The Top 5 IoT Sectors We Must Secure from the Quantum Threat

IoT can bring many improvements to any industry or application with a demand for data. With IoT, we can gain previously unachievable insights into the efficiency of our manufacturing pipelines, the health of patients, and the safety of autonomous vehicles.

However, IoT is a double-edged sword in that it also brings considerable challenges for us to solve. At a glance, the major drawbacks of IoT include its scalability, upgradeability, and cybersecurity. We must tackle these problems to squeeze the most out of IoT technology.

IoT cybersecurity arguably has the highest priority of all the drawbacks we’ve just listed. Considering that IoT devices can have real-time access to extremely sensitive data and user analytics, the cybersecurity vulnerabilities of IoT have far-reaching ramifications. Through holes in security, bad actors can gain access to the confidential data of your customers and even your corporate network itself. With the quantum threat, IoT’s vulnerability will increase even more.

To showcase how profound and extensive IoT vulnerabilities can be, let’s look at some of the industries that hackers might zero in on in the coming years. The basics of protecting IoT remain the same across all sectors, but the possible consequences vary widely.

Top 5 Industries Vulnerable to IoT Threats


Healthcare is one of the most promising industries for IoT, with telehealth being a key area for the technology. With IoT-powered telehealth, doctors can remotely track the condition of their patients and adjust their treatments according to their progress. Doctors can also quickly react to life-threatening developments in their patients.

Hacker attacks on IoT in healthcare could drastically affect healthcare providers and their patients. At a glance, here is what an attack could lead to:

  • Bodily harm. Tampering with IoT devices monitoring vital health metrics can lead to adverse health effects and even lethal patient outcomes. For example, if an IoT medical device shows an incorrect blood glucose level in a patient after an attack, doctors might prescribe potentially fatal doses of medication to diabetes patients.
  • Loss of medical records. Ransomware attacks can lead to critical medical data being maliciously encrypted and made inaccessible to the patient and healthcare professionals. This may result in delays in administering treatments to critically ill patients and in the admission and treatment of new patients. Outright theft of medical data, even if encrypted, can expose private/sensitive patient information leading to blackmail, public embarrassment (for patient and provider), or possible interference or disruption of care delivery.
  • Reputation losses and fines. Cybersecurity incidents in the healthcare industry can potentially impact patient care – with far-reaching consequences. With this in mind, attacks can lead to significant reputation losses. Not just that, but cybersecurity incidents might also trigger fines and even legal action.


IoT technology has dramatically transformed military equipment and changed the way Countries approach National Defence. Perhaps one of the most prominent examples of the use of connectivity and the internet in the military are combat drones which can be used for tasks like reconnaissance and air strikes. Drones have seen widespread use in Ukraine after the 2022 Russian invasion, and we’ll likely see them become even more common on the battlefield.

Military IoT can connect different units in battle, allowing them to effectively communicate and coordinate their actions. Data from connected combat suits and weapons could help manufacturers produce better military equipment.

That said, fully reaping the benefits of IoT technology requires properly securing it from attacks. Governments must be extremely wary of the equipment and software their military personnel use to avoid cyberattacks and leaks. For example, fitness tracking apps and devices used by soldiers can give away the location of US army bases and personnel movement, while drones purchased from foreign manufacturers may be used to spy on rival political regimes. Given that intelligence and military secrets are attractive targets to nation-state attackers, and the potential for harm if compromised, IoT resources in the armed forces must be tightly secured.


IoT can bring significant cost reductions and increase efficiencies in industrial applications and manufacturing. Manufacturers can optimize machine utilization, schedule maintenance before any failures occur, and monitor the well-being of their employees through wearable technology.

That being said, unsecured IoT devices in industrial settings could bring the opposite results. Malicious actors could exploit vulnerabilities in IoT devices to launch ransomware attacks against manufacturing companies. Manufacturing is a favorite target for ransomware attacks, which, combined with the innate cybersecurity vulnerabilities of IoT technology, can drastically increase the chance of ransomware attacks in IoT-rich industrial environments.

Ransomware aside, hackers could leverage holes in IoT security to launch DDoS attacks and disrupt manufacturing processes for hours or even days. Considering how expensive outages can be (with over 60% of failures leading to over $100,000 in losses), a small outage can lead to devastating consequences for manufacturers.

