Protecting hot private keys for high-capacity Lightning Network nodes while preventing channel state invalidation.
Lightning Network routing nodes must sign commitment transactions automatically in real-time, typically forcing operators to leave private keys in vulnerable server memory. BitHSM acts as an inline cryptographic coprocessor, signing HTLC and commitment updates in under 5 milliseconds.
Broadcasting an outdated commitment state results in complete loss of channel funds via penalty transactions. BitHSM enforces hardware-level monotonic state counters that permanently reject signing requests for older states, guaranteeing channel safety even if the node software crashes or rolls back.