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An emerging part of the identity landscape is Verifiable Credentials (VCs).
Think of VCs as a secure, digital version of a physical document, like a driver's license or a diploma. The concept is that a trusted entity (Issuer) gives a user (Holder) a digitally signed credential. The user can then store this credential in their digital "wallet" (typically a phone app) and present it to anyone who needs to verify it (Verifier).
A good example is buying a bottle of wine:
The Issuer (a government agency) issues you a digital driver's license.
You, the Holder, store this VC in your wallet app.
In order to purchase the bottle of wine, the Verifier (the store) asks for proof of age. You use your wallet app to present just the fact that you're of legal age.
This system has two advantages:
Privacy from the issuer: You can prove your age to the store without the government agency ever knowing you were there.
Selective disclosure to the validator: You can prove you're over a certain age without revealing your home address, name, or date of birth. You only share what's absolutely necessary.
VCs are set to become mandatory in the European Union under the eIDAS 2.0 regulation, which will bring digital wallets to all European citizens in the coming years. As wallet adoption grows, organizations like banks, universities, healthcare providers, and government agencies will need to issue VCs.
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An emerging part of the identity landscape is Verifiable Credentials (VCs).
Think of VCs as a secure, digital version of a physical document, like a driver's license or a diploma. The concept is that a trusted entity (Issuer) gives a user (Holder) a digitally signed credential. The user can then store this credential in their digital "wallet" (typically a phone app) and present it to anyone who needs to verify it (Verifier).
A good example is buying a bottle of wine:
This system has two advantages:
VCs are set to become mandatory in the European Union under the eIDAS 2.0 regulation, which will bring digital wallets to all European citizens in the coming years. As wallet adoption grows, organizations like banks, universities, healthcare providers, and government agencies will need to issue VCs.
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