Attacks on manufacturers could also result in data theft and the leakage of commercial secrets. If the leaked data also includes data of clients, partners, or sensitive personal information, manufacturers may face lawsuits or fines due to compliance failures.


With the proliferation of IoT devices like smart meters, utility companies can obtain real-time energy consumption data to better match energy generation with demand and identify areas with spotty electricity. They can also leverage their unique insight into energy utilization to distribute power where it’s most needed. Combined, this enables utility companies to better manage their revenue streams.

IoT in the energy sector comes at a cost, however. Today, companies need to worry about the physical security and the cyber protection of their infrastructures. The widespread adoption of “smart” infrastructure has drastically increased the attack surface of energy companies. Power lines, substations, and even grid-connected devices in homes can contain weak points for hackers to exploit. Disruptions of supply chains, emergency services, and even national defense are just some outcomes of a widespread attack on the energy sector.

One of the main challenges of IoT cybersecurity in the energy sector is the mishmash of different devices across millions of service locations. A vulnerability in the smart meter of just one consumer can enable hackers to access the entire IT infrastructure of utility companies, leading to consequences well beyond the energy sector. Decades-old devices in IoT networks can amplify the vulnerability of utility companies a thousand-fold as legacy devices often lag in protection levels compared to even the most rudimentary devices.

A potentially bigger issue is that energy companies often interconnect with other utilities, distributed energy sources (DERs), and entities in their supply chains. These vast unified networks have colossal attack surfaces where an attack on a single entity could easily compromise all the others. In these cases, cybersecurity is more than just protecting your business from threats – it’s also about maintaining business relationships and avoiding legal issues.

Connected Vehicles

Connected vehicles are a growing segment of IoT service.

It’s true that connectivity allows cars to offer amazing quality-of-life features like remote parking, traffic-aware navigation, and advanced diagnostics. However, if left unaddressed, the cybersecurity risks associated with connected cars might outweigh the benefits.

Between 2016 and 2019, automotive cybersecurity incidents have increased by 605%, with serious ramifications for connected car manufacturers. In 2015, after a pair of researchers remotely took full control of a Jeep Cherokee’s systems, Chrysler recalled 1.4 million vehicles to look deeper into the cybersecurity vulnerabilities of the vehicle. By hacking a car owner’s key fob, hackers can remotely control and steal connected vehicles. Design flaws like the absence of immobilizer systems in cars from brands like Kia and Hyundai can allow hackers to start car engines without the correct key, which has led to vehicles from these two brands being stolen twice as often as their competitors.

Vulnerabilities in connected cars impact not just car owners but also manufacturers. The internet connectivity in connected cars increases the attack surface of car makers, exposing their data centers and IT infrastructure to attacks.

With millions of connected cars on the roads spread across continents, car manufacturers are much more likely to suffer from production-halting ransomware attacks and data theft. With hacks potentially costing automakers north of US$1 billion, the financial impact of cyber breaches for car manufacturers can be far-reaching and business-ending.

Making matters worse, the automotive industry is estimated to lose over US$500 to cyber attacks over the next few years. IoT vulnerabilities could play a major role in future cyberattacks on carmakers, so securing IoT resources should be a priority for them.

The Quantum Threat Amplifies the Weaknesses of IoT

The quantum threat is imminent, and it has the potential to amplify the weaknesses of IoT technology greatly. Y2Q is nearly here, yet we haven’t figured out how to protect IoT resources against even classic hacker attacks.

Considering the main vulnerabilities of IoT, we believe that a good start to securing IoT from both classical and quantum threats is standardizing their security. A unified suite of cybersecurity tools across all your IoT resources enables seamless threat monitoring and security updates. The choice of a specific quantum-secure cybersecurity platform comes next.

Quantropi’s QiSpace™ platform offers “TrUE” Quantum Security, making the transition to next-gen IoT security seamless and cost effective. Fast, lightweight, crypto-agile, and hyper-resource efficient, it defends devices and traffic at all three stages of secure digital communication – key generation, communication authentication, and encryption at rest and in transit. Learn more today.

