Signer Wallet Rotation

Signer Wallet Rotation is a crucial security feature in the sBTC system that allows sBTC Signers to rotate their private keys securely.

Overview

• sBTC Signers have the ability to rotate their private keys.

• This feature enhances the long-term security of the sBTC system.

• Key rotation is coordinated among signers and requires on-chain voting by the signers.

Process

1. Signers coordinate offline to initiate the key rotation process.

2. Signers vote on-chain for the new signer set (new set of keys).

3. Once the new signer set is determined, signers conduct a wallet handoff.

4. The signers re-execute the Distributed Key Generation (DKG) process.

Implementation

The Signer Wallet Rotation process is facilitated by:

1. Signer Key Rotation CLI: Allows individual signers to initiate a private key rotation.

2. Key Rotation Clarity Contracts: Handle the on-chain aspects of the rotation process.

Security Considerations

• The rotation process must ensure that the sBTC UTxO remains secure throughout the transition.

• Proper coordination among signers is crucial to prevent any disruption in sBTC operations.

• The new keys must be thoroughly verified before being put into use.

Benefits

1. Enhanced Security: Regular key rotations reduce the risk of key compromise.

2. Flexibility: Allows for the replacement of compromised or lost keys.

3. Continuity: Enables long-term operation of the sBTC system with evolving security measures.

Best Practices

• Signers should rotate their keys on a regular schedule (e.g., every 6 months).

• Emergency rotation procedures should be in place for suspected key compromises.

• The rotation process should be audited and tested regularly to ensure smooth execution when needed.