tasks: mark vault/key-versioning-rotation completed

Drift items #3, #9, #10: implement the version-indexed key rotation mechanism
(ADR-021). Bump CURRENT_KEY_VERSION to 2 (HD-derived per ADR-020). Add
encryption_path_for_version in derivation.rs, derive_encryption_key_for_version
+ version-aware encrypt/decrypt + rotate method on VaultServiceHandle. Each
version maps to a distinct derivation path; the blob carries its own version.

Refs: docs/architecture/crates/vault/README.md drift #3, #9, #10
Implements: ADR-020, ADR-021

# Conflicts:
#	crates/alknet-vault/src/derivation.rs
#	crates/alknet-vault/src/service.rs

crates/alknet-vault/src/derivation.rs

@@ -51,6 +51,21 @@ pub fn device_path(index: u32) -> String {
     format!("m/74'/0'/0'/{}'", index)
 }
 
+/// Construct the version-indexed encryption key derivation path (ADR-021).
+///
+/// Maps a key version to its derivation path: v2 → `m/74'/2'/0'/0'`
+/// (which is `PATHS::ENCRYPTION`), v3 → `m/74'/2'/0'/1'`, etc. Returns
+/// `DerivationError::InvalidPath` for `version < 2` — v1 is reserved for
+/// the TypeScript PBKDF2 legacy (ADR-020), which the vault cannot derive,
+/// and v0 is meaningless.
+pub fn encryption_path_for_version(version: u32) -> Result<String, DerivationError> {
+    if version < 2 {
+        return Err(DerivationError::InvalidPath(format!(
+            "key version {version} has no derivable path (v1 is TS PBKDF2 legacy)"
+        )));
+    }
+    Ok(format!("m/74'/2'/0'/{}'", version - 2))
+}
 /// A derived extended private key with its public key.
 ///
 /// Contains the private key bytes and public key bytes from
@@ -240,6 +255,37 @@ mod tests {
         assert_eq!(device_path(1), "m/74'/0'/0'/1'");
     }
 
+    #[test]
+    fn test_encryption_path_for_version_v2() {
+        assert_eq!(encryption_path_for_version(2).unwrap(), PATHS::ENCRYPTION);
+    }
+
+    #[test]
+    fn test_encryption_path_for_version_v3() {
+        assert_eq!(encryption_path_for_version(3).unwrap(), "m/74'/2'/0'/1'");
+    }
+
+    #[test]
+    fn test_encryption_path_for_version_v4() {
+        assert_eq!(encryption_path_for_version(4).unwrap(), "m/74'/2'/0'/2'");
+    }
+
+    #[test]
+    fn test_encryption_path_for_version_rejects_v1() {
+        assert!(matches!(
+            encryption_path_for_version(1),
+            Err(DerivationError::InvalidPath(_))
+        ));
+    }
+
+    #[test]
+    fn test_encryption_path_for_version_rejects_v0() {
+        assert!(matches!(
+            encryption_path_for_version(0),
+            Err(DerivationError::InvalidPath(_))
+        ));
+    }
+
     #[test]
     fn test_derive_master_key_from_seed() {
         // Use a known 64-byte seed

crates/alknet-vault/src/encryption.rs

@@ -7,10 +7,10 @@
 //! # Salt Field (Reserved for Future KDF-Based Key Derivation)
 //!
 //! The `salt` field in `EncryptedData` is **reserved for future KDF-based key
-//! derivation** (Phase B). In v1, the encryption key is derived directly from the
+//! derivation** (Phase B). In v2, the encryption key is derived directly from the
 //! seed at path `m/74'/2'/0'/0'` without using the salt. The salt is generated
 //! randomly (32 bytes) and stored in `EncryptedData.salt` for forward
-//! compatibility, but it plays no role in the v1 key derivation process.
+//! compatibility, but it plays no role in the v2 key derivation process.
 //!
 //! When key rotation is implemented in Phase B, the salt will be used as input to
 //! HKDF or PBKDF2 for stretch-based key derivation, allowing the same seed to
@@ -27,11 +27,14 @@
 //! # Key Versioning
 //!
 //! Key versioning allows re-encryption when the encryption key is rotated. The
-//! current key version is `1`. To rotate:
+//! current key version is `2` (HD-derived at `m/74'/2'/0'/0'`). Version `1` is
-//! 1. Derive a new key from a new derivation path or new seed
+//! reserved for the TypeScript predecessor's PBKDF2-encrypted data, which the
-//! 2. Decrypt all existing `EncryptedData` with key version 1
+//! vault cannot decrypt (different key derivation) — migration is a one-time
-//! 3. Re-encrypt with key version 2
+//! re-encryption. Each version maps to a unique derivation path
-//! 4. Update storage
+//! (`m/74'/2'/0'/{version-2}'`, see ADR-021). To rotate:
+//! 1. Decrypt all existing `EncryptedData` with the old key version
+//! 2. Re-encrypt with the new key version (via `VaultServiceHandle::rotate`)
+//! 3. Update storage
 
 use aes_gcm::{
     aead::{Aead, KeyInit},
@@ -42,7 +45,11 @@ use serde::{Deserialize, Serialize};
 use zeroize::Zeroize;
 