Quantum-secure any application, product, network, or device with the QiSpace™ platform — without having to sacrifice performance or make major investments in new technology or infrastructure. See for yourself how only QiSpace™ offers TrUE quantum security via all three essential cryptographic functions. Leverage asymmetric encryption algorithms (the “Trust” or “Tr” of “TrUE”) via MASQ™, symmetric encryption (“U” for “Uncertainty”) via QEEP™ and strong random numbers (“E” for “Entropy”) via SEQUR™.  Make it TrUE with QiSpace™ — and protect your business, brand, and customer promise. Now and forever. 

To learn more about our quantum-secure solutions, don’t hesitate to get in touch with our experts!

Sacha Gera

Sacha Gera possesses a deep understanding of the industry’s nuances through extensive experience in the cybersecurity sector. The Ottawa-based leader and Forty Under 40 recipient has nearly twenty years of experience in SaaS industries, professional services, and M&A, working in technology for both start-ups and large multinational organizations, such as IBM, Nortel, CGI and Calian. He currently also holds the position of CEO at JSI and Director at CENGN & Ottawa Board of Trade BOD.

Christopher McKenzie

With his extensive experience in software development and strong analytical skills, Chris can handle the entire end-to-end software development life cycle. Prior to Quantropi, he served as Director of Product Development at Sphyrna Security, Inc., where he managed the delivery of security compliance automation and data diode appliance products, and as Commercial Software Development Manager at Cord3, Inc., where he managed the development of an advanced data access policy management product. Chris graduated from Computer Science at Algonquin College and the Ottawa School of Arts in 1998. Read less

Dr. Randy Kuang

Randy holds a doctorate in quantum physics. His research findings have been published in top international journals and named “Kuang’s semi-classical formalism” by NASA in 2012. With a career spanning IT, including with Nortel as senior network researcher & developer, he co-founded inBay Technologies in 2009, serving as CTO of the cybersecurity platform. As the first recipient of a patent for two-level authentication (2011), Randy is a prolific inventor, with 30+ U.S. patents in broad technology fields, such as WiMAX, optical networks, multi-factor identity authentication, transaction authorization, as well as concepts, technologies and industrial applications for quantum key distribution.

Cory Michalyshyn

Cory brings a breadth of experience to the Quantropi team, working fractionally with multiple SaaS technology companies as CFO, and as the CFO with Celtic House Venture Partners. Prior to these roles, Cory was CFO and COO at Solink, and played a lead role in the metrics-led pivot to a direct-sales SaaS model, followed by multiple VC-backed funding rounds and their recognition as one of the fastest growing start-ups in Canada. He qualified as a CPA while serving technology, VC & PE-fund clients at Deloitte, and earned his Bachelor of Commerce at Queen’s University.

Ken Dobell

Ken leads marketing strategy at Quantropi. In high demand as a consultant with 25 years’ experience in performance media and an award- winning creative background, he has completed successful transformations, (re)branding and product development mandates with KPMG, Keurig DrPepper, Fidelity,the Previan Group of companies, Coveo, and numerous others. Previously, Ken pivoted an offline advertising brokerage to a leading-edge, data-driven performance agency as President of DAC Digital, held a progression of international leadership roles with in North America and Europe, pioneered a range of multi-channel initiatives as VP Marketing with a global franchisor, and introduced a mobile-first programmatic media offering to Canada within WPP.

Raj Narula, P.Eng.

A seasoned technology executive, business builder and angel investor, Raj has held operational and advisory roles in Recognia (Trading Central), Belair Networks (Ericsson), March Networks (Infinova), Sandvine (Procera), Neurolanguage (ADEC), Bridgewater Systems (Amdocs), Vayyoo (Cafex), TenXc (CCI), 1Mobility (Qualys) and others. Having divided his time among North America, EMEA and Asia-Pac for over 20 years, Raj speaks several languages. He grew up in Asia, Europe, South America and Canada, and holds a B.Eng degree in Mechanical Engineering from the University of Ottawa. He is also a co-founder and Charter Member of the Ottawa chapter of TiE (the Indus Entrepreneur).

Michael Redding

Before joining Quantropi, Mike was Managing Director and co-founder of Accenture Ventures, where he grew a global portfolio of strategic partnerships and 38 equity investments in emerging technology startups.

During his nearly 30 years with Accenture, he incubated and launched technology innovations for enterprises across multiple geographies and industries. Ever-passionate about bold ideas with game-changing results, he speaks frequently on the impact of emerging technology on large organizations.

