less of a prime target than governments in Europe, Ukraine, or the US, it’s not without risk. 

There have long been reports of China’s involvement in Australian elections. In 2020, the Australian Parliament and political parties were targeted in a significant cyberattack, which the government attributed to a “sophisticated state actor.” 

But how do you secure government data? 

I recently met with two cybersecurity students in Moldova, Adrian Manole and Ștefan Bîstrițchi, co-founders of cybersecurity startup LexChain

Encryption, fragmentation, and blockchain verification

LexChain is a cybersecurity platform that enhances data protection by combining encryption, data fragmentation, and blockchain verification. 

Designed to integrate seamlessly with existing storage systems, LexChain aims to secure sensitive information for governments, organisations, and businesses without necessitating an overhaul of their current infrastructure.

The technology encrypts files, splits them into pieces, and uses blockchain to track any changes. This multi-layer approach stops cyberattacks before they can do damage.

Manole detailed:

“Our solution is essentially a shield for sensitive data. It works by fragmenting and encrypting the data before storing it in your chosen location — whether that's the cloud, a personal server, or even your own computer.

You can then securely share these fragments. Only you and the intended recipient can access the file.

It's designed both for secure storage and sharing. The core is data ownership and confidentiality.”

LexChain has also developed a feature called LexID, which enables secure login through a blockchain-based identity. 

According to Bîstrițchi, human error, like using weak credentials, is one of the biggest vulnerabilities. 

“LexID addresses this by tying your identity to cryptographic processes, making it extremely difficult to compromise.”

Further, authentication is handled through cryptographic public/private key pairs. 

“Your public address is unique to you and can be used across any blockchain—it’s not locked into our infrastructure.

And, even if someone gains access, they’ll only see meaningless fragments. Without your unique decryption key, the data is useless. Only the identity holder can reconstruct it.”

Right now, that decryption key is stored in a proprietary digital wallet built on a mix of public and private keys. In the future, the startup plans to introduce hardware-based encryptions, like USB sticks, fingerprint scanners, or wearables. The decryption key will be cross-platform and eventually compatible with IoT and healthcare devices as well.

Building Moldova’s digital shield

According to Bîstrițchi, the startup was inspired by the lack of security around sensitive data in Moldova and across the European Union.

“We wanted to build a “digital shield” that protects sensitive data and supports a more secure future for everyone.”

According to Manole, data breaches happen very frequently, especially in Moldova.

“We've seen numerous cases where important government or private sector data was leaked. That’s the problem we’re tackling—by offering a more unified, secure solution.”

Manole asserts that LexChain is among the first startups doing this kind of work in Moldova, which provides an opportunity to set the standard and help the country progress.

Further, Moldova is on track to join the EU, making alignment with GDPR standards essential and LexChain part of preparing the country for accession by securing sensitive data in advance.

From pitch to pilot

Public institutions and government procurement processes and red tape can make them difficult clients to attain. However, LexChain found the Moldovan government to be surprisingly open. 

According to Bîstrițchi LexChain has spoken with officials, including the former Minister of Economy and Digitalisation, “and pitched our solution for securing Moldova’s e-governance systems, like digital IDs and driver’s licenses.”

The startup recently launched its pilot project in collaboration with the Technical University of Moldova.

The pilot is now officially underway with the National Institute of Innovations in Cybersecurity, “Cybercor”, and the Faculty of Computers, Informatics, and Microelectronics (FCIM) at Universitatea Tehnică a Moldovei, where the team is working to secure the Dean’s Directives (Dispozițiile Decanului).

Lead image: Ștefan Bîstrițchi, co-founder and CTO of LexChain.

 

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