Preventing Hacks A Modern Wallet Platform’s Approach to Private Key Protection

1. Preventing Hacks: A Modern Wallet Platform’s Approach to Private Key Protection

2. HOW DO YOU SECURE PRIVATE KEYS IN A WORLD WHERE ATTACKERS ARE FASTER, MORE SOPHISTICATED, AND CONSTANTLY EVOLVING? Modern wallet platforms are reshaping how institutions approach this challenge. This blog compares traditional methods with modern frameworks, infrastructures like Infrastructure offer stronger, scalable, and more adaptable protection. key management explaining Liminal why Wallet

3. WHY PRIVATE KEYS NEED A NEW SECURITY MODEL A private key is the ultimate authority over any digital asset. But traditional security practices struggle because: They rely on single points of failure Operations require manual processes. Hardware and software are often disconnected. Attack surfaces are widening due to cloud operations and remote teams.

4. TRADITIONAL METHODS VS MODERN WALLET PLATFORMS: WHAT REALLY PROTECTS YOU? 1. Single Private Key Storage vs Multiparty Security Traditional Approach: A single private key stored in one location — even if encrypted — still creates: A single point of compromise A reliance on physical protection Operational delays due to manual control Modern Approach (MPC & Automated Controls): The private key is never created in one place. Instead, it is mathematically split into multiple secure shares

5. 2. Hardware Dependence vs Cloud-Ready Security Traditional Approach: HSM-based systems offer strong protection — but: They are expensive Hard to scale Not suitable for multi-location operations Slow for real-time transactions. Modern Approach: Modern wallet infrastructure secures key shares across secure enclaves, cloud environments, and trusted hardware — without operational slowdowns. Why Modern Wins: Scalable across geographies Perfect for fast-growing institutions Enables real-time settlements Lower cost of operations Liminal Wallet Infrastructure is built to support both hardware-backed and cloud-backed key security for flexible deployments.

6. 3. MANUAL CHECKS VS AUTOMATED POLICY ENFORCEMENT Security depends heavily on: Admin approvals Manual reviews Operational teams are validating each transaction. Human reliance = higher risk. Modern Approach: Automated policy engines and workflow rules enforce: Spending limits Velocity controls Address whitelisting Multi-user approvals

7. 4. POST-INCIDENT RESPONSE VS PROACTIVE ATTACK PREVENTION Traditional Approach: Systems are designed to detect hacks after they happen. Modern Approach: Modern platforms integrate: Continuous behavioural monitoring Real-time alerts Suspicious activity detection Automated transaction holds Why Modern Wins: Threats are blocked before they escalate. This proactive model is integral to Liminal Wallet Infrastructure.

8. WHY LIMINAL’S MODERN WALLET INFRASTRUCTURE LEADS IN PRIVATE KEY PROTECTION Now that we’ve compared both sides, here’s what institutions value the most in Liminal Wallet Infrastructure: ✔ MPC-secured private key shares ✔ Tamper-proof approval workflows ✔ HSM-level protection without hardware limitations ✔ Granular policy controls optimized for institutions ✔ Real-time monitoring and automated risk defence ✔ Infrastructure built from the ground up for compliance The result: A wallet infrastructure where private keys are never exposed, never centralized, and never vulnerable — even during high-volume operations.

9. HOW TO CHOOSE THE RIGHT PRIVATE KEY PROTECTION STRATEGY (DECISION GUIDE) To decide what fits your institution, ask: 1. Do you handle large transaction volumes? If yes, you need MPC automation, not manual HSM workflows. 2. Are your teams distributed across locations? If yes → Cloud-ready key shares outperform hardware-based solutions. 3. Do you require auditability for compliance? If yes → Modern platforms ensure transparent logs, approvals, and visibility. 4. Do you want to eliminate single points of failure? If yes → MPC-based architectures like Liminal Wallet Infrastructure are the clear winner.

10. THANK YOU