With a bachelor’s degree in Electrical Engineering and Computer Science from Princeton, and a Master’s in Biomedical Engineering from Northwestern, Mike is a former member of the Board of Directors for the Accenture Foundation and Board Observer for startups Maana and Splice Machine.

Alex He

Alex is a product-oriented project manager who bridges the gaps between the company’s engineering and commercial teams. He has over ten years of experience in the analysis, design and development of enterprise-class applications, with a particular focus on creating optimal user experiences (UX). Ever passionate about cybersecurity solutions that can deliver solid security without unreasonably sacrificing customer convenience, Alex is the lead inventor of a registered patent on user interface security. He is committed to helping ensure that the Agile software engineering team at Quantropi delivers consistently high-quality, high crypto-agility cybersecurity solutions for next-generation communications.

Nick Kuang

As VP Corporate Services, Nick plans, directs and coordinates a wide range of activities aimed at achieving Quantropi’s vision of the Quantum Internet. He has a keen interest in transformative technologies and the possibilities they offer for bettering our everyday lives. A pharmacist by training, Nick nurtures teams with a focus on integrity and collaborative effort, coupled with strong attention to detail. With prior experience in a successful biotech start-up developing point-of-care test kits, he enjoys the fast pace and challenge of the start-up environment.

Tina Wang

Tina develops websites and participates in a range of different projects, using new frameworks for front-end UI, along with Vuejs, Angula, Beego, Ruby on Rails, and Electron. She developed Quantropi’s desktop CipherSpace application by integrating Electron, Webassembly and Go, to ensure a good user experience, as well as perfect operating system compatibility. She is also part of the dynamic and efficient QKD-NODE project team. Tina is always looking for new ways to increase her knowledge, improve her technological proficiency and enhance her strong execution and implementation skills. Prior to Quantropi, Tina served as a full-stack web developer at Sunny Future, where she maintained a WordPress home site and managed the release of new content for the company.

Bond Vo

Bond Vo is the Business Analyst of Quantropi. Along with Quantropi, Bond has been dynamic in accordance with a fast and evolving startup environment and is responsible in a wide range of areas including market research, funding, and more involved in the controller roles to oversee day to day accounting operation as well as build financing models and budget to achieve company’s ultimate goals/objectives. Bond has applied best practices consistently and successfully supports equity, debt, and non-dilutive funding for Quantropi since joint the team. He earned a Bachelor of Commerce concentrated in Finance from Carleton University. Outside of his professional career, Bond also participated in volunteer for the Vietnamese Immigration Student Association (VISA) to help and support students as well as newcomers in Canada.

Pauline Arnold

As James Nguyen’s EA, Pauline Arnold brings more than 40 years of experience in complementary customer service and administrative roles. Prior to Quantropi, she served 20 years as Branch Manager and an assistant in investments, and over 20 years at Metropolitan Life Canada in various aspects of the insurance sector – assisting clients, management and colleagues to complete tasks, solve problems, address questions and achieve goals. She also worked part-time for Royal Lepage Performance for 5+ years as a receptionist & admin, and for 5 years was chair of the TKFG’s charity golf tournament.

Dafu Lou

Dafu is Quantropi’s Director of engineering. Prior to Quantropi, he served as a technical leader at Irdeto, a world-leading provider of digital platform security software, where he was responsible for white-box cryptography, cloaked CA secure core, and iOS/android application protection services, among others. Prior to Irdeto, Dafu served as a senior software engineer at SecureNex Systems, where he led the implementation of an SSL-VPN solution and ECC-based secure data storage & PKI. He earned his Ph.D. in electrical engineering from the University of Ottawa in 2009. Dafu is also a part-time professor, teaching VLSI, Cryptography and other subjects at uOttawa.

Eric Chan

Eric Chan a.k.a. EEPMON is a Crypto / Digital Artist with 15 years in the industry – and Quantropi’s Creative Emissary. His hybrid fractal/digital creations have been seen in fashion, comics to museums and has exhibited worldwide. EEPMON’s collaborations include Canada Goose, MARVEL, Snoopy, Microsoft Xbox, Canada Science & Technology Museum and was a TEDx performing artist. In 2018 he represented Canada on its first Creative Industries Trade Mission led by Canada’s Minister of Heritage and serves on the Canadian Museums Association‘s Board of Directors. At the same time, he is currently completing his Master of Information Technology – Digital Media at Carleton University. 

