# Hardware Security for the Agentic Economy

**Podcast:** Chain of Thought | AI Agents, Infrastructure & Engineering
**Published:** 2026-07-01

## Transcript

Securing an agent is not something possible.
People who are telling differently, I think they are either a little bit too optimistic or maybe they don't understand what we are talking about.
This is not something that is really possible.
The only way to have very strong security guarantees is to have like dedicated hardware.
And when it comes to your money, the incentives for the attacker are very high, so hardware would be part of the equation.
AI agents are already managing our email, they're scheduling meetings, they helped me write this talk track, and in some cases they're executing transactions, including financial transactions.
Giving an agent access to your systems means delegating execution power inside your security perimeter.
And the current model, with software permissions, API keys, trust scopes, has no physical verification layer.
Maybe it should.
Welcome back to Chain of Thought, everyone.
I am your host, Connor Bronsden.
Today's guest has spent over a decade at the intersection of cryptography and hardware security.
He runs one of the world's most unusual security teams, a group whose job it is to break into his own company's products before attackers do, which is always a blast.
And his view on AI agents and enterprise systems is differentiated from most security leaders that I've talked to.
It's not add AI to the defensive stack, though we may talk about that a bit.
It's rather that the problem is architectural and you need hardware in the loop.
Charles Guimet is CTO of Ledger.
He built and leads the Donjon, Ledger's internal offensive security research lab.
And before Ledger, he spent a decade in cryptography and hardware security, including designing secure integrated circuits at Tiempo.
and working at France's national research organization.
Charles, welcome to Chain of Thought.
Are you joining us from France today?
Yes, definitely.
I'm currently in France.
Fantastic.
Where are you based?
I actually don't know.
I cannot see it.
Ah, okay.
Yes, that is very fair.
And I think that speaks to the security posters that you have to handle in your work.
Yeah, OPSEC is important.
Yeah.
Yeah.
Well, let's dive right into it then.
You know, I mentioned at the start of the show, but why do you think hardware-backed authorization is necessary in today's world?
Yeah.
So let's try to rewind a little bit.
I think AI is a huge opportunity.
It unlocks plenty of new things.
It unlocks plenty of new science.
new research, new use cases, and it's incredibly exciting.
But when it comes to security, it's equally an opportunity and a threat.
I like to say that a system is secure if you achieve to create an asymmetry between attack and defense.
If breaking your system would cost more more dollars than what you could retrieve as an avacor, then your system is secure.
It's the economic angle.
You also have the timing angle.
Like if you need like 10 years to reinforce my password and in five years my account is no longer relevant, then the system is secure.
And before AI, like maybe before last year, Finding vulnerabilities was extremely difficult and exploiting them was also very difficult.
And with AI, all of this is changing rapidly.
And now we see that finding vulnerabilities is very easy.
You just have to prompt Claude and ask it, please find vulnerabilities on this service and make no mistake.
The make no mistake part is important.
And just like this, it will find vulnerabilities.
So if you're a security researcher, you will have more enhanced prompt and better security harness.
Basically, finding availability is trending towards zero, which is an issue because now recreating this asymmetry between attack and defense is incredibly difficult.
And we are seeing this.
We are in the very beginning of a big security armageddon.
We can see this in the blockchain world, in DeFi, but also in every single IT.
Maybe last year, extracting the database of any e-commerce website, no one would do it because it would have taken, I don't know, two months for a talented security researcher.
And at the end, you would have sold the database for 5,000 at Daphnet.
No one would do it.
Now, it costs zero.
So people are doing it.
and we can see that there are plenty of data leaks every day, unfortunately.
So I would just want you to set the scene.
Like we are at the beginning of this very big security armadilene and recreating this asymmetry will be very difficult.
When it comes to your question, definitely agents are very convenient.
Like you just prompt something very high level, you give the high level targets and then the agent will just figure out and execute what you just asked.
But then you have like two main issues.
The first one is the alignment problem.
Like how do you make sure that what you prompted actually matches with what the agent is executing.
And this one is definitely not easy to solve just because the the pinklish language and the french language is not the middle of the country, is ambiguous.
So translating something ambiguous into something deterministic is difficult.
