Identity Strategy

This document outlines AI Wallet's approach to cross-router identity, user ownership, and consent management as the core differentiator in the AI ecosystem. Objective: Define the technical and strategic framework for universal AI identity that works across all gateways and providers.

Core Identity Philosophy

Fundamental Principle

Users own their AI identity and usage data. Identity should be portable, consent should be revocable, and usage should be transparent regardless of which AI provider or gateway is being used.

Key Insights

Cross-router identity + budgets are the only durably defensible moats
Consent receipts and policy management across apps/gateways are unique value propositions
User ownership creates network effects that benefit both users and developers

Cross-Router Identity Architecture

Identity Layer Design

Primary Identity Components: - Wallet User ID: Persistent user identifier across all AI Wallet applications - Router Bindings: Links to user accounts on OpenRouter, Vercel, Cloudflare, and direct providers - Consent Records: Portable permission receipts for model usage across applications - Usage Ledger: Cross-app transaction history with standardized metadata

Technical Implementation:

Wallet User ID → Router Bindings → Provider API Keys
     ↓              ↓                    ↓
[Central]    [Router Specific]    [Provider Specific]

Router Integration Strategy

OpenRouter Integration: - Utilize existing PKCE OAuth flow for user authentication - Map Wallet User ID to OpenRouter user_id - Maintain portable consent receipts across OpenRouter applications

Vercel AI Gateway Integration: - Use BYOK (Bring Your Own Key) approach while maintaining wallet identity - Bridge wallet user identity with Vercel team/organization accounts - Enable individual user wallets within Vercel's team billing structure

Cloudflare AI Gateway Integration: - Integrate with unified billing while preserving user identity boundaries - Maintain cross-gateway consent receipts that work with Cloudflare's infrastructure

Direct Provider Integration (OpenAI, Anthropic, Google, etc.): - Use wallet-managed API keys with user attribution - Maintain identity binding even when bypassing specific gateways

User Ownership Model

Core Ownership Principles

Data Ownership: - Users own their usage data, consent records, and transaction history - Users can export all their data in standardized formats - Users can revoke access across all applications simultaneously

Financial Ownership: - Users control their wallet balance and budget allocation - Users can set spending limits per application or per time period - Users maintain ownership of unused credits and can request refunds

Identity Ownership: - Users can link/unlink their identity to any router or provider - Users control which applications can access their wallet - Users can use their identity across multiple devices and applications

Technical Ownership Implementation

Privacy by Design: - All usage tracking is opt-in and granular - Users can disable tracking for specific applications - No cross-app data correlation without explicit user consent

Data Portability: - Standardized export formats (JSON, CSV) - Easy migration to other AI wallet providers - Open API for third-party data analysis tools

Revocation Rights: - Instant revocation of consent for any application - Automatic cleanup of usage data upon consent withdrawal - Provider notifications for consent changes

Standard AI Consent Receipt Format:

{
  "receipt_id": "uuid",
  "wallet_user_id": "user_uuid",
  "app_id": "app_uuid",
  "scope": {
    "models": ["gpt-4", "claude-3"],
    "providers": ["openai", "anthropic"],
    "regions": ["us-east-1", "eu-west-1"],
    "data_retention": "90_days"
  },
  "cost_limits": {
    "daily": 10.00,
    "monthly": 100.00
  },
  "granted_at": "2025-11-07T12:00:00Z",
  "expires_at": "2025-12-07T12:00:00Z",
  "revocable": true,
  "provider_notification": true
}

Consent Receipt Benefits: - Regulatory Compliance: Ready for AI Act, PDPL, and other regulations - Transparency: Clear documentation of what was consented to - Portability: Works across all AI Wallet integrated applications - Revocation: Easy to understand and execute consent withdrawal

Policy Enforcement

Budget Policies: - Real-time spending limits enforced at the wallet level - Grace periods and notifications before hard enforcement - Policy templates for common use cases (research, development, production)

