Give the agent a decentralized identifier (DID), publish a DID Document that names its public verification key and service endpoints, and keep the matching private key under controlled custody. The agent then signs protocol messages. A receiving service resolves the DID, checks that the document is the one requested, confirms that the signing key is authorized, validates the signature and replay protections, and evaluates any verifiable credentials that support claims about the operator, software, capabilities, or deployment.
This proves control of an identifier and its authorized keys—not that the agent is safe, competent, operated by a particular company, or running a specific model. Those claims require issuer-signed verifiable credentials and independent policy checks.
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What a verifiable decentralized identity actually proves
A DID is an identifier designed to work without depending on one centralized identity provider, certificate authority, or registry. The DID resolves to a DID Document. That document can publish verification methods (usually public keys), relationships such as authentication, and service endpoints where the agent can be reached. DID Core became a W3C Recommendation on 19 July 2022. The W3C describes the technology as “a new type of identifier that enables verifiable, decentralized digital identity.”
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThe cryptographic proof is narrow and precise: whoever can produce a valid signature with a private key authorized by the DID Document controls that DID for the relevant operation. It does not establish the human name behind the agent, the quality of its decisions, the safety of its code, or the truth of every statement it makes.
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Control, attribution and capability are separate claims
- Control: a valid signature demonstrates possession of an authorized private key.
- Attribution: an issuer-signed credential can bind the DID to a person, organization, service account or parent agent.
- Capability: a credential can state that a trusted issuer approved a particular function, software release, environment or access scope.
- Current status: validity dates, revocation or suspension status, audience and purpose still have to be checked at the time of use.
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.” Treat the DID as a machine-verifiable handle, not as a display name or reputation score.
Choose the trust model before creating keys
Write down who is accountable for the agent and what another service must be able to verify. The controller might be an individual, a legal organization, a service account, or another agent delegating authority. A controller relationship is not implied by the DID itself; it must be represented by a credential, a documented delegation, or both.
Questions to settle
- Who can authorize the agent to act, and who can revoke that authorization?
- Which actions require a human or organizational credential rather than mere key control?
- Can a parent agent delegate only a narrow capability, time window or audience?
- What happens if the runtime is compromised, the resolver is unavailable, or the controller loses a key?
- Which records must be retained for audit, and how will a verifier obtain them later?
For a financial workflow, keep operator authority, payment authority and routine agent execution as separate permissions. A DID signature should not silently confer authority to move money, open an account or change a beneficiary.
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Implementation sequence
1. Generate a dedicated signing key
Create a key pair for the agent rather than reusing a person’s wallet, TLS key or application secret. The public key will appear in the DID Document; the private key is the signing capability. Generate it in a controlled environment and record which algorithm and key type your chosen DID method and protocol support.
Keep the private key outside prompts, model context, logs, source control, container images and ordinary application configuration. Use an access-controlled secret manager or hardware-backed key service where practical. The process that can ask the model for a plan should not automatically be able to export the signing key.
2. Design rotation, recovery and delegation
Decide how a new key will replace an old one, how a compromised key will be removed, and how the DID will be recovered if the hosting account or operator device is lost. Document who can approve an emergency change. Use separate keys for separate environments when the consequences of a test compromise differ from production.
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If a parent agent delegates work, make the delegation explicit and bounded. A delegated key should have a defined audience, purpose, expiration and revocation path instead of inheriting every authority of the parent.
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For a web-hosted service, did:web can reuse an existing DNS name and HTTPS hosting. The W3C AI Agent Protocol draft also requires conforming implementations to support the did:wba, did:web and did:webvh binding profiles. Select one after considering who controls hosting, how a verifier resolves the DID, how changes are governed, and how recovery works.
A self-hosted web DID is often operationally simple but depends on the availability and integrity of its domain and web hosting. A registry-backed approach can improve public discoverability and portability but adds registry, transaction and resolver dependencies. Neither choice proves that the agent is trustworthy.
4. Publish the DID Document
The document’s id must be exactly the DID being resolved. Include a verification method with the public key, place that method in the authentication relationship when it will sign requests, and list only the service endpoints needed for the agent’s protocols. Keep metadata minimal: a DID Document is public input that can be copied, indexed and attacked.
