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Security Architecture

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AWS Nitro Trusted Execution Environment

Core API leverages AWS Nitro TEE to provide hardware-level security for all cryptographic operations. This ensures that:
  • Private keys are never exposed in plaintext
  • All cryptographic operations happen in an isolated, tamper-proof environment
  • Even Magic cannot access your private keys without proper authorization

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JWT-Bound Key Scheme

Every wallet is cryptographically bound to a user’s JWT identity at creation time. The Nitro Enclave bakes JWKS from your identity provider into the enclave image (measured in PCR0). This means JWT verification happens entirely offline inside the enclave — no external network call is needed during a signing operation.

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Key Material

When a wallet is created, the private key is split using a 2-of-3 Shamir’s Secret Sharing scheme:

Shard A (Magic)

Stored encrypted in Magic’s secure infrastructure. Available for all key operations.

Shard B (Discarded)

Generated during wallet creation but immediately discarded. Not stored or returned. Recovery is handled via your identity provider’s JWT.

Shard C1 (Magic)

Stored encrypted in Magic’s secure infrastructure. Combined with Shard C2 to reconstruct the data key.

Shard C2 (Access Key)

Returned to your application as access_key. Store securely in your database. Required for every signing operation.
In addition to the shards, the enclave internally produces a sealed blob that cryptographically ties the wallet’s key material to the user’s JWT identity. Every operation must supply an op_jwt that the enclave verifies before authorizing the request.

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Operation Flow

Signing / Key Reveal
  1. Your server retrieves wallet_id and access_key from your database
  2. Your server obtains a short-lived op_jwt (max 5 min) for the user from your IdP
  3. Your server calls the TEE endpoint with op_jwt, wallet_id, and access_key
  4. The enclave verifies the JWT offline using baked-in JWKS, confirms the caller’s identity matches the wallet’s owner, and authorizes the operation
  5. The enclave signs using the reconstructed private key; the signed result is returned

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Implementation Patterns

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Wallet Creation Flow

  1. User authenticates with your identity provider and receives a JWT
  2. Server calls POST /v2/api/wallet with auth_jwt, network, and wallet_group_id
  3. Server stores the returned wallet_id and access_key in your database
  4. Server returns the public_address to the client

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Signing Flow

  1. Client initiates a transaction or signing request
  2. Server retrieves wallet_id and access_key from your database
  3. Server obtains a short-lived op_jwt for the user (max 5 min expiry)
  4. Server calls the appropriate sign endpoint with op_jwt, wallet_id, access_key, and the payload
  5. Server broadcasts or returns the signed result
Always generate the op_jwt as close to the signing call as possible to minimize its window of validity.