A Hardware Security Module (HSM) is a physical device designed to manage and protect digital keys used for encryption and decryption. HSMs provide a secure environment for cryptographic operations, ensuring that sensitive data remains protected from unauthorized access. They are commonly used in industries that require high levels of security, such as finance and healthcare. HSMs can perform various functions, including key generation, storage, and management, as well as digital signatures and secure transactions. By using specialized hardware, HSMs offer enhanced security compared to software-based solutions, making them a critical component in safeguarding sensitive information and maintaining data integrity.