You do not have to use a Smart Token with Constructive Key Management(CKM), but it is recommended that you do so. All of the CKM functions can be performed on a desktop computer, but all of the protocols and keying material would have to be stored on the hard drive in the form of a virtual software Token.
One of these “virtual” Tokens is less expensive and more convenient to send over a network for pilot and test phases than a Smart Token. It is not, however, convenient to move from computer to computer, it cannot serve as portable data storage and it does not provide the same high level of security that a Smart Token does. The Smart Token is specifically designed to resist attack and will not divulge its secrets or permit modification of its contents.