 /// Current default key version for encryption.
-pub const CURRENT_KEY_VERSION: u32 = 1;
+///
+/// Version `2` is HD-derived at `m/74'/2'/0'/0'` (`PATHS::ENCRYPTION`) per
+/// ADR-020. Version `1` is reserved for the TypeScript predecessor's
+/// PBKDF2-encrypted data, which the vault cannot decrypt.
+pub const CURRENT_KEY_VERSION: u32 = 2;
 
 /// Encrypted data blob stored in the metagraph.
 ///
@@ -62,7 +69,7 @@ pub struct EncryptedData {
     pub key_version: u32,
     /// Base64-encoded random salt.
     ///
-    /// **Reserved for future KDF-based key derivation (Phase B).** In v1, the
+    /// **Reserved for future KDF-based key derivation (Phase B).** In v2, the
     /// encryption key is derived directly from the seed at path `m/74'/2'/0'/0'`
     /// without using the salt. The salt is generated and stored for forward
     /// compatibility but does not participate in key derivation.

crates/alknet-vault/src/service.rs

@@ -43,7 +43,7 @@
 use std::sync::{Arc, RwLock};
 
 use crate::cache::{CacheConfig, CachedKey, KeyCache};
-use crate::derivation::{self, DerivationError, PATHS};
+use crate::derivation::{self, DerivationError};
 use crate::encryption::{self, EncryptedData, EncryptionKey};
 use crate::mnemonic::{Language, Mnemonic, Seed};
 use crate::protocol::{DerivedKey, KeyType};
@@ -241,6 +241,23 @@ impl VaultServiceHandle {
         })
     }
 
+    /// Derive the encryption key for a specific key version (ADR-021).
+    ///
+    /// Maps `version` to its derivation path via
+    /// `derivation::encryption_path_for_version` (v2 → `m/74'/2'/0'/0'`,
+    /// v3 → `m/74'/2'/0'/1'`, etc.) and derives the key. Cached by path
+    /// (same cache as `derive_encryption_key`). Returns
+    /// `VaultServiceError::InvalidPath` for `version < 2` (v1 is the TS
+    /// PBKDF2 legacy, which the vault cannot derive; v0 is meaningless).
+    pub fn derive_encryption_key_for_version(
+        &self,
+        version: u32,
+    ) -> Result<DerivedKey, VaultServiceError> {
+        let path = derivation::encryption_path_for_version(version)
+            .map_err(|e| VaultServiceError::InvalidPath(e.to_string()))?;
+        self.derive_encryption_key(&path)
+    }
+
     /// Derive a secp256k1 (Ethereum) keypair at the given path.
     ///
     /// Uses BIP-0032 derivation (HMAC-SHA512 with "Bitcoin seed") when the
@@ -284,58 +301,48 @@ impl VaultServiceHandle {
         }
     }
 
-    /// Encrypt plaintext using the derived encryption key.
+    /// Encrypt plaintext using the encryption key derived for `key_version`.
     ///
-    /// Uses the key at path `m/74'/2'/0'/0'` (PATHS::ENCRYPTION) by default.
+    /// Derives the key at `encryption_path_for_version(key_version)` (ADR-021)
+    /// and stamps the same `key_version` on the resulting `EncryptedData`.
+    /// Returns `VaultServiceError::InvalidPath` for `version < 2`.
     pub fn encrypt(
         &self,
         plaintext: &str,
         key_version: u32,
     ) -> Result<EncryptedData, VaultServiceError> {
-        let mut inner = self.inner.write().unwrap_or_else(|e| e.into_inner());
+        let derived = self.derive_encryption_key_for_version(key_version)?;
-        if !inner.unlocked {
+        let enc_key = EncryptionKey::from_derived_bytes(&derived.private_key, key_version);
-            return Err(VaultServiceError::VaultLocked);
-        }
-
-        let private_key = if let Some(cached) = inner.cache.get(PATHS::ENCRYPTION) {
-            cached.private_key.clone()
-        } else {
-            let seed = inner.seed.as_ref().ok_or(VaultServiceError::VaultLocked)?;
-            let derived = derivation::derive_path_from_seed(seed.as_bytes(), PATHS::ENCRYPTION)?;
-            let pk = derived.private_key().to_vec();
-            let pubk = derived.public_key().to_vec();
-            let cached = CachedKey::new(KeyType::Aes256Gcm, pk.clone(), pubk);
-            inner.cache.insert(PATHS::ENCRYPTION, cached);
-            pk
-        };
-
-        let enc_key = EncryptionKey::from_derived_bytes(&private_key, key_version);
-
         encryption::encrypt(plaintext, &enc_key).map_err(|e| e.into())
     }
 
