Algorand Introduces Protocol for Managing AI Agents

cryptonews.ruPublished on 2026-08-26Last updated on 2026-08-26

Abstract

The Algorand Foundation has introduced AC2, an open protocol designed to enable secure user interaction with and control over AI agents. The protocol is blockchain-agnostic, establishing an encrypted direct connection between a user's wallet or application and an AI agent. AC2 allows agents to request user permission for various actions, such as executing payments, signing code, or accessing APIs. Users review and approve or deny these requests directly within their wallet interface, eliminating the need to share private keys with the AI. The protocol supports multiple operational scenarios. For instance, a software agent can seek approval before signing, while a payment agent can send transaction details to a user's wallet for verification. Shopping agents can operate within pre-set user-defined limits on permissible items and spending amounts. For messaging, AC2 utilizes DIDComm v2.0, and for authentication, it employs passkeys via Liquid Auth, which is based on FIDO2 and WebAuthn standards. The protocol supports text and voice interaction, signature delegation, and can function without a centralized intermediary or even a blockchain.

The Algorand Foundation has introduced AC2 — an open protocol that allows users to securely interact with and control the actions of AI agents. The protocol is not tied to a specific blockchain and provides an encrypted direct connection between the user's wallet or application and the AI agent.

AC2 allows agents to request permission for various actions: conducting payments, signing code, or gaining access to APIs. The user sees the request in their wallet and decides whether to allow the action or not. There is no need to transfer private keys to the AI agent.

The protocol is designed for various operational scenarios. A software agent can request permission before signing, while a payment agent can send transaction data to the user's wallet for verification. Shopping agents can operate within pre-set limits: the user defines what the agent is allowed to buy and how much it is permitted to spend.

For message exchange, AC2 uses DIDComm v2.0, and for authentication, it uses passkey via Liquid Auth, based on FIDO2 and WebAuthn standards. The protocol supports text and voice interaction, signature right delegation, and can operate without a centralized intermediary and even without a blockchain.

Image: Magnific

end-content

Is Bitcoin Price Lagging? Record Global M2 Money Supply Could Be a Springboard for BTC's Rise

Bitcoin Price Lagging? Record Global Money Supply M2 Could Springboard BTC Growth The global money supply (M2) is expanding rapidly, similar to global debt. The US M2, representing all money circulating in its economy, has reached a record $23.16 trillion. Combined with figures from major economies like the Eurozone, China, and Japan, the global M2 is approximately $103 trillion. Some estimates, however, place it closer to $195 trillion. This surge in liquidity is significant because excess capital often seeks higher returns in assets like precious metals, stocks, and cryptocurrencies. Bitcoin's recent price surge above $81,000 has brought the global M2 metric back into focus. Following a sharp rise in early August after a US Treasury bond buyback announcement, BTC still trades about 37% below its October 2025 all-time high exceeding $126,000. This gap presents a potential "catch-up" trade thesis. Bitcoin's fixed supply of 21 million contrasts with governments' ability to print fiat currency, making scarce assets like BTC attractive if monetary expansion continues. Historically, Bitcoin's bull cycles in 2017-2018 and 2020-2021 coincided with M2 expansion and increased liquidity. Over the past year, the correlation seemed broken as M2 grew while Bitcoin's price fell sharply from its peak. Observers believe fresh dollars may have remained locked in cash-favorable investments. Some, like Ash Crypto, now suggest a long-awaited alignment between Bitcoin and M2 may be starting, especially as a weakening US Dollar Index this month has seen assets like gold and Bitcoin surge. A softer dollar pressures cash havens and prompts holders to act. While record M2 doesn't guarantee higher Bitcoin prices, a sustained influx of liquidity, a weak dollar, and capital flowing into alternative assets could trigger a catch-up rally sooner than expected. However, changes in these conditions could lead to the opposite outcome.

cryptonews.ru27m ago

Is Bitcoin Price Lagging? Record Global M2 Money Supply Could Be a Springboard for BTC's Rise

cryptonews.ru27m ago

Blockchain Capital Partner: Tokenization Will Reshape the Underlying Structure of Capital Markets

