What are Verifiable Credentials and why are they essential in the digital world?

The Verifiable Credentials are the digital evolution of traditional certifications, such as diplomas or licenses. Unlike conventional methods, verifiable credentials (VC) are cryptographically signed, making them resistant to manipulation and easy to verify in real time. Standards such as Open Badges 3.0 y Comprehensive Learner Records 2.0 They allow secure credentials to be issued, verifying both the authenticity of the issuer and the identity of the holder.

Verifiable credentials offer a reliable and efficient solution to certify skills and achievements in various sectors.

But what exactly is a Verifiable Credential?

A verifiable credential is a digital file that contains one or more key-value assertions (e.g., birth date, name, qualifications, gender, citizenship, etc.) about one entity (the subject), issued by another entity (the issuer), and is verifiable by any entity (the verifier).

The W3C organization has developed the Verifiable Credentials (VC) standard and is promoted by the most important university consortia such as the DCCA VC is structured into assertions, metadata, and evidence. Evidence is what makes the credential verifiable.

Problems with traditional verification systems

Traditional verification methods, such as paper or digital certificates in insecure formats, present several challenges:

• Fraud and counterfeits are common.
• The validation processes They are slow and expensive.
• It’s hard confirm authenticity of a certification without resorting to the issuing institution.

These limitations have created the need for a more modern and effective solution.

Advantages of Verifiable Credentials

Verifiable credentials offer multiple benefits that make them superior to traditional credentials:

• Unalterability: Thanks to cryptography, once issued, they cannot be modified without invalidating the credential.
• Instant Verification: Any person or machine can validate a credential in real time.
• Guaranteed authenticity: Securely confirm credential authorship and holder.
• Portability: The user can store and share the credential on any platform.

Verifiable Credentials Ecosystem

The ecosystem of verifiable credentials is broad and growing. Some of the key components include:

• Issuers: Organizations that provide verifiable credentials, such as universities or companies.
• Headlines: The people who receive these credentials.
• Checkers: Entities that validate the authenticity of credentials, such as employers or government agencies.

This ecosystem ensures that verifiable credentials can be securely shared and verified across multiple environments.

How does a Verifiable Credential work with Blockchain?

This process is based on advanced technologies, such as cryptography and blockchain, which allows them to be more secure, transparent, and reliable than traditional certification methods. Let’s break down this process into different key stages to better understand how these credentials are issued, stored, and verified.

1. Issuance of the Verifiable Credential

It all starts with a issuing organization, which can be a university, a company, a government entity or any organization that wants to certify achievements or competencies. The issuance process includes:

• Credential Creation: The organization generates the digital credential with the holder’s information (such as name and achievements), along with specific details about the credential, such as the type of skill certified, the date issued, and in some cases, the expiration date.
• Cryptographic signature: A fundamental part of the process is the cryptographic digital signature. This signature guarantees that the credential cannot be altered once issued. cryptographic signature It acts as a seal of authenticity, certifying that the information contained in the credential comes from a reliable source and has not been modified.

At this stage, the following are also generated: cryptographic proofs (cryptographic proofs) that are attached to the credential, ensuring that any person or entity that wishes to verify it can do so automatically and without doubts about its authenticity.

2. Credential Storage and Ownership

Once issued, the verifiable credential It is delivered to the holder, usually through digital means. The holder can store this credential in several ways:

• Storage in a digital wallet: Much like a digital wallet used to store cryptocurrency, there are “credential wallets” that store individuals’ verifiable credentials. These wallets allow holders to have full control over their credentials and decide when and with whom to share them.
• InteroperabilityA key aspect of verifiable credentials is that they are designed to be interoperable. This means that holders can share their credentials with various platforms, employers or institutions without having to convert or adapt them to different formats.

3. Credential Verification

When the credential holder wishes share it With a third party (such as an employer, educational institution, or regulatory body), the verification process is triggered. This is one of the most important steps that distinguishes verifiable credentials from traditional certifications.