-    /// Decrypt an EncryptedData blob using the derived encryption key.
+    /// Decrypt an `EncryptedData` blob using the key for its `key_version`.
+    ///
+    /// Derives the key at `encryption_path_for_version(encrypted.key_version)`
+    /// (ADR-021). Each version maps to a distinct derivation path, so old and
+    /// new keys can coexist during partial rotation.
     pub fn decrypt(&self, encrypted: &EncryptedData) -> Result<String, VaultServiceError> {
-        let mut inner = self.inner.write().unwrap_or_else(|e| e.into_inner());
+        let derived = self.derive_encryption_key_for_version(encrypted.key_version)?;
-        if !inner.unlocked {
+        let enc_key =
-            return Err(VaultServiceError::VaultLocked);
+            EncryptionKey::from_derived_bytes(&derived.private_key, encrypted.key_version);
+        encryption::decrypt(encrypted, &enc_key).map_err(|e| e.into())
     }
 
-        let private_key = if let Some(cached) = inner.cache.get(PATHS::ENCRYPTION) {
+    /// Re-encrypt an `EncryptedData` blob from its current version to
-            cached.private_key.clone()
+    /// `to_version` (ADR-021).
-        } else {
+    ///
-            let seed = inner.seed.as_ref().ok_or(VaultServiceError::VaultLocked)?;
+    /// Decrypts with the old version's key (`encrypted.key_version`) and
-            let derived = derivation::derive_path_from_seed(seed.as_bytes(), PATHS::ENCRYPTION)?;
+    /// re-encrypts with the new version's key (`to_version`). Returns the new
-            let pk = derived.private_key().to_vec();
+    /// `EncryptedData` with `key_version = to_version` — the caller replaces
-            let pubk = derived.public_key().to_vec();
+    /// the blob in storage. No new mnemonic is needed; the same seed produces
-            let cached = CachedKey::new(KeyType::Aes256Gcm, pk.clone(), pubk);
+    /// all version keys via different derivation paths.
-            inner.cache.insert(PATHS::ENCRYPTION, cached);
+    pub fn rotate(
-            pk
+        &self,
-        };
+        encrypted: &EncryptedData,
-
+        to_version: u32,
-        let enc_key = EncryptionKey::from_derived_bytes(&private_key, encrypted.key_version);
+    ) -> Result<EncryptedData, VaultServiceError> {
-
+        let plaintext = self.decrypt(encrypted)?;
-        encryption::decrypt(encrypted, &enc_key).map_err(|e| e.into())
+        self.encrypt(&plaintext, to_version)
     }
 }
 
@@ -348,6 +355,7 @@ impl Default for VaultServiceHandle {
 #[cfg(test)]
 mod tests {
     use super::*;
+    use crate::derivation::PATHS;
 
     #[test]
     fn test_service_starts_locked() {
@@ -455,7 +463,7 @@ mod tests {
         service.unlock_new(24).unwrap();
 
         let plaintext = "my-api-key-12345";
-        let encrypted = service.encrypt(plaintext, 1).unwrap();
+        let encrypted = service.encrypt(plaintext, 2).unwrap();
         let decrypted = service.decrypt(&encrypted).unwrap();
         assert_eq!(decrypted, plaintext);
 
@@ -579,7 +587,7 @@ mod tests {
         service.unlock_new(24).unwrap();
 
         let plaintext = "cached-encryption-test";
-        let encrypted = service.encrypt(plaintext, 1).unwrap();
+        let encrypted = service.encrypt(plaintext, 2).unwrap();
         assert_eq!(service.inner.read().unwrap().cache.len(), 1);
 
         let decrypted = service.decrypt(&encrypted).unwrap();
@@ -588,6 +596,99 @@ mod tests {
         assert_eq!(service.inner.read().unwrap().cache.len(), 1);
     }
 