"Blockchain Capital partner Aleks Larsen argues that tokenization will fundamentally restructure capital markets by solving a costly 'packaging' problem in finance. Currently, assets like mortgages, private equity, and stocks exist in fragmented, incompatible systems, creating huge friction and slowing capital flow. Tokenization introduces a standardized, machine-readable interface for assets—akin to shipping containers for finance. Just as containerization standardized global trade, enabling massive efficiency gains and economic growth, tokens standardize financial rights. This allows platforms, lenders, and custodians to interact with assets directly on a shared network without rebuilding infrastructure for each one. Stablecoins demonstrate this potential, processing volumes rivaling Visa with far lower cost and faster settlement. Beyond payments, tokenization is expanding to assets like U.S. Treasuries, commodities, and private credit, now totaling nearly $400 billion on-chain. This shift changes financial service access: instead of depending on relationships with institutions, services become accessible based on the asset's tokenized properties themselves. DeFi protocols like Aave exemplify this, where assets meeting criteria can be used as collateral programmatically. Ultimately, tokenization will reorganize capital markets around open networks of specialized services, lowering barriers to entry and reducing costs. This could unlock global capital for currently underserved assets—small receivables, regional infrastructure, emerging market credit—integrating them into a seamless, programmable financial system. Combined with AI, tokenization promises to make capital allocation more efficient, transparent, and globally accessible, reshaping how economic value is created and distributed."

marsbit31m ago

Blockchain Capital Partner: Tokenization Will Reshape the Underlying Structure of Capital Markets

marsbit31m ago

Caltech Uses AI to Crack 60-Year-Old Quantum Chemistry Problem: 1 GPU Does the Work of 7800

California Institute of Technology researchers have developed an AI model that dramatically accelerates quantum chemistry simulations, a 60-year-old challenge. By using a Fourier Neural Operator (FNO) to replace the most computationally expensive step in Density Functional Theory (DFT) calculations, the team reduced the complexity from cubic to near-linear scaling. The model, named Kohn-Sham FNO, learns a forward mapping within the iterative DFT process, akin to a "chain of thought" in LLMs, providing stability and self-correction. This approach outperforms direct-prediction AI models, which suffer from poor extrapolation. Trained on only 8,504 structures covering elements from the first five rows of the periodic table, the model successfully simulated systems with up to 82,500 electrons on a single NVIDIA B300 GPU. In contrast, a comparable 2019 calculation required approximately 7,800 NVIDIA V100 GPUs. The work demonstrates a path for AI to replace repetitive, costly computations in physics without replacing the underlying theory. The researchers have founded a company, Accelerated Understanding, to further develop AI for physical simulation.

marsbit32m ago

Caltech Uses AI to Crack 60-Year-Old Quantum Chemistry Problem: 1 GPU Does the Work of 7800

marsbit32m ago

UNDP and DFINITY to Focus on Developing AI Infrastructure

UNDP and the DFINITY Foundation have announced a partnership to explore the use of sovereign cloud infrastructure and decentralized artificial intelligence (AI) in public sector projects and digital transformation. The collaboration will focus on three main areas. First, through the SDG Blockchain Accelerator, UNDP country offices will test the infrastructure, AI tools, and decentralized applications for development projects. Second, the Future of Work Academy will support civil society organizations in building and testing their own applications. Third, the Government Blockchain Academy will work with governments to develop pilot solutions aligned with local and national priorities. The projects will utilize DFINITY's Cloud Engines and Caffeine AI platform, enabling organizations to build and maintain applications within a secure digital environment managed locally. The partnership will also investigate how these technologies can protect sensitive data, enhance digital infrastructure resilience, and build local technical expertise.

cryptonews.ru51m ago

UNDP and DFINITY to Focus on Developing AI Infrastructure

cryptonews.ru51m ago

LATEST NEWS: Federal Reserve Consumer Price Index (PCE) Data, Used to Measure Inflation, Released! Here's Bitcoin's (BTC) First Reaction!

Bitcoin maintained high levels ahead of the U.S. inflation data release, the Personal Consumption Expenditures (PCE) Price Index, a key metric for the Federal Reserve. BTC recently surged from around $62,000 to over $80,000, briefly surpassing $81,000 for a three-month high before a slight pullback. Market focus was intensely on the PCE report, as lower-than-expected figures could strengthen the case for looser Fed monetary policy, while higher figures could dampen rate cut expectations and pressure Bitcoin. The July PCE data was released as follows: Core PCE (YoY) at 3.3% (matching expectations), Core PCE (MoM) at 0.2% (matching expectations), Headline PCE (YoY) at 3.7% (slightly above 3.6% expected), and Headline PCE (MoM) at 0.2% (above the 0.1% expected).

cryptonews.ru52m ago

LATEST NEWS: Federal Reserve Consumer Price Index (PCE) Data, Used to Measure Inflation, Released! Here's Bitcoin's (BTC) First Reaction!

cryptonews.ru52m ago

Trading

Spot