Hardware security modules (HSM)

What is an HSM?

Definition and Functionality

A Hardware Security Module (HSM) is a highly secure and tamper-resistant cryptographic hardware device designed to manage, generate, store, and protect cryptographic keys, execute cryptographic operations, and provide a secure environment for processing sensitive information. HSMs operate through a secure cryptoprocessor and are fortified against unauthorized access, ensuring that cryptographic material is safeguarded from logical and physical attacks.

FIPS-Rated HSMs at Palisade

Palisade utilizes HSMs that are certified to Federal Information Processing Standard (FIPS) 140-2 Level 3 or higher, representing a stringent and rigorously tested standard for cryptographic modules. These HSMs are architected to defend against unauthorized access and tampering, and they respond to intrusions by zeroizing sensitive information, thus maintaining the integrity and confidentiality of cryptographic assets.

Key Generation and Management

Within the secure enclave of the HSM, cryptographic keys, specifically private keys, are generated using hardware-based entropy sources for maximum randomness and unpredictability. These private keys are pivotal for digital asset transactions and are never exposed to external environments, mitigating the risks associated with exposure, compromise, and unauthorized access. Palisade leverages the robust key management functionalities of HSMs to securely manage the entire lifecycle of keys from generation to retirement.

Transaction Signing

HSMs at Palisade are instrumental in signing transactions, a critical cryptographic operation for validating digital asset transactions. The transaction is signed within the secure boundary of the HSM using the stored private key, ensuring the digital signature's authenticity and integrity without exposing the sensitive key material. This process certifies the legitimacy of the transaction and verifies that it has been initiated by an entity possessing the corresponding private key.

Integration with Policy Engine, Allowlist, and Approval service

Palisade amalgamates the advanced security of HSMs with a sophisticated Policy Engine to tailor security protocols, allowing granular control over cryptographic operations and transaction approvals based on predefined policies.

The Policy Engine is integrated with an Allowlist to filter and regulate incoming and outgoing requests, reinforcing the security perimeter around customer assets by permitting only pre-approved entities to interact with the system.

Moreover, Palisade’s Approval service is a multifaceted approval mechanism integrated into the system, designed to authenticate, authorize, and validate transaction requests based on intricate rules and multiple approval layers, thereby enhancing the overall security posture.

Protection of Customer Assets

By fusing FIPS-rated HSMs with an intricate amalgamation of a Policy Engine, Allowlist, and Approval-as-a-Service, Palisade furnishes an unrivaled security paradigm, offering ultimate protection for customer assets. This synergy ensures that cryptographic keys and digital assets are not only enveloped in multiple layers of security but are also managed, accessed, and utilized in compliance with stringent policies and controls, thereby fostering trust and security in digital asset custody.

Conclusion

In summary, a Hardware Security Module (HSM) is a pivotal component in Palisade’s advanced cryptographic security infrastructure, designed to secure, manage, and operate cryptographic keys and functions within a tamper-resistant enclave. The integration of FIPS-rated HSMs with sophisticated policy management, allowlisting, and multi-layered approval mechanisms encapsulates customer assets in an environment characterized by utmost security, control, and resilience, providing a fortified line of defense against unauthorized access and compromise.