docs: add ADR on JWT usage (#34)

Author: rodmgwgu

docs/decisions/0003-jwt-usage.rst

@@ -0,0 +1,125 @@
+0003: JWT usage
+###############
+
+Status
+******
+
+**Draft**
+
+Context
+*******
+
+Json Web Tokens (JWT) are a way for authenticating users in web
+applications. The server generates a signed token that encodes the
+user's identity and any relevant claims, which is then sent to the
+client. The client includes this token in subsequent requests, allowing
+the server to verify the user's identity without needing to maintain
+session state.
+
+Because the tokens are cryptographically signed, they can be efficiently
+verified by the server without requiring database queries, which brings
+performance and scalability benefits.
+
+In addition to storing user identity, JWT tokens can also include
+additional claims, such as user roles or permissions, which can be used
+for authorization (AuthZ) purposes.
+
+JWT is the `recommended way to authenticate with the Open edX REST API
+<https://docs.openedx.org/projects/edx-platform/en/latest/how-tos/use_the_api.html>`_,
+however, it's not widely used for AuthZ across the platform. One
+exception is the `edx-rbac <https://github.com/openedx/edx-rbac>`_
+library, which was a previous attempt to implement role-based access
+control in the platform.
+
+The edx-rbac library adds role information to the `"roles" claim in the
+JWT token
+<https://github.com/openedx/edx-rbac/blob/master/docs/how_to_guide.rst>`_
+however, this is not widely used across the platform, being mostly used
+on enterprise modules.
+
+Given the new AuthZ project efforts, which seek to unify and simplify
+AuthZ on Open edX, there is an opportunity to re-evaluate the use of JWT
+tokens for Authorization purposes.
+
+Possible Methods
+================
+
+#. Including AuthZ data in the JWT, attaching the user-related policies
+   in the "policy" claim. Example implementation: `casbin-jwt-express
+   <https://github.com/tiagostutz/casbin-jwt-express>`_
+
+      -  Pros:
+
+            -  No additional DB queries needed for AuthZ, which brings
+               potential performance and scale benefits.
+
+      -  Cons:
+
+            -  JWT tokens can become large and unwieldy, potentially
+               impacting request performance, increasing bandwidth
+               usage, and hitting size limits.
+
+            -  Changes in user roles or permissions will not be
+               reflected in the token until it is refreshed, leading to
+               potential security issues.
+
+#. Not including AuthZ data in the JWT
+
+      -  Pros:
+
+            -  Smaller token size, leading to improved request
+               performance and reduced bandwidth usage.
+            -  Changes in user roles or permissions can be reflected
+               immediately without requiring a token refresh.
+
+      -  Cons:
+
+            -  Additional DB queries may be needed for AuthZ, which
+               could impact performance and scalability (could be
+               mitigated with caching strategies).
+
+Discussion
+==========
+
+The new AuthZ approach being discussed in this repository will allow for
+a unified and more flexible way to manage authorization, this will allow
+for more complex authorization scenarios to be handled more easily, for
+example, specifying fine-grained access controls for libraries.
+
+On a big instance, this will mean that the policies attached to a user
+will potentially grow larger and more complex, which would greatly
+increase the data that a JWT token would need to carry if we were to
+include AuthZ data in the token itself.
+
+On the other hand, the performance and resources impact of doing AuthZ
+checks in the backend on every request can be mitigated with caching
+strategies.
+
+Decision
+********
+
+We will not include AuthZ data in the JWT tokens. JWT tokens will
+continue to be used as an authentication mechanism, but AuthZ will be
+handled separately in the backend.
+
+Consequences
+************
+
+-  JWT tokens will continue to be used as they are currently, primarily
+   for authentication purposes.
+-  AuthZ will be handled in the backend, caching strategies should be
+   considered to mitigate performance impacts.
+
+Rejected Alternatives
+*********************
+
+-  Including AuthZ data in the JWT tokens by using the "policy" claim,
+   including the full ACL definition for the user.
+
+References
+**********
+
+- `edx-rbac how to guide <https://github.com/openedx/edx-rbac/blob/master/docs/how_to_guide.rst>`_
+- `Example implementation of jwt embedded policies with casbin <https://github.com/tiagostutz/casbin-jwt-express>`_
+- :ref:`OEP-66: Authorization Best Practices <openedx-proposals:OEP-66 User Authorization>`
+- :ref:`Open edX Auth Overview Table <Open edX Auth Overview Table>`