GlossaryAdvanced
Hardware Security Module
A dedicated physical device designed to securely generate and store cryptographic keys.
A hardware security module (HSM) is a dedicated physical device built specifically to securely generate, store, and use cryptographic keys, designed to resist extraction even if the broader system around it is compromised.
Hardware crypto wallets are, in effect, a consumer-focused application of this same general concept, built for individual private key custody.
Examples
- An exchange might use enterprise-grade hardware security modules to protect its own reserve private keys.
- A consumer hardware wallet applies similar principles to an HSM, adapted for individual use.