diff --git a/README.md b/README.md
index 96ea07d..e1932b8 100644
--- a/README.md
+++ b/README.md
@@ -42,6 +42,7 @@
     - [`createFromPrivKey(privKey)`](#createfromprivkeyprivkey)
     - [`createFromJSON(obj)`](#createfromjsonobj)
     - [`createFromProtobuf(buf)`](#createfromprotobufbuf)
+    - [`parse(str)`](#parsestr)
   - [Export](#export)
     - [`toHexString()`](#tohexstring)
     - [`toBytes()`](#tobytes)
@@ -169,7 +170,7 @@ Returns `PeerId`.
 
 ### `createFromCID(cid)`
 
-- `cid: CID|String|Buffer` - The multihash encoded as [CID](https://github.com/ipld/js-cid) (object, `String` or `Buffer`)
+- `cid: CID` - The multihash encoded as [CID](https://github.com/multiformats/js-multiformats/blob/master/src/cid.js) object
 
 Creates a Peer ID from a CID representation of the key's multihash ([RFC 0001](https://github.com/libp2p/specs/blob/master/RFC/0001-text-peerid-cid.md)).
 
@@ -209,6 +210,10 @@ Returns `Promise<PeerId>`.
 
 `buf` is a protocol-buffers encoded PeerId (see `marshal()`)
 
+### `parse(str)`
+
+Attempts to create a PeerId from a base58btc encoded string or a CID encoded as a string.
+
 ## Export
 
 ### `toHexString()`
diff --git a/package.json b/package.json
index 58692fb..3f6ebfc 100644
--- a/package.json
+++ b/package.json
@@ -8,6 +8,7 @@
   "bin": "src/bin.js",
   "scripts": {
     "lint": "aegir lint",
+    "prepare": "npm run build",
     "build": "npm run build:proto && npm run build:proto-types && aegir build --no-types",
     "build:proto": "pbjs -t static-module -w commonjs -r libp2p-peer-id --force-number --no-verify --no-delimited --no-create --no-beautify --no-defaults --lint eslint-disable -o src/proto.js ./src/proto.proto",
     "build:proto-types": "pbts -o src/proto.d.ts src/proto.js",
@@ -41,14 +42,14 @@
     "@types/dirty-chai": "^2.0.2",
     "@types/mocha": "^8.2.0",
     "aegir": "^33.0.0",
+    "multihashes": "^4.0.2",
     "util": "^0.12.3"
   },
   "dependencies": {
-    "cids": "^1.1.5",
     "class-is": "^1.1.0",
     "libp2p-crypto": "^0.19.0",
     "minimist": "^1.2.5",
-    "multihashes": "^4.0.2",
+    "multiformats": "^9.0.0",
     "protobufjs": "^6.10.2",
     "uint8arrays": "^2.0.5"
   },
diff --git a/src/index.d.ts b/src/index.d.ts
index 0906fb3..7de24e5 100644
--- a/src/index.d.ts
+++ b/src/index.d.ts
@@ -1,5 +1,5 @@
 import { PrivateKey, PublicKey, KeyType } from "libp2p-crypto";
-import CID from 'cids'
+import { CID } from 'multiformats/cid'
 
 declare namespace PeerId {
   /**
@@ -68,7 +68,7 @@ declare namespace PeerId {
    * Create PeerId from CID.
    * @param cid The CID.
    */
-  function createFromCID(cid: CID | Uint8Array | string | object): PeerId;
+  function createFromCID(cid: CID): PeerId;
 
   /**
    * Create PeerId from public key.
@@ -94,6 +94,12 @@ declare namespace PeerId {
    * @param buf Protobuf bytes, as Uint8Array or hex-encoded string.
    */
   function createFromProtobuf(buf: Uint8Array | string): Promise<PeerId>;
+
+  /**
+   * Parse a PeerId from a string.
+   * @param str encoded public key string.
+   */
+   function parse(str: string): PeerId;
 }
 
 /**
diff --git a/src/index.js b/src/index.js
index 05c8122..b3ee793 100644
--- a/src/index.js
+++ b/src/index.js
@@ -4,14 +4,21 @@
 
 'use strict'
 
