Credential verification is the process by which a verifier, a bank, employer, government agency, or business, confirms that a verifiable digital credential is authentic, unaltered, and still valid. Unlike traditional document checks that rely on visual inspection, verifiable digital credentials use cryptography to provide mathematical proof of authenticity.
The three-party model
Digital identity systems operate through three roles. Issuers are trusted organizations, such as DMVs, universities, or employers, that create and sign credentials. Holders are individuals who store credentials in digital wallets. Verifiers are entities that need to confirm the authenticity of a credential, such as banks opening accounts, TSA agents checking IDs at airports, and employers verifying diplomas.
What makes this model work is that issuers and verifiers don't need to communicate directly. Trust flows through the credential itself.
How cryptographic verification works
When an issuer creates a credential, it applies a digital signature using its private key. This signature is mathematically tied to the content of the credential. When you present the credential to a verifier, they use the issuer's public key to check the signature.
If the credential has been altered in any way, even by a single character, the signature will no longer match. If it's valid, the verifier has instant assurance that the credential truly came from the claimed issuer and hasn't been tampered with.
This creates trust without intermediaries. A bank verifying your driver's license doesn't need to contact the DMV. It simply checks the DMV's digital signature mathematically.
Offline vs. online verification
Verification can happen in two modes. Device retrieval is a presentation mode that utilizes NFC or QR code engagement between the holder and verifier. It can support offline verification when verifiers rely on locally stored trust material, but may also be used in online-assisted flows, depending on the implementation. The holder taps their phone against a reader or displays a QR code, and the cryptographic signature confirms authenticity using preloaded public keys.
Both approaches depend on public key infrastructure (PKI) to confirm integrity and authenticity. Offline verification enhances resilience during network outages and in areas with limited or no connectivity. Online verification supports automated integration into digital workflows.
What verifiers check
When verifiers evaluate a credential, they ask several questions. Who issued this credential, and is the issuer a trustworthy entity? Has the credential been tampered with? Is the credential actually tied to the person presenting it? Is it still valid, or has it been revoked? If the answers are satisfactory, the credential is accepted.
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