Secondly, agents are not deterministic at all.
There are plenty of heuristic probability, so sometimes they will do exactly what you wanted, sometimes something slightly different.
So this is really the alignment program.
And the second one is a simple security program.
As soon as you want to ask your agent to do stuff with your data or with your value, then it means that you need to provide credentials, API keys, or even your 24 words when it comes to QuickTur.
And by the way, I think really...
the crypto blockchain is the native rails for agents.
Today Visa MasterCards are winning.
In terms of volumes it's pretty clear even if like stablecoin volume is increasing a lot.
But the main reason why Visa and MasterCard are winning is just because they have the distribution and also that the UX is more convenient.
But an agent doesn't care about the UX.
an agent will optimize for speed, for cost, and for that blockchain is definitely more efficient, faster, cheaper, you also have composability and so on.
So there is no doubt that the agentic economy will be on blockchain on it.
And finally, what I wanted to say, so you want your agent to do stuff on your behalf, but you don't really want to give your credentials to your agent.
because switching agents is not something possible.
People who are telling this differently, I think they are either a little bit too optimistic or maybe they don't understand what we are talking about.
This is not something that is really possible.
So what we would like to do is rather like delegating rights to an agent so that the agent can do stuff freely within this context.
So you could define policies and so on so that the agents would respect desk policies.
And above how are your desk policies, then you might want to, as an interviewer, to verify what kind of transactions, we talk about financial transactions, your agent would like to execute.
And then there are two main security problems there.
On one side, you have the policy engine.
It's not that easy to do, like to design a secure policy engine.
For various reasons, again, it's difficult to create intents, like the formalization of intents, and make sure that an intent actually match with a specific action.
creating this formalization is not that simple.
It's doable, but not that simple.
And secondly, when you approve such a policy, how do you trust the system that will approve this policy?
A good idea would be to use a hardware-enforced signature.
So you are using your ledger device, for instance.
to review the policy and sign it so that the policy engine is certain that this policy comes from you and then that your agent can access to a resource that belongs to you.
So this is a model.
And the other one would be the keys themselves.
So again, I wouldn't give my private key, my crypto private keys to an agent.
Because for sure, I would lose everything that is behind this party key.
Either it would do action that I didn't want it to do, or an attacker would be able to prompt inject the agent so that it reveals the keys.
And this is not something hypothetical.
There are plenty of stories like this on the internet.
Recently on Twitter, there was an account that was prompt injected just by tweeting to the account.
And I don't remember how much money they lost.
But again, so you really need to create like a strong field with a policy engine that is harder and fast.
And when it comes to actually sending transactions, then you need an audit.
For me, the good model is really this.
So you create a formalization of intents and policy.
And if you are able to formally prove...
this thing, like this policy engine, I think it's clearly better.
You also need guarantees that this policy engine is properly executed.
So for that, you have like two main ways to do that.
Either you implement the policy engine inside a secure enclave, inside the niche system, a TEE.
TEE is not that secure, but it's better than full software.
Or you could even use like a zero-nage proof to do that.
Zero-nage proof is quite efficient to provide you integrity guarantee on the execution of something and policy engine in particular.
And when it comes to the keys, the keys should live in a secure enclave so that whenever the agent is proposing an intent, it goes through the policy engine and the secure enclave.
receive this approval that comes from the policy engine.
And then the secure and clear can simply issue the signature for the transaction.
So here you have like a full end-to-end security design where you have like a strong guarantee in terms of alignment.
You are sure that the agent is doing an action that is inside authorized action.
And the second one is security, like the keys stay in an enclave and the enclave doesn't sign anything if it's not approved.
So this would be like the ideal design in Zosh setup.
But again, it also depends like what you want to secure.
If you just want to secure, I don't know, like $5 per day, because there is not less than $5, maybe you can put the private key to secure your $5.
inside the agent because you don't really care if it's stolen.
So it's also a trade-off between what you want to secure and how much you spend into the design of the security of your agent engine.
You brought up quite a few very interesting and I think important concepts here that we should drill down on a bit.
One is this idea of the change from developer experience to agent experience and how this enables new payment rails, particularly in the crypto space.
