A Demilitarized Zone (DMZ) in the context of cryptocurrency refers to a security measure used to protect blockchain networks and their associated applications. This concept is borrowed from traditional IT security, where a DMZ serves as a buffer zone between an internal network and external threats.In cryptocurrency, a DMZ will often involve segmenting wallets and transaction processes into different layers. This setup helps to reduce the risk of hacks, fraud, or unauthorized access by isolating sensitive components of the system from direct exposure to the internet.For example, a DMZ can include cold storage wallets that hold assets offline, thus minimizing their vulnerability to online attacks. Meanwhile, hot wallets may be used for day-to-day transactions but are placed within this protective area to enhance security.By implementing a DMZ approach, cryptocurrency platforms aim to bolster their defenses, ensuring that even if one layer is compromised, sensitive assets remain protected. This creates a more secure environment for users and enhances overall trust in the platform.