How Verifiable Credentials Are Shaping the Future of Age Verification

The UK government recently announced a significant milestone in the evolution of digital identity: by next year, pubgoers and shoppers will have the option to prove their age using digital identities stored securely on their phones. This update promises to make age verification processes more secure, seamless, and convenient. This could be a game-changer for high street businesses and hospitality sectors alike. But beyond the immediate benefits, this development signals a broader shift towards creating a robust identity layer for the internet, grounded in verifiable credentials and enhanced by standardization and regulation.

The Benefits of Digital Identities in Age Verification

From pubs and clubs to automated tills in grocery stores, digital identities will simplify how individuals verify their age. Instead of fumbling through wallets for physical documents or risking the loss of passports or driving licenses, users can present a secure digital identity on their phones. A quick scan (using technologies like Blockchain, Digital Wallets, QR codes or NFC) will verify their age without exposing sensitive personal information such as their address or full name.

For businesses, the benefits are equally compelling:

• Efficiency: Digital age verification reduces waiting times at bars and tills, helping businesses serve customers faster and improve overall satisfaction.
• Security: Digital identities eliminate the need to carry physical IDs, reducing the risk of loss or theft.
• Privacy: Unlike traditional ID checks, verifiable credentials can provide proof of age without revealing extraneous personal data, supporting GDPR compliance and bolstering customer trust.
• Economic Growth: As highlighted by the UK government, the digital identity sector contributed over £2 billion in revenue last year and continues to create jobs across the UK. By supporting innovative solutions like digital IDs, businesses can contribute to a thriving digital economy.

Understanding Verifiable Credentials and the Trust Triangle

At the heart of digital identity systems is the concept of verifiable credentials, which rely on a "trust triangle" to ensure secure and reliable identity verification:

1. Issuer: A trusted entity (e.g., a government or employer) issues the credential.
2. Holder: The individual stores the credential securely, often in a digital wallet on their device.
3. Verifier: The entity requiring proof (e.g., a pub or retailer) verifies the credential’s authenticity without needing direct access to the issuer.

This model ensures that sensitive personal data remains under the holder’s control, shared only when necessary and in a minimized format. For instance, proving your age with a digital identity does not require disclosing your name or address, unlike presenting a physical ID.

The Growing Need for an Identity Layer on the Internet

The internet’s current architecture excels at data transfer and connectivity but lacks a standardized "identity layer" to facilitate secure and private interactions. As our digital lives expand, encompassing everything from online shopping to social media and professional networking, the need for a robust, interoperable identity framework becomes increasingly urgent. Here’s why:

• Data Privacy: Without an identity layer, personal data is fragmented across countless platforms, leaving users vulnerable to breaches and misuse. A standardized digital identity system gives individuals greater control over their data.
• Seamless Interaction: Just as the internet’s communication protocols enable seamless data sharing, an identity layer would allow users to authenticate themselves across platforms without redundant processes or excessive data sharing.
• Regulation and Trust: Much like financial transactions are governed by strict standards, digital identities need regulatory oversight to ensure security and interoperability. The UK’s Digital Identity and Attributes Trust Framework is a step in this direction, setting stringent standards for providers.
• Future-Proofing the Economy: As more services move online, a robust identity infrastructure will be critical for economic growth. From e-commerce to decentralized finance, secure digital identities will underpin trust in digital ecosystems.

The Role of Digital Identity in Driving Economic Growth

The UK government’s support for digital identities aligns with its broader economic goals, as evidenced by insights from the Data (Use and Access) Bill. The digital identity sector not only boosts productivity but also creates high-value jobs across the UK. By integrating digital IDs into everyday transactions, the government is fostering innovation while reducing inefficiencies.

The Road Ahead

Very soon, pubgoers raising a glass will have a tangible example of how digital identities can simplify and enhance everyday experiences. Yet, this development is just the beginning. As businesses, governments, and technology providers collaborate to build the internet’s long-overdue identity layer, the potential applications extend far beyond age verification. From secure logins to borderless banking and decentralized credentials for education, the future is bright for digital identity.

At Vidos, we’re excited to be part of this journey. Our commitment to decentralized identity solutions ensures that individuals and organizations can interact online with the trust, security, and privacy they deserve. Let’s raise a glass to a future where identity is as seamless as it is secure.