Improving blockchain security with HSMs
Decentralization, immutability, security, and transparency are the primary advantages of blockchain. Blockchain technology enables verification without the requirement for dependency on third-parties. A blockchains data structure is append-only meaning that data can only be added to the blockchain in a time-ordered sequential order and, as a result, the data cannot be modified or erased. These combined advantages turn blockchains into a valuable asset to protect stored data from alienation or falsification.
Protecting keys is paramount to ensuring the robustness of a blockchain system. A successful blockchain system requires highly reliable methods of interfacing with strong key protection controls that can be achieved by use of HSMs to deliver the necessary scaling and agility a decentralized blockchain model requires. Some of the use cases are;
- Cryptocurrency & Wallets- storage and access of private keys used in crypto currency and blockchain systems. Track transaction signing, preventing a hacker from replacing or making new transactions.
- Smart Contracts- self-executing the terms of the contract through using strong authentication and storage of encryption keys ensures that parties are identified and data remains secure
- Smart IoT- enables cryptographic encryption for authentication and validation of data
Utimaco HSMs provide solutions that enable organizations to implement secure and resilient blockchain applications.