Keep your secret key safe on the device

Securing cryptographic keys is crucial for protect sensitive information. Dedicated hardware solutions and software-based solutions within the operating system (OS) are two common approaches for key storage.

Hardware solutions use specialized piece of hardware for cryptographic operations and key storage. It could be part of the processor interconnected with main CPU, external chip or even separate pheripherium like USB stick. The important part is the phisical separation between application zone and trusted zone. Thanks to that secure keys never leave the trusted part and thus can not be spied.

On the other hand, software-based solutions store cryptographic keys within the memory of the host system’s operating system. In such case keys are often encrypted using a root key. Additionally, software solutions may implement other security measures such as access control mechanisms and secure storage encryption. Since software solutions rely on the host system’s memory, they are susceptible to various forms of attacks, including malware, keyloggers, and remote exploits.

To understand that even better let’s take a look on the details of cold and hot cryptocurrencie wallets. In hot wallets private keys are typically stored within the wallet software or with a trusted third-party service, protected by encryption and authentication measures. They are convenient but more vulnerable to online threats such as hacking and malware.

On the other hand, cold wallets prioritize security by storing private keys offline. These wallets, which can be hardware devices like USB stick, are not connected to the internet, minimizing the risk of remote attacks. Transactions with a cold wallet involve transferring data to a device for signing, and then receiving the signed data back for broadcasting it to blockchain network.