diff --git a/packages/libp2p-daemon-client/src/dht.ts b/packages/libp2p-daemon-client/src/dht.ts
index dc171624..3a8bdf94 100644
--- a/packages/libp2p-daemon-client/src/dht.ts
+++ b/packages/libp2p-daemon-client/src/dht.ts
@@ -7,9 +7,10 @@ import {
 import { CodeError } from '@libp2p/interface'
 import { isPeerId, type PeerId, type PeerInfo } from '@libp2p/interface'
 import { logger } from '@libp2p/logger'
-import { peerIdFromBytes } from '@libp2p/peer-id'
+import { peerIdFromMultihash } from '@libp2p/peer-id'
 import { multiaddr } from '@multiformats/multiaddr'
 import { CID } from 'multiformats/cid'
+import * as Digest from 'multiformats/hashes/digest'
 import type { DaemonClient } from './index.js'
 
 const log = logger('libp2p:daemon-client:dht')
@@ -96,7 +97,7 @@ export class DHT {
       type: Request.Type.DHT,
       dht: {
         type: DHTRequest.Type.FIND_PEER,
-        peer: peerId.toBytes()
+        peer: peerId.toMultihash().bytes
       }
     })
 
@@ -113,7 +114,7 @@ export class DHT {
     }
 
     return {
-      id: peerIdFromBytes(response.dht.peer.id),
+      id: peerIdFromMultihash(Digest.decode(response.dht.peer.id)),
       multiaddrs: response.dht.peer.addrs.map((a) => multiaddr(a))
     }
   }
@@ -180,7 +181,7 @@ export class DHT {
       // Stream values
       if (dhtResponse.type === DHTResponse.Type.VALUE && dhtResponse.peer?.addrs != null) {
         yield {
-          id: peerIdFromBytes(dhtResponse.peer.id),
+          id: peerIdFromMultihash(Digest.decode(dhtResponse.peer.id)),
           multiaddrs: dhtResponse.peer.addrs.map((a) => multiaddr(a))
         }
       } else {
@@ -226,7 +227,7 @@ export class DHT {
 
       // Stream values
       if (dhtResponse.type === DHTResponse.Type.VALUE && dhtResponse.value != null) {
-        const peerId = peerIdFromBytes(dhtResponse.value)
+        const peerId = peerIdFromMultihash(Digest.decode(dhtResponse.value))
 
         yield {
           id: peerId,
@@ -252,7 +253,7 @@ export class DHT {
       type: Request.Type.DHT,
       dht: {
         type: DHTRequest.Type.GET_PUBLIC_KEY,
-        peer: peerId.toBytes()
+        peer: peerId.toMultihash().bytes
       }
     })
 
diff --git a/packages/libp2p-daemon-client/src/index.ts b/packages/libp2p-daemon-client/src/index.ts
index 6383a653..bf288af9 100644
--- a/packages/libp2p-daemon-client/src/index.ts
+++ b/packages/libp2p-daemon-client/src/index.ts
@@ -3,10 +3,11 @@ import { StreamHandler } from '@libp2p/daemon-protocol/stream-handler'
 import { passThroughUpgrader } from '@libp2p/daemon-protocol/upgrader'
 import { CodeError, isPeerId } from '@libp2p/interface'
 import { defaultLogger, logger } from '@libp2p/logger'
-import { peerIdFromBytes } from '@libp2p/peer-id'
+import { peerIdFromMultihash } from '@libp2p/peer-id'
 import { tcp } from '@libp2p/tcp'
 import { multiaddr, isMultiaddr } from '@multiformats/multiaddr'
 import { pbStream, type ProtobufStream } from 'it-protobuf-stream'
+import * as Digest from 'multiformats/hashes/digest'
 import { DHT } from './dht.js'
 import { Pubsub } from './pubsub.js'
 import type { Stream, PeerId, MultiaddrConnection, PeerInfo, Transport } from '@libp2p/interface'
@@ -82,7 +83,7 @@ class Client implements DaemonClient {
     const sh = await this.send({
       type: Request.Type.CONNECT,
       connect: {
-        peer: peerId.toBytes(),
+        peer: peerId.toMultihash().bytes,
         addrs: addrs.map((a) => a.bytes)
       }
     })
@@ -121,7 +122,7 @@ class Client implements DaemonClient {
       throw new CodeError('Invalid response', 'ERR_IDENTIFY_FAILED')
     }
 
-    const peerId = peerIdFromBytes(response.identify?.id)
+    const peerId = peerIdFromMultihash(Digest.decode(response.identify?.id))
     const addrs = response.identify.addrs.map((a) => multiaddr(a))
 
     await sh.unwrap().close()
@@ -145,7 +146,7 @@ class Client implements DaemonClient {
 
     await sh.unwrap().close()
 
-    return response.peers.map((peer) => peerIdFromBytes(peer.id))
+    return response.peers.map((peer) => peerIdFromMultihash(Digest.decode(peer.id)))
   }
 
