What device is designed to perform cryptographic operations and protect sensitive information such as passwords?

The Trusted Platform Module (TPM) is a specialized hardware component designed to enhance security by performing cryptographic operations and safeguarding sensitive information such as passwords and encryption keys. It is embedded in the motherboard of a computer or device, ensuring that it remains secure even if the operating system or applications are compromised.

TPMs are used to generate, store, and manage cryptographic keys and can provide functionalities like secure boot, disk encryption, and integrity verification. Consequently, they help protect the integrity of the hardware and the operating system by attesting to the state of the platform.

While other devices mentioned also play roles in securing information, their primary functions differ. Smart cards and security tokens are designed for user authentication, typically by storing a user's credentials securely or generating one-time passwords but do not specifically focus on broader cryptographic operations at the system level. Hardware Security Modules (HSMs), while also focused on cryptographic tasks, are often used in enterprise environments for managing and safeguarding keys but are larger and typically not embedded directly in consumer devices. In contrast, the TPM is integral to the security architecture of a device, making it the most suitable choice in this context.