To your point, one of the challenges for a lot of, call it like non-native economy approaches to exchanging economic value on the internet, it has been that the experience has been on other folks.
They're saying, oh, this isn't the MasterCard Visa experience I expect, as you put it.
And, you know, transitioning to something like Solana, Bitcoin, whatever you pick here can be just a, it's got a learning curve, if nothing else.
Whether or not the actual application is developed well, whether or not the rails are developed well, even if they're faster, even if they have cryptographic benefits.
uh there are challenges there but now with the preponderance of content out there about how to operate you know i'll take a solana wallet here as an example because it's you know one of the more popular currencies that has high speed and low transaction cost and it is there is a whole concept now at agentic capital that has been discussed because we are now designing for agent experience and they are able to go execute these things on our behalf But to your point, this creates a lot of risk.
And you brought up another really interesting concept here around this idea of zero-knowledge proofs and actually ensuring that agents have authorization or humans and their agents have authorization in these areas.
Can you expand a bit on what's actually required to validate success here and maybe talk a bit about how at Ledger, hardware is built into that workflow of validation?
Yeah, sure.
So for the first item, I think it's really important to highlight this.
Today, we don't even notice this anymore, but we are using always the same rails when it comes to payment, financial transactions, just because we are used to it.
But they are far from perfect.
You cannot do a wire transfer outside of weekdays, outside of business hours.
It takes several days.
It's costly.
Like all of this same with Visa, Mastercard and so on.
But we are just very used to it.
And this is the reason why we use them.
When it comes to...
But when you want to use your money, you don't really care about this raise.
You are just used to it.
But now, tomorrow, you are going just to prompt your agent to buy a flight ticket.
And you don't you you won't say to your agent, please use this credit card or this account or whatever.
You just want to pay.
OK, and the agent will just like create this abstraction layer so that you don't even have to think about where your money is and so on.
You just want your money to be secure and your transfer to be fast, cheap.
You don't want to have high fees and so on.
And the complexity of the UX and the learning curve and so on, you don't care.
it's the problem of the agent and by the way for the agent it's not the crawler.
All of this is the same.
Visa is not more complex or more simple than using Savannah or whatever L2 on Ethereum when it comes to paying anything.
So let's really think like this.
And when it comes to the benefits as a user, it's faster, cheaper, composable and so on.
Everything is better.
So on this, I think there was really no doubt.
it's really just a matter of time but agent will use wallets like everywhere to do to finish the transactions and and the second uh the second is really about like the having uh guarantees in the execution of of code again again this is really what we what we want to achieve and at agent we are using like a secure enclave for two different things so a secure enclave is is a piece of hardware that has different guarantees.
And the main guarantee is, the main guarantees are on one side, you have the confidentiality of the secret that you put inside.
So at Ledger, we are using two types of security.
We are using a secure element.
This is a tiny integrated secret that you find in your passport or in your banking cards.
but also in the ledger product, for those who can see the video, this is one of the ledger product and inside this there is a secure element.
So it's a very tiny chip and an integrated circuit that is completely designed for security.
You don't have much flash, you don't have much RAM, you just have like strong security guarantee because the attack surface is very small and also because it was designed for security.
So we are using SecureElement and on the other side we are using HSM.
HSM stands for Hardware Security Module.
So it's basically like a secure server that we are putting in some dedicated data center and the same happens like a very small attack surface dedicated for security and we are using both of them.
And SecureEnclave, we are using them to have like two properties.
The first one is the confidentiality of the secrets.
So secrets are generated inside the enclave and they never leave the enclave.
Like it's really a tunnel grave, like the secrets stay there and even if you have like an attack, even if you have a physical access to the city ornament or the HSM, it would be like incredibly difficult to extract the secret.
So they are really designed for that.
And secondly, the cryptography is implemented inside the Enclave so that as a user, as a developer, you don't have to ask the Enclave the secret to compute cryptography.
You just ask for cryptography services.
Please assign this transaction.
Please encrypt this message.
Please.
So this is really like the model.
And the second property that we like with Enclave is the fact that you have strong guarantee that the code that is executed inside the Yonkli has not been tampered with.