Jeff York

Jeff’s distinguished career includes an extraordinary track record of successfully navigating and spearheading expansions and transforming companies into industry giants. Jeff was the President and CEO of Giant Tiger Stores for 10 years. In this capacity, Jeff helped grow the business from a regional discount chain with 250 million in sales to 1.4 billion in sales nationally as Canada’s third largest discount chain. In 2009, Jeff joined Farm Boy with a mandate to expand the business. Under his leadership, the company grew from a nine-store chain in the Ottawa region to 26 stores in Ottawa, Kingston, the GTA and Southwestern Ontario. Farm Boy was acquired by Sobeys’ parent company Empire Company Limited for $800 million in 2018.

Patricio Mariaca

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Marco Pagani

Marco Pagani began his long and successful career as a senior executive in Ottawa’s high-tech sector in 1985, with Nortel Networks (then Bell-Northern Research). He rose across two decades to become president of several Nortel Business Units, managing more than 2,000 employees and over $1 billion in revenue. Having gone on to advise numerous organizations, as well as guide a range of companies through complex, critically necessary turnarounds, he is particularly respected for placing a strong emphasis on ethics and corporate governance in building the culture of the corporate and not-for-profit organizations he leads and supports.

Lawrence O’Brien

Lawrence O’Brien is a founder of Calian Group and former Mayor of Ottawa. Larry founded Calian Technology Ltd. in 1982 with a $35 investment and built it into a $200M/ year profitable, dividend-paying public company by 2006. As the CEO of Calian, Larry executed an IPO in 1993, completed five significant acquisitions, and managed the overall strategic growth of Calian from 1982 until 2006. After retirement from Calian in 2006, Larry served as the 58th mayor of Ottawa and proceeded to push forward four major economic development projects, including a Light Rail Transit tunnel in the core of the city, a new Convention Centre, now known as the Shaw Centre and a new trade show facility and a major urban renewal project that rebuilt 40 acres of dilapidated downtown Ottawa called Lansdowne Park into a vibrant, destination for citizens and tourist.

Dat Nguyen

Dat Nguyen has executive experience with top global consultancies such as IBM, Accenture, Ernst & Young (EY), and decacorn start-up Grab at C-Level roles.

During 20 years of consulting, Dat has worked with multiple companies across Canada, the USA, the Caribbean, and the Asia Pacific with CEO roles and leadership such as CEO for Accenture Vietnam, CEO of Grab Vietnam, and Partner of EY Consulting leading the technology practice (including Cybersecurity) in Indochina (Vietnam, Laos, Cambodia).

Dat is a tech entrepreneur, a co-founder, and a digital ecosystem builder. He is passionate about new and innovative technologies and is involved in multiple companies across verticals such as AI, Blockchain, Web3, Cybersecurity, InsurTech, and FinTech. Dat is currently a member of the ASIA CEO Club.

Dat earned the Executive Education at Harvard University, John F. Kennedy School, and received the Executive Certificate in Public Leadership in 2018.

Tanya Woods

Tanya Woods brings more than a decade of successful strategic advocacy experience to her role at the Chamber of Digital Commerce Canada. Tanya most recently served as the Interim Executive Director for the Blockchain Association of Canada and is a champion for Canada’s digital innovation ecosystem, domestically and globally. Tanya has held senior-level positions in the industry, representing national and multinational organizations in the telecommunications, technology, and entertainment sectors, including BCE Inc., Microsoft, Hut 8 Mining, and Nintendo. She has also advised and represented the Government of Canada in global trade negotiations and on the growth of the country’s blockchain ecosystem. Tanya is a global public speaker and published author with degrees from the London School of Economics, Ottawa University, and American University Washington College of Law. She was named among the top 10 “Leading TechWomen in Canada” by the Government of Canada, a “Trailblazer” by the Canadian Broadcasting Corporation, and a “Top 40 under 40” in Canada’s Capital by the Ottawa Chamber of Commerce and the Ottawa Business Journal.