Usage Policies: - Model access control (e.g., only allow specific models for certain applications) - Data residency policies (EU data stays in EU) - Rate limiting and abuse prevention

Compliance Policies: - Automatic logging for audit requirements - Policy templates for common regulatory scenarios - Integration with existing enterprise compliance tools

Distribution and Network Effects

Network Effect Mechanics

User Network Effects: - More applications → more value for each user - User data portability → switching costs for competing wallets - Cross-app identity → reduced friction for trying new AI tools

Developer Network Effects: - More users → more demand for developer integrations - Shared infrastructure → reduced cost for building AI applications - Standardized receipts → easier compliance and development

App Directory Strategy: - "Works with AI Wallet" certification program - Revenue sharing for successful integrations - Featured placement for innovative applications

Growth Flywheel

Initial Apps: Focus on 3-5 high-quality indie AI applications
User Acquisition: Each app brings users who want wallet functionality
Cross-Usage: Users discover other apps through wallet directory
Developer Incentives: Revenue sharing encourages more app integrations
Platform Network: As network grows, value increases for all participants

Technical Implementation

Identity Management Service

Core Components: - User registration and authentication - Router binding management - Consent receipt generation and validation - Policy enforcement engine - Usage tracking and ledger management

API Design Principles: - Idempotent: Multiple calls with same data produce same result - Consistent: Same user experience across all routers - Portable: Works with existing developer infrastructure - Secure: Zero-trust architecture with short-lived credentials

Integration Patterns

For Developers:

// SDK Integration Example
import { AIWalletProvider, useWallet } from '@ai-wallet/sdk';

function MyAIApp() {
  const { user, budget, connect } = useWallet();

  const makeAIRequest = async (prompt) => {
    const response = await fetch('/api/ai', {
      method: 'POST',
      body: JSON.stringify({ prompt, budget: user.budget }),
      headers: { 'Authorization': `Bearer ${user.token}` }
    });
    return response.json();
  };
}

For Applications: - Drop-in components for login, paywall, and budget visualization - Server-side middleware for policy enforcement - Webhook support for real-time budget updates - Dashboard for usage monitoring and policy management

Security and Privacy

Security Architecture

Zero-Trust Design: - Short-lived credentials (15-30 minutes) with automatic rotation - Application-level permissions with granular scope - No long-lived API keys exposed to client applications - End-to-end encryption for sensitive data

Privacy Protection: - Differential privacy for aggregated usage analytics - Opt-in data collection with clear value propositions - Automatic data deletion based on consent parameters - Regional data residency compliance (GDPR, CCPA, etc.)

Compliance Framework

Regulatory Readiness: - AI Act compliance for EU operations - PDPL readiness for privacy protection - SOC 2 certification for enterprise trust - Regular security audits and penetration testing

Audit Capabilities: - Complete usage trails for compliance reporting - Policy violation detection and alerting - Data access logs for privacy compliance - Provider compliance validation

Success Metrics

Identity Metrics

Cross-router identity binding success rate
User adoption of consent receipt features
Policy enforcement accuracy and performance
Privacy opt-in rates and engagement

Network Effects

Applications integrated per user
Cross-app usage frequency
Developer retention and satisfaction
Revenue sharing distribution

Technical Performance

Identity service uptime (>99.9%)
Policy enforcement latency (<50ms)
Consent receipt generation time (<100ms)
Router integration success rate

Future Roadmap

Phase 1: Foundation (MVP)

Single-router identity binding
Basic consent receipt system
Simple budget enforcement
Initial app directory

Phase 2: Multi-Router (Scale)

Cross-router identity portability
Advanced policy templates
Enterprise compliance features
Enhanced app directory

Phase 3: Ecosystem (Network)

Third-party identity providers
Cross-wallet interoperability
Advanced analytics and ML
Global distribution and compliance

Source Attribution

Primary source: Competition-Narratives-MVPSpecs-04Nov25-ChatGPTPlus.pdf