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Give the agent a decentralized identifier (DID), publish a DID Document that names its public verification keys and service endpoints, and keep the corresponding private key under controlled custody. The agent then signs protocol messages. A verifier resolves the DID, confirms the document is for the requested identifier, checks that the signing key is authorized, validates the signature and replay protections, and evaluates any verifiable credentials supporting claims about the operator, software, capabilities, or deployment.
A DID proves control of an identifier and its authorized keys. It does not prove that an agent is safe, competent, non-malicious, operated by a particular organization, or running a specific model. Those claims require separately issued, verifiable credentials.
What a decentralized identity gives an AI agent
The W3C DID Core Recommendation, published on 19 July 2022, defines a DID as an identifier that can be decoupled from centralized registries, identity providers, and certificate authorities. Its purpose is summarized in the W3C statement: “Decentralized identifiers (DIDs) are a new type of identifier that enables verifiable, decentralized digital identity.” A DID resolves to a DID Document. That document can publish cryptographic verification methods, authentication relationships, and service endpoints.
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The identity is not the agent’s display name. The W3C AI Agent Protocol Community Group’s identity and HTTP authentication draft cautions that “A DID is a verifiable identifier and is not necessarily a stable human-readable name.” Keep human-readable names, descriptions, and model labels as metadata; use the DID itself as the verifiable identifier.
Separate key control from claims about the agent
Authentication answers one question: did the holder of an authorized private key create this message? It does not answer who operates the agent, what code is running, whether the agent is safe, or whether it is allowed to perform a requested action.
What the DID establishes
- Control of the DID by whoever can use an authorized private key.
- The public key or keys that the DID Document authorizes for specific verification relationships.
- Service locations and protocol metadata published in the DID Document, subject to the trust and freshness policies of the resolver and verifier.
What requires a verifiable credential
- The legal or organizational identity of the operator.
- That the agent runs an identified software release or model.
- Approved capabilities, spending limits, geographic restrictions, or safety review status.
- The deployment environment, security controls, or a parent-agent delegation.
An issuer signs each additional claim in a verifiable credential. The verifier checks the issuer’s trust relationship, the credential subject, the proof, validity dates, status or revocation information, and whether the credential discloses only the claims needed for the transaction.
Start by defining the trust model
Before generating keys, write down who controls the agent and which decisions the agent may make. The controller might be an individual, a company, a service account, or another agent delegating authority. This decision determines key custody, recovery rights, credential issuers, and revocation authority.
Questions to answer
- Is the DID controlled directly by an operator, or is control delegated from a parent DID?
- Which actions require a human approval, a policy engine, or a second signature?
- Which claims are proved only by key control, and which need an issuer-signed credential?
- Who can rotate a compromised key, recover the DID, suspend credentials, or change service endpoints?
- What happens if the resolver, hosting provider, chain, or agent runtime is unavailable?
Document these answers as an authorization policy. A DID should not become a blanket permission token for every tool the runtime can call.
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Generate and protect the agent’s keys
Create a signing key pair using a reviewed cryptographic library and an algorithm supported by the DID method and the protocols your agent will use. Keep the private key outside prompts, conversation history, logs, source control, container images, and ordinary application configuration.
Practical custody controls
- Store the key in a hardware-backed module, managed key service, or tightly restricted secret store where feasible.
- Give the runtime only the operation it needs, such as signing, rather than unrestricted export of the private key.
- Separate operator, deployment, and runtime permissions. A process that can send agent messages should not automatically be able to rotate the root key.
- Record key identifiers and creation times, but never log private key material or complete signed payloads containing sensitive data.
- Prepare rotation, recovery, delegation, and revocation procedures before production deployment.
Use separate keys when your threat model requires it: for example, an administrative key for DID updates, an authentication key for protocol requests, and a short-lived delegation key for a constrained worker. Publish only the public portions and the relationships in which each key is valid.
Choose a DID method deliberately
A DID method defines how identifiers are created, how DID Documents are published or updated, and how resolvers retrieve them. The right choice depends on hosting, governance, portability, privacy, and recovery requirements rather than on the word decentralized alone.
| Method or profile | Useful fit | Trade-offs to evaluate |
|---|---|---|
did:web |
A web-hosted service that already operates a DNS name and HTTPS endpoint. | Operationally simple and familiar, but dependent on domain control, web hosting, TLS availability, and the method’s update and recovery rules. |
did:wba |
Implementations following the W3C AI Agent Protocol identity profile. | Check conformance requirements, resolver support, delegation behavior, and interoperability with the counterparties you need to reach. |
did:webvh |
Implementations requiring the corresponding AI Agent Protocol binding profile and its verifiable history model. | Evaluate hosting, history retention, resolver availability, and recovery procedures before committing operationally. |
| On-chain registry such as ERC-8004 | Public discoverability, portability, and cross-domain lookup through a shared registry. | Adds chain, transaction, wallet, indexing, and registry dependencies. A registration does not prove that advertised capabilities work or that an agent is non-malicious. |
The W3C AI Agent Protocol identity draft requires conforming implementations to support the did:wba, did:web, and did:webvh binding profiles. Verify the current status of the draft and the exact profile requirements before declaring an implementation conformant.
