Yes, the blockstack node package running on your machine generates the key pairs for you and thus the keys are stored on your local machine, not a centralized a

Yes, the blockstack node package running on your machine generates the key pairs for you and thus the keys are stored on your local machine, not a centralized authority. The reason you need an .id is because we have to register your identity on the blockchain and propagate your zonefiles. We can help you register a .stealthy.id that gives you access to the tool if you create an account today :)