And this is quite important because in most attack vectors, the thing is you have some program that runs on the machine and quite often, very often, you have an attacker that has another process and try to change the way the main program is running.
so that the program is doing something else.
And that's really how the hack works.
When you are trying to access a database, what you are going to do is to talk with the backend and inject specific vectors so that the program that is managing the data lays behaves differently.
And then, as a data taker, you can access the data post.
So this is really the idea.
And the secure enclave is very good for that because it really prevents another program, another attacker, to modify the execution of the program.
So this is really the kind of guarantee you have.
The program that is running inside a secure enclave, you have execution integrity guarantee that are given by Django.
However, you can also use like...
Zero Knowledge Proof to do that.
Zero Knowledge Proof is a very interesting cryptographic tool.
At the beginning, that was designed for a very different reason.
Zero Knowledge Proof were designed in order to create a proof of a property without giving you information on the data itself.
So let me give them that.
an example with zero knowledge proof I can prove that I'm 18 without revealing my dust state.
So this is the kind of property that you can achieve and as an observer I just have to verify your proof and I'm certain that you didn't lie.
There are plenty of such examples like if for instance I would like to compare my salary with yours But both of us don't want to share our satellite.
So what we can do is ask a prover to create a zero-nage proof of this comparison.
So this is really what zero-nage proofs are designed for.
And the thing is, you have this anonymity property, which is great, but you also have trusted execution quality.
For instance, like...
the simple program I mentioned at the end is a program that is doing a comparison, but at the end the proof gives you a strong guarantee that this comparison was executed properly, like no one can lie.
So that means that you could use a zeledge proof to create some kind of virtual processor where the execution will be done with a proof.
And at the end, as an observer, even if you don't really know what happened in the processor, but it's not the property that we are looking for, you don't really know what happened in the processor, but you have a strong guarantee that it happened properly.
No program tried to inject anything inside in order to change the execution of the program.
So this is the property that is interesting in the zero-nage approach.
Today at Ledger, we don't really use ZeroNedgeProof directly.
We are interacting with different blockchains that are using ZeroNedgeProof for different reasons, for both reasons I mentioned.
Sometimes it's for privacy, sometimes it's for compressing the states of the blockchain in order to have a better scalability of the blockchain.
So we are interacting with ZeroNedgeProof, but we don't use ZeroNedgeProof at the device level yet.
But this is an interesting area of research and we have a couple of teams that are working on this.
And for instance, for the design of the policy engine that I mentioned before, this could completely run inside the Zero Edge Proof system so that at the end you just have a proof that your agent is actually authorized under your policy set to do this specific action.
And you don't even have to verify all of this.
You have just a proof.
You give it to the resource that will sign a transaction.
So this is a possible design that we are working on.
Yeah, I think zero net or zero knowledge proofs are really fascinating for this space because it just enables so much behavior that you couldn't otherwise.
I mean, you brought up early in the show OPSEC where you're like, yeah, I'm in France, but I can't really share my location.
I think it's interesting to think about these concepts and then apply them to the idea of this agentech economy, which we, I think most folks on the show are convinced we are heading into or already starting to see.
We're seeing agents rolled out around the world.
People are using them all the time.
They are increasingly being put into products where people don't even realize it's necessarily an agent on their behalf, depending on, you know, how involved they are with it.
And being able to...
prove the agent's capabilities and capacity to do something is really important.
So, I mean, the example I've always loved is the idea of like, if I have a safe that you can observe me unlocking, you can see that I've managed to unlock the safe, whether or not you actually get to see the combination.
And I can now validate that, hey, I have the ability and the right to do this, or at least I have the capacity to do it.
Whereas you don't necessarily need to know how explicitly it gets done.
And this is really important.
We're thinking about the operational security for agents and given how non-deterministic they are, given their ability to go out and cause trouble as well as do a lot of very positive things for us.
I think it's very important.
So while I think there are many people who are listening to this show, or I think probably most who are thinking, okay, yes, agents are going to take over.
We're going to use them for so many things.
Totally agree with that.
I'm not convinced, and maybe my listeners will prove me wrong on this, that they all agree with us that the next phase of the economy is going to include agents driving financial transactions and in particular driving financial transactions on the blockchain.
