Development Archives | Page 78 of 545 | Digital Watch Observatory

Bitcoin cryptography safe as quantum threat remains distant

Quantum computing concerns around Bitcoin have resurfaced, yet analysis from CoinShares indicates the threat remains long-term. The report argues that quantum risk is an engineering challenge that gives Bitcoin ample time to adapt.

Bitcoin’s security relies on elliptic-curve cryptography. A sufficiently advanced quantum machine could, in theory, derive private keys using Shor’s algorithm, which requires millions of stable, error-corrected qubits, and remains far beyond current capability.

Network exposure is also limited. Roughly 1.6 million BTC is held in legacy addresses with visible public keys, yet only about 10,200 BTC is realistically targetable. Modern address formats further reduce the feasibility of attacks.

Debate continues over post-quantum upgrades, with researchers warning that premature changes could introduce new vulnerabilities. Market impact, for now, is viewed as minimal.

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OpenClaw faces rising security pushback in South Korea

Major technology companies in South Korea are tightening restrictions on OpenClaw after rising concerns about security and data privacy.

Kakao, Naver and Karrot Market have moved to block the open-source agent within corporate networks, signalling a broader effort to prevent sensitive information from leaking into external systems.

Their decisions follow growing unease about how autonomous tools may interact with confidential material, rather than remaining contained within controlled platforms.

OpenClaw serves as a self-hosted agent that performs actions on behalf of a large language model, acting as the hands of a system that can browse the web, edit files and run commands.

Its ability to run directly on local machines has driven rapid adoption, but it has also raised concerns that confidential data could be exposed or manipulated.

Industry figures argue that companies are acting preemptively to reduce regulatory and operational risks by ensuring that internal materials never feed external training processes.

China has urged organisations to strengthen protections after identifying cases of OpenClaw running with inadequate safeguards.

Security analysts in South Korea warn that the agent’s open-source design and local execution model make it vulnerable to misuse, especially when compared to cloud-based chatbots that operate in more restricted environments.

Wiz researchers recently uncovered flaws in agents linked to OpenClaw that exposed personal information.

Despite the warnings, OpenClaw continues to gain traction among users who value its ability to automate complex tasks, rather than rely on manual workflows.

Some people purchase separate devices solely to run the agent, while an active South Korea community on X has drawn more than 1,800 members who exchange advice and share mitigation strategies.

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Yuan-pegged stablecoins face new restrictions under China policy

Chinese regulators have tightened controls on digital assets by banning the unauthorised issuance of yuan-pegged stablecoins overseas. The move extends existing restrictions to tokenised financial products linked to China’s currency and reinforces state control over monetary instruments.

In a joint notice, the People’s Bank of China and seven other agencies said no domestic or foreign entity may issue renminbi-linked stablecoins without approval. Authorities warned that such tokens replicate core monetary functions and could undermine currency sovereignty.

The rules also cover blockchain-based representations of real-world assets, including tokenised bonds and equities. Overseas providers are prohibited from offering these services to users in China without regulatory permission.

Beijing reaffirmed that cryptocurrencies such as Bitcoin and Ether have no legal tender status. Facilitating payments or related services using such assets remains illegal under China’s financial laws.

The measures align with China’s broader strategy of restricting private digital currencies while advancing the state-backed digital yuan. Officials have recently expanded the e-CNY’s role by allowing interest payments to encourage wider adoption.

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AI assistants drive a powerful shift in modern work

AI assistants have become a standard feature of modern working life, increasingly used across business, education, and government for writing, analysis, research, and learning tasks. Their widespread adoption reflects a broader shift in how digital tools support productivity and knowledge work.

As their use expands, AI literacy is emerging as a key professional competence. Understanding how to work effectively with AI assistants is becoming essential for workforce readiness, skills development, and long-term employability.

The growing reliance on AI assistants also raises important questions around responsibility and oversight. While these tools can significantly improve efficiency, they generate content rather than verified facts, making human judgment, accountability, and fact-checking indispensable.

Understanding how AI assistants function is therefore critical. Built on large language models, they predict language patterns rather than think or reason like humans. This technical reality underpins discussions on transparency, reliability, and appropriate use in professional contexts.

In parallel, AI assistants are moving from standalone chatbots into embedded features within workplace software, including documents, spreadsheets, and collaboration platforms. This shift strengthens their role as in-context work tools, while also increasing the need for clear organisational guidelines on their use.

The AI assistant ecosystem is also expanding globally, with platforms offering different approaches to privacy, integration, and governance. This diversity gives users more choice but complicates alignment across regulatory and organisational environments.

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Agentic AI drives structural change in customer care

Customer care is undergoing structural change as agentic AI moves from experimental pilots to large-scale deployment. Advances in AI capabilities, combined with growing organisational readiness, are enabling companies to integrate AI systems directly into core customer service operations, particularly in call centres.

The increasing use of agentic AI is elevating customer care to a strategic management issue. Senior leadership, including CEOs, is paying closer attention to customer operations as a source of resilience, efficiency, and competitive differentiation, rather than viewing it solely as a support function.

At the same time, a growing divide is emerging between organisations that can scale AI effectively and those that remain at an early stage of adoption. AI leaders are investing in internal capabilities, governance structures, and workforce readiness, allowing them to deploy AI consistently across customer interactions.

Agentic AI is increasingly shaping end-to-end customer care models. Instead of being used for isolated automation tasks, AI systems are becoming the coordinating layer for customer service, managing interactions across channels and supporting more complex service processes.

