Tezos Israel has collaborated with cybersecurity firm Hub Security for the development of a physical security module to protect the encryption keys of the Tezos network validators, the companies exclusively informed Finance Magnates.
The two companies have introduced the new security feature today that will allow the network validators, popularly known as bakers, to store their encryption keys on a secure cloud or a physical box.
“Contrary to Bitcoin, the Tezos network security is not based on consuming electricity, but on proof of stake,” Tezos Israel CEO, Eli Terdjman said in a statement.
This consensus mechanism requires the Tezos network bakers to hold large sums of Tezos digital currency to validate the transactions.
This development came with the growing threats of attacks on the blockchains. The companies believe that the security infrastructure will prevent any theft or abuse of the encryption keys.
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“Many bakers use ‘cold wallets’ – separate pieces of hardware that hold encryption keys and have to be physically connected to the computers running the network,” Terdjman explained. “Today, the collaboration between Tezos Israel and Hub Security allows us to distance the keys a step further from the computers running the network and place them in a secure environment while allowing the network to keep running flawlessly.”
Securing the Network Validators’ Stake is a Priority
Tezos utilized the hardware security module (HSM) developed by Israel’s Hub Security. This security system is guarding the servers with a combination of physical and network security features.
The secure servers are controlled by a mini-HSM and the network validator held remote control, which provides a bank-like two-factor authentication.
“The Tezos network is becoming a very significant player with cryptocurrency transfers amounting to more than US $200 million a day,” Eyal Moshe, Chief of Hub Security, said. “With such large digital assets, you can no longer use improvised solutions.”
“The solution we developed is based on our HSM technology, while the private encryption keys are kept in an impenetrable physical box or a secure cloud storage. Encryption keys are only accessible with a unique device and a computer, both of which do not hold the keys and are only exposed to the network when strictly necessary.”