+    #[test]
+    fn test_encrypt_v2_round_trip() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let plaintext = "v2 round trip secret";
+        let encrypted = service.encrypt(plaintext, 2).unwrap();
+        assert_eq!(encrypted.key_version, 2);
+
+        let decrypted = service.decrypt(&encrypted).unwrap();
+        assert_eq!(decrypted, plaintext);
+    }
+
+    #[test]
+    fn test_rotate_v2_to_v3_round_trip() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let plaintext = "rotated secret";
+        let encrypted_v2 = service.encrypt(plaintext, 2).unwrap();
+        assert_eq!(encrypted_v2.key_version, 2);
+
+        let encrypted_v3 = service.rotate(&encrypted_v2, 3).unwrap();
+        assert_eq!(encrypted_v3.key_version, 3);
+        assert_ne!(encrypted_v3.data, encrypted_v2.data);
+
+        let decrypted_v3 = service.decrypt(&encrypted_v3).unwrap();
+        assert_eq!(decrypted_v3, plaintext);
+    }
+
+    #[test]
+    fn test_rotate_old_key_still_derivable_after_rotation() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let plaintext = "partial rotation safe";
+        let encrypted_v2 = service.encrypt(plaintext, 2).unwrap();
+
+        let _encrypted_v3 = service.rotate(&encrypted_v2, 3).unwrap();
+
+        let decrypted_v2 = service.decrypt(&encrypted_v2).unwrap();
+        assert_eq!(decrypted_v2, plaintext);
+    }
+
+    #[test]
+    fn test_derive_encryption_key_for_version_rejects_v1() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let result = service.derive_encryption_key_for_version(1);
+        assert!(matches!(result, Err(VaultServiceError::InvalidPath(_))));
+    }
+
+    #[test]
+    fn test_derive_encryption_key_for_version_rejects_v0() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let result = service.derive_encryption_key_for_version(0);
+        assert!(matches!(result, Err(VaultServiceError::InvalidPath(_))));
+    }
+
+    #[test]
+    fn test_encrypt_rejects_v1() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let result = service.encrypt("secret", 1);
+        assert!(matches!(result, Err(VaultServiceError::InvalidPath(_))));
+    }
+
+    #[test]
+    fn test_derive_encryption_key_for_version_v2_matches_path() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let by_version = service.derive_encryption_key_for_version(2).unwrap();
+        let by_path = service
+            .derive_encryption_key(crate::derivation::PATHS::ENCRYPTION)
+            .unwrap();
+        assert_eq!(by_version.private_key, by_path.private_key);
+    }
+
+    #[test]
+    fn test_derive_encryption_key_for_version_v3_distinct_from_v2() {
+        let service = VaultServiceHandle::new();
+        service.unlock_new(24).unwrap();
+
+        let v2 = service.derive_encryption_key_for_version(2).unwrap();
+        let v3 = service.derive_encryption_key_for_version(3).unwrap();
+        assert_ne!(v2.private_key, v3.private_key);
+    }
+
     #[test]
     fn test_unlock_with_passphrase_produces_different_seed() {
         let service_a = VaultServiceHandle::new();

crates/alknet-vault/tests/service_tests.rs

@@ -76,7 +76,7 @@ fn test_encrypt_decrypt_lifecycle() {
     service.unlock_new(24).unwrap();
 
     let plaintext = "my-api-key-12345";
-    let encrypted = service.encrypt(plaintext, 1).unwrap();
+    let encrypted = service.encrypt(plaintext, 2).unwrap();
     let decrypted = service.decrypt(&encrypted).unwrap();
     assert_eq!(decrypted, plaintext);
 

tasks/vault/key-versioning-rotation.md

@@ -1,7 +1,7 @@
 ---
 id: vault/key-versioning-rotation
 name: Implement version-indexed encryption key paths, bump CURRENT_KEY_VERSION to 2, and add rotate method
-status: pending
+status: completed
 depends_on: [vault/irpc-removal]
 scope: moderate
 risk: medium
@@ -124,4 +124,11 @@ decrypt, rotate, derive_encryption_key_for_version), and possibly `derivation.rs
 
 ## Summary
 
-> To be filled on completion
+Bumped `CURRENT_KEY_VERSION` to 2 (HD-derived per ADR-020). Added
+`encryption_path_for_version` in derivation.rs (v2 → `m/74'/2'/0'/0'`, v3 →
+`m/74'/2'/0'/1'`, rejects version < 2). Added `derive_encryption_key_for_version`
++ version-aware `encrypt`/`decrypt` + `rotate` method on `VaultServiceHandle`
+(ADR-021). Each version maps to a distinct derivation path; the blob carries
+its own version. 68 lib + 14 integration tests pass; clippy clean. Merged to
+develop (resolved conflicts with remove-password-derivation and
+poisoned-lock-recovery).