Guidance on Implementing Verifiable Credential Issuance

Anne Bailey

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The organization interacts with many users including employees, customers, suppliers, and contractors. In order to flexibly and securely handle the variety of each user’s digital journey in an interoperable way, organizations must shift to more user-controlled methods. OpenID for Verifiable Credential Issuance (OID4VCI) is an emerging standard that bridges the gap between a new model of digital identity interaction and the known and often already implemented standards. The scope of this paper is to provide guidance to Identity and Access Management (IAM) and security architects on implementing OIDC4VCI. This whitepaper provides context for the user-controlled model, separates hype from reality, and identifies early learnings for organizations that are ready to issue verifiable credentials.

The landscape of identity management is evolving beyond traditional parameters to accommodate digital identities for diverse personas such as partners, suppliers, devices, services, and "things." The modern approach prioritizes user-centric models, secure and privacy-forward journeys, and is heavily reliant on verifiable credentials, which empower users to control the sharing of their information without pre-existing relationships with credential verifiers. The integration of these digital credentials is facilitated by standards such as OpenID for Verifiable Credential Issuance (OID4VCI), which provides a seamless, interoperable solution across existing digital identity frameworks. This user-centric shift is driven by regulations like the European Digital Identity (EUDI) Regulation, which mandates digital wallets for holding credentials. While hype surrounds these capabilities, significant progress is being made in creating interoperable systems for issuing and verifying credentials through standards endorsed by organizations such as the OpenID Foundation, W3C, and ISO. Currently, large-scale pilots like the EUDI Wallet project demonstrate practical applications, emphasizing the necessity for managing customized authorization flows and selective disclosure. For organizations transitioning to user-centric identity systems, partnering with knowledgeable entities and focusing on interoperability is critical. Innovations in user-controlled identities offer vast potential, promising transformation in digital identity ecosystems.

Verifiable credentials can be presented to verifiers without involving the credential issuer directly.
OID4VCI is designed to issue verifiable credentials in formats like IETF SD-JWT VC, W3C VC, and ISO mDL.
The EUDI regulation requires EU Member States to provide digital wallets for verifiable credential use across sectors.
Initial efforts in decentralized identity heavily focused on blockchain but have since evolved.
Different standards cater to verifiable credentials, including DIF's DID-JWT and NIST's SP 800-63-4.
The EUDI Wallet project is a prominent large-scale pilot showcasing verifiable credential issuance and interoperability.
Authlete has actively contributed to the OID4VCI standards and has participated in significant pilot projects.
Selective disclosure with SD-JWT enables users to choose which credential information to disclose during verification.
The EUDI Wallet project is moving towards creating interoperable national digital wallets for multiple use cases.
In the user-controlled model, an organization can assume roles as issuer, holder, and verifier simultaneously.

"Identity management has moved beyond just identity for the standard personas of employees or customers."
"Each needs an identity, and to mesh with the modern organization, their user journey must be flexible, privacy-forward, secure, interoperable, and increasingly user-centric."
"Verifiable credentials place the user in control of the information shared with other parties."
"The user-controlled digital identity ecosystem has the benefit of cost savings, efficiency gains, privacy-enhancements, and improved user experiences."
"Organizations do not need to reinvent the wheel themselves."
"The emerging standards and initiatives focus on enabling a user-centric model that supports various credential storage options."
"The user-controlled phenomenon enables any party to assume the roles of issuer, holder, or verifier."
"OID4VCI is a flexible, interoperable standard, crucial for the successful implementation of digital identity systems."
"The potential for innovation with user-controlled identities is vast for the digital business."
"The time is right to get started in the promising new digital identity ecosystems."

Organizations should adopt user-centric digital identity frameworks to enhance security, privacy, and flexibility.
Leverage experienced partners who have implemented or designed verifiable credential systems to ensure a robust setup.
Emphasize the use of open and interoperable standards to facilitate seamless credential issuance and acceptance.
Focus on aligning with international standards like OID4VCI to ensure the flexibility of digital identity solutions.
Consider involving in pilot projects to gain practical insights into implementing and managing verifiable credentials.
Invest in systems supporting customized authentication flows to handle diverse user interactions efficiently.
Prioritize selective disclosure methods to adhere to privacy and data minimization requirements.
Utilize service-oriented architecture to streamline protocol processing and manage token lifecycles effectively.
Define clear credential requirements and ensure verifiability, key binding, and selective disclosure capabilities.
Engage with standardization bodies to stay informed on emerging trends and practices in digital identity management.

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The user-centric digital identity model empowers individuals with control over their digital information and enhances privacy.
Open standards like OID4VCI play a crucial role in advancing the interoperability of digital identity frameworks.
Large-scale projects like the EUDI Wallet initiative provide valuable insights into realizing user-controlled digital ecosystems.
Selective disclosure of credentials is vital for maintaining privacy while enabling trust in digital interactions.
Partnering with entities experienced in digital identity standards can streamline the transition to user-centric systems.

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