Clear DefinitionsHardware Security Module
1 min read
Pronunciation
[har-dwair si-kyoor-i-tee mod-yool]
Analogy
An HSM is like a fortified vault with built‑in guards and alarms for your most sensitive keys.
Definition
A tamper‑resistant hardware device designed to generate, store, and manage cryptographic keys with enforced security policies.
Key Points Intro
HSMs secure keys via:
Key Points
Tamper resistance: Physical protections and zeroization.
Secure key generation: On‑device RNG and key generation.
Access control: Role-based and multi-factor authentication.
Cryptographic operations: Signing and decryption inside module.
Example
A custodial service uses an AWS CloudHSM cluster to sign Bitcoin transactions without exposing private keys to application servers.
Technical Deep Dive
HSMs implement FIPS 140‑2 Level 3+ with secure enclaves. They expose PKCS#11 or proprietary APIs for key management. Keys never exit secure boundary; commands executed inside.
Security Warning
Caveat
High cost and complexity; typically used by institutions rather than individuals.
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