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FAQ

Clear answers onblockchain and AI security.

We answer the questions that banks, fintechs, asset issuers and AI teams ask most, in plain English. Each answer links to a guide with more detail.

01 / 05

Blockchain for business

When a ledger is better than a database, how consensus works, and what it takes to run your own chain.

Is a private blockchain just a shared database?

No, not when several organisations must share one record and no single one must control it. A database has one owner who can change any row. A permissioned blockchain gives every participant a copy, and known validators agree on each change. History is tamper-evident. If only one company writes the data and everyone trusts it, use a normal database.

Permissioned vs permissionless blockchain

When should a company not use a blockchain?

Do not use a blockchain when one party owns the data, nobody else checks it and records change often. A blockchain is useful when several parties must trust the same record. It is also useful when settlement must be final, or when an auditor needs proof that nobody changed a record later.

How to choose a blockchain development company

How does consensus work on an enterprise blockchain?

The validators are organisations that everyone knows, and each one has an identity certificate. They use a Byzantine fault tolerant protocol to agree on the next block. The protocol continues to work when some validators fail or act badly. Hyper 0X uses asynchronous BFT with deterministic finality: when the validators agree on a block, it is final in one pass.

Blockchain finality explained

Should a company launch its own L1 or an L2?

Most companies need an L2. To run an L1, you must find and coordinate independent validators for years. An L2 gives you your own rules, privacy and capacity, and a shared L1 gives security and settlement. On Hyper 0X, every customer gets a private L2, and we run the L1 for them.

Layer 1 vs layer 2 blockchain

How does a blockchain handle GDPR and the right to be forgotten?

Do not put readable personal data on the ledger. Keep the data off the chain or encrypted. Put only a reference or a fingerprint on the chain. When a person asks for deletion, destroy the key, and the data becomes unreadable. Regulators still change their guidance, so get legal advice for your case.

Blockchain data encryption: the four layers

What decides how much a private blockchain costs?

The scope decides the cost more than the technology. Count the organisations that take part, the systems to connect, the compliance rules to apply and the security reviews to do. A chain on an existing L1 costs much less infrastructure than a new chain. A small pilot is the cheapest way to get a real number.

Custom blockchain development

02 / 05

AI-agent security

Prompt injection, permissions for tool calls, costs that run out of control, and how to audit what an agent did.

What actually works against prompt injection?

Use layers, because no single filter catches every attack. Check inputs and tool outputs for injected instructions. Give each agent only the permissions that its task needs. Limit where it can send data, and get a person to approve risky actions. Log everything. Then an injected agent cannot do real damage.

What is prompt injection?

How do you enforce permissions on AI agent tool calls?

Put a gateway between the agents and the tools. The gateway checks each call against the policy for that agent. The policy sets the tools, the valid arguments, the data that can leave and the spend limit. Calls that pass go through. The gateway blocks the other calls, gives a reason and logs the decision.

AI agent tool calling security

How do you stop AI agents from running up huge bills?

Give every agent its own budget, and enforce it outside the model. Set token and spend limits for each task and each day. Limit retries, find loops and compact the context. A provider dashboard shows the spend after it happens. A gateway stops the call before it happens.

Pavii: security gateway for AI agents

How do you monitor AI agents that take real actions?

Record every action: who asked, which agent acted, what it had permission to do and what happened. Chain each entry to the entry before it, and anchor the chain on a blockchain. Then a deleted or changed entry shows as a gap.

Proof of execution for AI

What is excessive agency in AI?

Excessive agency is one of the top security risks for apps built on large language models. It means that an agent has more functions, permissions or freedom than its task needs. Then a mistake or an injected instruction can cause real damage. To prevent it, give the least permissions, use narrow tools and get approval for actions with a high impact.

How to secure AI agents: 8 attacks

How do companies stop sensitive data reaching external AI models?

Send all model traffic through one gateway. The gateway finds personal data and secrets and removes them before a prompt leaves. It also records who sent which data to which model. Then block AI tools that are not approved at the edge of the network.

How to stop LLM data leaks

Can an AI agent be trusted to spend money?

Yes, but only inside limits that the agent cannot change. Give it a fixed budget and a list of allowed payees. Get a person to approve payments above a set amount, and keep a receipt for every payment. Keep these rules outside the agent, for example as a contract on a ledger. Then a compromised agent still cannot spend too much.

AI-agent security services

03 / 05

Asset tokenization

What tokenization really changes, which chain to use, and which parts are difficult.