-const mh = require('multihashes')
-const CID = require('cids')
+const { CID } = require('multiformats/cid')
+const { base58btc } = require('multiformats/bases/base58')
+const { base16 } = require('multiformats/bases/base16')
+const Digest = require('multiformats/hashes/digest')
 const cryptoKeys = require('libp2p-crypto/src/keys')
 const withIs = require('class-is')
 const { PeerIdProto } = require('./proto')
 const uint8ArrayEquals = require('uint8arrays/equals')
 const uint8ArrayFromString = require('uint8arrays/from-string')
 const uint8ArrayToString = require('uint8arrays/to-string')
+const { identity } = require('multiformats/hashes/identity')
+
+// these values are from https://github.com/multiformats/multicodec/blob/master/table.csv
+const DAG_PB_CODE = 0x70
+const LIBP2P_KEY_CODE = 0x72
 
 class PeerId {
   constructor (id, privKey, pubKey) {
@@ -24,7 +31,7 @@ class PeerId {
     }
 
     this._id = id
-    this._idB58String = mh.toB58String(this.id)
+    this._idB58String = base58btc.encode(this.id).substring(1)
     this._privKey = privKey
     this._pubKey = pubKey
   }
@@ -55,9 +62,9 @@ class PeerId {
     }
 
     try {
-      const decoded = mh.decode(this.id)
+      const decoded = Digest.decode(this.id)
 
-      if (decoded.name === 'identity') {
+      if (decoded.code === identity.code) {
         this._pubKey = cryptoKeys.unmarshalPublicKey(decoded.digest)
       }
     } catch (_) {
@@ -121,7 +128,7 @@ class PeerId {
 
   // encode/decode functions
   toHexString () {
-    return mh.toHexString(this.id)
+    return base16.encode(this.id).substring(1)
   }
 
   toBytes () {
@@ -136,10 +143,10 @@ class PeerId {
   // in default format from RFC 0001: https://github.com/libp2p/specs/pull/209
   toString () {
     if (!this._idCIDString) {
-      const cid = new CID(1, 'libp2p-key', this.id, 'base32')
+      const cid = CID.createV1(LIBP2P_KEY_CODE, Digest.decode(this.id))
 
       Object.defineProperty(this, '_idCIDString', {
-        value: cid.toBaseEncodedString('base32'),
+        value: cid.toString(),
         enumerable: false
       })
     }
@@ -192,8 +199,9 @@ class PeerId {
    */
   hasInlinePublicKey () {
     try {
-      const decoded = mh.decode(this.id)
-      if (decoded.name === 'identity') {
+      const decoded = Digest.decode(this.id)
+
+      if (decoded.code === identity.code) {
         return true
       }
     } catch (_) {
@@ -213,7 +221,7 @@ exports = module.exports = PeerIdWithIs
 
 const computeDigest = (pubKey) => {
   if (pubKey.bytes.length <= 42) {
-    return mh.encode(pubKey.bytes, 'identity')
+    return Digest.create(identity.code, pubKey.bytes).bytes
   } else {
     return pubKey.hash()
   }
@@ -235,26 +243,46 @@ exports.create = async (opts) => {
 }
 
 exports.createFromHexString = (str) => {
-  return new PeerIdWithIs(mh.fromHexString(str))
+  return new PeerIdWithIs(base16.decode('f' + str))
 }
 
 exports.createFromBytes = (buf) => {
-  return new PeerIdWithIs(buf)
+  try {
+    const cid = CID.decode(buf)
+
+    if (!validMulticodec(cid)) {
+      throw new Error('Supplied PeerID CID is invalid')
+    }
+
+    return exports.createFromCID(cid)
+  } catch {
+    const digest = Digest.decode(buf)
+
+    if (digest.code !== identity.code) {
+      throw new Error('Supplied PeerID CID is invalid')
+    }
+
+    return new PeerIdWithIs(buf)
+  }
 }
 
 exports.createFromB58String = (str) => {
-  return exports.createFromCID(str) // B58String is CIDv0
+  return exports.createFromBytes(base58btc.decode('z' + str))
 }
 
 const validMulticodec = (cid) => {
   // supported: 'libp2p-key' (CIDv1) and 'dag-pb' (CIDv0 converted to CIDv1)
-  return cid.codec === 'libp2p-key' || cid.codec === 'dag-pb'
+  return cid.code === LIBP2P_KEY_CODE || cid.code === DAG_PB_CODE
 }
 
 exports.createFromCID = (cid) => {
-  cid = CID.isCID(cid) ? cid : new CID(cid)
-  if (!validMulticodec(cid)) throw new Error('Supplied PeerID CID has invalid multicodec: ' + cid.codec)
-  return new PeerIdWithIs(cid.multihash)
+  cid = CID.asCID(cid)
+
+  if (!cid || !validMulticodec(cid)) {
+    throw new Error('Supplied PeerID CID is invalid')
+  }
+
+  return new PeerIdWithIs(cid.multihash.bytes)
 }
 
