#Japan #Tokyo #NEC #Daiwa Securities #F5 Networks

Introduction

In a significant update for online security, Daiwa Securities Group, in collaboration with NEC, F5 Networks Japan, and DigiCert Japan, has successfully conducted a proof-of-concept for Post-Quantum Cryptography (PQC). This initiative aims to bolster security for internet communications, particularly in the financial sector, where safeguarding crucial customer data is paramount.

Background on Post-Quantum Cryptography

As quantum computing continues to advance, there is growing concern that traditional public key cryptography methods could potentially become insecure. PQC represents a new approach designed to remain secure even in the face of powerful quantum computers. Understanding the importance of adopting such technology, Daiwa Securities and its partners embarked on this proof-of-concept to investigate the practical implementation of PQC in their online services.

Objectives of the Proof-of-Concept

The primary goal of the demonstration was to evaluate the technical aspects of integrating PQC within Daiwa Securities’ online platforms. Key areas of focus included:

• - Assessing the impact of PQC on processing times for key exchanges while maintaining acceptable performance levels.
• - Investigating the implications of increased key sizes on transmission volumes and packet counts, especially concerning network bandwidth limitations.
• - Exploring standardization trends in the industry regarding cryptographic processes and the need for phased migration plans.

Results of the Demonstration

The proof-of-concept yielded several important findings:

• - The increase in processing time due to PQC key exchange was found to be minimal, confirming that the technology can be incorporated without significantly affecting performance. However, the expanded key sizes could lead to increased transmission volume and more packets, highlighting the need for preemptive assessments in bandwidth-restricted environments.
• - Some cryptographic processes utilized in internet communications are still developing toward standardization, underscoring the necessity for a gradual transition as standards evolve.
• - The use of multiple cryptographic systems requires a comprehensive oversight strategy to manage the migration effectively. Establishing a specialized team to evaluate and document current cryptographic methods and their applications was indicated as a beneficial step forward.

Future Directions

Based on the outcomes from the proof-of-concept, Daiwa Securities Group has outlined a clear strategy for the formal adoption of PQC technology. This decision aims not only to enhance security in anticipation of quantum technology practicalities but also to create a reliable backbone for secure systems.

Roles of Contributing Companies

Daiwa Securities Group

Tasked with coordination and risk management within the group, Daiwa Securities has formulated a policy for PQC integration that balances security and user convenience in their online services.

Daiwa Securities

The company focused on verifying compatibility, performance, and operational impacts when applying PQC to online services. Their findings will play a crucial role in shaping real-world system designs and operational strategies.

Daiwa Institute of Research

Utilizing insights from previous PQC initiatives, the institute constructed the testing environment, developed scenarios, conducted the technical assessments, and compiled results into a white paper aimed at fostering knowledge exchange and deeper discussions within the financial sector.

NEC

Bringing in expert perspectives on PQC, NEC contributed towards enhancing technical reliability and was also responsible for reviewing the white paper based on their extensive research in quantum technologies.

F5 Networks Japan

F5 delivered Application Delivery Controller (ADC) technology capable of supporting PQC, helping to establish the foundation for next-generation network infrastructure.

DigiCert Japan

As one of the world's leading certificate authorities, DigiCert provided insights into international standardization trends relating to PQC and contributed their expertise in Public Key Infrastructure (PKI).

Conclusion

The complete details and insights from this demonstration are compiled in a white paper available through Daiwa Institute of Research's official website. This initiative is a noteworthy step towards ensuring safer online financial transactions in the quantum computing era.

Read the full white paper here.