Transaction signer
Blockchain Transaction Signer in SettleMint
Blockchain transaction signer
Introduction
A blockchain transaction signer is a cryptographic mechanism used to
authorize and verify transactions before they are submitted to the blockchain.
It ensures that only the legitimate owner of an account can initiate
transactions, thereby preventing unauthorized access and fraud.
Transaction signing plays a crucial role in blockchain security by using
public-key cryptography to create digital signatures. These signatures
confirm transaction authenticity without revealing the sender's private key,
ensuring both security and integrity.
Transaction signing follows these key steps:
- Transaction Creation – The user or system constructs a transaction, specifying details such as sender, recipient, amount, and gas fees.
- Transaction Hashing – The transaction data is hashed to generate a unique digest, ensuring the data remains tamper-proof.
- Digital Signing – The sender's private key is used to sign the transaction hash, creating a digital signature.
- Transaction Submission – The signed transaction is broadcast to the blockchain network.
- Verification by Nodes – Other nodes verify the transaction using the sender’s public key to confirm authenticity before processing it.
By signing transactions locally before submission, users ensure that their private keys remain secure and are never exposed to the network.
Settlemint blockchain platform: transaction signing
SettleMint allows blockchain nodes to automatically sign transactions using pre-attached private keys. This process ensures seamless execution of transactions such as smart contract interactions, token transfers, and API-driven blockchain operations.
The process includes:
- Private Key Attachment – A private key is securely linked to a blockchain node.
- Transaction Request Generation – An application or smart contract submits a transaction request.
- Transaction Hashing & Signing – The node hashes and signs the transaction using the attached private key.
- Transaction Broadcast – The signed transaction is submitted to the blockchain network.
- Network Validation – Other nodes verify the transaction signature before adding it to the blockchain.
The platform supports eth_sendTransaction, enabling automated signing for
transactions on Ethereum-compatible networks.
Attaching private keys to nodes on settlemint
SettleMint provides multiple ways to attach private keys securely to blockchain nodes:
1. SettleMint dashboard configuration
- Users can create private keys securely via the SettleMint UI.
- The private key is encrypted and stored within the node’s secure environment.
2. Hardware security module (HSM) or vault integration
- SettleMint allows integration with AWS KMS, HashiCorp Vault, and other secure key management services.
- This approach keeps private keys off-chain and protected from unauthorized access.
3. Remote signing via API
- Instead of storing private keys on nodes, SettleMint supports external signing services that handle digital signatures remotely.
- This enhances security by reducing node exposure to potential attacks.
Security considerations
When attaching private keys to nodes for transaction signing, strong security measures should be implemented:
- Use Encrypted Storage: Private keys should always be encrypted at rest to prevent unauthorized access.
- Restrict Access Controls: Only authorized applications should have access to the signing key.
- Enable Multi-Signature if Needed: High-value transactions should use multisig wallets for enhanced security.
- Monitor & Audit Transactions: Logging and monitoring signed transactions help detect unauthorized or suspicious activities.