Verifiable Credentials (VCs) are digital records that provide evidence of a person, organization or thing’s identity, qualifications, memberships and other attributes. They can be used to prove an individual’s identity online in a secure and privacy-preserving manner. VCs enable individuals to share verified information with organizations without having to reveal their personal information.
VCs are based on the W3C Verifiable Credential Data Model standard which is designed as an open source standard allowing data providers and verifiers to easily exchange digitally signed credentials using blockchain technology. The goal of this model is to allow people who have credentials issued by one party (the issuer) to securely present them for verification by another party (the verifier).
The primary benefit of VCs is that they let users control how much personal data they share with others while still proving that they possess certain qualifications or identify themselves as part of particular groups or communities without having any direct contact with the issuer. This helps protect user privacy while also making it easier for businesses and institutions to verify customers’ identities quickly and reliably.
VCs can be used for various purposes such as verifying educational degrees, passports, driver’s licenses and voting rights among many others areas where digital proof needs authentication from multiple sources. Additionally, VCs offer advantages over paper documents in terms of cost savings due their ability to be stored electronically across multiple locations simultaneously at minimal cost compared with printing costs associated with physical documents like diplomas or certificates .