{"id":"did:example:agent123","verificationMethod":[{"id":"did:example:agent123#key-1","type":"JsonWebKey2020","controller":"did:example:agent123","publicKeyJwk":{"kty":"..."}}],"authentication":["did:example:agent123#key-1"],"service":[{"id":"did:example:agent123#agent-api","type":"AgentService","serviceEndpoint":"https://agent.example/endpoint"}]}The example shows the relationships a verifier needs; use the exact key representation and service type required by your selected method and protocol. Do not publish private key material, bearer tokens, internal network addresses or unnecessary personal data.
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5. Bind the running agent to the key
Configure the agent gateway—not the language model—to sign outbound requests and protocol responses. Bind each signature to the message that was actually sent by including an audience, a nonce, a timestamp and a body hash or equivalent request digest. The verifier must be able to tell which service was addressed, which request was signed and whether the proof is fresh.
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Keep signing in a small, auditable component. The model can propose an action, while policy code decides whether that action may be signed and sent. Log the signed event and its decision metadata without logging the private key or sensitive credential contents.
6. Verify every incoming interaction
Do not accept a DID string or a public key supplied only in the message. Resolve the DID through the method’s resolver, then apply this order:
- Confirm that the returned DID Document
idexactly matches the requested DID, including method-specific normalization rules. - Locate the verification method identified by the message’s key identifier.
- Confirm that the method is authorized for authentication or for the particular relationship being used.
- Validate the signature over the exact protocol bytes, headers and body that were received.
- Check the audience, timestamp, nonce, body digest and any method-specific freshness window.
- Reject a nonce that has already been used and retain enough state to enforce that rule.
- Check key rotation, revocation and resolver errors according to the method’s rules; fail closed for high-risk actions when status cannot be established.
- Only then evaluate credentials, authorization policy and the requested business operation.
The W3C agent identity profiles specifically call for matching the DID Document identifier and locating the verification method named by the message’s key identifier. A successful signature from an unrecognized or unauthorized key is not authentication.
7. Issue credentials for claims beyond key control
Ask a trusted issuer to sign a verifiable credential when a verifier needs more than proof of possession. Useful subjects include the agent DID, with claims about its operator, approved software release, permitted capabilities, security review or deployment environment.
Verification should cover all of the following:
- Whether the issuer is trusted for that claim and its signature is valid.
- Whether the credential subject is the agent DID you authenticated, not a look-alike identifier.
- Whether the proof covers the complete credential and has not been altered.
- Whether validity dates include the current time and the intended use.
- Whether status information shows the credential is active rather than revoked or suspended.
- Whether the audience and purpose match the transaction.
- Whether the request asks for more personal or operational data than necessary.
A credential saying that an organization operates an agent does not automatically authorize a payment, data export or model change. Map each credential claim to an explicit policy decision.
8. Decide whether to register with ERC-8004
ERC-8004 defines an identity registry that assigns an agentId and agentURI and points to a registration file. That file can list protocol endpoints, wallet addresses, DIDs and ENS names. Registration is useful when public discovery, cross-domain lookup or portability justifies an additional registry and transaction dependency.
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Registration is optional for an agent that can already publish and resolve a DID. It also is not a safety certification: ERC-8004 states that the linkage does not cryptographically guarantee that advertised capabilities are functional or non-malicious. Treat the registration file, endpoints and listed addresses as untrusted data until their proofs and authorization are checked.
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9. Operate and audit the identity
Identity work continues after publication. Monitor resolver responses and endpoint changes, rotate keys on a schedule and after suspected exposure, revoke compromised credentials, and retain signed audit events with timestamps and request identifiers. Test the negative paths deliberately:
- Unknown DID or unavailable resolver.
- DID Document whose
iddoes not match the requested DID. - Unknown, expired or unauthorized verification method.
- Invalid signature, altered body or wrong audience.
- Stale timestamp, repeated nonce or missing replay binding.
- Revoked, suspended or expired credential.
- Endpoint that is unreachable or has changed unexpectedly.
