Max
Created: June 6, 2025
Updated: June 20, 2025
A Verifiable Credential (VC) is a cryptographically secure, digitally issued credential that allows individuals or entities to prove their identity or other attributes online in a privacy-preserving way. Defined by the W3C Verifiable Credentials standard, a VC is designed to be easily shared, verified, and trusted without relying on centralized databases or intermediaries.
Key Characteristics:
Key Takeaways:
The Verifiable Credentials ecosystem comprises issuers, holders (usually via a Verifiable Credentials wallet), and verifiers. Each role interacts securely and privately:
VCs offer substantial benefits to users, issuers, and verifiers:
The Verifiable Credentials data model v1.1, standardized by the W3C, defines the structure and processing rules for credentials:
While digital credentials broadly refer to any digital representation of identity or achievements, Verifiable Credentials vs. digital credentials highlights a key difference: Verifiable Credentials are cryptographically verifiable without centralized databases, whereas traditional digital credentials may lack such robust verification mechanisms.
A cryptographically verifiable credential ensures that the information provided is tamper-proof and trustworthy. This cryptographic layer distinguishes Verifiable Credentials from standard digital credentials, making them ideal for sensitive applications like finance, healthcare, and government services.
What are Verifiable digital credentials? Verifiable digital credentials are digitally signed documents that cryptographically confirm an individual’s identity or specific attributes without relying on centralized databases.
How does a Verifiable Credentials wallet work? A Verifiable Credentials wallet securely stores digital credentials on devices, allowing users to manage, selectively share, and present credentials for verification purposes.
What is Verifiable Credentials issuance? Issuance is the process by which trusted entities, such as institutions or governments, create and digitally sign Verifiable Credentials to confirm specific attributes or identities.
What is Verifiable Credential verification? Verification is the cryptographic validation process used by third parties to ensure that a presented credential is authentic, unchanged, and issued by a legitimate issuer.
How does Microsoft support Verifiable Credentials? Microsoft provides Azure AD Verifiable Credentials, a service allowing organizations to issue and verify credentials seamlessly, integrating decentralized identity solutions into enterprise environments.
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