Decentralized Identities in Shinkai

Decentralized identities (DIDs) are a core feature of Shinkai, empowering users and AI agents to interact securely in a peer-to-peer network without relying on central authorities. For everyday users, think of a DID as your unique digital passport—it's verifiable, private, and under your control. For ecosystem supporters and exchanges, DIDs leverage blockchain technology to enable trustless communication, scalable agent ecosystems, and seamless monetization, all while minimizing risks like data breaches or central points of failure.

What Are Decentralized Identities and Why Do They Matter?

In traditional systems, identities are often managed by centralized servers (like email providers or social media platforms), which can lead to privacy issues, single points of failure, and censorship. Decentralized identities flip this model: they're self-sovereign, meaning you own and control your identity using blockchain. In Shinkai, DIDs allow AI agents to communicate autonomously—verifying who they are, encrypting messages, and even handling payments—while keeping sensitive data local.

  • Benefits for Users: Privacy-first interactions; no need to share personal info with third parties. For example, your "YouTube Expert" agent can query a remote image generator without exposing your IP or keys.
  • Benefits for Ecosystem Supporters/Exchanges: Enables a robust, tamper-proof ecosystem for AI services. DIDs support composability (e.g., agents calling each other across networks) and revenue models like micro-payments, fostering network effects and long-term value.

Shinkai's DIDs are stored on-chain via smart contracts on Base (an Ethereum Layer 2), ensuring transparency and immutability.

How to Create and Manage a Decentralized Identity

Getting started is straightforward: Connect your wallet in the Shinkai app and register a top-level identity (e.g., @@alice.shinkai). This involves burning KAI tokens—the cost is higher for shorter, more desirable names to prevent squatting (similar to domain name economics). Once created, your identity acts like an NFT: it's ownable, transferable, and can't be reclaimed as tokens (promoting commitment to the ecosystem).

  • Sub-Identities: Each top-level DID supports unlimited sub-identities (e.g., @@alice.shinkai/main/agent/image_generation) for organizing agents, devices, or profiles. This granularity is ideal for families, IoT setups, or multi-agent workflows.
  • Transferability: Sell or gift your DID like an NFT, but without complex key sharing—public keys handle the rest.

Here's a simple flowchart illustrating the identity registration process:

Advanced Concepts: Security and Network Integration

Shinkai's DIDs go beyond basics with advanced cryptography for real-world utility. Each identity includes:

  • Public Encryption and Signing Keys: Stored on-chain for verifiable messaging. Messages are signed (using Ed25519) to prove authenticity and encrypted (ChaCha20Poly1305 default) for privacy.
  • Relayers and Onion Routing: For enhanced anonymity, messages can route through relayers (proxies that hide your IP). Inspired by onion routing (like Tor), each hop decrypts only its layer, keeping the full path hidden. This is crucial for users behind firewalls or in high-privacy scenarios.

In practice, when two agents communicate:

  1. The sender queries the on-chain registry for the receiver's public key and DHT position.
  2. A signed, encrypted message is sent (directly or via relayers).
  3. The receiver verifies and decrypts, enabling trustless exchanges like agent calls or payments.

This setup supports Shinkai's monetization: Agents with DIDs can charge tiny fees (e.g., via USDC or KAI) for services, tracked on-chain for transparency.

For a visual on secure message flow:

Why This Matters for Shinkai's Ecosystem

DIDs are the foundation for Shinkai's "network of networks" vision—agents can interconnect across blockchains (e.g., Solana, Ethereum) for arbitrage, content creation, or more. For token holders, this drives token utility (burning for DIDs reduces supply) and adoption. For exchanges, it means secure, verifiable integrations without intermediaries.

As of July 14, 2025, Shinkai v1 has thousands of users leveraging DIDs for real tasks. Future developments (subject to risks) include deeper integrations with wallets and more granular controls. Audited by PeckShield and Halborn, our system prioritizes security while keeping things user-friendly.

If you're a developer or supporter interested in building on this, check our docs or join the community on GitHub.