• Automatic verification: Thanks to the cryptographic evidence attached to the credential, the entity receiving the credential can verify it automatically using specialized software or platforms that understand verifiable credential standards, such as Open Badges 3.0. There is no need to contact the issuing organization, which saves time and resources.
• Validation on blockchain: In many cases, verifiable credentials are recorded on a blockchain network, which adds an extra layer of security and transparency. Blockchain acts as a “public ledger” where any modification or alteration of the credential would be visibly recorded. This ensures that the credential has not been tampered with and that its authenticity can be instantly confirmed.How is it verified on blockchain?
  -When a third party wants to verify a credential, the verification platform looks for the hash (a unique fingerprint) of the credential on the blockchain. If the hash matches the one generated at the time of issuance, the credential is guaranteed to be valid and has not been modified.
  -If the credential has been altered or is fraudulent, verification will fail as the hash will not match the original stored on the blockchain.

4. Reuse and update of the Credential

Another essential feature of verifiable credentials is that they are reusable. The holder may share the same credential in different contexts, such as on job applications, educational platforms, or professional networks. In addition, some credentials may be updatedFor example, if an employee acquires a new competency or updates their certification, the issuer can issue an updated version of the original credential, maintaining transparency and verification.

5. Privacy guarantees and control of the owner

One of the fundamental principles of verifiable credentials is that the holder has full control about your credentials. This means that:

• The holder may decide what information to share and with whom. For example, a credential might include multiple achievements or competencies, but the holder may choose to share only part of the information with a specific organization.
• Privacy is guaranteed, as information is only shared when the owner decides to do so, and sensitive data is not exposed to third parties without their explicit consent.

Verifiable Credentials Use Cases

Verifiable credentials have a wide range of applications in different sectors:

Education and formation

Universities and training centers are using verifiable credentials to certify the achievements of their students. This makes it easier for employers and other institutions to validate degrees and diplomas.

Human Resources

Companies use these credentials to validate skills and employee skills, facilitating talent recruitment and management.

Finance

In the financial sector, verifiable credentials are used to ensure that professionals comply with the certifications and regulations necessary to operate in their field.

Medical care

Medical institutions use verifiable credentials to certify the competencies of their healthcare professionals, improving trust and security in this critical sector.

Logistics and Transportation

In logistics, these credentials ensure that carriers or workers meet the requirements and certifications necessary to operate.

Why do we need Verifiable Credentials?

We live in a world where the digital trust is key. Verifiable credentials provide a secure, efficient and reliable solution to certify achievements, skills and authorizations across multiple sectors. In addition to this, they address critical problems that traditional systems cannot solve:

1. Preventing fraud and forgery

Traditional diplomas and certificates are easily falsified, which has led to serious economic and reputational losses. Verifiable credentials, protected by technologies such as blockchain, guarantee authenticity and immutability, preventing fraud.

2. Time saving and cost reduction

Conventional verification methods are slow and expensive. Verifiable credentials allow instant verification, improving hiring and enrollment processes.

3. Interoperability and portability

Thanks to international standards, verifiable credentials are recognized globally, facilitating academic and professional mobility without barriers.

4. Greater control and privacy for the owner

The credential holder decides how to share their information, ensuring privacy y control about your data.

5. Confidence in the digital economy

Verifiable credentials provide transparency y trust, essential for the digital economy, from hiring to service concessions.

6. Adaptability to rapidly evolving skills

Verifiable credentials allow new skills to be updated and certified quickly, ideal for industries that value knowledge. upskilling y reskilling whenever you need it.

In short, the verifiable credentials They are essential to ensure security, efficiency and trust in a constantly evolving digital environment.

Interested in exploring how the verifiable credentials can benefit your organization? Create a free account at Acreditta and start issuing verifiable credentials today. Contact us at info@acreditta.com .

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