docs: Add comprehensive SIWE nonce authentication documentation

Author: tusharshah21

docs/SIWE_NONCE_AUTHENTICATION.md

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+# SIWE Nonce Authentication Implementation
+
+## Overview
+
+This document describes the implementation of dynamic nonce-based authentication for Sign-In with Ethereum (SIWE) to prevent replay attacks.
+
+## What is SIWE?
+
+Sign-In with Ethereum (SIWE) is an authentication standard that allows users to authenticate with applications using their Ethereum wallet. Users sign a standardized message with their private key, proving ownership of their wallet address.
+
+## The Problem: Replay Attacks
+
+Without nonce protection, a malicious actor could:
+1. Capture a user's signed SIWE message
+2. Reuse that signature to authenticate as the user
+3. Perform unauthorized actions on behalf of the user
+
+## The Solution: Dynamic Nonces
+
+Each authentication request includes a unique nonce that:
+- Starts at `1` for new users
+- Increments after each successful authentication
+- Is unique per wallet address
+- Prevents signature reuse
+
+## Implementation Details
+
+### Database Schema
+
+```sql
+-- Migration: 003_add_nonces.sql
+ALTER TABLE profiles ADD COLUMN IF NOT EXISTS login_nonce BIGINT NOT NULL DEFAULT 1;
+```
+
+### API Endpoints
+
+#### Get Nonce
+```
+GET /auth/nonce/:wallet_address
+```
+
+Returns the current nonce for a wallet address:
+```json
+{
+  "nonce": 1,
+  "address": "0x742d35Cc6634C0532925a3b844Bc454e4438f44e"
+}
+```
+
+### Authentication Flow
+
+1. **Frontend requests nonce** from `/auth/nonce/:address`
+2. **Backend returns current nonce** (starts at 1 for new users)
+3. **Frontend generates SIWE message**:
+   ```
+   Sign this message to authenticate with The Guild.
+
+   Nonce: 1
+   ```
+4. **User signs message** with MetaMask
+5. **Frontend sends signature** to protected endpoint
+6. **Backend verifies signature** against reconstructed message
+7. **Backend increments nonce** for next authentication
+
+### Security Benefits
+
+- **Replay Attack Prevention**: Each nonce can only be used once
+- **User Isolation**: Each wallet has independent nonce sequence
+- **Fresh Authentication**: No cached nonces - always current
+- **Cryptographic Security**: Uses ethers.js for proper signature verification
+
+### Code Structure
+
+#### Backend
+- `src/domain/repositories/profile_repository.rs` - Repository interface
+- `src/infrastructure/repositories/postgres_profile_repository.rs` - PostgreSQL implementation
+- `src/application/queries/get_login_nonce.rs` - Application query
+- `src/presentation/handlers.rs` - API handler
+- `src/infrastructure/services/ethereum_address_verification_service.rs` - Signature verification
+
+#### Frontend
+- `src/hooks/profiles/use-get-nonce.ts` - Nonce fetching hook
+- `src/lib/utils/siwe.ts` - SIWE message generation
+- `src/components/profiles/action-buttons/` - Updated UI components
+
+### Usage Examples
+
+#### Creating a Profile
+```typescript
+// 1. Fetch nonce
+const { data: nonceData } = useGetNonce(walletAddress);
+
+// 2. Generate SIWE message
+const message = generateSiweMessage(nonceData.nonce);
+
+// 3. Sign with wallet
+const signature = await signMessageAsync({ message });
+
+// 4. Create profile
+await createProfile.mutateAsync({
+  input: { name: "John Doe", description: "Developer" },
+  signature
+});
+```
+
+#### Backend Verification
+```rust
+// Reconstruct expected message
+let expected_message = format!(
+    "Sign this message to authenticate with The Guild.\n\nNonce: {}",
+    nonce
+);
+
+// Verify signature
+let recovered_address = signature.recover(expected_message)?;
+
+// Increment nonce after successful verification
+profile_repository.increment_login_nonce(&wallet_address).await?;
+```
+
+### Testing
+
+#### Manual Testing
+1. Start backend: `cargo run --bin guild-backend`
+2. Start frontend: `npm run dev`
+3. Connect MetaMask wallet
+4. Create profile → nonce `1`
+5. Update profile → nonce `2`
+6. Delete profile → nonce `3`
+
+#### Automated Testing
+```bash
+# Backend tests
+cargo test
+
+# Frontend tests
+npm test
+```
+
+### Deployment Checklist
+
+- [ ] Database migration applied
+- [ ] SQLX cache updated (`cargo sqlx prepare`)
+- [ ] Environment variables configured
+- [ ] CORS settings updated for frontend domain
+- [ ] Rate limiting configured (recommended)
+
+### Security Considerations
+
+- **Rate Limiting**: Implement rate limiting on nonce/auth endpoints
+- **Monitoring**: Log authentication failures and nonce patterns
+- **Database Constraints**: Consider adding nonce validation constraints
+- **Audit**: Regular security audits of authentication flow
+
+### Future Enhancements
+
+- **Nonce Expiration**: Add time-based nonce expiration
+- **Concurrent Request Handling**: Database-level atomic nonce operations
+- **Advanced Monitoring**: Authentication metrics and alerts
+- **Multi-device Support**: Handle multiple simultaneous sessions
+
+## Conclusion
+
+This implementation provides robust protection against replay attacks while maintaining a smooth user experience. The dynamic nonce system ensures that each authentication request is unique and cannot be reused, significantly improving the security of the SIWE authentication flow.
+
+For questions or contributions, please refer to the implementation code or create an issue in the repository.