Podcast: Decentralized Key Management w/ David Sneider, Lit Protocol

This week on the FHE Onchain podcast, I sat down with David Sneider, co-founder and CEO of Lit Protocol. We covered distributed key management, what it means to program keys like code, and how this ties into the future of AI agents and privacy-preserving infrastructure.

Lit’s been building in this space for over four years — and it shows. The conversation touches everything from secure hardware to composable cryptography and how we might rethink digital identity and delegation in the age of user-owned AI.

What Is Lit Protocol?
Lit is a distributed key management network — meaning it helps developers manage cryptographic keys in a decentralized way, without relying on any single party. The network currently secures around $200 million and facilitates millions in daily transaction volume.

But beyond just storing keys, Lit lets you program them. Their architecture combines threshold signature schemes, secure hardware, and smart contracts to make keys dynamic, composable, and context-aware.

Programmable Keys & LIT Actions
At the center of Lit’s design is the idea of LIT actions — programmable scripts that define when and how keys should be used. This opens up a whole range of use cases, especially when you start thinking about AI agents acting on behalf of users.

Need a key that only works during a DAO vote? Or one that signs a transaction only if multiple conditions are met? You can define all that logic using LIT actions — turning static key management into an interactive, programmable layer.

The Vincent Framework & Agent Wallets
Lit also introduced the Vincent framework, which is all about delegated authority. In short: apps and agents can operate on behalf of users with cryptographic accountability, not just off-chain permissions. This makes AI agents actually usable in practice — whether they’re scheduling trades, managing tokens, or even coordinating governance participation.

It’s an important step toward user-owned AI — not just agents that chat, but agents that act.

Why Privacy & Delegation Matter
We also talked about where privacy-enhancing tech fits into this vision. David made it clear: privacy isn’t just a feel-good feature — it’s about control. When users can define who gets access, when, and under what conditions, you unlock entirely new applications that don’t rely on surveillance-by-default.

But there’s still a gap. Privacy tech needs better UX and better narratives. It’s not enough to be secure — you have to be explainable.

Book Recommendation: The Denial of Death
To wrap things up, David recommended The Denial of Death by Ernest Becker — a philosophical dive into human motivation, mortality, and how our fear of death shapes culture, technology, and even the way we design systems.

Closing Thoughts
Lit Protocol is quietly laying the groundwork for a more private, programmable, and agent-powered web. If you care about digital sovereignty, crypto infrastructure, or how to make AI safe and user-aligned — this one’s worth a listen.