Pentashagon comments on Open Thread, September 1-15, 2012 - Less Wrong
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You need to think about one-way functions (hashes) and trapdoor one-way functions (public key algorithms). There are some additional issues that arise like nonces to thwart replay attacks and the level of protection individuals can be expected to give to secret keys.
Also, even without explicit mathematics the universe will presumably have a concept of entropy and conservation of something, even if it's just conservation of magical energy. If you can come up with a plausible problem that magic can solve given a lot of expended magical energy but can be solved much more easily with the knowledge of a secret, then you can build a challenge-response identify proof so long as it's not easy to steal the secret by watching the demonstration. If additionally it's very hard to derive the secret from the demonstration of its knowledge you probably have the power of a public key system.
Not all the following problems require magic to implement, and many of them actually benefit from not having a knowledge of mathematics and algorithms, since most of these are not cryptographically secure.
Lastly, I should point out that very few "normal" people in the situation you describe would be able to achieve cryptographic security anyway. I can (barely) memorize a passphrase with 128-bit entropy (using diceware, so I'm certain it actually has 128 bits), and even that's not quite enough to choose a secure secret key for Elliptic Curve DSA. And it would have to only be memorized and never written down anywhere, and only computed on trusted hardware (who the sleep-twin could modify to their heart's content while I slept). So, yeah, Magic.