A hardware security module (HSM) performs encryption. But encryption is only the tip of the iceberg in terms of capability. In reality, HSMs are capable of performing nearly any cryptographic operation an organization would ever need. Some common functions that HSMs do include:
- Encrypt data for payments, applications, databases, etc.
- Manage infrastructure with load balancing, monitoring, alerting, and device clustering
- Create and manage encryption keys for hundreds of applications
- Generate digital signatures to validate messages, software, and financial transactions
- Issue digital certificates to authenticate devices, users, websites, and more
- Among many other practical uses
