base/LLM.md

# LLM.md - Hanzo Base

## Identity

Hanzo Base is the **local-first application runtime for Lux**.

Not a fork, not a wrapper. The Web5 client runtime.

## Architecture

```
Base = local encrypted SQLite + CRDT sync + chain-anchored trust
Lux  = trust/control plane (identity, keys, policy, anchors)
```

Per user/app/org:
- Local encrypted SQLite file as the primary database
- CRDT op log for sync/merge (encrypted ops — peers see ciphertext only)
- Portable identity from Lux I-Chain (IdentityVM)
- Key wrapping/recovery/sharing from Lux K-Chain (KeyVM) + T-Chain (ThresholdVM)
- Chain anchors for integrity, policy, receipts, portability
- Cloud sync as encrypted blob/oplog replication, NOT as source of truth

The server is a relay/index/cache layer, not the owner of truth.

## Core Plugins

| Plugin | Path | Purpose |
|--------|------|---------|
| vault | plugins/vault/ | Per-user encrypted SQLite shards, DEK/KEK, CRDT sync, chain anchor |
| kms | plugins/kms/ | Client-side KMS integration (talks to K-Chain or cloud HSM) |
| zap | plugins/zap/ | ZAP transport (8.7µs latency) |
| platform | plugins/platform/ | Hanzo platform integration |
| functions | plugins/functions/ | Event workers (on CRDT ops, chain receipts) |
| jsvm | plugins/jsvm/ | JavaScript plugin VM |

## Vault SDK (plugins/vault/)

5 primitives, 18 tests:

1. **Identity** — `OpenUser(userID)` → resolve DID, derive DEK, bind device
2. **Key Access** — DEK/KEK hierarchy: Master KEK → Org KEK → User DEK
3. **Local DB** — `Put(key, value)`, `Get(key)`, `Delete(key)` → encrypted SQLite
4. **Sync** — `Sync()`, `Merge(ops)` → CRDT over ZAP (encrypted ops)
5. **Anchor** — `Anchor()` → merkle root to chain, audit receipt

Key hierarchy:
```
Cloud HSM / K-Chain ML-KEM
  └── Master KEK (never on disk)
        └── Org KEK = HMAC-SHA256(master, "vault:org:" + orgID)
              └── User DEK = HMAC-SHA256(orgKEK, "vault:user:" + userID)
                    └── AES-256-GCM per entry (random nonce)
```

## What Goes On-Chain (Lux)

- DID / identity roots
- Key handles and rotation events
- Capability / policy state
- Sync checkpoint Merkle roots
- Audit receipts
- Payment / metering records
- Provider registry

## What Stays Local (Base)

- All mutable app data (SQLite)
- CRDT operation logs
- Decrypted user state
- Device key material
- Blob references
- App-specific indexes

## The Firebase Replacement

| Firebase | Web5 (Base + Lux) |
|----------|-------------------|
| Auth | DID + capability/session gateway |
| Firestore | Encrypted SQLite shard per user |
| Offline sync | CRDT (already local-first) |
| Storage | Content-addressed encrypted blobs |
| Functions | Workers on CRDT ops / chain receipts |
| Security Rules | Signed capabilities + chain policy |

## Roadmap

**v1 (shipped)**: vault plugin, encrypted SQLite, DEK/KEK, CRDT sync, anchor
**v2**: org sharing, multi-device enrollment, threshold recovery, per-collection sharing
**v3**: provider marketplace, pay-for-sync/storage/recovery, portable exports
**v4**: FHE/ZK policy modules for selected confidential compute workloads

## Build & Run

```bash
go build ./...
go test ./...
go test ./plugins/vault/  # 18 tests
```

## FHE Position

FHE is NOT the default execution model. Use it for:
- Encrypted policy checks
- Encrypted scoring/matching
- Private collaborative computations
- Sensitive server-side transforms

Do NOT make "FHE SQLite" the baseline. Local SQLite is decrypted locally.
Cloud sees ciphertext. Chain sees commitments. FHE is opt-in compute.

## Key Principle

> Web5 = local-first apps with blockchain as the trust layer.
> Put trust on-chain, keep state local, sync privately, make identity portable.