The Secure Technology Alliance, formerly known as the Smart Card Alliance, has released a white paper that provides a primer on blockchain technology, and emphasizes on the need for hardware security technology to protect and provide convenient user access to cryptographic keys.

Titled “Blockchain and Smart Card Technology”, the white paper aims to provide guidance for organizations implementing blockchain applications.

“It’s anticipated that a diverse set of applications will be implemented using blockchain – everything from cryptocurrencies to funds transfers, asset registries and autonomous Internet of Things (IoT) device payment,” said Randy Vanderhoof, executive director of the Secure Technology Alliance. “With all of these implementations, proper management of cryptographic keys is critical; if those private keys are lost or stolen, any assets associated with the blockchain are lost forever. This resource highlights how the use of smart card and secure element technology to manage the cryptographic keys, used in conjunction with blockchain technology, can enable convenient and secure transactions.”

In addition, the paper describes use cases that are currently commercially available or being piloted and discusses common implementation considerations:

• Use cases for several blockchain technology applications (cryptocurrencies, vaults, interbank funds transfer, asset registry, anticounterfeiting and IoT), including considerations, challenges and real-world pilots or commercial implementations
• Challenges that need to be addressed for blockchain implementations, including permissioned vs. permissionless blockchains, scalability, standards, reputation and consumer perception, security and legal and regulatory considerations

“Secure element and smart card technology can play a critical role in securing blockchain transactions in certain use cases, including cryptocurrencies and vaults, funds transfer, asset tracking, and the Internet of Things. Since blockchain applications may include the ability to execute contracts and make transactions, they must be secure: secret keys are used and need to be secured. Secure element technology, available in different form factors, can be used to generate, secure and manage these secret keys”, the paper states.

The Secure Technology Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption and widespread application of secure solutions, including smart cards, embedded chip technology, and related hardware and software across a variety of markets including authentication, commerce and Internet of Things (IoT). It invests heavily in education on the appropriate uses of secure technologies to enable privacy and data protection.

Secure Technology Alliance members involved in the development of this white paper included: Capgemini; CH2M; CPI Card Group; First Data; FIS; Fiserv; Gemalto; Infineon Technologies; Ingenico Group; Kona I; NextGen ID Inc; NXP Semiconductors; Oberthur Technologies; PayGility Advisors; SHAZAM; Underwriters Laboratories (UL).

The alliance’s 10th Annual Payments Summit is taking place March 27-30 in Orlando, Florida at the Renaissance Orlando at SeaWorld and will include presentations on blockchain and other key payments security topics.