Verifiable Credentials & Identity Wallets (W3C VC 2.0)
Cryptographically verifiable claims issued by trusted parties and presented via identity wallets, enabling selective disclosure and offline verification.
Overview
Verifiable Credentials (VCs) allow entities to issue cryptographically signed credentials that holders store and present through identity wallets. Verifiers check proofs without calling the issuer, enabling privacy-preserving flows and offline checks.
How it works
- Issuance: Issuer signs a credential to the holder’s wallet.
- Presentation: Holder creates a verifiable presentation with selective attributes.
- Verification: Verifier validates signature, status/revocation, and schema against trusted keys/registries.
Common use cases
- Digital diplomas & licenses
- Age or attribute checks
- Travel & cross-border credentials
- Land-registry consent and transaction authorization
- Government service access and digital signatures
Strengths and limitations
Strengths: Privacy via selective disclosure; offline verification; open standards.
Limitations: Interop profiles; governance/trust frameworks; revocation/status infrastructure.
Key terms
- Verifiable presentation: A bundle proving certain claims to a verifier.
- Issuer/Holder/Verifier: Roles in VC ecosystems.
Current market signal
VCs are increasingly tied to operational ecosystems rather than only conceptual wallet demonstrations. Bhutan's National Digital Identity work applies credentials to land-registry consent, while idOS reflects demand for reusable identity and compliance proofs across decentralized applications.
References
Vendors using Verifiable Credentials & Identity Wallets (W3C VC 2.0)
Latest Data Cards
Data Card FaceTec reports UR Code deployments across law enforcement and public safety
2026-08-31CC-BY-4.0facial-recognitionverifiable-credentialsfacetecFaceTec confirmed production deployments of UR Code biometric credentials with New York sheriff's offices and Project Lifesaver International.
- UR Codes are digitally signed 2D codes embedding identity attributes and a biometric template on physical cards or wearables.
- They support offline two-party face matching on a mobile device without a database lookup.
- Deployments cover Albany and Saratoga County sheriff credentialing and Project Lifesaver wristbands.
Data Card Arizona launches first US digital birth credential with LexisNexis Risk Solutions
2026-08-26CC-BY-4.0verifiable-credentialsmobile-idArizona deployed what is described as the first US digital birth credential, delivered with LexisNexis Risk Solutions and usable in Motor Vehicle Division transactions.
- The credential operates through the LexisNexis VitalChek vital records platform.
- It was deployed with the Arizona Department of Health Services and Department of Transportation.
- A pilot began at three Motor Vehicle Division locations in November 2025 and expanded statewide by June 2026.
Data Card OpenID Foundation urges Australia to prioritise credential interoperability
2026-08-21CC-BY-4.0verifiable-credentialsdigital-idThe OpenID Foundation submitted recommendations to an Australian Department of Finance consultation urging adoption of open credential presentation and issuance standards.
- The submission recommends OpenID for Verifiable Presentation and Credential Issuance, alongside OpenID Connect, FAPI 2.0, and Federation.
- Australia has committed $654.3 million over four years to expand its Digital ID System.
- The foundation warned against fragmented credential silos.