Business

Exposing a Gap in the Blockchain Economy – Even Security Guards Need Security

Published

5 years ago

October 24, 2021

Blockchain has made a name for itself by bringing a near fool-proof level of verification to the age of the internet. This is due to the unique way blockchain stores data: Essentially, each new block of data connects to all the blocks before it in a cryptographic chain in such a way that it’s essentially impossible to tamper with. All transactions within the blocks are validated and agreed upon by a consensus mechanism amongst the entire network, ensuring that each transaction is verified and correct.

All of this is true and has stood the test of time thus far. Blockchain has created an impenetrable fortress around the trading of digital currencies and assets, and because of this, trillions of dollars have been traded in this emerging economy. That being said, security is only as valuable as its weakest link. You can fortify your house all you want, when someone has the key to your front door, they’ll walk right in.

In the first six months of 2021 there was a reported 700% increase in SMS phishing compared to the year before. According to a recent Coinbase Security Team article, financial fraud using smishing, a form of phishing that uses mobile phones as the attack platform, is now one of the most used cyber-attacks against cryptocurrency traders. The decentralized nature of blockchain transactions is both its greatest strength and biggest threat in this way. Since there is no governing entity who can reverse a crypto transaction once it has been recorded on chain, malicious actors see this as a prime target for all kinds of phishing attempts to get access to your private key or trading account. With the rapid global adoption of crypto and NFTs we will certainly continue to see an uptick in phone number spoofing and fake 2FA messages.

With this in mind there is a pertinent need for a security solution that will detect and stop phishing threats before they have the chance to succeed. Thankfully Total Network Services (TNS), Rypplzz and Forward Edge-AI have partnered to bring Gabriel® Crypto to the international marketplace. Gabriel Crypto is a revolutionary smartphone security solution that combines Swarm Intelligence, Machine Learning, AI, Natural Language Processing, Tokenized Mobile Equipment Identifiers (E-MEIDs) with patented geospatial intelligence, an Encrypted Blockchain Database, and $DigitalNames into an easy-to-use smartphone defense system.

Originally developed under a National Science Foundation (NSF), Small Business Innovation Research (SBIR) grant, Gabriel was developed to protect consumers against vishing (phishing attacks that involve the use of voice calls) and smishing attacks by Crowdsourcing intelligence, to quickly identify and block dangerous voice calls and text messages. Forward Edge-AI recently partnered with TNS who brings to Gabriel Crypto two of their solutions, $DigitalNames and E-MEID. $DigitalNames provides an alias for public keys to deliver triple factor authentication for every wallet transaction to ensure user information is protected. The E-MEID, powered with patented technology from Rypplzz, records the wireless device’s MEID on a blockchain to create a cryptographically protected immutable record of device software and user licensing.

E-MEID also alerts users of any relevant National Vulnerability Database (NVD) entry. NVD data enables automation of vulnerability management, security measurement, and compliance. Finally, the E-MEID solution provides advanced geolocation data and supply chain management capabilities, via Rypplzz’s Interlife® platform, which can dramatically improve security measures and provide near-real-time operational options based on the location of the associated asset.

Forward Edge-AI was recently approved by an independent third-party risk management and due diligence assessment created by TruSight Solution. TruSight is the best practices third-party assessment service created by leading industry participants for the collective benefit of all financial institutions, their suppliers, partners, and other third parties. Its founders include Wells Fargo, JPMorgan Chase, Bank of America, American Express and BNY Mellon.

Eric Adolphe, Forward Edge-AI’s Chief Executive Officer, stated, “I am pleased to announce that Total Network Services has joined the Gabriel Zero-Day Scam detection ecosystem.” Through its integration with TNS, Gabriel is able to offer an enhanced solution to detect, block, and report smishing attacks in 25 languages. With Purple Alerts™, app users are notified in real-time when it is intelligently detected they are engaging with a scammer by voice or through text messaging. Through the integration with TNS, Gabriel Crypto app users can earn cryptocurrency by participating in a gamified experience that helps to deepen Gabriel security by crowdsourcing intelligence.

Kevin L. Jackson, TNS Senior Vice President sees this as a new and revolutionary cybersecurity step forward. “Gabriel Crypto applies artificial intelligence, machine learning, and crowdsourced intelligence to the protection of cryptocurrency and crypto securities communications and transactions. This cyber-defense advance is a critical need across the new decentralized finance environment.”

Josh Pendrick, Rypplzz’s Chief Executive Officer, commented, “this is a first step towards not only securing the supply chain assets that hold our society together, but to dramatically reduce complexity and improve efficiency in global supply chain resource management.”

About ForwardEdge AI: ForwardEdge AI, Inc.’s mission is to leverage Artificial Intelligence and other emerging technologies to solve complex problems of social consequence. To learn more about ForwardEdge AI visit https://forwardedge-ai.com/

About Total Network Services, Corp:

Total Network Services, Corp (TNS) is a San Diego-based developer of simple, safe and secure blockchain-focused products and services designed to help the world transition into the blockchain economy. TNS’s innovations span across industry boundaries — from FinTech to Telecom security —all supported by its network infrastructure. TNS’s mission is to improve legacy solutions by infusing new levels of verification into the next internet evolution. To learn more about TNS visit https://tnscorp.io/

About Rypplzz, Inc.

