Cryptographic Hardware vs. Software Encryption: Which is Better Security Solution?

Cryptographic Hardware vs Software Encryption

What is Hardware Encryption in Cryptography?

This is a common practice of enhancing information security where a specific piece of hardware built to perform such tasks is used to encrypt and decrypt data.

While software encryption is platform-dependent and depends on the CPU and memory of the system on which it is installed, hardware encryption typically works in parallel with dedicated components such as HSMs, SEDs, or TPMs.

These devices have their processors and secured key storage to ensure that the cryptographic key used to protect the data shall be protected and in encrypted and decrypted form simultaneously.

This reduces exposure to malware and other cyber threats common in business applications, making it safer than the central system.

Hardware encryption is applied when data security is essential for financial institutes, government bodies, and large companies working with frequently sensitive information.

What is Software Encryption in Cryptography?

Software encryption uses software-based encryption and decryption methods to secure data. It mainly involves using a system’s Central Processing Unit and its Memory to provide cryptographic services that deal with the convergence of algorithms on plaintext to produce encrypted data or vice versa.

There exist diverse classifications of software encryption about the security of data at rest (stored data) and data in transit (data being transferred over networks).

Recommended: Difference Between Software Protected and HSM Protected Keys in Azure Key Vault

Technology software encryptions are universal and can be easily installed on personal computers, servers, and mobile appliances.

Due to this, they can be easily tweaked and edited in a way that meets the new security standards or different threat scenarios.

A general example of software encryption includes file encryption programs, hard-disk encryption software, and virtual private network VPN services.

Advantages of Hardware Encryption

Enhanced Security

It is more secure than other methods as it allows for the encryption process to occur away from the main hardware components of the machine. This isolation prevents malware and other cyber threats from accessing the software encryption as it would be isolated from other computers.

In a piece of hardware, keys used to encrypt data files are localized in special modules and less vulnerable to intruders. This is because software encryption has a significant weakness of essential exposure that can be prevented using this approach.

Performance Efficiency

Many benefits come with hardware encryption, including the ability to offer efficiency in terms of performance. As far as hardware encryptions go, they are managed by ASICs, which don’t add pressure to a device’s CPU and RAM.

This makes it possible to decentralize the encryption and decryption processes, unlike the software-based encryption, which relies on the system’s resources.

Using software and hardware-based methods ensures that hardware encryption is independent and thus will not be affected, slowing the system’s performance during cryptographic operations.

Tamper Resistance

What can be stated about the use of Hardware encryption devices is that these are designed with the ability to withstand tampering.

These devices can sense physical attempts towards access; if access is sensed, the keys stored in the devices can be erased. This feature makes the data unreadable and unavailable to unauthorized end-users, thus increasing data security.

This is even more important when mobile or remote devices can be physically impaired.

Ease of Use

Each device such as self-encrypting drives (SEDs) and hardware security modules (HSMs) are easy to use, and users often do not need to perform many configurations.

Once installed, they will continue to offer constant and seamless encryption without further employing the user’s interference.

Therefore, hardware encryption becomes a viable tool for individuals and organizations that want to encrypt their data but do not want to spend time trying to configure different options.

Compliance and Certification

Many hardware encryption solutions are certified to provide the level of security necessary to comply with specified requirements and advanced standards.

The FIPS 140-2 (Federal Information Processing Standard) and Common Criteria certifications are crucial for compliance in particular financial, healthcare, and government regions.

The assurance of computing hardware encryption certifications is that organizations align with the legal stipulations regarding data protection.

Disadvantages of Hardware Encryption

Higher Cost

Some advanced physical security products in terms of technology consist of self-encrypting drives (SEDs) and hardware security modules (HSMs), which may encompass massive upfront costs.

This cost can sometimes be prohibitive, especially for internet-based small business individuals who still need to secure their platforms but do not have the same amount of capital as others.

Complex Implementation

Embedding hardware solutions into an already designed and implemented system may be more complex than incorporating software solutions.

Sometimes, this results in specific hardware components and might imply changes in the hardware construction within an organization.

However, this introduces some complexity into the pathways, and the implementation may not be as swift as in the case of other tools and may require assistance from security professionals.

Limited Flexibility

Hardware encryption appliances, in general, are explicitly designed to perform a particular task. Therefore, their range of applicability is quite limited compared to the options provided by the software-based encryption tools.

For instance, as compared to protection through software, it is not always relatively easy to shift from one to another; it is because protection through software can be easily upgraded or modified depending on the needs or demands, while in the case of protection through hardware, it may require new hardware or firmware to meet the requirements.

Physical Vulnerability

Nevertheless, such devices can be physically misplaced or physically damaged; hence, the threat is not ruled out. This is because if any encrypted device is lost or stolen, its data will remain intact. Still, the physical hardware would have to be recovered, which is not easy and expensive.

Users can physically damage the equipment, losing vital data and documents that cannot be backed up well.

