Files
alknet/docs/architecture/decisions/026-vault-key-model-hd-derivation.md
glm-5.2 cb98f42cd4 docs(architecture): resolve review #002 remaining Tier 4 findings
Add ADR-026 (vault key model — HD derivation) recording the foundational
HD-derivation decision, 74' coin type reservation, SLIP-0010/Ed25519
default, secp256k1 feature-gating, and AES-256-GCM cipher choice. These
were previously inline rationale with no ADR (W9).

Extend ADR-018 with an explicit EncryptedData wire format lock — fields,
encoding, and semantics are frozen; no removal without a format-version
migration (W10).

Resolve the remaining guard clauses and spec decisions:

- W2: Capabilities must be immutable after construction (no interior
  mutability). Makes the Arc vs deep-copy clone semantics genuinely
  two-way.
- W5: Published to_* specs are compatibility contracts — best-effort
  mappings are two-way before first publication, one-way after. Version
  generated specs.
- W6: Salt field clarification — v2 salt is permanently unused; a future
  KDF is a different derivation family, not a version-indexed path; the
  field saves a wire-format change only.
- W7: unlock_new returns Zeroizing<String> — the mnemonic is the root of
  trust and must not linger in freed memory.
- W17: OQ-09 WASM — server-side dispatch door is honestly closed
  (Connection is concrete, tokio-bound), not implicitly preserved.
- W18: OQ-10 git — composability fork (raw smart protocol vs call-protocol
  projection) is a separate decision from ERC721 scope.
- W20: from_openapi must prefix imported error codes (HTTP_404) to avoid
  collision with protocol-level codes (NOT_FOUND). Normative rule, not
  naming convention.
- W21: ScopedOperationEnv field is private — construction via new()/
  empty(), query via allows(). Makes the future subgraph refactor
  non-breaking.
- C13: Connection::set_identity — the endpoint does not read identity()
  after handle() returns (Connection is moved into the spawned task).
  Observability is handler-side logging. Simplest honest answer.
- W1: OperationAdapter trait is async, returns Vec<HandlerRegistration>.
  from_call requires async discovery; ADR-022 changed the return type.
- W11: CompositionAuthority::as_identity() defined — constructs a
  synthetic Identity (label as id, scopes, resources) not resolvable via
  IdentityProvider. Second Identity construction path, acknowledged.
- W14: SecretKey is iroh::SecretKey (Ed25519) — consistent with the
  endpoint's iroh dependency.
- W19: Grandchild abort propagation is inherit-by-default (option a) —
  invoke() with no explicit policy inherits parent's policy. ContinueRunning
  auto-propagates to grandchildren unless explicitly overridden.
2026-06-23 08:20:27 +00:00

