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Bring Trust to Blockchain with Thales
In a permissioned blockchain, only approved participants can validate and process transactions. However, trust and security remain crucial concerns. To ensure protection against cyberattacks and maintain reliability, strong authentication methods and secure cryptographic key storage must be implemented. By prioritizing these security measures, the blockchain can remain trustworthy and resilient.
Thales provides Hardware Security Modules (HSMs) and Authentication Services to strengthen blockchain security in three critical areas:
- Ensure secure blockchain access with strong identity verification and robust authentication measures.
- Safeguard the core blockchain technologies to ensure integrity and strong security.
- Guarantee secure communication across the blockchain network to protect data and transactions.
Thales Blockchain Solutions
While blockchain is naturally secure due to its decentralized structure and advanced cryptography, vulnerabilities can still be exploited. To stay protected, it’s essential to integrate security from the beginning and always store your keys in a hardware-based solution to minimize risks and ensure maximum safety.
Luna Network HSMs are designed to securely store private keys used by blockchain members for signing transactions. Built with a FIPS 140-2 Level 3 certified cryptographic processor, these keys remain protected throughout their lifecycle, preventing unauthorized access, modification, or misuse. Storing cryptographic keys in software poses a significant risk, as it makes them vulnerable to theft, potentially compromising the entire blockchain ledger.
ProtectServer HSMs, like Luna Network HSMs, are built to protect cryptographic keys from compromise while providing encryption, signing, and authentication services to enhance blockchain security.
Both Luna and ProtectServer HSMs go beyond their core functions by enabling custom code development within the secure environment of the FIPS 140-2 Level 3 validated Thales HSM. With Functionality Modules (FMs), you can customize the HSM’s features to suit your organization’s specific needs, including support for Quantum algorithms.
Thales offers Luna Cloud HSM services, a cloud-based solution delivered through Data Protection On Demand (DPoD). With DPoD, you won’t need to worry about hardware deployment or maintenance, thanks to its as-a-service billing model that ensures ultimate convenience.
SafeNet Authentication Service (SAS) reduces operational costs by delivering a fully automated and secure authentication solution. It offers flexible token options, allowing you to customize authentication to meet your specific requirements.
About Blockchain
- Blockchain is a decentralized ledger that guarantees secure, transparent, and tamper-proof recording, verification, and management of transactions.
- Transactions aren’t limited to financial exchanges—they can involve any transfer between two parties that would typically require a third party for verification and facilitation.
- Blockchain eliminates the need for centralized control, ensuring that all transactions are decentralized and verified through its distributed ledger.
- Contrary to popular belief, blockchain technology is not just for securing financial transactions. It can also track and verify digital assets, including code and smart contracts.
Benefits of Blockchain
- Eliminate the need for centralized control and the additional costs it incurs.
- Trust is distributed among all members of the blockchain.
- Transactions are digitally signed using the asset owner’s public and private key pair.
- Once data is recorded in a block, it cannot be altered later.
- Open, distributed ledgers effectively record transactions between two parties in a verifiable and permanent manner.
- Transactions can involve not just data, but also code or smart contracts.
Top 3 Popular Blockchain Use Cases
1 Cryptocurrency
Risk: Encrypted digital currencies identify the currency, but not the owner. The individual holding the coin’s encryption key is the rightful owner. This means that if the coin is stolen, it cannot be recovered.
Solution: Storing your encryption keys in a FIPS-validated root of trust is crucial for securely owning your keys and, consequently, your cryptocurrency.
2 Smart Contracts
Risk: A smart contract is a computer program that automatically executes and enforces the terms of an agreement. If the blockchain is compromised, the smart contract can be altered, undermining the trust in the system and eliminating the ability for two parties to conduct business without a middleman.
Solution: Safely execute contract terms between anonymous parties by utilizing strong authentication and storing your encryption keys in a hardware root of trust. This ensures accurate identification of all parties and protects your data from unauthorized access.
3 Internet of Things (IoT)
Risk: Traditional trust models have shown significant limitations, increasing the vulnerability of the Internet of Things (IoT). A prime example is Mirai-style botnets, which allow hackers to control thousands of IoT devices. Many of these devices were only secured with default passwords, making it simple for hackers to initiate Distributed Denial of Service (DDoS) attacks.
Solution: Blockchain strengthens Internet of Things (IoT) security by providing a decentralized trust model. This removes the single point of failure, enabling device networks to safeguard themselves more effectively. For instance, if a device behaves suspiciously, the network can isolate it, blocking any potential security threats.
Thales Blockchain Partners
Thales has teamed up with leading blockchain and cryptocurrency companies to provide secure solutions for business transactions. In partnership with names like IBM, R3, Ethereum, Hyperledger, Ledger, BitGo, Symbiont, and ConsenSys Quorum, Thales is driving improvements in efficiency and building trust across industries. Thales also supports a wide range of blockchain applications, including Bitcoin, Hyperledger, Ethereum, Altcoins, Monero, and more.
Let us help
Getting started with blockchain can be daunting due to its complexity, varying standards, and the transition from centralized to decentralized platforms. Many blockchain organizations face challenges in successful implementation. To avoid these obstacles, contact Thales to learn how you can harness the power of blockchain technology and how Thales’ HSM and SAS solutions can ensure the security of your transactions.
Join our webinar on “Blockchain for Payments: Real-World Experience,” where we engage with industry experts in blockchain payments. Gain valuable insights into their experiences and the future of blockchain payments.
Conclusion
Securing blockchain transactions is essential for maintaining trust, transparency, and integrity within the decentralized system. By implementing strong security measures such as hardware security modules (HSMs), cryptographic key management, and robust authentication methods, organizations can protect their blockchain networks from potential threats. As blockchain technology continues to evolve, partnering with trusted providers like Thales ensures your solutions stay secure, reliable, and future-proof. Stay ahead by utilizing advanced security practices and solutions specifically designed to safeguard your digital assets and business operations.
