Revert 97366de commit

Author: yashksaini-coder

libp2p/peer/id.py

@@ -84,11 +84,15 @@ def from_base58(cls, b58_encoded_peer_id_str: str) -> "ID":
     @classmethod
     def from_pubkey(cls, key: PublicKey) -> "ID":
         serialized_key = key.serialize()
-        algo = multihash.Func.sha2_256
+        # Use identity hash (no hashing) for small keys, otherwise use SHA2-256
         if ENABLE_INLINING and len(serialized_key) <= MAX_INLINE_KEY_LENGTH:
-            algo = IDENTITY_MULTIHASH_CODE
-        mh_digest = multihash.digest(serialized_key, algo)
-        return cls(mh_digest.encode())
+            # Identity multihash: just encode the key directly with code 0x00
+            mh_bytes = multihash.encode(serialized_key, IDENTITY_MULTIHASH_CODE)
+        else:
+            # SHA2-256: hash first, then encode
+            digest = hashlib.sha256(serialized_key).digest()
+            mh_bytes = multihash.encode(digest, "sha2-256")
+        return cls(mh_bytes)
 
 
 def sha256_digest(data: str | bytes) -> bytes: