Verifiable Credentials (VCs) use cases#

Key concepts#

Verified credential#

A Verified Credential (VC) is a standardized format for credentials that can be cryptographically verified. It allows for trusted sharing of certifications and qualifications in digital form.

Issuer and subject#

The issuer is the authority that creates and attests to the VC, while the subject is the entity (person or organization) the VC is about.

Decentralized Identifier (DID)#

The Decentralized Identifier (DID) in the credentialSubject indicates the unique identifier of the individual or entity the VC is referring to.

Digital signature#

The VC is signed by the issuer using cryptographic algorithms, ensuring its authenticity and integrity.

This breakdown of a VC for an Oxford University degree exemplifies how VCs operate in the realm of digital identity, providing a secure and verifiable means of representing qualifications and personal attributes.

How Verifiable Credentials work#

Issuance and storage#

VCs are issued by trusted entities and can be stored in digital wallets controlled by the credential holder. This storage method empowers users with control over their credentials, contrasting with traditional systems where credentials are stored and managed by issuing authorities.

Sharing and verification#

The sharing of VCs involves presenting them to a verifier (such as an employer or service provider) who can easily and securely verify their authenticity and integrity, typically through cryptographic methods and by checking against the issuer's public key.

Revocation and expiry#

Issuers retain the ability to revoke VCs, a crucial aspect for maintaining the integrity of the credential system. Additionally, VCs can have an expiry date, after which they are no longer considered valid.

Benefits of Verifiable Credentials#

Enhanced privacy and security#

VCs offer improved privacy by allowing individuals to share only the necessary information. The cryptographic nature of VCs also provides robust security against forgery and tampering.

User empowerment#

VCs empower users by giving them control over their personal information and how it is shared, aligning with the principles of self-sovereign identity.

Efficiency and trust#

The digital nature of VCs streamlines processes, reducing the time and resources needed to verify credentials. Trust is enhanced as verifiers can rely on the cryptographic proofs that VCs provide.

Challenges and considerations#

Adoption and accessibility#

Widespread adoption of VCs requires overcoming technical, social, and regulatory challenges, including ensuring accessibility for all users.

Balancing security and usability#

Creating systems that are both highly secure and user-friendly is crucial for the success of VCs.

Regulatory compliance#

Ensuring that VCs comply with global data protection and privacy laws is vital for their acceptance and sustainability.

Verifiable Credentials represent a significant advancement in the way personal and professional information is shared and verified online. By offering enhanced security, privacy, and user control, VCs are set to play a crucial role in the future of digital identity management.