What Is a Hardware Security Module (HSM) and Its Role in Cold Storage?
An HSM is a physical computing device that safeguards and manages digital keys, performs encryption and decryption, and provides cryptographic services. In institutional cold storage, HSMs are used to generate, store, and manage private keys in a tamper-resistant environment.
They ensure that the private keys never leave the secure module, providing a high level of security against both physical and remote attacks.
Glossar
HSM
Architecture ⎊ Hardware Security Modules, within cryptocurrency, options trading, and financial derivatives, represent specialized cryptographic processors designed to secure and manage digital keys.
Hardware Security Module
Custodian ⎊ A Hardware Security Module (HSM) serves as a dedicated, tamper-resistant vault for cryptographic keys, crucial for securing digital assets within cryptocurrency, options trading, and financial derivatives environments.