Thales, critical information systems, cybersecurity and data security provider, has announced the integration of its nShield hardware security module (HSM) with Chain, provider of enterprise-grade blockchain infrastructure that enables organizations – including Nasdaq, Citi and Visa – to build financial products and services.

The shared ledger model offers the financial industry increased efficiency and secure compared to legacy systems. Cost savings, faster transactions, and improved data quality are all benefits of the technology. Underpinning each blockchain is robust cryptography used to protect the data from fraud perpetrated by hackers.

Blockchain security depends upon the security of its cryptographic keys. Every transaction executed through a blockchain process requires a new set of one-time keys. Chain uses the Thales nShield HSM to generate and secure these keys. With unique customer needs in mind, Chain developed the Chain Key Derivation algorithm using Thales CodeSafe technology. This provides the capability to move sensitive applications within the protected perimeter of the FIPS 140-2 level 3 nShield HSM. Additionally, the solution incorporates robust cryptographic techniques, which securely and efficiently generate temporary one-time keys for each transaction.

Ryan Smith, Chief Technology Officer at Chain, explained: “As Chain takes blockchain networks to production, we’ve invested heavily in the secure generation and storage of private key material. The Thales nShield HSM offers a fast and efficient way to derive new keys. In particular, we were very impressed with the HSM’s CodeSafe feature, which allows us to run security-critical code protected within the HSM boundary. It’s a natural fit.”

Chief Technology Officer at Thales e-Security, Jon Geater remarked: “Blockchain is a game-changer in the financial services industry, with the potential to enhance security, speed and operational efficiency. Our integration with Chain provides a strong root of trust and ensures the integrity of the underlying blockchain operations, allowing organizations to build, deploy and operate blockchain-based transaction networks with confidence.”