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Algorand Launches AC2 Protocol for Secure AI-Agent Wallet Interactions

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The Algorand Foundation has launched AC2, an open protocol designed to give AI agents access to users' wallets without exposing their private keys. This is crucial as AI agents are increasingly being asked to perform tasks such as payments and code signing, but current channels offer no cryptographic identity and force users to hand over their keys.

AC2 establishes a direct, end-to-end encrypted WebRTC connection between the user's wallet and an AI agent. When an agent needs to perform a task, it sends a request that the user reviews and approves in their own wallet, and the signature is delegated back without the private key ever leaving the user's control.

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.

Marc Vanlerberghe, the foundation's chief strategy and marketing officer, explained that AC2 grants AI agents authority without the ability to act against a user's interests: 'The answer is you don’t hand them the keys, you approve each use of them.'

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