As the world goes digital you need a way to verify the identity of the organisations you interact with online. That’s where vLEIs come in - they are the next evolution of organisational identity management, a tamper-evident, digitally verifiable proof of an entity’s identity and key representatives.
In this article we’ll go deep into the world of vLEIs, how they build on the existing LEI system and use the latest technologies to change the way you establish trust in digital interactions. Get ready to see the future of organisational identity verification and how it can benefit your business in the global market.
vLEIs, or Verifiable Legal Entity Identifiers, are a new digital identity for organisations. Built on the LEI system, vLEIs use advanced cryptographic techniques and verifiable organisational identity management to give unprecedented levels of security and trust.
By using decentralised identity technologies such as verifiable credentials, vLEIs provide a tamper-evident, digitally verifiable proof of an organisation’s identity and key representatives. This means seamless, automated authentication processes that speed up digital interactions and reduce the risk of fraud and identity theft.
In today’s fast paced, interconnected world, trust between counterparties is more important than ever. As organisations do more and more cross border transactions and digital collaborations, the need for a standardised, reliable way to instantly verify the identity of entities and individuals acting on their behalf has become critical.
vLEIs solve this problem head on, providing a global solution for organisational identity verification that goes beyond jurisdictional boundaries. By enabling fast, secure and automated authentication, vLEIs speed up digital interactions and build more trust in the global market.
vLEIs are a big step forward from the existing LEI system which has been the global standard for identifying legal entities involved in financial transactions. LEIs give a unique identifier for each organisation, vLEIs add a digital layer on top of that.
By using cryptographically secure digital credentials, vLEIs enable automated authentication that can instantly verify an organisation’s identity and the authority of individuals acting on its behalf. This builds on the core benefits of the LEI system, transparency and reduced counterparty risk, but for the digital age.
At the core of the vLEI is a set of modern technologies that work together to provide security, privacy and interoperability. Verifiable credentials based on open standards like W3C provide a way to express digital identity in a tamper-evident, cryptographically verifiable way while preserving the underlying data privacy.
Decentralized identifiers (DIDs) enable self-sovereign control of digital identity, allowing organizations to manage their own vLEI and credentials without a central authority. Digital wallets provide a secure, user-friendly way for organizations to hold and share their vLEI and credentials with counterparties as needed.
To ensure the vLEI system is robust and widely adopted a governance framework is needed. The vLEI Ecosystem Governance Framework, based on the Trust over IP model, sets out the rules, standards and best practices for vLEI issuance, management and verification.
At the heart of this framework are Qualified vLEI Issuers (QVIs), trusted entities that verify organization data and issue vLEIs. QVIs are overseen by the Global Legal Entity Identifier Foundation (GLEIF) to ensure adherence to strict standards and the overall integrity of the vLEI ecosystem.
vLEIs provide a secure, verifiable proof of an organization’s identity and also enable individuals to be bound to their organization through vLEI credentials. The Official Organizational Role (OOR) credential is an example of this, allowing organizations to cryptographically assert an individual’s authority to act on their behalf in digital transactions.
By using OOR credentials you can simplify business processes and reduce the risk of unauthorized activity, as counterparties can instantly verify the individual claiming to represent an organization. ECR (Engagement Context Role) credentials also provide a way to define custom business roles for specific contexts, for more complex and tailored digital interactions.
As vLEIs roll out across industries they will change the way organizations interact digitally. By providing a standardized, cryptographically secure way to verify organization identity and authority vLEIs will enable automation of many business processes.
Widespread adoption of vLEIs will establish a global standard for digital organization identity, and will bring unprecedented levels of trust and efficiency to digital interactions. As more companies adopt vLEIs you’ll see less friction, more security and better experiences when dealing with counterparties online.
To get the full benefit of vLEIs we need to drive adoption across all ecosystems. This means organisations, solution providers, regulators and industry bodies need to work together and be engaged.
Pilot projects and use cases are key to showing the benefits of vLEIs in real life. By demonstrating the tangible improvements in efficiency, security and user experience that vLEIs can bring, these will encourage wider adoption and build the vLEI momentum.
As more stakeholders get on board with vLEIs the network effects will kick in and the benefits will be amplified for everyone. By working together to drive adoption and shape the future of digital organisational identity you can put your business at the forefront of this change and benefit from a more trusted, streamlined digital economy.
As the vLEI ecosystem evolves we at Vidos will be here to help you through this new world of digital organisational identity. Join us on this journey and try vLEIs for yourself. Get started today and let us help you get the most out of secure, streamlined digital interactions for your business.
