# 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: <https://www.w3.org/TR/did-core/>
* W3C Verifiable Credentials Data Model: <https://www.w3.org/TR/vc-data-model/>


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