Updating trust protocols in digital identity

#blockchain | #digitalidentity | #crossborder | #trade : "Unlocking Trade Data Flows with Digital Trust Using Interoperable Identity Technology" The paper reviews the current challenges in unlocking cross-border data flows, and how interoperability of digital identity regimes using high level types of decentralized technologies can overcome this with active public-private partnerships. Decentralized identity technologies, such as verifiable credentials (VCs) and decentralized identifiers (DIDs), coupled with interoperability protocols can complement the current Web3 infrastructure to enhance interoperability and digital trust . It is noted in the World Economic Forum White Paper that global trust worthiness is an important identity system principle for future supply chains, as this process of dynamically verifying counterparts through digital identity management and verification is a critical step in establishing trust and assurance for organizations participating in digital supply-chain transactions. As the number of digital services, transactions and entities grow, it is crucial to ensure that digitally traded goods and services take place in a secure and trusted network in which each entity can be dynamically verified and authenticated. Web3 describes the next generation of the internet that leverages blockchain to “decentralize” storage, compute and governance of systems and networks, typically using open source software and without a trusted intermediary. With the new iteration of Web3 being the next evolution of digitalized paradigms, several new decentralized identity technologies have become an increasingly important component to complement existing Web3 infrastructure for digital trade. VCs are an open standard for digital credentials, which can be used to represent individuals, organizations, products or documents that are cryptographically verifiable and tamper-evident. The important elements of the design framework of digital identities involves three parties – issuer, holder and verifier. This is commonly referred to the self sovereign identity (SSI) trust triangle. The flow starts with the issuance of decentralized credentials in a standard format. The holder presents these credentials to a service provider in a secure way. The verifier then assesses the authenticity and validity of these credentials. Finally, when the credential is no longer required, the user revokes it. This gives rise to the main applications of digital identities and VCs in business credentials, product credentials and document identifiers in the trade environment involving businesses, goods and services. EmpowerEdge Ventures

The first major update to the eIDAS is nearing completion. I believe we will soon witness a race by ID companies to gain a first-mover advantage in a new digital identity marketplace. Here are 4 reasons why: Among other goals, the eIDAS 2 update incorporates the principles of decentralized ID technology into the regulation to help protect privacy and enhance data security in electronic transactions.   Specifically, it updates the standards for national IDs to include newer technologies such as Verifiable Credentials, establishes a framework for interoperable consumer ID wallets, and encourages the use of ID credentials in commercial transactions.    This regulation intends to empower 450 million citizens with interoperable ID wallets, each containing legal ID credentials issued directly by their national government.    How this impacts ID companies: 1. Rising demand for digital ID verification: As eIDAS mandates secure electronic transactions, businesses and platforms operating within the EU will inevitably need to adopt eIDAS-compliant digital identity verification solutions. 2. Less physical document verification: New digital ID formats are imminent, namely the government-issued identity credentials stored in wallets compliant with the EU's digital identity wallet framework. Companies will soon need and want to verify and consume this data from their end-customers. 3. Broader markets as a result of unified standards: eIDAS introduces standardized electronic identification across EU states. Once ID solution providers align with eIDAS requirements, their services automatically become relevant and applicable to all EU members and citizens, opening up a vast market. 4. A period of consolidation may ensue as organizations acquire new technological capabilities rather than the less risky path of building in-house. As we stand at the cusp of a transformative era in digital identity, the question is not just about who will lead the race but how fast the ID industry will embrace this change to redefine trust and security in the digital world. 

The 🇪🇺 📲 #EUDIWallet Architecture just got an update — Here’s what changed, and why It matters ⬇️ The EU’s Architecture and Reference Framework #ARF for the European Digital Identity Wallet has been updated following feedback from the May 21 Coordination Group meeting. These updates shape how public and private services will connect to digital wallets across the EU. Here’s what’s new (in plain English): 🛡️ The EUDI Wallet Trust Mark: A standout addition. The EU is exploring an official “trust mark” for certified wallets, think of it like the EU’s digital seal of approval. This would give users and relying parties confidence that a wallet meets all the right standards. Discussion is ongoing, but this could become a cornerstone of user trust and adoption. Lear more: https://lnkd.in/eZcchyCB 📲 More flexibility for implementation: There’s now more room for providers to choose how they technically integrate wallets. This is especially relevant for institutions juggling multiple legacy systems. For the nerds among us: This refers to the Digital Credential API, now being an optional component. 🧱 Work in progress: Several technical topics — like wallet security attestations, pseudonym support, and zero-knowledge proofs — are still under development. Expect more clarity in the next iteration of the ARF. ✅ Clearer rules for service providers: Updates aim to streamline how banks, insurers, and public sector entities register and operate as relying parties, making participation easier and more consistent across the EU. Find the full document here: https://lnkd.in/eAsMZBfJ 🔍 Why this matters: Each ARF update brings us one step closer to a fully interoperable, user-friendly European digital identity infrastructure. But it’s also a moving target. Organizations that wait risk scrambling to comply later. At Lissi GmbH we ensure our EUDI Wallet Connector API software stays aligned with every ARF update — so you can integrate once and stay compliant as the rules evolve.

An updated version of the ETSI ESI TS 119 461 is now available, which supports identity proofing within European and other regulatory frameworks. It outlines the minimum technical specifications, standards and procedures regarding the verification of identity attributes according to Art.24 of the amended eIDAS Regulation. The document will serve as a reference for Conformity Assessment Bodies as the basis for confirming that identity proofing process of Trust Service Providers is reliable and trustworthy. All current Qualified Trust Service Providers must complete a re-certification process for their identity proofing mechanisms until May 2026. It has been an immense work under Jon Ølnes leadership, alongside Andrea Röck Campbell Cowie Sebastian Elfors (just naming few, the list is longer). A round of applause to all contributors. 👉 ⬇️ download link here: https://lnkd.in/d8fE4ePC #identity #eIDAS #identityproofing #digitalidentity

Interoperable VC formats and data exchange protocols. Key Interoperable VC Standard Formats W3C Verifiable Credentials Data Model: This is the foundational standard developed by the World Wide Web Consortium (W3C). It defines the core structure of a VC: Claims: Assertions about a subject (e.g., name, date of birth). Issuer: The entity that created and signed the VC. Subject: The entity the VC is about. Proof: Cryptographic signatures to ensure authenticity and integrity. JSON-LD: A linked data format that provides a mechanism to describe VCs in a machine-readable way, using common vocabularies to ensure semantic understanding across systems. DID Documents: These documents contain information associated with a Decentralized Identifier (DID), including public keys and endpoints for communication. Relevant for establishing trust between issuers and verifiers. Data Exchange Protocols DIDComm: A secure messaging protocol built on top of DIDs. It facilitates direct, encrypted communication between parties for exchanging verifiable credentials. OpenID Connect (OIDC): An established authentication layer built on OAuth 2.0. It can be adapted for VC exchange and to enable self-issued identity. Aries Protocols (Hyperledger Aries): A suite of protocols specifically designed for the exchange of verifiable credentials, covering: Credential issuance protocols Credential presentation protocols Credential revocation protocols Importance of Interoperability These standards and protocols are crucial because they: Prevent Vendor Lock-in: Institutions and users aren't bound to specific technology providers. Enable Cross-Platform Functionality: VCs can be used across different systems and applications without compatibility issues. Simplify Integration: Reduces complexity when integrating VCs into existing infrastructure. Drive Widespread Adoption: Promotes trust and a seamless user experience, essential for scaling the technology. #verifiablecredentials #interoperability #DID #identity