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Algorand Foundation releases open protocol to verify authorization of AI agents

2026-08-27 12:13:32
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Algorand Foundation officially releases AC2 protocol

The Algorand Foundation officially released AC2 (Proxy Communication and Control Protocol), an open source, blockchain-independent standard for secure point-to-point communication between users and AI agents. The protocol was developed by the Algorand Foundation in partnership with Pera Wallet and aims to address the increasingly prominent security authorization issue of AI agents when performing operations on behalf of users.

Chat-based agent authorization issues

As AI agents increasingly perform payments, sign codes, and manage digital operations on behalf of users, existing messaging channels (such as email, Telegram, and WhatsApp) lack encrypted authentication, standardized authorization mechanisms, and inability to allow users to approve individual operations without completely surrendering their private keys. The AC2 is designed to make up for this shortcoming.

AC2 extends the previous idea of point-to-point credential control to AI agents, replacing trust-based authorization with hardware-based cryptographic proof of intent. Instead of relying on simple chat confirmation with no audit trace, virtually every action performed by the agent generates a verifiable record that clearly shows who authorized the action, what was approved, and when it was approved.

How the protocol works

AC2 uses the DIDComm v2.0 message format for interoperability, authenticates through a pass key based on Liquid Auth (built on top of FIDO2/WebAuthn), and supports real-time voice and text streaming and signature delegation. The key is that it runs without a central message relay or blockchain, allowing it to be used across different technology stacks, avoiding vendor lock-in.

In terms of credentials, this design always retains the API key on the user device. The agent receives the signature authorization rather than the certificate itself, limiting exposure if the agent is compromised. Instead of inventing a new trust model, AC2 applies widely adopted encryption standards to emerging proxy authorization issues.

AC2 is a transparent and open protocol that works on any proxy stack. It provides developers with verifiable agent approval standards without the need for proprietary middleware or relay infrastructure. The Algorand Foundation describes it as blockchain-agnostic, and has also released an open source wallet proof-of-concept and OpenClaw plug-in for developers to conduct end-to-end testing.

Related specifications and reference implementations have been released on open source platforms. The foundation is actively inviting design partners to review and contribute AC2 specifications.

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