What is Hardware Security Module (HSM)?
Let's find out Hardware Security Module (HSM) meaning, definition in crypto, what is Hardware Security Module (HSM), and all other detailed facts.
Hardware Security Module (HSM) can be used in order to secure and encrypt digital data while providing cryptographic authentications. In general, businesses use HSMs to protect data verification and transactions.
Federal Information Processing Standard (FIPS) establishes the requirements for HSMs. There are necessary requirements like the use of customized hardware and a secure operating system (OS). Additionally, it must protect data by using cryptographic storage and a secure network.
There are three types of HSM hardware: general-purpose, transaction/payment, and cloud-based. When it comes to the latter, well-known platforms like Microsoft Azure and Google Cloud are considered to be cloud-based HSM.
Generic data protection applications and cryptocurrency wallets make good use of general-purpose HSMs. Whereas transaction/payment HSMs are specifically designed for digital payments. It helps with PIN technology safety and electronic funds transfers (ETF).