This module highlighted how private keys underpin the security of Web3 ecosystems. From generation (where hardware-based TRNGs are best) to storage (using HSMs, MPC, and multisig) to usage (where policies prevent human error), every stage matters. Case studies like the Profanity exploit show the dangers of weak practices. By adopting layered defenses and engaging in security reviews, teams can protect their critical assets and user trust.
Q1: What is a key risk when using software PRNGs for key generation?
A1: They may produce predictable keys if improperly seeded
Q2: What security feature makes HSMs reliable for key storage?
A2: Tamper detection and auto-erasure of keys
Q3: What is the primary purpose of MPC in key management?
A3: To split keys across multiple parties to avoid single points of failure
Q4: Why is operational integrity as important as hardware security?
A4: Poor processes can undermine even the best technical controls
