Status Quo and Development Trend of the Software Encryption industry (1)

Software developers usually use some encryption technology to protect their software against illegal use. In addition, software encryption is required to authorize the software based on the purchased content to maximize the sales profit.

Software Encryption technology is divided into hardware-based encryption and software-based encryption based on whether dedicated hardware devices are used. Hardware-based encryption means that encryption needs to be bound to a dedicated hardware device. Currently, the main hardware encryption method is encryption lock, which is commonly known as dongle. A software-based encryption method is an encryption method that does not require dedicated hardware devices. It generally uses a digital license bound to the hardware and software information of the terminal device, also known as an electronic authorization form.

The hardware-based encryption method is considered to be less secure than the software-based encryption method, because the software security involves a lot of content, including the security of encryption products, the design of encryption policies, the application software itself, the operating system, drivers, hardware, and data communication, it is impossible to determine whether it is safe from a certain aspect.

In foreign countries, the market share of electronic authorization and encryption locks is the same. Due to usage habits and historical reasons, encryption locks still occupy a certain market share. However, encryption locks are a product of the era of underdeveloped networks. They are pure Client technology and lack management and statistical functions, the existence of hardware also makes production, logistics, Driver Installation and many other inconveniences, not only high costs, but also unable to achieve the network release and sales of software, is gradually declining.

At present, the development of electronic authorization can be said to be in the ascendant. More and more electronic authorization protection methods are integrated with Internet technology, cloud computing technology, and SaaS concepts. They are not only easier to use and manage, but also enable the electronic release of software, which is in line with today's green and low-carbon development philosophy, there is a trend in replacing the Software Encryption Market with encryption locks. Most famous companies in the world, such as Microsoft, IBM, Autodesk, SIEMENS, and Adobe, use e-authorized software protection.

In China, software developers use encryption locks at a high rate, in addition to the same usage habits and historical reasons as abroad, there are two reasons:

1. domestic manufacturers generally believe that encryption locks are more secure than electronic authorization.

2. There is no available electronic authorization product in China, and the price of foreign electronic authorization products is too high.

In fact, with the increasingly improved network environment, online activation is no longer a problem for most domestic users. As mentioned above, the view that encryption locks are more secure than electronic authorization is not correct. From the reality, encryption locks are more likely to be cracked through hardware replication, and a complete pirated industry chain has been formed. In contrast, the electronic authorization method, because no hardware can be copied, requires network activation and verification. In fact, it has very good protection effect. In addition, there have been some companies in China that provide electronic authorized products. Two or three of them will certainly grow and grow with the development of China's software industry.

Therefore, the development trend of the Software Encryption industry is the absence of hardware, network and information. Next, we will discuss the current situation and development trend of the Software Encryption industry from the perspective of the Software encryption method.