IBM Blockchain Certification Practice Exam 2025 - Free Practice Questions and Study Guide

The advantage of using a hardware security module (HSM) in blockchain solutions is primarily enhanced key security. HSMs are dedicated hardware devices designed to securely generate, store, and manage cryptographic keys. By utilizing HSMs, organizations can protect sensitive cryptographic material against unauthorized access and potential breaches, ensuring that private keys remain secure and are used only in legitimate transactions.

The isolation provided by HSMs also reduces the risk of exposure to malware or other attacks that could compromise keys when managed in software. This heightened level of security is crucial for blockchain applications, where the integrity of cryptographic keys is fundamental to maintaining the trust and security of the entire system.

While the other options may seem beneficial in different contexts, they do not align with the primary purpose of HSMs. Increased transaction speed and improved network speed pertain more to the efficiency of blockchain protocols and infrastructure rather than to key management. Better smart contract functionality is tied to the capabilities of smart contract platforms rather than the role of HSMs. Therefore, the focus on enhanced key security distinctly highlights why employing HSMs is advantageous in blockchain solutions.