That's something I've started to dig into and I'm becoming increasingly convinced, I think you're farther along than I am on this, that there is a need for much faster, much more efficient payment rails for the agentic economy.
And it seems like some of the technologies we have in the blockchain and crypto space are going to enable that, both from a validation perspective.
It feels like it's almost been waiting for this agentic economy, in my opinion.
But I know there are listeners who are going to push back on that and say, oh, this doesn't make sense.
What would you say to folks who are in on AI and are saying, yes, agents are where we're going, we're building them, we're interested, we think this is happening.
but aren't ready to take the next step and say, okay, financial transactions are going to be managed by agents too.
And by the way, the payment rails need to change to enable that.
How would you communicate with that maybe skeptical audience?
Yeah, sure.
So first of all, the reason why people could be skeptical that agents won't do a financial transaction for them, this reason is just about security.
This is just a matter of security.
you say an agent buy this flight for me and at the end you are sure that the agent will do whatever you wanted and won't lose your money, then there was no problem with that.
Like you prefer saying to an agent that you want to fly to New York on the 25 of this month rather than going on the website and selecting all of this that takes time, the other direction and so on.
So if people are ripped into that, just because they have a tower.
that something could go wrong.
So definitely, and they are correct.
For now, it's possible to do it, but not that safe.
So we as a community, as a negotiation team, we need to make this experience safer and more secure.
And when we get there, people will be more at ease to do that.
And it completely reminds me, so I'm starting to be old.
It completely reminds me at the beginning of the 2000s when people were reluctant to buy anything online.
That was the case.
People were like, oh, I'm going to lose my credit card information.
I'm going to lose money.
No one will deliver my pocket at home.
So that was really the atmosphere at the time.
And now no one has any doubt about that.
This is the normal way to buy stuff on the internet.
People, humanity needs time to process, to understand how new technology works and so on.
The thing is that now everything is going faster.
So the adoption would be clearly faster.
So you have the security and the safety part.
And to your point about blockchain as a payment rail, a financial rail, So again, what's the reason why people have doubted that?
So either it's a matter of security, maybe, or it's more a problem of knowledge.
Like they don't know how blockchain works, how a wallet works, there is some friction, what about the UX?
But first of all, people have no idea how Visa and MasterCard works.
You don't have to understand the blockchain to use it.
You don't have to understand Visa to use it.
There is this first thing.
And second, when it comes to the UX, which I think is the biggest issue today.
So people are reluctant to using blockchain just because the UX is different.
It's new.
It's not always perfect.
I have some emirates, and we are trying to prove it, obviously, at Ledger.
But today, it's not completely...
Perfect compared to the traditional payment rails, let's say.
But again, when it comes to the agentic economy, like your agent doesn't care at all about the UX.
Your agent will optimize for cost and blockchain costs nothing.
But you can send 1 million, 1 billion, whatever number of dollars you want.
everywhere around the world for less than a cent.
This is something that's possible with blockchain, not in the future, like now.
Like if you have a billion, you can send it, send it to Mexico in less than a second for less than a cent.
But to your point, the challenge has been, is that secure?
Can we trust it?
And that's where I think there's plenty of innovation happening in crypto space, but also, is it accurate?
Am I sending it to the right wallet, for example?
And so I think this is where exactly what you're talking about as far as...
You know, we have to be considering what's going to block agents and blocks humans from trusting those agents.
So I love that you're drooling in on that.
Sorry to cut you off.
No, this is a very, very fair summary.
So we need to fix the safety and security problem so that as a human, you have strong guarantees that your agent will do exactly what you want and not something slightly different.
So this is the first thing.
And for the rest, it's just a matter of adoption.
And adoption will be very fast.
And again, at some point, humans won't even know on which rails it happens.
Because by the way, there is no one blockchain.
There are thousands of blockchains.
Some blockchains are faster.
Some others are stronger, more secure.
So again, this would be completely abstracted.
And at the end, also there were questions of liquidity.
Like for instance, you want to get a yield on the dollars that you have on your wallets and you don't know where the best yield is.
So maybe you can ask your agent to do the best safe yield and you want to get a yield on 10,000.
And this is your prompt.
