Today I completed a software-only prototype of my project. Using C# and the loopback interface, I've established a secure key exchange for safe bluetooth communications. The next step is to implement my dongle code on a microcontroller, and communicate over a serial interface to simulate bluetooth. I'll be uploading a video soon of what I have as far as implementation. 

So far:

• RSA-based key exchange
• 128bit AES encryption

To be done:

• Implement on microcontroller.
• Establish bluetooth communications to microcontroller.
• Setup HID emulation.
• Full phone app for database communication.
• Feature creep?