Publish a DID Document
The DID Document must identify the DID itself, publish the public verification method, authorize that method for authentication, and expose only the service endpoints that counterparties need. Keep endpoint metadata minimal; do not publish secrets, private network details, or unnecessary personal information.
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Illustrative document shape
{
'id': 'did:web:agent.example',
'verificationMethod': [{
'id': 'did:web:agent.example#auth-2026-01',
'type': 'JsonWebKey2020',
'controller': 'did:web:agent.example',
'publicKeyJwk': { 'kty': 'EC', 'crv': 'P-256', 'x': '...', 'y': '...' }
}],
'authentication': ['did:web:agent.example#auth-2026-01'],
'service': [{
'id': '#agent-api',
'type': 'AgentApi',
'serviceEndpoint': 'https://agent.example/api'
}]
}The exact verification-method type, key encoding, service type, and publication location depend on the DID method and protocol. Treat this as a structural example, not a drop-in production document. The document’s id must equal the DID being resolved, and every key reference used in a message must resolve to a method that the document authorizes for the intended relationship.
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Configure the agent gateway, not the language-model prompt, to perform signing. The gateway should construct the canonical message, select the appropriate key, sign the message, and attach the identifier needed by the receiving protocol to locate the verification method.
Include context in every signed exchange
- Audience: identify the intended service or protocol so a valid signature cannot be redirected to another recipient.
- Timestamp: limit how long a message remains acceptable.
- Nonce: provide uniqueness and enable replay detection.
- Body binding: sign a canonical representation or hash of the request body, method, and relevant headers.
- Key reference: identify the verification method, while ensuring the verifier obtains its authorization from the DID Document rather than trusting the field alone.
Canonicalization must be deterministic. If two implementations serialize the same request differently, signatures will fail or teams may accidentally verify a different byte sequence than the sender intended.
How another service verifies the agent
A verifier should perform these checks in order and reject the interaction when any required check fails.
- Parse the message safely. Enforce size, syntax, and algorithm allow-lists before processing untrusted fields.
- Extract the claimed DID and key reference. Do not infer identity from a display name, network address, or unsigned metadata.
- Resolve the DID. Use a resolver appropriate to the method and apply local freshness, availability, and trust policies.
- Match the document identifier exactly. Confirm that the returned DID Document
idis exactly the requested DID. The W3C DID-method profile explicitly includes this match. - Locate the verification method. Resolve the key identifier named by the message and confirm that it is present in the document. The profile calls for locating the verification method identified by
keyid. - Check authorization. Ensure the method is listed for authentication or the specific verification relationship required by the protocol, rather than merely appearing somewhere in the document.
- Validate the signature. Reconstruct the exact signed bytes, enforce permitted algorithms, and verify with the public key.
- Apply replay protections. Check timestamp windows, nonce uniqueness, audience, request method, endpoint, and body binding. Record consumed nonces where the protocol requires it.
- Evaluate status and policy. Check key rotation state, revocation signals, service availability, rate limits, and any local authorization rules.
- Validate credentials. For every additional claim, verify issuer trust, subject binding to the agent DID, proof, validity period, status or revocation, and the minimum disclosure needed for the decision.
Do not treat successful DID resolution as successful authentication. Resolver responses, DID Documents, service endpoints, and credential contents are untrusted inputs until their proofs and relationships have been checked.
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Bind the agent to a person or organization
Use a credential whose subject is the agent’s DID and whose issuer is a trusted operator, organization, auditor, or platform. The credential might state that the organization controls the agent, that a release was approved, or that specific capabilities were granted.
Delegation pattern
- The organization controls an authoritative identity and signing key.
- It issues a credential naming the agent DID as subject and describing the permitted scope, audience, and expiration.
- The agent presents the credential together with a proof created by its own authentication key.
- The verifier validates both relationships: the agent controls its DID, and the trusted issuer authorized the claim about that DID.
Use short-lived or narrowly scoped credentials for high-risk actions. Include status or revocation information and define what happens when the operator withdraws authority. A credential should not silently grant capabilities beyond the exact claims and policy context it names.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When an ERC-8004 registration is useful
ERC-8004 defines an identity registry that assigns an agentId and agentURI and points to a registration file. That file can list endpoints, wallet addresses, DIDs, and ENS names. A registry entry can make an agent easier to discover and reference across domains where participants agree on the same chain and registry.
Use this option when public discoverability, portability, or shared registry lookup justifies transaction and chain dependencies. Budget for wallet custody, transaction fees, indexing delays, chain outages, and updates to the registration file. Keep the DID Document and registry file consistent, and specify which source is authoritative for each field.