Automation levels in customer care are rising rapidly. Some organisations are automating a majority of customer contacts, driven by improvements in natural language processing, decision-making, and integration with enterprise systems. This trend is changing how customer demand is managed at scale.

Human roles in customer care are evolving alongside automation. AI tools are being used to support agents in decision-making, reduce handling time, and improve service consistency. As a result, human agents are increasingly focused on cases requiring judgement, empathy, and contextual understanding.

Despite the rapid adoption of AI, customer satisfaction remains the primary objective. Efficiency gains, cost reduction, and revenue growth are important outcomes, but they are increasingly assessed based on their impact on customer experience and service quality.

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Robots edge closer to human-like movement

Engineers are working to make robots move with greater balance and fluidity, bringing machines closer to human-like motion. Progress depends heavily on actuators, the components that convert energy into precise physical movement.

Traditional electric motors have enabled many robotic breakthroughs, yet limitations in efficiency, safety and responsiveness remain clear. Machines often consume too much power, overheat at small sizes and lack the flexibility needed for smooth interaction.

Major manufacturers including Schaeffler and Hyundai Mobis are now designing advanced actuators that provide better control, real-time feedback and improved energy efficiency. Such innovations could allow humanoid robots to operate safely alongside workers and perform practical industrial tasks.

Researchers are also experimenting with softer materials and air-powered systems that behave more like muscles than rigid machinery. Continued advances could eventually produce robots capable of natural, graceful movement, opening new possibilities for everyday use.

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New Cyber Startup Programme unveiled as Infosecurity Europe boosts early innovation

Infosecurity Europe has launched a new Cyber Startup Programme to support early-stage cybersecurity innovation and strengthen ecosystem resilience. The initiative will debut at Infosecurity Europe 2026, offering founders and investors a dedicated experience focused on emerging technologies and growth.

The programme centres on a new Cyber Startups Zone, an exhibition area showcasing young companies and novel security solutions. Founders will gain industry visibility, along with tailored ticket access and curated networking.

Delivery will take place in partnership with UK Cyber Flywheel, featuring a dedicated founder- and investor-focused day on Tuesday 2 June. Sessions will cover scaling strategies, go-to-market planning, funding, and live pitching opportunities.

Infosecurity Europe will also introduce the Cyber Startup Award 2026, recognising early-stage firms with live products and growth potential. Finalists will pitch on stage, with winners receiving exhibition space, PR support, and a future-brand workshop.

Alongside the programme, the Cyber Innovation Zone, delivered with the UK Department for Science, Innovation and Technology, will spotlight innovative UK cybersecurity businesses and emerging technologies.

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Social engineering breach exposes 1.4 million Betterment customer records

Betterment has confirmed a data breach affecting around 1.4 million customers after a January 2026 social engineering attack on a third-party platform. Attackers used the access to send fraudulent crypto scam messages posing as official promotions.

The breach occurred after an employee was tricked into sharing login credentials, allowing unauthorised access to internal messaging systems rather than core investment infrastructure. Attackers used the access to send messages promising to multiply cryptocurrency deposits sent to external wallets.

Subsequent forensic analysis and breach monitoring services confirmed that more than 1.4 million unique records were exposed. Betterment said investment accounts and login credentials were not compromised during the incident.

Exposed information included names, email addresses, phone numbers, physical addresses, dates of birth, job titles, location data, and device metadata. Security experts warn that such datasets can enable targeted phishing, identity fraud, and follow-on social engineering campaigns.

Betterment revoked access the same day, notified customers, and launched an external investigation. The breach was formally added to public exposure databases in early February, highlighting the growing risk of human-focused attacks against financial platforms.

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European tech strategy advances with Germany’s new AI factory

Germany has launched one of Europe’s largest AI factories to boost EU-wide sovereign AI capacity. Deutsche Telekom unveiled the new ‘Industrial AI Cloud’ in Munich, in partnership with NVIDIA and Polarise.

Designed to deliver high-performance AI computing for industry, research, and public institutions, the platform keeps data operations under European jurisdiction. Company executives described the project as proof that Europe can build large-scale AI infrastructure aligned with its regulatory and sovereignty goals.

The AI factory runs on nearly 10,000 NVIDIA Blackwell GPUs, providing up to 0.5 exaFLOPS of computing power. Telekom said the capacity would be sufficient to support hundreds of millions of users accessing AI services simultaneously across the EU.

Officials in Germany framed the AI factory initiative as a strategic investment in technological leadership and digital independence. The infrastructure operates under German and EU data protection rules, positioning compliance and security as core competitive advantages.

Industrial applications are central to the project, with companies such as Siemens integrating simulation tools into the platform. The AI factory also runs on renewable energy, uses river water cooling, and plans to reuse waste heat within Munich’s urban network.

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Agentic AI transforms finance systems

Organisations undergoing finance transformations are discovering that traditional system cutovers rarely go as planned. Hidden manual workarounds and undocumented processes often surface late, creating operational risks and delays during ERP migrations.

Agentic AI is emerging as a solution by deploying autonomous software agents that discover real workflows directly from system data. Scout agents analyse transaction logs to uncover hidden dependencies, allowing companies to build more accurate future systems based on actual operations.

Simulator agents to stress test new systems by generating thousands of realistic transactions continuously. When problems arise, agents analyse errors and automatically recommend fixes, turning testing into a continuous improvement process rather than a one-time checkpoint.

Sentinel agents monitor financial records in real time to detect discrepancies before they escalate into compliance risks. Leaders say the approach shifts focus from single go-live milestones to ongoing resilience, with teams increasingly managing intelligent systems instead of manual processes.

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