Digital identity has often been treated as a login problem. It is becoming a broader layer of economic infrastructure, allowing people and organisations to prove specific facts without repeatedly handing over complete documents.
From accounts to credentials
The European Union is moving toward digital identity wallets that can hold verified credentials and be used across public and private services. The underlying shift is from identity stored separately by every provider to credentials that can be presented when needed.
For companies, this could reduce friction in customer onboarding, age and qualification checks, business verification, hiring, and regulated transactions. It can also reduce the amount of sensitive data a company must retain.
Trust must be designed
Convenience will not be enough. Users need clarity about what is shared, with whom, and for how long. Businesses need strong recovery processes, accessibility, and alternatives for people who cannot or do not want to use a wallet.
Identity will become most powerful when it feels uneventful: a quiet exchange of the minimum proof required to move forward with confidence.
Image credit: Original photograph via Unsplash.
Reference: European Commission, European Digital Identity.
