Cold Wallets Reimagined: Innovative solutions to deliver Military-Grade Security and the Industry’s Fastest Cold Wallet

Introduction

In the ever-evolving landscape of digital asset custody, safeguarding client assets against cyber threats is paramount. Traditional cold wallet architectures, while providing a degree of security, often face limitations in terms of flexibility and accessibility. This article explores the transformative benefits of cross-domain solutions and data diodes used by Hex Trust, which offer a new paradigm in digital asset security, akin to military-grade protection that is used to safeguard access to nuclear launch codes and weapon systems.

Understanding Cross-Domain Solutions and Data Diodes

Cross-domain solutions create isolated environments, preventing unauthorized data flow between different systems or networks. Data diodes, a specialized type of over-the-air firewall, allow strictly defined data to flow in only one direction, ensuring that sensitive information remains confined within its designated domain. Also, data diodes break internet protocols and guarantee electrical isolation between the different domains.  By combining these technologies with HSMs, we can establish a robust security perimeter that effectively mitigates the risks associated with traditional network-connected wallet architectures.

The Paradigm Shift: Cold Wallets Reimagined

Traditionally, cold wallets have been synonymous with offline storage, offering maximum security but limited accessibility due to long access times. However, with cross-domain solutions utilising data diodes and HSMs, we can create a new paradigm where HSM wallets effectively function as cold wallets, even while providing hot wallet-like speed in signing.

• Isolation: Sensitive devices (HSM), API keys and data such as private keys, transaction policy checks and transaction details, remains isolated within a secure, offline domain.
• Accessibility: Users can interact with their wallets through a separate, online domain, allowing for seamless transactions and management.
• Flexibility: Cross-domain solutions enable the integration of various services and features, such as staking, lending, and decentralized applications (DApps), without compromising security.

Key Benefits of Cross-Domain Solutions and Data Diodes

• Enhanced Security: The isolated nature of cross-domain solutions and the unidirectional flow of data provided by data diodes significantly reduce the risk of unauthorized access to the HSM
• Increased Flexibility: By creating a secure, yet accessible environment, these technologies enable a wider range of services and features to be offered to clients.
• Scalability: Cross-domain solutions can be easily scaled to accommodate growing customer needs and evolving market requirements.
• Compliance: These technologies can help organizations meet regulatory requirements and industry best practices for digital asset custody.

Industry’s Fastest Cold Wallets 

Cross-domain solutions and data diodes represent a significant advancement in digital asset security. By redefining the concept of cold wallets, these technologies offer a more flexible, scalable, and secure way to protect client assets through proven military-grade technologies. This innovation allows Hex Trust to transcend the traditional trade-off between security and transaction signing speed, delivering a cold wallet with near-instant access—well ahead of the industry standard, which typically requires around 2 hours for cold wallet release.

As a leading digital asset custodian since 2018, Hex Trust has been a pioneer of the Custody 3.0 era and will continue to evolve and embrace innovation to maintain the highest standards of security and client satisfaction.