> For the complete documentation index, see [llms.txt](https://docs.fairway.global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fairway.global/learn/digital-wallets/dids-and-vcs-in-digital-wallets.md).
# DIDs & VCs in Digital Wallets
#### **Decentralized Identifiers (DIDs)**
DIDs are **globally unique identifiers** that allow individuals to control their identity without relying on a central issuing authority. Unlike traditional identifiers such as usernames or government-issued ID numbers, **DIDs are decentralized and can be resolved across various blockchain and identity networks**.
#### **How DIDs Work in Digital Wallets**
* A user generates a DID and **stores it in their digital wallet**.
* The DID is **linked to a cryptographic key pair**.
* The user can prove ownership of their DID using **cryptographic signatures**, enabling secure, private interactions online and offline.
#### **Verifiable Credentials (VCs)**
VCs are **digitally signed identity proofs** issued by trusted entities like governments, universities, or businesses. They allow users to prove claims about their identity, qualifications, or access rights without exposing excessive personal data.
#### **How VCs Work in Digital Wallets**
* An **issuer (e.g., a university)** signs a VC attesting to a claim (e.g., a diploma).
* The **credential is stored in the user's digital wallet**.
* When verification is needed, the user can **selectively disclose** the necessary information without revealing their entire identity.
#### **Benefits of DIDs & VCs in Digital Wallets**
* **User control & privacy** – No central authority can revoke or alter credentials.
* **Interoperability** – VCs can be used across **different identity networks, services, and borders**.
* **Fraud prevention** – Cryptographic signatures ensure **credentials are tamper-proof**.
🔗 **Sources:**
* W3C DID Standard:
* W3C Verifiable Credentials Data Model: