How To Prepare Your Business for Verifiable Credentials

Verifiable credentials (VCs) are causing a stir. They’re transforming how we prove who we claim to be and promise to simplify critical processes and streamline onboarding.

All of this is possible through a convenient, secure and privacy-oriented alternative to physical identification. Where centralized digital identity platforms failed, VCs will succeed because they rely on more secure decentralized systems.

However, institutions have been slow to adopt them. The general perception is that VCs are just “too much, too soon.” Just how much is too much, and what must you know before adopting VCs in your business?

To answer both questions, let’s go over the value that VCs can deliver.

How VCs Make Verification Easier And Safer

Traditional identity verification methods such as physical credentials and centralized databases have limitations.

They are inefficient, can be compromised and can have privacy issues. Reusable digital identities can address these challenges in several ways.

• One credential for unlimited access everywhere. VCs allow you to create a single digital identity for use across multiple platforms and services, which eliminates the need for separate credentials for each system. This simplifies user experiences and reduces friction.

• Instant verification. With VCs, organizations can expedite verification processes by leveraging a secure decentralized system.

For instance, during the pandemic, digital credentials could have facilitated rapid verification of vaccination status—avoiding privacy concerns associated with paper-based certificates.

• Decentralized. VCs can protect organizations and people by eliminating the need to store usernames and passwords in one vulnerable place. Everyone can gain more privacy and control over their personal data by choosing what to share and how it’s used.

• Passwordless. VCs minimize or eliminate the need for passwords by relying on biometrics or cryptographic keys for enhanced security and convenience, allowing organizations to boost their overall security.

• Tamperproof. VCs are tamperproof, ensuring the data they hold is authentic and trustworthy. Cryptographic proof makes any attempts to modify the credentials easily detectable.

What Adopting A VC Strategy Looks Like

As with any disruptive technology, it is essential to form a balanced perspective before making an investment.

For organizations, this involves thinking about the practical steps necessary for implementation.

Transitioning to a VC strategy requires careful planning and groundwork. Here are key areas to focus on when laying the groundwork for your implementation:

Conduct An Internal Infrastructure Assessment

Thoroughly assessing your organization’s existing infrastructure involves evaluating the current systems and technologies that handle data and identity verification.

Organizations should identify any gaps or areas that require improvement to integrate VCs seamlessly.

It is crucial to ensure that data security measures are robust enough to protect sensitive information from unauthorized access.

Consider Process Redesign

Examine workflows for identity verification, credential issuance and user authentication to determine whether your organization needs to reimagine how it does things before transitioning to a VC strategy.

Consider how VCs could enhance these processes and streamline interactions between stakeholders. Security, privacy and user consent are key elements that must be emphasized to build trust in your system.

Examine Product Integration

Identify products and services that might benefit from VCs. This could span customer onboarding, employee training or supplier verification.

Lean into collaborative engagements with product teams to design and implement the necessary changes to accommodate VCs seamlessly.

Perform Vendor Evaluations

For some organizations, developing an in-house VC solution may be an option. For others, partnering with reputable vendors could expedite the implementation process.

If your organization chooses to partner, it must evaluate vendors carefully to ensure they’re reliable enough to reduce the burden of implementation and create a smooth transition.

Consider their expertise in VCs as well as the security measures they implement, their data privacy compliance and their scalability.

Prioritize Data Privacy And Compliance

VCs store sensitive personal information, making data privacy a top priority. As your organization develops its strategy, ensure it aligns with relevant data protection regulations such as GDPR or CCPA.

Implementing privacy-by-design principles builds trust among users and stakeholders.

Conclusion

VCs are one crucial step closer to making identity theft a thing of the past and business as usual better. However, effectively and efficiently embracing VC requires a strategy based on careful planning and groundwork.

Once in place, VCs can position your organization at the forefront of digital identity management. Realizing a future built on trust, transparency and inclusivity will be easier.