Validian Discusses the Significance and Recent Developments of its First-To-Market Next-Generation Cyber Security Technology

Additionally, Company Provides Plan for Technology Launch, Penetration and Revenue Generation within Non-Mobile and Mobile Application Markets

OTTAWA, October 30, 2013 - Validian Corp. (OTCQB: VLDI),  the first-to-market with the next generation of cyber security technology for the management and protection of digital information, data and assets, today discussed the significance of its technology to non-mobile and mobile application developers, its development progression, as well as Validian’s plan to capitalize on it moving forward.

The significance of Validian technology lies in that it is the first and only cyber security technology that provides far greater security and capabilities than secure socket layer (ssl) even when ssl is combined with public key infrastructure (PKI) for both mobile and non-mobile applications over wired and wireless networks:

  • Validian authenticates applications thereby preventing all unauthorized access of any mobile or non-mobile application and thereby preventing cyber attacks directed at both mobile and non-mobile applications, which currently comprise more than 90% of all cyber attacks. ssl and PKI-ssl cannot authenticate applications and therefore cannot prevent these attacks;
  • Validian encrypts all digital information at the data byte level inside the sending application and decrypts the digital information inside the receiving application so that the data never travels unencrypted before the encryption process or after the decryption process. With ssl and PKI-ssl, unencrypted data can be stolen in transit before and after the encryption and decryption process;
  • Validian dynamically changes all cryptographic keys so that no cryptographic keys are stored and therefore cannot be stolen to decrypt encrypted data. ssl and PKI-ssl store the symmetrical key on the end point device and every hacker knows where to find it. An additional advantage of this is that it took over 11 months and $100 million just to change the cryptographic keys once for the U.S. banking industry. Validian would do this in less than one second each and every time for no additional cost;
  • Validian secures peer--to-peer, client-server and server-to-server communications and can both compress and encrypt the same data. ssl and PKI-ssl cannot secure peer-to-peer communications and can only compress OR encrypt the same data - it cannot do both;
  • Validian dynamically changes any policies governing communication of data, including changing encryption algorithms, keys, key life time and level of compression, and distributes these automatically, immediately and transparently to any combination of end points without having to re-develop or re-install the software. ssl and PKI-ssl cannot do this. For example, ssl and PKI-ssl developers must "pick one" algorithm of many available and different parties prefer different algorithms. End point devices like Smartphones must have the same algorithm to communicate encrypted data with each other. Are customers supposed to carry several different Smartphones, each with a different algorithm, just to communicate securely with the rest of their world? Validian has a better solution. Its technology integrates all available algorithms into each Smartphone or end point device and lets the customer choose whatever algorithm they want to use at any point in time, immediately and instantaneously.

Not only can Validian provide far greater security and capabilities than the competition, but it also can be implemented by any developer much easier and faster than ever before. Validian technology is comprised of 2 components: a server component and a client component plus a software development kit (SDK). Validian’s SDK can be used by any developer, with or without any security or ssl experience or expertise, to secure any existing or new application within about 2 hours of a one-time, online tutorial and document review. Following the online tutorial and document review, it will take developers anywhere from a half-day to a few days of very easy, straight forward development to secure an application.

The only alternative way to provide this type of security to an application is to integrate ssl, or part of its components, or to link these via a vpn, tunnel or wrapper. Only a limited number of developers have the security or ssl experience and expertise to do this compared to the overall number of mobile and non-mobile application developers. In addition, the process, even done by an expert developer, can take anywhere from 4 months to 2 years of very complicated development for each application, plus the same amount of additional time each and every time they want to change any of the policies (i.e. the algorithm, stored symmetrical key, key length, level of compression, etc) within the application.

As a result, the global developer community could secure more than 1 million mobile applications during 2014, whereas it is not possible to ssl-enable even 1000 mobile applications during the same time period.

However, regardless of the expertise and time required to develop, ssl and PKI-ssl security have major security flaws and gaps, as evidenced by the recent revelations that the NSA as well as other governments' agencies and any competent hacker can circumvent or bypass this security easily.

Validian, over the past several months, has made significant progress developing its next generation cyber security technology. Announced in September, Validian completed the development of its Version 2.1 server component, client component and SDK. As a result, the Company is now in the process of installing these at a number of its customers and channel partners during Q4, 2013 to secure non-mobile applications for the defense, government and health sectors.

Moreover, just last week, Validian announced that it had completed the development of its Version 3.0 mobile server component and had commenced developing the Version 3.0 mobile client component. The mobile client component, which is the part of Validian's technology that is located on the mobile device, is being developed initially to work on the Google Android mobile operating system (O/S) that sits on all mobile devices utilizing Google Android. This way, Validian learns how to migrate to a mobile operating system before continuing onto the other three main operating systems: Mac iO/S; Microsoft Windows 8; and Blackberry 10. Currently, Validian is developing these sequentially but is evaluating ways to do the remaining three mobile operating systems concurrently.

Looking ahead, Validian’s path to revenue is to obtain as many end points as possible and as quickly as possible. Instagram was bought by Facebook for $1 billion last year when Instagram had achieved 25 million end points (i.e. was hosted on or used by 25 million computers and mobile devices). Tumblr was bought by Yahoo for $1.1 billion this year when Tumblr had achieved 100 million end points, most of which were bloggers.

In order to achieve rapid market penetration and end-points, Validian is targeting customers and channel partners, as well as the growing independent mobile application developer community. Validian is currently installing its technology among its customers and channel partners, and is planning to give its SDK for free starting in Q1 2014 to approximately 250,000 independent mobile application developers, a community responsible for developing 1.3 million mobile applications to date. The Company has already seen substantial demand for its technology from this growing market. It is their mobile applications that help drive the sale of mobile devices and will help Validian garner its highly coveted end-points. It is estimated that each mobile application will generate an average of from 500,000 to 5 million revenue generating end-points for Validian.

It also is estimated that 100 million end-points is less than one tenth of 1% of the available market. The revenue potential for Validian is staggering. Each $0.25 earned per end point per year to Validian translates into $250 million or more of annual revenue to Validian for each 1% of this available market.

 Validian remains confident that it is on the right course for commercialization and revenue generation in the short term. Installations for non-mobile applications have started and will continue through this quarter and during 2014 with revenue generation commencing after the initial evaluation and acceptance of each installation has been completed. Installations for certain mobile applications will commence this December with Validian's “Mobile App Developer SDK Give Away” campaign commencing during Q1 2014.


About Validian Corporation

Validian Corporation (OTCQB VLDI) is first-to-market with next generation cyber security technology that provides secure access, transfer and storage of digital information on wired, wireless and mobile networks over the Internet.  Validian technology enables the next generation of secure Cloud Computing, Cloud Storage, Distributed Computing and Web Application and WebPortal Access and Usage for desktop & laptop computers, servers, tablets and SmartPhones.

The Company provides solutions that can be customized to the client's business process to ensure end-to-end authenticity, integrity and custody of high value digital assets.   Validian is a U.S. public company with offices in the U.S. and Canada. Visit for more information on its digital asset solutions.



Bruce Benn, CEO and President


Investor Relations:

Howard Gostfrand