What is the difference between asset tokenization and security tokenization?

Asset tokenization is the general idea: you show any asset, such as gold, invoices or property, as a digital token. A security token is a tokenized asset that is a security by law. So securities rules apply when you issue, sell and transfer it.

Which blockchain is best for tokenizing assets?

Check five things. Check privacy for holders and final settlement. Check that compliance controls are part of each transfer. Check that the chain connects to the places where the asset will trade. Check that you can hold the operator to account. Regulated issuers often use a permissioned chain with bridges to public networks.

Asset tokenization services

Is owning a token the same as owning the asset?

Only if the legal documents say so. A token is a record. Its rights come from the legal structure behind it, often a special purpose vehicle that holds the asset. Good tokenization connects the record on the chain to legal rights that a court can enforce.

Asset tokenization guide

What is the hardest part of tokenizing real-world assets?

The technology is rarely the hardest part. The hard parts are the legal structure, the custody of the asset, the onboarding of investors and real demand for the token. Plan these first. Write the smart contracts last.

04 / 05

Wallets for business

Custody models, recovery without seed phrases and the standards behind smart accounts.

How can I tell if a wallet is really non-custodial?

Ask who can move the funds without the user. If the provider holds a key, or a key share that it can combine with another share it controls, the wallet is really custodial. In a non-custodial wallet, only the keys or devices of the user can approve a transfer.

Custodial vs non-custodial wallets

What is the difference between MPC, multisig and smart account wallets?

An MPC wallet splits one private key into shares that different parties hold. A multisig wallet needs several separate keys to approve a transaction, and the chain enforces this rule. A smart account is a contract wallet with rules that you can program, such as spending limits, recovery and paid gas. Many business wallets use more than one of these.

What is the difference between ERC-4337 and EIP-7702?

ERC-4337 adds smart contract accounts to Ethereum without a change to the protocol. It uses a separate flow of user operations. EIP-7702 has been live since the Pectra upgrade in 2025. It lets a normal account delegate to smart contract code, so existing addresses can get smart-account features.

Account abstraction without seed phrases

Can you recover crypto if you lose your seed phrase?

Usually not. Paid recovery services that promise to recover your crypto are a common scam. The solution is prevention. A smart account can add recovery through trusted devices, guardians or a passkey. Then a lost phone does not mean lost funds.

Are passkeys safe for crypto wallets?

Yes, when the wallet supports them correctly. A passkey signs with a key that never leaves secure hardware, and nobody can steal it with a fake login page. A synced passkey is easier to recover. A passkey on one device is stricter. A good wallet adds a separate recovery path to both types.

Hyper Wallet & SDKs

05 / 05

Post-quantum security

What quantum computers can break, what they cannot break, and why hybrid encryption is the safe default.

Can quantum computers break blockchains?

They can break some parts. A large quantum computer can forge the digital signatures that protect wallets today. Hash functions are much stronger against it. Also, an attacker can record encrypted data today and decrypt it later. This risk is largest for private enterprise records.

What makes a blockchain post-quantum-resistant?

Is Bitcoin quantum resistant?

Not yet. Bitcoin signatures use elliptic-curve cryptography, and a large quantum computer can break it. The risk is highest for coins whose public keys are already visible on the chain. A move to post-quantum signatures needs an upgrade of the full network, and that is still under discussion.

Is SHA-256 safe against quantum computers?

Mostly, yes. The best known quantum attack on hash functions, Grover's algorithm, cuts the effective security in half. SHA-256 still keeps a very large margin. Signatures and key exchange are the parts to replace.

What is ML-KEM?

ML-KEM is the post-quantum standard for key encapsulation. NIST published it as FIPS 203 in August 2024, and it is based on the Kyber algorithm. Two parties use it to agree on a shared secret. Nobody knows a way for a quantum computer to break it.

Why combine X25519 with ML-KEM instead of using ML-KEM alone?

Two locks are safer than one. X25519 has resisted classical attacks for decades. ML-KEM is designed to resist quantum attacks. A hybrid key exchange stays secure while either one holds. So if someone finds a flaw in the newer algorithm later, your data stays protected. Hyper 0X uses this hybrid on every connection.

Hyper 0X

Do we need post-quantum encryption now?

Yes, if your data must stay secret for years. Attackers can record encrypted traffic today and decrypt it when quantum computers are ready. Add the years that your data must stay secret to the years that a migration takes. If that total is longer than the time until such computers exist, you are already late.

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