The most critical component in a crypto currency system is the wallet. It holds the private keys needed to spend crypto assets. Securosys HSM provide the securest way of storing and accessing private keys for wallets used in crypto custody and blockchain systems.
Crypto currencies are currently experiencing a boom. Thanks to the blockchain technology used, they offer the advantage that transactions can be viewed by anyone who belongs to the corresponding distributed system. At the same time, however, transaction partners remain anonymous. Moreover, the blockchain cannot be manipulated unnoticed due to its inherent structure.
Unfortunately, news often report that crypto assets worth millions of dollars have been lost or stolen. However, this is not because of the blockchain itself, and it is avoidable: In all these thefts the private keys were not securely stored, they were left minimally protected in the filesystem of a server. Any platform storing crypto keys, in particular when serving customers and providing custody, must secure private keys with hardware security modules. Securosys Primus HSM are the best solution when it comes to securing crypto assets and blockchain – enterprise grade security constantly enhanced with additional functionality to protect new blockchain systems coming to the market.
COLD STORAGE - BUT A SECURE ONE, PLEASE!
Storing the private key on a PC is completely unsafe, as there are already countless methods for infiltrating PCs. Many crypto-asset owners therefore prefer "cold storage": a storage method in which the carrier of the crypto key is not directly connected to the Internet. A piece of paper or a USB stick are the two most common forms of cold storage. It is obvious that these methods are unsafe and do not scale well: Paper and USB sticks can easily be lost or stolen. Moreover, when printing on paper, the printer also keeps a copy of the document in its memory; another location that can be hacked.
The solution is that the wallet provider maintains a dedicated crypto key store based on a Hardware Security Module (HSM) for his customers. Large crypto investors should either possess their own HSM crypto key storage or use an HSM as a service to secure their crypto assets.
A weak link in crypto assets: the wallet
The most insecure link in the digital-currency system is the wallet, which is located on the application level. A crypto-currency owner uses this application to manage his crypto assets. It contains the private key corresponding to the special crypto object. For the wallet to be secure, the keys must be stored in a secure location.
At Securosys, we focus on securing crypto assets and developing new solutions to meet market needs. One of our functional extensions solves the problems concerning digital signatures: It can be ensured that not just a single authorized person alone is going to use the private key relating to a crypto asset. This is made possible by a special procedure requiring for each action at least two concurrent authorizations out of a whole group, which is called multi-signature, or “multisig” for short. Additional functions for crypto assets, crypto currencies and blockchain are in development.
All of these requirements can now be easily fulfilled with our Blockchain HSM!
PRIMUS BLOCKCHAIN HSM
A DEDICATED HARDWARE SECURITY MODULE FOR THE NEEDS OF TOMORROWS BUSINESS