Verifiable credentials are one of the methods that is gaining popularity for thwarting account compromise attacks. The concept includes using digital credentials that follow an open standard. Using digital credentials that follow an open standard is the idea. These credentials frequently contain information and components from verified tangible artefacts like a driver's license, passport, or their digital equivalents, such bank accounts.
Verifiable credentials are desirable because, unlike physical identifiers, they are much less susceptible to forgery and theft because of the usage of digital signatures. These digital credentials can be kept in a digital wallet on a PC or a smartphone, allowing trust to be built both within and between organizations.
Moreover, it has been swift in gaining popularity at a time when fraud, identity theft, and malware are on the rise. Additionally, when these digital artefacts are paired with a verifiable data registry, security safeguards are multiplied. Verifiable credentials also permit selective disclosure, which lets people choose to disclose only the information they need with a particular entity rather than all of their personal information.
This reduces the chance of identity theft and helps to protect critical information. We are listing some of the advantages presented by verifiable credentials:
Truth and Consequences
Verifying an individual’s identity is an easy task when it comes to the physical world. Birth certificates, utility bills, and government IDs serve as a source to determine that the person is in fact who he claims he is. The person has been verified by a reliable source, and they have been given an artefact they can use to confirm facts. As a result, it is now conceivable for someone to get on a plane, apply for government aid, or open a bank account.
On the other hand, in the online world, their seems to be no central authority of a person’s identity. Each organization, website, or account needs a unique username and password. While some major corporations, including Google, Apple, and Facebook, have tried to combine identities using their single sign-on (SSO) login credentials, there is still no central authority to certify genuine identities.
On of the tactics that has emerged as a breakthrough in transforming the physical world’s security into the digital realms is: entering verifiable credentials and verifiable data registries.
Reliance in Any Situation
Verifiable credentials can increase system resilience in the event of a network or identity provider failure. For instance, it is still possible to confirm a user's identity if a natural disaster like a hurricane strikes and puts an identity provider offline. The fact that the user's device stores their signed credentials allows them to be supplied to an application, which can then utilize a cached copy of the user's public key to verify the credentials. Another illustration would be cruise ships, which are well known for having unstable or slow satellite Internet connections. Onboard applications may still confirm a user's identity and let users make dinner or entertainment bookings, or book excursions, using the verifiable credentials flow.
Adopting this Approach
Shifting to verified credentials with verifiable data registries could itself convey certain challenges. Applications must typically be rewritten in order to support them. By orchestrating the decoupling of identification from apps, this obstacle can be solved. This enables the migration of brittle, legacy services to distributed, robust systems without changing the codebases of the aforementioned legacy applications.
Companies looking forward to adopting verifiable credentials are advised to focus on two key areas:
- Ensuring that the initial verification process is safe and that the source through which credentials are being taken is trustworthy.
- To establish a process to deal with problematic cases, like the moments of network outage.
Several organizations are now realizing the need to take a more sophisticated and forward-looking approach as the issues associated with digital identity verification increase. A route to more effective and resilient security is provided by verifiable credentials and verifiable data registries.
