An Israel-based innovation hub focused on the proof-of-stake blockchain network Tezos is bringing out a security device it says will better secure the staked assets of network validators.
- Tezos Israel said in a press release Monday that the hardware security modules, developed in partnership with Hub Security, will allow validators (also known as "bakers") to store their private keys in a secure cloud or in a separate physical unit, avoiding theft and network disruptions.
- Network validators must stake large amounts of cryptocurrency – that is, lock in funds a period of time – to qualify to validate the network. This approach requires "rigorous security," said Eyal Moshe, CEO of Hub Security.
- A kind of server, the new device is powered by a mini hardware security module (HSM) that acts as the user's "remote control" and software that allows "bank-level" two-factor authentication, according to the release.
- It is said to offer bakers a better alternative to cryptocurrency hardware wallets, which need to be physically connected to the computers running the network.
- The firms said using HSM technology enables "the safe use of encryption keys and secret information to operate sensitive applications while maintaining complete secrecy and privacy."