Define whether each failure produces a retry, a human review or a hard denial. High-impact actions should not proceed merely because a resolver timed out.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.DID method and registry trade-offs
| Option | What it provides | Dependencies and trade-offs | Questions to answer before production |
|---|---|---|---|
did:web |
A DID Document served through a web domain and HTTPS hosting. | Operationally familiar; depends on control and availability of the domain, web server and resolver path. | Who controls DNS and hosting? How are document changes approved and recovered? |
did:wba |
A binding profile required by the W3C AI Agent Protocol draft. | Interoperability depends on implementations following the draft profile and its authentication rules. | Which resolver, key format, freshness and delegation rules does your implementation support? |
did:webvh |
A binding profile required by the same draft for conforming implementations. | Governance, hosting and recovery details depend on the profile implementation you select. | How are history, key rotation and recovery validated by the verifiers you need to interoperate with? |
| ERC-8004 registration | An on-chain agent identifier and URI pointing to a registration file with discovery data. | Can improve public portability and lookup; adds registry, chain, transaction and resolver dependencies. It does not certify capability or safety. | Do your counterparties actually use the registry, and who pays for and governs updates? |
Compare alternatives on key custody and recovery, delegation and rotation, governance, interoperability with DID and credential profiles, privacy of the public document, resolver availability, transaction cost and the assurance level of accepted credentials. These are architecture choices, not quality scores.
How another service can verify the same agent later
Consistency comes from keeping the DID stable while allowing its authorized keys and endpoints to change under the method’s rules. A verifier should resolve the DID at the time of the interaction, identify the key used in the message, and validate the proof against the current or historically valid document according to the protocol. It should not compare display names, model names or an agent’s self-description.
Key rotation without identity confusion
Publish the replacement key through the DID method’s controlled update process, overlap old and new keys only for a documented transition period, and mark the old key as no longer valid for authentication. Keep an audit record linking the change to an approved event. If a key is compromised, shorten the transition and require reauthentication rather than trusting signatures made after the compromise time.
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Resolver and endpoint failures
A resolver response is input, not proof by itself. Check the method’s integrity and update rules, enforce a bounded cache lifetime, and distinguish an unavailable resolver from a valid document that names an unknown key. An endpoint URL in a DID Document tells you where to send protocol traffic; it does not authorize the endpoint to make claims outside the signed exchange.
Binding an agent to a person or organization
Use a verifiable credential whose subject is the agent’s DID and whose issuer is trusted to make the operator claim. The verifier then checks both links: the agent controls its DID, and the issuer attests that the DID is operated by the named subject or organization. A credential can also bind a parent agent to a child agent with a limited delegation.
Keep claims narrow. For example, a credential might state that an organization approved a particular release to access a named API until a date, rather than exposing an employee’s full identity or every system the organization owns. Present only the claims required for the decision, and do not treat possession of an operator credential as permission for unrelated actions.
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Separate identities and permissions
- Use distinct DIDs or keys for development, staging and production when their risk differs.
- Separate the agent’s signing key from payment, database, deployment and administrator credentials.
- Grant short-lived or narrowly scoped credentials where the protocol allows it.
- Require policy approval for irreversible or high-value operations even when the signature is valid.
Protect sensitive material
Private keys, recovery material and credential contents are secrets. Restrict who and what can request signatures, require authenticated service-to-service access to the signer, and alert on unusual signing volume or destinations. Never place secrets in prompts, model output, telemetry or copied example documents.
Make replay and substitution expensive
Use unique nonces, strict timestamps, an explicit audience and a body hash. Bind credentials to the authenticated agent DID and transaction purpose. Reject a valid proof presented to a different service, for a different body or outside its freshness window.
What this costs and what it does not guarantee
The basic building blocks are a DID method, a place to publish or resolve its document, protected key custody, a signing gateway and verifier logic. An on-chain registry can add transaction and operational costs; a hosted web method can shift costs toward domain, hosting, monitoring and recovery. The exact amount depends on the method, provider and transaction conditions, and no universal price or latency figure is established by the standards.
DIDs and credentials also do not provide an automatic market reputation, safety score, model-quality rating or guarantee that an endpoint is online. They make claims testable: a verifier can determine which key signed a message, which issuer made a claim, whether it is valid for the present purpose and whether the relevant authority has been revoked.
Quick Recap
Production checklist
- Trust model names the controller, delegator, issuer and revoker.
- Private key is generated securely and cannot be read by prompts, logs or source control.
- Rotation, recovery and compromise procedures have an owner and a test.
- DID Document
idexactly matches the DID and exposes only required methods and services. - Authentication keys, audience, nonce, timestamp and body binding are enforced by the gateway.
- Verifier resolves the DID, matches the document identifier, authorizes the key and validates freshness before policy evaluation.
- Credentials are checked for issuer trust, subject binding, proof, dates, status, audience and minimum disclosure.
- ERC-8004 is used only when its discovery and portability benefits outweigh registry dependencies.
- Unknown keys, stale nonces, invalid signatures, resolver outages and revoked credentials have tested failure behavior.
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