Dependence on Hardware

Among these precautions, certain operations have to be performed with specific physical devices. This implies there is a chance that some of these devices may get damaged or become outdated, and this poses a risk to the control and access of data.

However, this hardware dependency can sometimes be disadvantageous, especially where one is required to access a particular piece of data easily and in the shortest time possible while waiting for the hardware to be repaired or procured.

Recommended: Cloud HSM vs On-Premises HSMs: Choosing the Right Encryption Solution

Risk and Weakness of Cryptographic Software Encryption

The vulnerabilities of cryptographic software encryption are summarized as risks and weaknesses below:

Susceptibility to Malware and Viruses

Software encryption has a significant risk of the overall susceptibility to malware and viruses. Crackers may discover loopholes in the encryption software and attack the program.

For example, Keyloggers can record the encryption key as the user types it, or other types of malware can interpose themselves into the encryption process to alter or spy on the data.

Dependency on Operating System Security

This aspect of software encryption entirely depends on the underlying operating system. The problem is that if the OS is messed with, the encryption software can also be affected.

For instance, rootkits and other modern types of malware can capture control over the OS or impair or deactivate the encryption processes, thus making encryption useless.

Potential for Human Error

Using people to protect software by encrypting them poses a serious concern because the process can be rendered ineffective due to human mistakes.

Misconfigurations, like not correctly handling keys or possibly having weak passwords, can lead to vulnerabilities. It is also possible some users might dumb the encryption or fail to install updates, exposing the system to attack.

Performance Overhead

The software’s encryption can be costly and entail significant performance penalties, which is very bad for system operations.

Encryption and decryption of data involves computation, which puts a toll on the performance of the application and the device on which it is being run, especially if such devices have relatively low computational power.

Key Management Challenges

This brings in the element of key management that plays a crucial role in the security of software encryption. Managing and safeguarding encryption keys can be a tricky issue.

Another disadvantage is that if keys are stored on the same system as encrypted data, these keys can be easily stolen if the system is targeted for a malicious attack. Data can also be lost when the encryption keys are lost.

Why is Hardware More Secure than Software?

Hardware is more secure than software in the following ways mainly because it can help partition necessary computation and data. When it comes to practical hardware methods used, for example, in FPGAs, it is possible to encrypt cryptographic keys or other sensitive data and store them in specific memory areas that are not easily accessible to the rest of the circuit.

This isolation dramatically reduces the attack surface compared to software, where even the lowest-level vulnerability at the operating system or driver level, or even at the application level, can lead to a full-system compromise.

Hardware also implies better security against side-channel attacks, which exploit physical features such as power consumption or time of execution to extract information. Semantic table lookups can prove that specific operations can be executed constantly in hardware designs, making it much more challenging to execute such attacks.

However, getting truly constant-time execution in software is not very easy because of the unpredictable nature of most of the current processors.

Also, managing with hardware-based solutions, there is no issue with software bugs that can compromise data, for example, with a buffer overflow. With issues such as Meltdown and Spectre that compromise the actual hardware, the seclusion of cryptographic modules in the hardware makes the issues negligible.

Moreover, it is recognized that various hardware implementations can provide better performance and power consumption, which is appreciated even more due to the possibility of programming FPGAs. Due to these factors, thus making hardware a safer and efficient way of protecting core sub systems.

Recent Changes from 2023

By June 2023, there were changes in the code signing certificates’ requirements – manufacturers have to use cryptographic hardware encryption for all issued certificates.

It is rooted in the growing complexity and intensity of cyber threats, coupled with the need to enhance the security of digital signatures to counter threats.

Recommended: CA/B Forum Baseline Requirements v2.8 for Code Signing Certificates

Cryptography, from the hardware perspective, stands unique in being the most secure, with dedicated cryptographic hardware modules ensuring the protection of code signatures’ integrity and authenticity.

Organizations can improve the overall security of code signing and reduce the risks associated with crucial loss by implementing the more secure approach of using hardware-based encryption and conforming to industry standards for the protection of cryptography keys.

This mandate is prophylactic in increasing the credibility of digital signatures in cyberspace’s ever-increasing sophisticated threat landscape.

Conclusion

By implementing HSM or Token-Based Code Signing solutions into its system, an organization protects its data and applications from tampering, key leakage, and new threats. This strategic alignment not only addresses the imposed regulations, but also nurtures confidence in the parties involved.

Start relying on SignMyCode’s HSM-protected code signing certificates for enhancing digital security and promoting rock-solid trust in the increasingly complex and dangerous world of cyber threats.

Code Signing Updates

Buy Code Signing Certificate

Increase your Software Downloads and Verify its Integrity by Digitally Sign Software and Executables using Trusted Code Signing Certs.

Price Starts at $210.99 Per Year
Janki Mehta

Janki Mehta

Janki Mehta is a Cyber-Security Enthusiast who constantly updates herself with new advancements in the Web/Cyber Security niche. Along with theoretical knowledge, she also implements her practical expertise in day-to-day tasks and helps others to protect themselves from threats.

Leave a comment

Your email address will not be published. Required fields are marked *