Verifiable Credential (VC)

A VC works with three roles. The issuer creates and signs the credential, the holder keeps it in a wallet and the verifier checks its validity. The structure includes the issuer, the subject claims, the signature and, optionally, a revocation status usually anchored in a verifiable data registry that can be a blockchain. The holder bundles one or more VCs into a verifiable presentation (VP) and signs it to prove possession.

The distinctive feature is selective disclosure, which lets you prove a single attribute without exposing the rest. With SD-JWT the issuer replaces fields with salted digests and the holder chooses what to reveal. With BBS+ signatures the holder derives a fresh, unlinkable proof over a subset of the claims. A range proof can show that someone is over eighteen without revealing a birth date. This enables reusable, portable KYC, and in security tokens a contract can accept the credential as an accredited investor access condition.

The W3C data model reached version 2.0 as a recommendation on 15 May 2025. The EU EUDI Wallet under eIDAS 2.0 issues credentials with selective disclosure. Microsoft Entra Verified ID, along with stacks such as Veramo, walt.id, Dock and IOTA Identity, implement VCs with SD-JWT and BBS+.