October 24, 2023 at 10:37AM
Customers, including the US Department of Defense, are requesting that Element, a company behind decentralized comms platform Matrix, insert a protective clause against the encryption-busting element of the UK government’s Online Safety Bill (OSB). Element’s customers want safeguards against message scanning. The company also revealed that there are now 115 million users on the Matrix platform, and they are preparing for an upgrade called Matrix 2.0, which includes improvements in speed, room joins, group VoIP, and authentication support. Matrix is seen as a suitable option for enterprises compared to centralized products like Slack or Teams.
Key Takeaways from the Meeting Notes:
1. Element, the company behind decentralized comms platform Matrix, has received requests from customers, including the US Department of Defense, to insert a protective clause in their contracts to safeguard against the encryption-busting element of the UK government’s Online Safety Bill (OSB).
2. The OSB, which was passed by the Houses of Parliament, includes a spy clause that gives the government the ability to ask end-to-end (E2E) communications providers, including private companies, to show encrypted messages when deemed “proportionate and necessary.”
3. Civil liberty campaigners, including Matthew Hodgeson, Matrix technical co-founder and Element CEO, have opposed the encryption component of the OSB, arguing that scanning encrypted messages compromises security.
4. Element has stated that their Fortune-100 customers, particularly those concerned about privacy, are requesting clauses in their contracts to ensure that Element will never implement OSB scanning systems in their software.
5. While Element has not specified which customers requested these clauses, they highlight the impracticality of the OSB on encryption.
6. Other E2E comms providers, such as Signal, have threatened to withdraw from the UK if the encryption-busting clause is not removed.
7. In addition to the OSB discussions, Element also provided updates on the growth of the Matrix platform, revealing that there are now 115 million users, nearly doubling in the past year.
8. Matrix 2.0, a significant upgrade to the platform, will include a new API for faster login and sync, faster room joins, native group VoIP, and support for OpenID Connect authentication.
9. Element’s COO, Amandine Le Pape, mentioned that the day-one retention of the new app has increased by over 20% due to the improvements in Matrix 2.0.
10. Research commissioned by Element from Forrester Consulting shows that while IT leaders value end-to-end encryption, sovereignty, and federation, over half of employees tend to use unsanctioned and consumer-grade messaging apps.
11. Matrix is positioning itself as a suitable alternative for enterprises, emphasizing its compatibility with interoperability initiatives like the EU’s Digital Markets Act. However, Microsoft 365 customers may still find it challenging to avoid Microsoft’s messaging platform.