Algorand Introduces AC2: Secure Protocol for AI Agents to Use User Wallets

The Algorand Foundation has launched AC2 (Agentic Communication and Control Protocol), an open protocol designed to give AI agents cryptographic identities without compromising user security. The protocol establishes a direct, end-to-end encrypted connection between a user's wallet and the AI agent, ensuring that private keys never leave the user's control.

AC2 supports various agentic workflows, including coding, payments, and API authorizations. When an AI agent needs to perform a signing operation, it sends a request to the user's wallet for review and approval. The signature is then delegated back to the AI agent, without exposing private keys.

The protocol uses DIDComm v2.0 message formats, passkey authentication through Liquid Auth built on FIDO2 and WebAuthn, and supports real-time voice and text streaming as well as signing delegation. It requires no central message relay and no blockchain to operate.