How a Hardware Security Module (HSM) works?

How a Hardware Security Module (HSM) works?

HSMs are used to manage the key lifecycle securely, i.e., to create, store, and manage cryptographic keys for encrypting and decrypting data.

When a transaction is initiated, the HSM generates a unique key to encrypt the transaction data. The encrypted data is transmitted over a network, and the HSM is responsible for decrypting the data upon receipt.

The HSM is designed to be tamper-resistant and prevents unauthorized access to the encryption keys stored inside.

Using an HSM, organizations can reduce the risk of data breaches and ensure the confidentiality and integrity of sensitive information.

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