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Hardware Security Modules (HSMs) have not substantially evolved in the last two decades. The advent of enclave technology, such as Intel SGX, TDX and AMD SEV, despite their weaknesses [ 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 ] , has enabled some to build mildly re-envisioned versions of these devices [ 10 ] . However, the solutions currently available on the market today are far from meeting the needs of the market. In this paper, we will explore what some of the shortcomings of these devices look like and discu

The first Hardware Security Module was introduced in the late 1970s by IBM. It was designed to be attached to a specific host with the goal of never exposing the PINs to the host. By the early 90s, there were a handful of more capable solutions in this market, they were primarily sold to governments, often for military use cases where the cost of key compromise warranted the increased operational burden and associated costs of this particular approach.

In the late 90s, we started to see practical innovation in this space. For example, the existing HSMs moved into hosts that enabled them to be accessed over the network. We also began to recognize the need to use code containing business logic that gated the use of specific keys. nCipher was one of the first to market with a generic offering in this space which was ahead of its time.

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