And as long as it's safe and secure to be a discount transaction, the agent will find that today on Arbitrum, the Morpho vault number 32 gives you 8.3% with limited risk.
And that's it.
You sign the transaction and you don't have to care about it.
Because today, if you want to have a yield on your money and your bank account, You have a big problem to understand that if you're listening to bond or study, but people trust more because they are more used to it and so on.
So I really think it's a matter of changing the mindset, but also at the same time that making sure that we have safety and security in this process, which is not completely the case yet, we have to admit it.
Yeah, you mentioned that you think this...
process is going to happen really fast, where we're just going to see this back-end transition as agents go, oh, well, this is just more efficient for us.
It's more useful.
But there is this trust barrier, right?
Which is why we're talking about security, why we're talking about safety.
How do we solve this trust barrier?
Is it just down to, oh, we have to redesign our security systems and add hardware in the mix with this hardware authorization?
Or are there software security approaches that can get us most of the way there?
When do folks need to take the leap?
to this deeper design and how is that design going to actually enable this agentic capital explosion?
Because I think there is some risk that, you know, we are set up to have this explosion of new ways of paying or at least ways of paying that have not been as popularized where agents are now using all these payment rails, but there are too many security and trust concerns.
for that explosion to happen.
So there's a blocker for at least quite a while until they figure that out.
So that's the reason why we created Ledger again, because we strongly believe that the only way to have very strong security guarantees is to have like dedicated hardware.
And it seems that we were right, like the story gives us right, let's say.
Yeah, so this would be my premise.
However, sometimes having something that is fully software might be sufficient, depending on the use case.
So maybe you could give your agent direct access to, I don't know, your Instagram account.
It depends on how important it is for you.
And without hardware garages, If your Instagram account is very important, maybe you don't want to do that better.
So it really depends on the level of security that you expect.
And depending on this, if you really don't want to lose access, you really don't want to lose credentials or money, then you will need it at some point to have the hardware rudder to us in the mix.
And when it comes to...
your money, the incentives for the attacker are very high, so hardware would be part of the equation.
So I almost want to say that what you're doing by adding hardware into the authorization layer for this is injecting a determinism layer, because we've talked a bit about how agents are non-deterministic.
That topic has been discussed ad nauseum.
But they're capable of incredible things because they can do things we didn't expect, which is both great and something we need to govern and guardrail against.
And so I think what you're saying is, okay, let's inject a level of determinism where there are simply constraints based off of the hardware authorization that is provided, where an agent has to operate within those constraints.
Because...
While we have implemented governance frameworks, observability, and all these things, getting to the 100% accuracy that we would expect for large financial transactions, or let's say at least 99%, maybe nine nines, is truly impossible when you're looking at non-determinism if there is not some sort of hard barrier in place.
Yeah, I think it's another way to put it.
Definitely hardware gives you determinism.
Determinism because everything is set in stone, the hardware at the origin.
It's physically set in stone.
Or metal, but yeah.
Yeah, metal, let's see what I mean.
And the second one is the...
the execution integrity guarantee that I was talking about before that you can have with a CK enclave or with ZK.
So that's also why I like ZK because it provides like determinism plus like execution integrity guarantee.
But at the end, the hardware will stay necessary at least for secrets.
So I think the counter argument some folks would use is that, oh, hardware is expensive.
And, you know, wait a second, we're just talking about, you know, speed for agents.
And now we're slowing things down by adding this additional layer.
And in my head, it's like, okay, well, maybe that's reasonable for transactions that are a certain size initially, right?
To your point where it's like, oh, if it's five bucks a day, do I care that much?
And maybe not, depending on my level of risk factor or my level of care.
But There is certainly like a minimal viable version of this too.
How are your team at Ledger currently using hardware authorization internally?
I think that could be informative to understand.
Yes, it's a very good one.
For instance, we are using internally like Ledger devices when it comes to authenticate to critical system.
So inside the Ledger device, so Ledger devices are very well known for storing and merging your crypto.
But at the end.
Inside the device, there is a processing system that allows you to load different applications.
And so Bitcoin, Ethereum, Solana are applications, but you also have non-quictor related applications, such as passkeys, for instance, like a security key, it's the name of the application.