Registration is not a safety certification. ERC-8004’s linkage does not cryptographically guarantee that advertised capabilities are functional or that the agent is non-malicious. Continue to require signatures, credentials, policy checks, and operational monitoring.
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Operate rotation, recovery, and revocation
Routine key rotation
- Generate a new key in the protected custody system.
- Publish the new public verification method and authorize it for the required relationship.
- Overlap old and new keys for a defined migration window when counterparties may cache documents.
- Update clients, credentials, and allow-lists to reference the new method.
- Remove or retire the old method after the window, unless it must remain available for historical verification.
Compromise response
- Stop signing with the suspected key and isolate the affected runtime.
- Use the recovery authority or method-specific update process to publish a replacement key.
- Revoke credentials issued to the compromised key or agent where the credential system supports status checks.
- Notify counterparties and preserve signed audit events needed to distinguish legitimate history from the incident.
- Review endpoint, delegation, and operator permissions for secondary compromise.
Recovery planning
Define who can recover the identity if the primary key is lost, the hosting account is unavailable, or the domain changes ownership. Test recovery in a non-production environment. A recovery design that exists only in documentation is not an operational control.
Failure modes and fixes
| Observed failure | Likely cause | Action |
|---|---|---|
| The DID resolves, but authentication fails. | The key is not authorized for authentication, the key reference is wrong, or canonicalization differs. | Compare the message key identifier with the DID Document, verify the authentication relationship, and reproduce the exact signed bytes. |
| The document is returned for a different DID. | Resolver, cache, or hosting misconfiguration. | Reject the result; require an exact document-id match and investigate the resolver path. |
| Valid old messages are replayed. | Missing or ineffective nonce, timestamp, audience, or body binding. | Enforce freshness windows, store consumed nonces, and bind signatures to the intended recipient and payload. |
| A credential looks valid but the claim is not trusted. | Unknown issuer, wrong subject, expired validity, or revoked status. | Check issuer trust, subject DID, dates, status, and requested-claim minimization before authorization. |
| Counterparties cannot reach the agent. | Service endpoint outage, DNS or HTTPS failure, resolver unavailability, or stale publication. | Use monitored endpoints, documented failover, bounded caches, and an explicit degraded-mode policy. |
| An on-chain registration advertises an incorrect endpoint. | Registration file and DID Document drifted apart. | Define field authority, update both records atomically where possible, and monitor for changes. |
Privacy and security boundaries
A DID Document is often public. Publish only what a verifier needs: public keys, protocol endpoints, and minimal method metadata. Avoid embedding operator names, internal hostnames, user identifiers, access tokens, or sensitive capability descriptions. Put private claims in credentials and disclose them selectively.
Use least privilege between the model, orchestration layer, signing gateway, credential store, and external tools. The model should request an action; a policy-enforcing component should decide whether the action may be signed. Keep signed audit events with timestamps, key identifiers, credential references, and decision results, while applying data-retention and privacy controls.
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Implementation checklist
- Trust model names the controller, delegator, recovery authority, and permitted actions.
- Private keys are protected from prompts, logs, source control, images, and ordinary configuration.
- The selected DID method has a tested publication, resolution, update, and recovery path.
- The DID Document contains an exact
id, authorized verification methods, authentication relationships, and necessary service endpoints. - The runtime signs canonical messages containing audience, freshness, nonce, and body binding.
- Verifiers check document identity, key authorization, signature, replay protections, and revocation.
- Credentials bind claims to the agent DID, identify trusted issuers, and expose only necessary information.
- Rotation, compromise response, recovery, and endpoint changes have been exercised in tests.
- Unknown keys, stale nonces, invalid signatures, unavailable resolvers, malformed documents, and revoked credentials produce explicit failures.
- Any ERC-8004 registration is treated as a discovery aid, not as proof of safety or capability.
Choosing the simplest architecture that meets your trust needs
For a single web-hosted service, a self-hosted web DID with protected keys and issuer-signed credentials is usually the shortest path to interoperability. A multi-organization network may justify a profile with stronger delegation or history requirements. A public registry can improve discovery when participants already share its chain and governance, but it increases operational dependencies.
Compare candidate designs on key custody and recovery, delegation and rotation, governance, DID and credential interoperability, DID Document privacy, resolver and hosting availability, transaction cost, and the assurance level of accepted credentials. These are architectural trade-offs, not guarantees of agent quality.
Bottom line
Give the agent a DID that it can control through a protected signing key, publish a minimal and correctly authorized DID Document, and make every protocol exchange verifiable with audience and replay protections. Use credentials to bind the DID to an operator, software release, capability, or deployment claim. Add a public registry only when its discovery and portability benefits outweigh chain and governance dependencies. This combination lets another service verify which identity signed a message and which claims a trusted issuer made, while keeping the crucial distinction clear: cryptographic identity is not proof that an agent is safe or competent.
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