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Markdown

# ADR-026: Vault Key Model — HD Derivation
## Status
Accepted
## Context
The vault's primary use of HD (hierarchical deterministic) derivation is
for identity keys, SSH host keys, and signing keys. ADR-020 covers HD
derivation for *encryption* keys specifically, but the broader decision —
"the vault uses HD derivation from a single BIP39 seed for all
self-generated secrets, not stored keys" — has no ADR. The rationale is
inline in `mnemonic-derivation.md`'s "Why HD Derivation" section, but the
choice is a one-way door: switching to stored keys would change the entire
trust model, the backup story, and the derivation path semantics.
Several related design choices also have inline rationale but no ADR:
- **`74'` coin type reservation** (SLIP-0044): alknet claims an unallocated
coin type for its derivation paths. Once keys are derived at `m/74'/...`,
changing the coin type would re-derive all keys — effectively one-way.
- **secp256k1 feature-gating**: the secp256k1/BIP-0032 dependency (needed
only for Ethereum signing) is feature-gated to avoid pulling a heavy C
dependency into nodes that don't do Ethereum signing.
- **AES-256-GCM cipher/mode choice**: the authenticated encryption scheme
for credential storage. The rationale (authenticated, hardware-accelerated)
is inline in `encryption.md` with no ADR.
These are foundational one-way doors that the entire vault model depends
on. They should be recorded as ADRs so a future reader sees *why* these
choices were made, not just *what* they are.
### Relationship to ADR-020
ADR-020 is a special case of this ADR — it covers HD derivation for the
*encryption key* specifically, including the v1→v2 migration from PBKDF2
to HD derivation. This ADR covers the *general* HD-derivation model that
ADR-020 builds on. ADR-020's decision (HD derivation at `m/74'/2'/0'/0'`
for encryption keys) is unchanged; this ADR records the overarching
principle.
## Decision
### 1. HD derivation from a single BIP39 seed is the vault's key model
All self-generated secrets in alknet are derived from a single BIP39
mnemonic via hierarchical deterministic (HD) derivation. The vault does
not store keys — it derives them on demand from the seed and caches them
for performance (the cache is rebuildable from the seed).
This is the same model as cryptocurrency wallets: one seed phrase, many
derived keys at deterministic paths. The properties that make this the
right model for alknet:
- **No key storage**: keys are derived on demand, not stored. The vault
caches derived keys for performance, but the cache is rebuildable from
the seed. No key file management, no key rotation infrastructure, no
per-key backup.
- **Reproducible across nodes**: the same mnemonic on a different node
produces the same keys. A backup node derives the same identity key.
This is critical for disaster recovery — the mnemonic is the only thing
that needs to be backed up.
- **Domain separation**: different paths produce cryptographically
independent keys. The identity key, SSH host key, encryption key, and
signing keys are all independent despite coming from one seed.
- **Auditable derivation**: the path records what a key is for.
`m/74'/0'/0'/0'` is the identity key; `m/74'/0'/1'/0'` is the SSH host
key. The path is the documentation.
### 2. SLIP-0010 (Ed25519) is the default derivation scheme
Ed25519 is alknet's default curve — it's what TLS raw key identity
(ADR-010), SSH host keys, and signing keys use. SLIP-0010 is the HD
derivation standard for Ed25519 (hardened-only, HMAC-SHA512 with
`"ed25519 seed"` as the key).
BIP-0032 (secp256k1) is supported for Ethereum signing (the standard
Ethereum path `m/44'/60'/0'/0/0` requires unhardened indices, which
SLIP-0010 cannot handle). secp256k1 is feature-gated (see Decision 4).
### 3. `74'` coin type is reserved for alknet
alknet reserves the `74'` coin type (unallocated per SLIP-0044) for its
derivation paths. All alknet paths start with `m/74'/...`:
| Path prefix | Purpose |
|-------------|---------|
| `m/74'/0'/...` | Identity keys (node, device, SSH host) |
| `m/74'/2'/...` | Encryption keys (credential storage) |
| `m/44'/60'/...` | Ethereum signing keys (secp256k1, standard BIP-44) |
Once keys are derived at `m/74'/...`, the coin type cannot be changed
without re-deriving all keys from a new path — which would produce
different keys, breaking all existing identity, TLS, SSH, and encryption
contexts. This is effectively one-way once any deployment generates keys.
### 4. secp256k1 is feature-gated
The `secp256k1` crate (BIP-0032 derivation for Ethereum) is a heavy C
dependency. Most alknet nodes do not do Ethereum signing and should not
pay the compilation cost. The `secp256k1` feature flag gates
Ethereum-specific derivation:
- Without the feature: `derive_ethereum_key` returns
`VaultServiceError::UnsupportedKeyType`.
- With the feature: full BIP-0032 secp256k1 derivation at the standard
Ethereum path.
### 5. AES-256-GCM for credential encryption
External credentials (API keys, OAuth tokens, bearer tokens) are encrypted
at rest using AES-256-GCM with a seed-derived key. AES-256-GCM is an
authenticated encryption scheme — it provides both confidentiality
(encryption) and integrity (authentication tag). A tampered ciphertext
fails decryption, which is the correct behavior for credential storage:
if an attacker modifies an encrypted API key in storage, decryption fails
rather than producing a different plaintext.
GCM is hardware-accelerated on modern CPUs (AES-NI), making it fast enough
that encryption is never a bottleneck. The 12-byte nonce (IV) is generated
with `OsRng` (CSPRNG) — IV reuse under the same key is catastrophic for
GCM.
The encryption key is derived from the seed at `m/74'/2'/0'/0'` via
SLIP-0010 — see ADR-020 for the full encryption key derivation rationale
and the v1→v2 migration from PBKDF2.
## Consequences
**Positive:**
- One seed, many keys, no key storage. The mnemonic is the only thing
that needs to be backed up. Disaster recovery is "restore the mnemonic,
re-derive everything."
- Reproducibility across nodes. A backup node with the same mnemonic
derives the same identity key, SSH host key, and encryption key. This
is critical for failover and migration.
- Domain separation via paths. The path *is* the documentation of what a
key is for. No separate key registry or metadata needed.
- Ed25519 as the default curve aligns with TLS raw key identity (RFC 7250,
ADR-010), SSH key-based auth, and iroh's NodeId model. One key type for
all identity purposes.
- secp256k1 feature-gating keeps the default dependency tree lean. Nodes
that don't do Ethereum signing don't pay the secp256k1 compilation cost.
**Negative:**
- The mnemonic is a single point of failure. If the mnemonic is lost, all
derived keys are lost. If the mnemonic is compromised, all derived keys
are compromised. Mitigated: the mnemonic is stored offline (written
down), the vault is local-only (ADR-025), and the passphrase (BIP39
password extension) adds a second factor.
- Changing the coin type (`74'`) or any path prefix is effectively
one-way once keys are derived. This is inherent to HD derivation — the
path *is* the key identity. Mitigated: the path scheme is designed to
accommodate future use cases (device index, key version) without
changing prefixes.
- Ed25519-only for the default derivation scheme means non-hardened
derivation is not available (SLIP-0010 limitation). If a future use case
needs non-hardened Ed25519 derivation (e.g., deriving public keys from a
public key without the seed), SLIP-0010 cannot do it. Mitigated: this is
not a current use case; if it becomes one, a different derivation scheme
or a non-HD approach would be needed for that specific key.
## References
- ADR-020: HD derivation for encryption keys (a special case of this ADR —
covers the encryption key at `m/74'/2'/0'/0'` and the v1→v2 migration
from PBKDF2)
- ADR-010: ALPN router and endpoint (Ed25519 as the default curve for TLS
raw key identity — the identity key at `m/74'/0'/0'/0'`)
- ADR-018: Vault as standalone crate (the vault defines its own key types
and derivation paths)
- ADR-025: Vault local-only dispatch (the vault is local-only; the seed
never crosses the network)
- [mnemonic-derivation.md](../crates/vault/mnemonic-derivation.md) —
BIP39, SLIP-0010, BIP-0032, derivation paths, PATHS module
- [encryption.md](../crates/vault/encryption.md) — AES-256-GCM,
EncryptedData, key versioning
- SLIP-0010: Universal hierarchical deterministic keys (Ed25519)
- SLIP-0044: Registered coin types for BIP-0032 / SLIP-0010 (`74'` is
unallocated)
- BIP-0032: Hierarchical deterministic wallets (secp256k1)
- BIP-39: Mnemonic code for generating deterministic keys