   /**
@@ -163,7 +164,7 @@ class Client implements DaemonClient {
     const sh = await this.send({
       type: Request.Type.STREAM_OPEN,
       streamOpen: {
-        peer: peerId.toBytes(),
+        peer: peerId.toMultihash().bytes,
         proto: [protocol]
       }
     })
diff --git a/packages/libp2p-daemon-client/src/pubsub.ts b/packages/libp2p-daemon-client/src/pubsub.ts
index d14a6655..2e7cc27d 100644
--- a/packages/libp2p-daemon-client/src/pubsub.ts
+++ b/packages/libp2p-daemon-client/src/pubsub.ts
@@ -5,7 +5,8 @@ import {
   PSMessage
 } from '@libp2p/daemon-protocol'
 import { CodeError } from '@libp2p/interface'
-import { peerIdFromBytes } from '@libp2p/peer-id'
+import { peerIdFromMultihash } from '@libp2p/peer-id'
+import * as Digest from 'multiformats/hashes/digest'
 import type { DaemonClient, Subscription } from './index.js'
 import type { PeerId } from '@libp2p/interface'
 
@@ -138,6 +139,6 @@ export class Pubsub {
       throw new CodeError('Invalid response', 'ERR_PUBSUB_GET_SUBSCRIBERS_FAILED')
     }
 
-    return response.pubsub.peerIDs.map(buf => peerIdFromBytes(buf))
+    return response.pubsub.peerIDs.map(buf => peerIdFromMultihash(Digest.decode(buf)))
   }
 }
diff --git a/packages/libp2p-daemon-server/src/dht.ts b/packages/libp2p-daemon-server/src/dht.ts
index 4ecb32a4..57536dbc 100644
--- a/packages/libp2p-daemon-server/src/dht.ts
+++ b/packages/libp2p-daemon-server/src/dht.ts
@@ -46,7 +46,7 @@ export class DHTOperations {
       if (event.name === 'PEER_RESPONSE') {
         yield * event.closer.map(peer => DHTResponse.encode({
           type: DHTResponse.Type.VALUE,
-          value: peer.id.toBytes()
+          value: peer.id.toMultihash().bytes
         }))
       }
     }
@@ -97,7 +97,7 @@ export class DHTOperations {
             dht: {
               type: DHTResponse.Type.VALUE,
               peer: {
-                id: event.peer.id.toBytes(),
+                id: event.peer.id.toMultihash().bytes,
                 addrs: event.peer.multiaddrs.map(m => m.bytes)
               }
             }
@@ -131,7 +131,7 @@ export class DHTOperations {
             yield DHTResponse.encode({
               type: DHTResponse.Type.VALUE,
               peer: {
-                id: provider.id.toBytes(),
+                id: provider.id.toMultihash().bytes,
                 addrs: (provider.multiaddrs ?? []).map(m => m.bytes)
               }
             })
diff --git a/packages/libp2p-daemon-server/src/index.ts b/packages/libp2p-daemon-server/src/index.ts
index a7812f74..177afb8c 100644
--- a/packages/libp2p-daemon-server/src/index.ts
+++ b/packages/libp2p-daemon-server/src/index.ts
@@ -10,7 +10,7 @@ import {
 } from '@libp2p/daemon-protocol'
 import { passThroughUpgrader } from '@libp2p/daemon-protocol/upgrader'
 import { defaultLogger, logger } from '@libp2p/logger'
-import { peerIdFromBytes } from '@libp2p/peer-id'
+import { peerIdFromMultihash } from '@libp2p/peer-id'
 import { tcp } from '@libp2p/tcp'
 import { multiaddr, protocols } from '@multiformats/multiaddr'
 import * as lp from 'it-length-prefixed'
@@ -18,6 +18,7 @@ import { lpStream } from 'it-length-prefixed-stream'
 import { pipe } from 'it-pipe'
 import { pbStream } from 'it-protobuf-stream'
 import { CID } from 'multiformats/cid'
+import * as Digest from 'multiformats/hashes/digest'
 import { DHTOperations } from './dht.js'
 import { PubSubOperations } from './pubsub.js'
 import { ErrorResponse, OkResponse } from './responses.js'
@@ -87,7 +88,7 @@ export class Server implements Libp2pServer {
 
     const peer = request.connect.peer
     const addrs = request.connect.addrs.map((a) => multiaddr(a))
-    const peerId = peerIdFromBytes(peer)
+    const peerId = peerIdFromMultihash(Digest.decode(peer))
 
     log('connect - adding multiaddrs %a to peer %p', addrs, peerId)
     await this.libp2p.peerStore.merge(peerId, {
@@ -107,21 +108,19 @@ export class Server implements Libp2pServer {
     }
 
     const { peer, proto } = request.streamOpen
-    const peerId = peerIdFromBytes(peer)
+    const peerId = peerIdFromMultihash(Digest.decode(peer))
 
     log('openStream - dial %p', peerId)
     const connection = await this.libp2p.dial(peerId)
 
     log('openStream - open stream for protocol %s', proto)
     const stream = await connection.newStream(proto, {
-      runOnTransientConnection: true,
-      // @ts-expect-error this has not been released yet
       runOnLimitedConnection: true
     })
 
     return {
       streamInfo: {
-        peer: peerId.toBytes(),
+        peer: peerId.toMultihash().bytes,
         addr: connection.remoteAddr.bytes,
         proto: stream.protocol ?? ''
       },
@@ -155,7 +154,7 @@ export class Server implements Libp2pServer {
           })
 
           const message = StreamInfo.encode({
-            peer: connection.remotePeer.toBytes(),
+            peer: connection.remotePeer.toMultihash().bytes,
             addr: connection.remoteAddr.bytes,
             proto: stream.protocol ?? ''
           })
@@ -194,8 +193,6 @@ export class Server implements Libp2pServer {
           }
         })
     }, {
-      runOnTransientConnection: true,
-      // @ts-expect-error this has not been released yet
       runOnLimitedConnection: true
     })
   }
@@ -257,7 +254,7 @@ export class Server implements Libp2pServer {
             throw new Error('Invalid request')
           }
 
-          const peerId = peerIdFromBytes(request.id) // eslint-disable-line no-case-declarations
+          const peerId = peerIdFromMultihash(Digest.decode(request.id)) // eslint-disable-line no-case-declarations
           const peer = await this.libp2p.peerStore.get(peerId) // eslint-disable-line no-case-declarations
           const protos = peer.protocols // eslint-disable-line no-case-declarations
           yield OkResponse({ peerStore: { protos } })
@@ -331,7 +328,7 @@ export class Server implements Libp2pServer {
             throw new Error('Invalid request')
           }
 
-          yield * this.dhtOperations.findPeer(peerIdFromBytes(request.peer))
+          yield * this.dhtOperations.findPeer(peerIdFromMultihash(Digest.decode(request.peer)))
           return
         case DHTRequest.Type.FIND_PROVIDERS:
           if (request.cid == null) {
@@ -359,7 +356,7 @@ export class Server implements Libp2pServer {
             throw new Error('Invalid request')
           }
 
-          yield * this.dhtOperations.getPublicKey(peerIdFromBytes(request.peer))
+          yield * this.dhtOperations.getPublicKey(peerIdFromMultihash(Digest.decode(request.peer)))
           return
         case DHTRequest.Type.GET_VALUE:
           if (request.key == null) {
@@ -414,7 +411,7 @@ export class Server implements Libp2pServer {
             await pb.write({
               type: Response.Type.OK,
               identify: {
-                id: daemon.libp2p.peerId.toBytes(),
+                id: daemon.libp2p.peerId.toMultihash().bytes,
                 addrs: daemon.libp2p.getMultiaddrs().map(ma => ma.decapsulateCode(protocols('p2p').code)).map(m => m.bytes)
               }
             }, Response)
@@ -436,7 +433,7 @@ export class Server implements Libp2pServer {
               seen.add(peerId)
 
               peers.push({
-                id: connection.remotePeer.toBytes(),
+                id: connection.remotePeer.toMultihash().bytes,
                 addrs: [connection.remoteAddr.bytes]
               })
             }
diff --git a/packages/libp2p-daemon-server/src/pubsub.ts b/packages/libp2p-daemon-server/src/pubsub.ts
index c59d1424..ba19fcca 100644
--- a/packages/libp2p-daemon-server/src/pubsub.ts
+++ b/packages/libp2p-daemon-server/src/pubsub.ts
@@ -1,5 +1,6 @@
 /* eslint max-depth: ["error", 6] */
 
+import { publicKeyToProtobuf } from '@libp2p/crypto/keys'
 import {
   PSMessage
 } from '@libp2p/daemon-protocol'
@@ -52,12 +53,12 @@ export class PubSubOperations {
 
         if (msg.type === 'signed') {
           onMessage.push(PSMessage.encode({
-            from: msg.from.toBytes(),
+            from: msg.from.toMultihash().bytes,
             data: msg.data,
             seqno: msg.sequenceNumber == null ? undefined : uint8ArrayFromString(msg.sequenceNumber.toString(16).padStart(16, '0'), 'base16'),
             topicIDs: [msg.topic],
             signature: msg.signature,
-            key: msg.key
+            key: publicKeyToProtobuf(msg.key)
           }).subarray())
         } else {
           onMessage.push(PSMessage.encode({
@@ -90,7 +91,7 @@ export class PubSubOperations {
       yield OkResponse({
         pubsub: {
           topics: [topic],
-          peerIDs: this.pubsub.getSubscribers(topic).map(peer => peer.toBytes())
+          peerIDs: this.pubsub.getSubscribers(topic).map(peer => peer.toMultihash().bytes)
         }
       })
     } catch (err: any) {