Key Takeaways
Verifiable digital credentials (VDCs) are cryptographically signed, tamper-resistant records that replace vulnerable paper or PDF documents. They are stored in secure digital wallets and can be presented selectively across industries. They strengthen digital identity verification processes, reduce fraud, and support compliance across regulated sectors.
What It Is (and Isn’t)
A verifiable digital credential is verified information that confirms something about you, like your name, birthdate, or academic degree. Unlike a scanned document or PDF, it’s secured with a digital signature that shows if it’s been tampered with. This makes it portable, trustworthy, and easy to verify both in person and online.
Traditional documents, such as paper copies or static files, can be easily forged or altered. VDCs, on the other hand, come from trusted sources and can be instantly validated, making them far more reliable for everyday use and better at preventing identity fraud.
Why It’s Better Than Paper
Traditional credentials like driver’s licenses or birth certificates are often slow and costly to verify. Verifiable digital credentials improve this process by:
- Using cryptographic signatures to guarantee authenticity.
- Allowing selective disclosure, so only the required information is shared.
- Enabling instant checks without contacting the issuer directly.
For individuals, this means credentials are easier to carry on a phone, harder to forge, and faster to use. For organizations, they lower fraud risks, streamline identity proofing, and reduce compliance costs.
Where They’re Used
Verifiable digital credentials are already being used across sectors:
- More than 2 million mobile driver’s licenses (mDLs) have been issued in California alone.
- 17 U.S. states are issuing mDLs, and they are accepted at 250+ TSA airport checkpoints.
- Over 30 million vehicle titles have been digitized on blockchain-backed systems.
- Identity verification services like CLEAR and ID.me are used by millions, with ID.me alone serving over 100 million Americans.
Adoption is accelerating, with a projected 143 million mDL holders in the U.S. by 2030.
How Credentials Are Issued
Issuance is handled by trusted organizations such as governments, universities, or employers. They generate the credential, apply a digital signature, and deliver it to the individual’s wallet. The credential can be validated anywhere without relying on central databases.
For instance, a DMV may issue a mobile driver’s license (mDL), or a university may issue a digital diploma or transcript. In both cases, the credential can be presented to verifiers in alignment with trusted, standards-based frameworks for identity and authentication.
How Verification Works
When a verifier, such as a bank, employer, or hospital, checks a credential, they do not need to contact the issuer. Instead, they confirm the digital signature against cryptographic proofs. If the signature is valid, the credential is accepted.
Verification can also integrate with identity verification APIs, IAM solutions, or compliance automation software, ensuring organizations meet regulatory obligations.
Why This Matters
Verifiable digital credentials are more than just a technical upgrade. They form the foundation of secure digital identity ecosystems that support privacy-preserving identity verification across industries.
By reducing reliance on paper, they cut fraud, lower compliance costs, and create scalable trust. As adoption expands, they will increasingly support decentralized identity solutions, helping VDCs become the default method for proving identity online. They safeguard privacy, enable innovation, and support secure interactions in finance, healthcare, government, and beyond.