 // Public Key input will be a Uint8Array
@@ -288,7 +316,7 @@ exports.createFromPrivKey = async (key) => {
 }
 
 exports.createFromJSON = async (obj) => {
-  const id = mh.fromB58String(obj.id)
+  const id = base58btc.decode('z' + obj.id)
   const rawPrivKey = obj.privKey && uint8ArrayFromString(obj.privKey, 'base64pad')
   const rawPubKey = obj.pubKey && uint8ArrayFromString(obj.pubKey, 'base64pad')
   const pub = rawPubKey && await cryptoKeys.unmarshalPublicKey(rawPubKey)
@@ -360,6 +388,16 @@ exports.createFromProtobuf = async (buf) => {
   throw new Error('Protobuf did not contain any usable key material')
 }
 
+exports.parse = (str) => {
+  if (str.charAt(0) === '1') {
+    // base58btc encoded public key
+    return exports.createFromBytes(base58btc.decode(`z${str}`))
+  }
+
+  // try to parse it as a regular base58btc multihash or base32 encoded CID
+  return exports.createFromCID(CID.parse(str))
+}
+
 exports.isPeerId = (peerId) => {
   return Boolean(typeof peerId === 'object' &&
     peerId._id &&
diff --git a/test/peer-id.spec.js b/test/peer-id.spec.js
index 4d4720e..36beb7e 100644
--- a/test/peer-id.spec.js
+++ b/test/peer-id.spec.js
@@ -5,7 +5,8 @@
 const { expect } = require('aegir/utils/chai')
 const crypto = require('libp2p-crypto')
 const mh = require('multihashes')
-const CID = require('cids')
+const { CID } = require('multiformats/cid')
+const Digest = require('multiformats/hashes/digest')
 const uint8ArrayFromString = require('uint8arrays/from-string')
 const uint8ArrayToString = require('uint8arrays/to-string')
 
@@ -13,12 +14,17 @@ const PeerId = require('../src')
 
 const util = require('util')
 
+const DAG_PB_CODE = 0x70
+const LIBP2P_KEY_CODE = 0x72
+const RAW_CODE = 0x55
+
 const testId = require('./fixtures/sample-id')
 const testIdHex = testId.id
 const testIdBytes = mh.fromHexString(testId.id)
+const testIdDigest = Digest.decode(testIdBytes)
 const testIdB58String = mh.toB58String(testIdBytes)
-const testIdCID = new CID(1, 'libp2p-key', testIdBytes)
-const testIdCIDString = testIdCID.toBaseEncodedString('base32')
+const testIdCID = CID.createV1(LIBP2P_KEY_CODE, testIdDigest)
+const testIdCIDString = testIdCID.toString()
 
 const goId = require('./fixtures/go-private-key')
 
@@ -90,63 +96,55 @@ describe('PeerId', () => {
   })
 
   it('recreate from Base58 String (CIDv0))', () => {
-    const id = PeerId.createFromCID(testIdB58String)
+    const id = PeerId.createFromCID(CID.parse(testIdB58String))
     expect(testIdCIDString).to.equal(id.toString())
     expect(testIdBytes).to.deep.equal(id.toBytes())
   })
 
   it('recreate from CIDv1 Base32 (libp2p-key multicodec)', () => {
-    const cid = new CID(1, 'libp2p-key', testIdBytes)
-    const cidString = cid.toBaseEncodedString('base32')
-    const id = PeerId.createFromCID(cidString)
-    expect(cidString).to.equal(id.toString())
+    const cid = CID.createV1(LIBP2P_KEY_CODE, testIdDigest)
+    const id = PeerId.createFromCID(cid)
+    expect(cid.toString()).to.equal(id.toString())
     expect(testIdBytes).to.deep.equal(id.toBytes())
   })
 
   it('recreate from CIDv1 Base32 (dag-pb multicodec)', () => {
-    const cid = new CID(1, 'dag-pb', testIdBytes)
-    const cidString = cid.toBaseEncodedString('base32')
-    const id = PeerId.createFromCID(cidString)
+    const cid = CID.createV1(DAG_PB_CODE, testIdDigest)
+    const id = PeerId.createFromCID(cid)
     // toString should return CID with multicodec set to libp2p-key
-    expect(new CID(id.toString()).codec).to.equal('libp2p-key')
+    expect(CID.parse(id.toString()).code).to.equal(LIBP2P_KEY_CODE)
     expect(testIdBytes).to.deep.equal(id.toBytes())
   })
 
   it('recreate from CID Uint8Array', () => {
-    const id = PeerId.createFromCID(testIdCID.bytes)
+    const id = PeerId.createFromBytes(testIdCID.bytes)
     expect(testIdCIDString).to.equal(id.toString())
     expect(testIdBytes).to.deep.equal(id.toBytes())
   })
 
   it('throws on invalid CID multicodec', () => {
     // only libp2p and dag-pb are supported
-    const invalidCID = new CID(1, 'raw', testIdBytes).toBaseEncodedString('base32')
+    const invalidCID = CID.createV1(RAW_CODE, testIdDigest)
     expect(() => {
       PeerId.createFromCID(invalidCID)
-    }).to.throw(/Supplied PeerID CID has invalid multicodec: raw/)
+    }).to.throw(/invalid/i)
   })
 
-  it('throws on invalid CID value', () => {
-    // using function code that does not represent valid hash function
+  it('throws on invalid multihash value', () => {
+    // using function code 0x50 that does not represent valid hash function
     // https://github.com/multiformats/js-multihash/blob/b85999d5768bf06f1b0f16b926ef2cb6d9c14265/src/constants.js#L345
-    const invalidCID = 'QmaozNR7DZHQK1ZcU9p7QdrshMvXqWK6gpu5rmrkPdT3L'
+    const invalidMultihash = uint8ArrayToString(Uint8Array.from([0x50, 0x1, 0x0]), 'base58btc')
     expect(() => {
-      PeerId.createFromCID(invalidCID)
-    }).to.throw(/multihash unknown function code: 0x50/)
+      PeerId.createFromB58String(invalidMultihash)
+    }).to.throw(/invalid/i)
   })
 
   it('throws on invalid CID object', () => {
     const invalidCID = {}
     expect(() => {
+      // @ts-expect-error invalid cid is invalid type
       PeerId.createFromCID(invalidCID)
-    }).to.throw(/Invalid version, must be a number equal to 1 or 0/)
-  })
-
-  it('throws on invalid CID object', () => {
-    const invalidCID = {}
-    expect(() => {
-      PeerId.createFromCID(invalidCID)
-    }).to.throw(/Invalid version, must be a number equal to 1 or 0/)
+    }).to.throw(/invalid/i)
   })
 
   it('recreate from a Public Key', async () => {
@@ -174,6 +172,28 @@ describe('PeerId', () => {
     expect(uint8ArrayToString(id.marshal(), 'base16')).to.deep.equal(testId.marshaled)
   })
 
+  it('recreate from embedded ed25519 key', async () => {
+    const key = '12D3KooWRm8J3iL796zPFi2EtGGtUJn58AG67gcqzMFHZnnsTzqD'
+    const id = await PeerId.parse(key)
+    expect(id.toB58String()).to.equal(key)
+    const expB58 = mh.toB58String(mh.encode(id.pubKey.bytes, 'identity'))
+    expect(id.toB58String()).to.equal(expB58)
+  })
+
+  it('recreate from embedded secp256k1 key', async () => {
+    const key = '16Uiu2HAm5qw8UyXP2RLxQUx5KvtSN8DsTKz8quRGqGNC3SYiaB8E'
+    const id = await PeerId.parse(key)
+    expect(id.toB58String()).to.equal(key)
+    const expB58 = mh.toB58String(mh.encode(id.pubKey.bytes, 'identity'))
+    expect(id.toB58String()).to.equal(expB58)
+  })
+
+  it('recreate from string key', async () => {
+    const key = 'QmRsooYQasV5f5r834NSpdUtmejdQcpxXkK6qsozZWEihC'
+    const id = await PeerId.parse(key)
+    expect(id.toB58String()).to.equal(key)
+  })
+
   it('can be created from a Secp256k1 public key', async () => {
     const privKey = await crypto.keys.generateKeyPair('secp256k1', 256)
     const id = await PeerId.createFromPubKey(privKey.public.bytes)
@@ -209,7 +229,8 @@ describe('PeerId', () => {
 
   it('Pretty printing', async () => {
     const id1 = await PeerId.create(testOpts)
-    const id2 = await PeerId.createFromPrivKey((id1.toJSON()).privKey)
+    const json = id1.toJSON()
+    const id2 = await PeerId.createFromPrivKey(json.privKey || 'invalid, should not happen')
     expect(id1.toPrint()).to.be.eql(id2.toPrint())
     expect(id1.toPrint()).to.equal('<peer.ID ' + id1.toB58String().substr(2, 6) + '>')
   })
@@ -375,6 +396,7 @@ describe('PeerId', () => {
     })
 
     it('invalid id', () => {
+      // @ts-expect-error incorrect constructor arg type
       expect(() => new PeerId('hello world')).to.throw(/invalid id/)
     })
   })