diff --git a/docs/reference/polykey-node-ids.md b/docs/reference/polykey-node-ids.md
new file mode 100644
index 00000000..1f1bafee
--- /dev/null
+++ b/docs/reference/polykey-node-ids.md
@@ -0,0 +1,52 @@
+---
+title: 'Polykey Node IDs'
+date: 2025-03-10
+author: 'Christina'
+tags: ['polykey', 'node-id', 'encoding', 'base32', 'security']
+---
+# How Polykey Handles Node IDs
+
+## The Basics
+Polykey generates and encodes Node IDs using Multihash and Multibase to make them flexible, self-describing, and interoperable.
+
+- **Multihash**: A format that encodes the hashing algorithm alongside the hash itself. This ensures that the Node ID always carries metadata about how it was generated.
+- **Multibase**: A format that specifies how the hash is encoded, like Base32 Hex. The 'v' prefix is used to indicate Base32 Hex encoding in Polykey.
+
+## How Node IDs Are Generated
+
+### Step 1: Public Key to Multihash
+- The Ed25519 Public Key is first hashed using a cryptographic hash function.
+- This produces a Multihash output, which includes both the hash algorithm and the digest.
+
+### Step 2: Multihash to Multibase
+- The Multihash result is then encoded using Multibase. 
+- In Polykey, we use Base32 Hex encoding with a 'v' prefix to keep it easy to read and portable.
+
+## Why Multihash and Multibase?
+
+- **Future-Proofing**: Since Multihash includes the hash algorithm, we can change the algorithm later without breaking compatibility.
+- **Interoperability**: Other cryptographic systems that use Multihash and Multibase can parse Polykey Node IDs without any issues.
+- **Flexible Rendering**: A single Node ID can be represented differently if a different encoding or hash function is chosen.
+
+## Default Representation in Polykey
+
+Polykey defaults to rendering Node IDs as Base32 Hex, which has some major advantages:
+
+- A 32-byte hash always results in a 52-character string.
+- The alphabet is simple and does not use special characters, making it easy to copy, paste, and use anywhere.
+- The lexicographic sort order of the raw 32-byte Node ID matches its encoded form. This keeps things consistent whether Node IDs are stored in memory or displayed in a human-readable format.
+
+## How This Works in Practice
+
+- Node IDs always go through Multihash first, then Multibase. 
+- Base32 Hex is the default format, but the same Node ID can be rendered in other ways. 
+- If a different base or hash is chosen, the Node ID will look different but still represent the same key. 
+
+## Key Takeaways
+
+- Node IDs are hashed first (Multihash) and then encoded (Multibase). 
+- The default encoding is Base32 Hex, but other formats are possible. 
+- Base32 Hex ensures sort order consistency, easy readability, and portability. 
+- The Polykey codebase and the JS-ID repo have more details if needed. 
+
+---
\ No newline at end of file