EncryptoTel aims at the telecommunication market. What they propose is a “radical, new solution for communication contributing extensively to the ongoing global debate around privacy and civil liberties”. In other words, EncryptoTel is a fully encrypted communications solution that promises the much-needed privacy to their clients (both private individuals and companies). Their product is a multi-platform software, available for any Internet capable device using Windows, Linux, iOS or Android. The EncryptoTel software can be integrated with multiple apps. Practically you can continue to use your service of choice (like ZoiPer or Facebook Messenger), with the extra addition of encryption solutions/privacy.
There are a few key elements to the Encryptotel technology. First, we have the automatic cloud PBX. Traditionally, this technology is used in large companies to make communications less costly. Calls inside the company are made via the internal system, a corporate network that bundles together all the internal lines inside the company. In the case of large companies, calls outside the system usually connect to the external landline (PSTN).
What Encryptotel uses instead of the traditional PSTN is a newer trend called VoIP PBX (or Internal Protocol PBX). This cuts the costs even further by connecting to the Internet instead of the PSTN, in order to be able to communicate to the exterior.
What makes this plan economically viable is the blockchain technology. The blockchain offers decentralized operations and micro-transactions, which ties everything together in a marketable product. This is where user security cracks with other similar services like 3CX. You can encrypt the content of a call or of the communication. But:
“If metadata is available then this can be used to glean valuable information about the nature, purpose and participants of a call. Financial transactions are particularly valuable in this regard, since they are generally linked to a credit card or bank account, offering extensive personal data. Cryptocurrencie payments will address this flaw in current PBX systems.” The developers explain in their public whitepaper.
Another interesting development (and their selling point) is the way they make the call encryption itself.
“The beta version of EncryptoTel already offers traffic encryption based on SIP/TLS technologies. This ensures that a basic level of encryption is set up when a client-server connection is established in order to avert interception and unauthorized access. “ they explain in the white paper.
SIP (Session Initiation Protocol) is the call control protocol of choice for VoIP networks. SIP in itself is far from secure. What TLP does is it adds a layer of security via an encrypted channel. You have encountered TLS before in securing HTTP sessions.
In terms of securing connections, you would normally have different options like proxy servers or Message Digest authentication (which are some basic levels of security). At the other end of the spectrum, there is S/MIME – Secure Multipurpose Internet Mail Extensions that requires a public-key infrastructure. For the security layer, EncryptoTel uses a proprietary solution they call MITM, which we can suspect is inspired by the latter and made more suitable for their purpose telecommunication). All in all, the security layer sounds pretty good so far.
EncryptoTel’s token is called ETT and will be used mainly as a system of redeemable points for discounts. Although the services will be available for other currencies and cryptocurrencies also, ETT users can claim discounts for payments.
They offer a great range of services starting with two-factor authentication and finishing with a basic form of AI and text interaction.
“ETT tokens will be sold during EncryptoTel’s crowdfund. Although different cryptocurrencies will be used, ETT will bring discounts over other currencies, placing it in demand as a way of paying for services. Rising demand from end users will increase the price.”
Most ETTs are offered during the ICO stage. The company doesn’t promise we will see ETTs at every other big cryptocurrency exchange. The currency’s area is a little more confined than that. They themselves will accept it for the services they offer. What will make it rise in value is the demand for their services. Technically, ETT makes you a stakeholder inside EncryptoTel. It gives you some amount of leverage inside the company decision-making (voting for strategic decisions and having a voice inside the company). Most of the currency will be pre-mined in the ICO stage (70% to be more precise), while 20+10% will be reserved for team and future employees and fund for call-mining rewards respectively.
There are other services offering Virtual PBX services. What none of them offer is full privacy (as they are constrained to collect and disclose all customer information required by reculators) and cryptocurrency payments.
“The idea for EncryptoTel is rooted in the development Team’s experiences of working for a telecommunications company. Familiarity with both traditional telecommunications infrastructure and blockchain technology raised the possibility of creating a product that was superior to anything currently on the market.”
Right now, Ecryptotel has a a public beta app. They claim they already worked on it full time for several months (you can see the app here). They have 3 funding milestones, at 100 000$ (creating a fully-functional commercial product), 250 000$ (proprietary traffic encryption protocol, and release of mobile applications) and 1000 000$ (which will help them penetrate the international market and acquireing the licenses).
EncryptoTel does have two escrows.
One of them is the founder and CEO of the WAVES Platform (he was an escrow for both Bitcoin multisig and WAVES balance). Sasha Ivanov is a physicist and has been involved in developing software before.
The second escrow is Dmitry Meshkov, PhD, IOHK researcher and ETH and ETC balance escrow (also a developer). They both have administered escrows before, they have programming skills and have pledged with their names and photos to this project.
ICO end. See details here.