In the information age, personal data is a powerful currency, with a unique ability to inform – and enhance – our lives.
Today, governments, organizations, and individuals across the world are increasingly recognizing data as a driver of efficiency, empowerment, and ultimately improved quality of life. This value will only continue to increase in the coming years, making verifiable credentials a critical tool in accessing, sharing, and maximizing these diverse data assets.
While they may be used for different purposes, at their core, verifiable credentials are digital representations of often sensitive information and identity data, which may include assets like national IDs or university diplomas. They allow us to verify claims about people, organizations, animals, or objects – without constantly needing to rely on a central authority. And, critically, they enable us to exchange information safely and efficiently.
In short, they can be a game-changer for accessible, equitable data usage, especially personal data.
With these core elements in place, verifiable credentials can empower people in many different ways. These assets can allow people to easily share their medical records with doctors, have increased access to financial services by helping fulfill Know Your Customer (KYC) and Anti-money laundering (AML) requirements, or help them more easily secure employment opportunities, by easily verifying their educational and professional certifications.
And, in the information economy, these assets can spur incredible new opportunities. For example, using her verifiable credentials, a young mother could more easily apply for a loan to open a small business, thus providing her the means of paying for her children’s educations, investing in their livelihoods, and saving for the future. Especially for those living in lower income communities, these benefits can be transformative.
Along with the many benefits verifiable credentials can provide, there are also potential challenges to consider, including information overreach, lack of digital literacy, and infrastructure barriers, which is why good design practices are essential. When done well, verifiable credentials should be user-centric, trustworthy, and easily accessible for people.
To maximize the benefits of verifiable credentials and minimize potential risks, there are a number of elements that need to be considered, from ensuring informed, meaningful consent to seamless reusability.
When prioritized, these good practices ensure that verifiable credentials are well-designed and implemented, leading to positive outcomes for those who use them.
Hover or click on the images below to reveal key attributes for each category.
As verifiable credentials continue to gain popularity across organizations, sectors, and regions, in-depth research is needed to understand their impact across different levels of society, including people, governments, and markets.
The following case studies, reports, and learnings from our partners in the ecosystem provide critical insights into verifiable credentials – not only exploring how they work, but also how demonstrating their potential to transform the way we access and share personal data.
In 2023, the government of Bhutan launched Bhutan NDI, a verifiable credential-based national identity system. By implementing components like self-sovereign identity principles and effective governance architecture, this system connects different sectors of society – including individuals, government, and private sector actors – in a trusted digital ecosystem.
GLEIF’s verifiable legal entity identifier (LEI) provides organizations across the world a trusted means of verifying the identity of those they’re interacting with. This technology helps promote participation in the global economy, expedite supply chains, and advance cost effective – and efficient- trading practices.
In 2023, the International Air Transport Association (IATA) conducted the first international round-trip for two passengers using verifiable credentials-based travel passes. In this experiment, passengers were able to carry out all aspects of the registration, check-in, and boarding processes using digital wallets. This included transactions like verifying their identities, obtaining visas, and accessing frequent flyer miles.
Along with the above case studies, the following tools and resources provide practical guidance and considerations for those looking to better understand, design, and implement verifiable credentials.
W3C’s high-level overview and roadmap provides technical specifications for effective and trustable verifiable credentials. By following these guidelines, implementors can ensure their systems are cryptographically secure, privacy respecting, and machine-verifiable.
Inji, an innovative verifiable credential stack by MOSIP, enables governments and organizations to issue a wide range of verifiable credentials that can be accessed and shared via digital wallets. This stack is interoperable, modular, and open-source, allowing it to scale across sectors and use-cases.