Renato Pontello

Renato has 30 + years of experience as a trusted legal advisor and strategist. As an executive he has assisted numerous companies and their Boards of Directors to plot out and implement significant growth, diversification and reorganization plans in challenging circumstances. He was lead counsel on the sale of Zarlink Semiconductor’s $680 million dollar business as part of a takeover bid. At Zarlink he negotiated significant development, manufacturing, supply, distribution and IP licensing agreements with leading suppliers (eg Cisco, Nokia, Ericsson, Medtronic, Starkey, TSMC, Global Foundries, etc.). Renato has been involved in M&A, restructuring, financings and commercial contracts for dozens of companies. He also provides legal support in regards to intellectual property, securities, real estate leasing and employment law. He represents clients mostly in the SaaS, wireless, proptech, quantum, renewables, e-commerce, engineering and real estate conversion space.

Timothy Stapko

Timothy Stapko is a senior software engineer at Microsoft with 20+ years of experience in the information technology industry specializing in embedded systems, IoT security, security (SSL/TLS), and 9+ years of experience leading projects and a team of engineers on two commercially successful implementations of TLS for resource-constrained embedded systems (including cryptography, X.509, DTLS, HTTPS, etc.). Tim also has experience with US federal information standards (e.g., FIPS) and other standards and certifications (e.g., Common Criteria/EAL) and specializes in C, C++, FIPS 140-2, Linux, SSL, TLS, TCP/IP

Jay Toth

Prior to joining Quantropi, Jay was Chief Growth Officer of Kepro, responsible for the organization’s overall growth strategy in government markets. Before that, Jay held a progression of sales leadership and general management roles during his nearly 17 years at Microsoft, including GM, Enterprise Services, State and Local Government & Education, during which period he was responsible for the most complex business in the U.S. subsidiary (with 2,000 customers across the country), nearly doubling revenue from $160M to over $300M. Prior to his career at Microsoft, Jay was VP at Risetime, where he launched and ran a Financial Services practice area; a Principal at Lakefront, where he was responsible for business development and strategic partnerships; and a Manager at Accenture in the Emerging Technology Solutions group. He holds a Bachelor of Science in Mechanical Engineering from the University of Virginia.

Nik Mahidhara

Prior to joining Quantropi, Nik most recently provided strategic and tactical leadership as Director of Finance overseeing a large corporate treasury department. Here, he managed over $2B in operating funds and $1B in financing. Other responsibilities included cash management and forecasting, liquidity and investments, corporate financing, financial risk management as well as accounting and internal control management. Preceding that, Nik provided assurance, accounting and advisory services focused on high tech clients with PricewaterhouseCoopers (PwC) Canada. Nik has held progressive finance roles in various different environments and holds a Chartered Professional Accountant (CPA) designation and an MBA from the Schulich School of Business.

Brian LaMacchia

Brian LaMacchia recently retired from Microsoft Corporation where he was a Distinguished Engineer and head of the Security and Cryptography team within Microsoft Research. He is an Adjunct Associate Professor in the Luddy School of Informatics, Computing, and Engineering at Indiana University Bloomington, an Affiliate Faculty member of the Paul G. Allen School of Computer Science and Engineering at the University of Washington. Brian also currently serves as Treasurer of the International Association for Cryptologic Research (IACR) and as a Vice President of the Board of Directors of Seattle Opera. Brian received S.B., S.M., and Ph.D. degrees in Electrical Engineering and Computer Science from MIT in 1990, 1991, and 1996, respectively.

James Nguyen

James Nguyen is a Co-Founder and the CEO of Quantropi, a quantum-secure communications company established in 2018. Alongside Dr. Randy Kuang, he aims to uphold truth and trust in the digital economy on a global scale. In 2021, James was officially recognized as a recipient of Ottawa’s Top Forty Under 40 Award, and he holds a degree in Economics from Carleton University.

With a profound understanding of banking and global finance, James actively invests in and advises early-stage companies in the fields of Fintech, Graphene, and Quantum Technologies, particularly in emerging markets. Prior to his role at Quantropi, he served as the Chief Investment Officer and VP of Asia Operations for a diverse group of private and public interests involved in real estate, mining, energy storage, and manufacturing. In this capacity, he was responsible for strategy, banking, and global expansions, successfully securing substantial investments and partnerships to commercialize graphene applications across various industries.

James participates as a speaker and panelist at international conferences focused on quantum technology, cybersecurity, and investment. He also contributes to the community as a volunteer and mentor, leveraging his expertise and experiences to benefit others.