And it implements passkey.
So passkey is a standard that allows you to authenticate yourself, not using the password, which is always rich.
but using the asymmetric cryptography and so we are using internally hardware to do that.
You can also use your hardware to sign your commit as a developer for instance and it's always a good idea if you want because like I was talking about the security problem that we have because of PI and this problem is everywhere we talk about like vulnerability research it's a big one but also the integrity of your supply chain is a big one.
Like how are you sure that the commit that was pushed on production comes from the developer you we wanted to.
And in order to do that, the way to ensure this is to assign commits, assign releases.
And I pleasure when we just assign commits or releases, like at this releases, not every single commit assigned.
with hardware.
They are also not with hardware.
Not always with hardware.
When it comes to releasing a critical piece of software, we are using our devices internally to verify what we are assigning and what we are going to push to production.
And it's very important because otherwise an attacker could, I don't know, pretend being ledger and create a validation of our firmware or our little wallet or whatever.
Even worse, an internal attacker could be hired, recruited by Ledger and then try to do insider threats.
And for this, we have corums internally to avoid that no one can push a release in production without...
the review of other depot in the corn.
So we have different cones for the different things.
And all of this is made at Ledger using our devices, our hardware devices, because this is the only way to outbreak.
Yeah, I think it's really interesting to think about in that scenario where, like, yes, it's...
you're still at risk for a bad actor within the company who gets access to hardware devices.
But the point is they have to physically get access.
It's a lot harder than having someone simply spin up a thousand or tens of thousands of AI agents to, you know, go attack different areas.
It makes it so things like the mythos challenge that I think many of us are thinking about as that has been running around the security industry.
are much more difficult where okay even if you string together some vulnerabilities if there is a physical wall here can you actually solve for it and we're seeing these concepts before right like we've talked about having multiple points of validation there's a reason we have thumbprints or you know face locks and these other types of validation that are trying to use your own physical attributes now some of those are scammable in a variety of ways they are a variety of ways harder or less hard uh to to beat but there are also this idea of like physical pass keys that you're starting to see anyone who's using like google password managers is starting to see pass keys as an option to sign in and you know obviously there's synced software pass keys you can use and there's also hardware device bound pass keys but can you talk a bit about really what makes the hardware authorization approach that ledger is taking more secure and why i i guess like maybe talk talk about like how it enables this deeper level of security and where you think people should be using it today because i i i want to kind of paint a picture for our listeners around okay as we make this transition into an agentic economy if they have come along with us in the story and they're like okay i'm buying in How should they be thinking about this today and what it enables for them?
Okay, I'm going to try to answer this one, but it's not easy because there is no definitive answer to that.
It's really a matter of understanding your threat model, your trust assumption, classifying data, classifying risks, and depending on all of this, then you will define different levels of friction and security to secure the different assets.
So that would be my answer.
So in order to give it a bit of flavor to that, something that is a low value in terms of like confidentiality, integrity, and so on, might be only secured by software and access control.
Something that's starting to have more value, you might want to use like a hardware with like a only hardware that can automatically sign so that you have like keys like a HashiCorp Vault for instance like this kind of oracle that can sign data on your behalf so that the keys are secure but not the execution so in some time a bit more secure so it really depends on the use case where like the level the next given would be like this is something that is very important to to lose the confidentiality or to lose the access to the display speed data, then you will need secure hardware with a screen where you verify what you are doing.
And the last one would be like the same thing using hardware with secure display, but in a multi-simileger seller, meaning that in order to sign the release of the firmware of Ledger devices, this is actually what we are using.
We are using devices with a screen where we can verify what we sign in the Muxysic Sedat.
So meaning that we need to reach a quorum in order to sign the release of the firmware before putting it in production.
So I try to take like four examples where you have a different level of security depending on the asset that you want to protect.
But at the end, this classification is very personal.
This is my view on the classification of video assets.
So maybe another CTO would see things differently.
And same.
And from the personal standpoint, I was talking about Instagram.
For instance, the access of my Instagram account.
I don't have Instagram, but my Instagram account wouldn't be that important.
So maybe I would only put the same password.
We couldn't be that ugly because of imposter, like the scammers and impersonations.