Rypplzz has developed a patented spatial computing system, called Interlife, that is transforming the task of secure digital payload delivery and management. Its mission is to optimize efficiency for a sustainable and harmonious society. To learn more about Rypplzz visit https://rypplzz.com/

Business

How Technology Drives Value Creation in Private Equity

Published

2 weeks ago

April 29, 2026

Matthew Wiles

How technology drives value creation in private equity is now one of the most actively debated topics among institutional investors and fund managers. A decade ago, technology was largely a cost center in PE-backed companies. Today it sits at the center of margin improvement, revenue growth, and exit multiple expansion. Firms that figured this out early are generating better returns with less reliance on financial engineering.

The shift happened for a practical reason. As interest rates rose and deal multiples compressed, financial leverage stopped doing the heavy lifting. Operational improvement became the primary value creation lever. Technology accelerated what was possible within the ownership period.

How Technology Drives Value Creation in Private Equity Operations

Operational improvement through technology produces the most measurable results. PE firms apply technology tools to reduce costs, increase throughput, and improve decision-making speed inside their companies.

Digital Process Automation in PE-Backed Companies

Manual processes in back-office and production functions carry real costs. They consume labor, generate errors, and slow down the information flow that management teams depend on. Automation tools eliminate these costs without requiring headcount reductions that disrupt company culture.

The most impactful automation deployments in PE-backed operations include:

Accounts payable and receivable automation that compresses billing cycles and reduces days sales outstanding
Production scheduling software that reduces downtime and improves throughput in manufacturing environments
Inventory management systems that cut carrying costs by aligning purchasing with real-time demand signals
Quality control automation that reduces defect rates and warranty claims in product-based businesses

ZCG Consulting (“ZCGC”) works with companies across industrials, manufacturing, packaging, and consumer products to identify and implement automation programs tied to specific financial outcomes. The approach connects technology investment to measurable margin improvement rather than treating automation as a general upgrade.

Data Infrastructure as a Value Creation Tool

Many PE-backed companies arrive under new ownership with fragmented data systems. Different departments use different tools. Reporting requires manual consolidation. Leadership makes decisions with incomplete information.

Fixing that infrastructure creates immediate value. Integrated data systems give management teams real-time visibility into revenue, cost, and operational performance. That visibility accelerates decisions and surfaces problems before they become material.

James Zenni, founder and CEO of ZCG with over 30 years of capital markets experience, has consistently emphasized that information quality drives investment performance. That view shapes how ZCG approaches technology investment across the companies in its portfolio.

Technology Drives Value Creation in Private Equity Through Revenue Growth

Cost reduction gets most of the attention in PE operational improvement, but technology also drives revenue growth. The mechanisms are different, and they compound differently over a hold period.

E-Commerce and Digital Customer Acquisition

Companies that sell primarily through traditional channels often leave significant revenue on the table. Adding e-commerce capabilities or investing in digital customer acquisition expands the addressable market without proportional cost increases.

PE firms that invest in digital revenue channels generate higher growth rates during the hold period. That growth rate difference translates directly into exit multiple expansion.

Revenue growth technology applications in PE-backed companies include:

E-commerce platform buildouts that open direct-to-consumer channels alongside existing wholesale relationships
Customer relationship management systems that improve retention and increase repeat purchase rates
Digital marketing infrastructure that lowers customer acquisition costs through better targeting and attribution
Pricing optimization tools that identify margin improvement opportunities without volume loss

Technology-Enabled Customer Experience Improvements

Customer retention is cheaper than customer acquisition. Technology investments in customer experience, service speed, and product quality consistency reduce churn. Lower churn produces more predictable revenue. More predictable revenue supports higher exit valuations.

ZCG deploys Haptiq Technologies and Solutions, its 300-plus-person technology division, to support digital transformation across its companies. The platform was founded 20 years ago and manages approximately $8 billion in AUM. It brings implementation resources that most individual companies cannot afford to build internally. That capability gives ZCG’s companies faster access to technology improvements at lower execution risk.

Building Technology Capability Within PE-Backed Companies

Technology investment during the hold period creates value in two ways. It improves financial performance during ownership. It also makes the business more attractive to the next buyer.

Strategic buyers and later-stage PE funds pay premium multiples for companies with modern technology infrastructure. A business with integrated systems, clean data, and digital revenue channels commands a better price. A comparable business running on legacy platforms does not.

The ZCG Team structures technology investment as part of the initial value creation plan for each company. Priorities get set at entry based on the gap between current capability and acquirer expectations.

This pre-sale positioning approach changes how technology investment gets funded and sequenced during the hold period. Projects that improve financial performance and exit readiness simultaneously get prioritized. Projects with long payback periods that do not improve the sale narrative get deferred.

How technology drives value creation in private equity is ultimately about execution discipline. The tools matter less than the clarity of the financial objective each technology investment must achieve.