Right, so technically the CPU sees the private key.

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Technically, the service owner has access to nsec. CPU, RAM, (if swapped also disk) sees the key. Unless it is a dedicated HSM or something like Enclave (AWS) there is no way around it 🐢🐾🫑

Hmm I wonder if a simple process trace would reveal the key when it's in flight then?

a tool to dump the process memory might πŸ˜‰

strace πŸ‘€