Decentralized Identity and Verifiable Credentials - Trends and Advancement

This paper explores the transformative potential of decentralized identity and verifiable credentials for digital identity management. It also emphasizes the need for digital identities, as a trusted abstraction model, to connect entities and manage their relationships. The decentralized identity is a trusted connector between data and services, enabling users to control their data and complete transactions. Verifiable credentials allow data issuers to issue cryptographically signed information to data holders, who can present it to data verifiers for independent validation. This model ensures better compliance with privacy regulations and improves security. This paper highlights the importance of neutrality, controllability, and interoperability in the ecosystem, with identity wallets playing a crucial role in managing identifiers and verifiable credentials.