But when it comes to, I don't know, my crypto, then I would add like a music setup or kind of thing.
But again, so to me, when it comes to my Twitter account, I have two FA and the second factor of authentication is hardware.
So again, it really depends on the value that you put behind or to secure.
Charles, I really appreciate you bearing with me because I know I've given you some very broad questions that you have answered extremely well.
And I have to credit you, I had quite a few more specific ones in the talk track that we kind of talked through for the episode.
But because you have brought up so many interesting, wide-ranging concepts, I think we have this fascinating thought piece that is kind of formed within this around what does the agentic economy look like?
you know, will it be on new pavement rails?
I think we both think probably yes, at least over time.
And how will that structure look like?
Because it's pretty clear to anyone who is dealing with AI and security today that yes, you can now patch vulnerabilities and catch them.
But if a mythos-like model or something stronger, it gets out into the wild and begins to go after folks, defenders are simply going to be overwhelmed.
You can spin up more attackers.
You can now find vulnerabilities that you wouldn't otherwise be able to find, you can now map them together in ways that give you access you shouldn't be able to have.
And there is simply a larger attack surface growing than any team can watch for right now.
There's a problem to be solved here.
And the asymmetry I was talking about earlier doesn't exist anymore because the counter, you know, could be, oh yes, like the defense attackers have like LLN, but defense as well.
Yeah, but that means there was no asymmetry anymore.
That means there was a symmetry.
And the symmetry is not for the, is not on the advantage of the defense because the attacker has only to find one vulnerability while the attacker, while the defense needs to be like 100% secure.
It's very asymmetric to the advantage of the attacker.
So this is really the new reality.
Yeah, especially with the proliferation of deep fakes, whether it's on voice, video text.
There's just a scale and quality to that that is making traditional verification approaches unreliable, even if you have multi-factor authentication already.
How long is that going to hold up in the face of the ever-expanding attack capacity?
It's going to be a really interesting thing to watch, but it's also potentially very dangerous for us from a financial standpoint.
We've talked a little bit on this show, not a ton, about...
the concept of scams for folks, whether it's like, it's very easy for someone to clone my voice, especially because there are so many podcast hours of me now out there.
They can easily clone my voice.
They can call my grandmother or my bank.
They can use that.
And the validation systems that we are trying to use to catch up to that are struggling.
Though I'll say I invested in a great startup, Scam.ai, that's doing great work here.
I mean, there's just so much out there.
It's hard to stay on top of it.
And I love that you are taking this unique and interesting approach to how to solve it.
Charles, thank you so much for joining us today.
It's been fantastic having this conversation.
I'm hoping our listeners are going to have a ton of value and interest out of this.
What are some closing thoughts you want to share with the audience about how they should be thinking about the new agentic economy and how to stay safe in it?
It's a difficult one to conclude.
So we said plenty of like worrying things.
I strongly think that we are entering into a difficult era where we will have a wave of security issues every day.
I strongly think that it's going to be difficult, at least for the coming months and years.
So that means that every company needs to raise the bar for security and not only companies, but also individuals.
Unfortunately, we're going to have to get better at security.
Stop using the name of your cat as your main password for every single cell that you are using.
So use hardware, the second factor of transcription when possible and so on.
So I cannot say it's enough.
But on a more positive note, because everyone is seeing the threat into AI, for me AI is the is the most fascinating technology that we saw in my whole life.
It's really exciting what is possible with AI.
There's plenty of new opportunities.
All the progress that we made in research in only a few months with the last Frontier model is already amazing.
So I'm really excited to see what kind of innovation we would do with AI in the near future.
So I'm really more excited by the opportunity that AI is providing rather than the issues that come with.
And security is a big one, but let's see the positive side of things.
Love it.
And I highly recommend folks who enjoyed this episode to check out Ledger at ledger.com.
And I would also recommend Charles' Twitter account.
Charles has some really interesting content out there.
He's rather popular, though he may not say it himself.
And I believe that's at P3B7 underscore if you want to find him on Axe.
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We appreciate you so much.
Charles, thank you so much for joining us.
It's been fantastic having this conversation and really appreciate it.
Thank you for having me.