The Israel Securities Authorities said Wednesday that it has started using blockchain technology to improve cybersecurity and meet information security challenges.
The technology, commonly used in cryptocurrencies such as Bitcoin, has been embedded in one of the ISA’s systems, called “Yael,” which is used by the government agency to deliver messages and information to bodies under its regulation, it said in a statement.
Blockchain will be embedded in two more systems in the future, it added: firstly in an online voting system developed by the ISA to enable investors to actively participate in meetings from anywhere, and later in Magna, which is used to record all the reports by bodies under the ISA’s supervision.
The system was developed over the last three months by IT company Taldor.
Blockchain, a leading global software platform for digital assets, has been used by various firms to better secure clients and transactions. The technology plays a central role in enabling cryptocurrency transactions and also allows for secure information transmission on its network, without the need for human involvement.
The ISA said the move “adds another layer to ensuring the credibility of the information relayed to the supervised bodies. The technology verifies the messages’ authenticity, prevents fraud, and prevents them from being edited or deleted. Additionally, the system prevents the option of denying that a message was received from the ISA.
“The embedding of the technology in the ISA’s information systems is in line with its vision to promote financial innovation in the capital market,” it added.
Natan Hershkovitz, director of the ISA’s Information Systems Department, said that “we are witnessing a growing trend around the world, and in the financial field in particular, to embed innovative and revolutionary technologies.
“Implementing blockchain technology in the ISA’s information systems makes it one of the global leading authorities in securing the information provided to the public and its credibility, and one of the leaders in Israel’s public sector.”
Shoshanna Solomon contributed to this report.