In our previous post, Why the future of security depends on verifiable identity, we explored why digital identity is at an inflection point and why verifiable digital credentials (VDCs) are poised to transform how we verify information about people and organizations online. In Verifiable digital credentials explained: How they work and why they matter, we unpacked the trust triangle in the VDCs model and how they interact with each other.
Now, we’ll explore what you can actually do with VDCs — and why we think it matters today.
The identity “verification gap”
Imagine you're onboarding a contractor. You need to confirm they work at your company, Featherwave Ltd., and that they should access your partner portal but not your internal HR system.
Today, that might mean checking their email domain, waiting on HR, or trusting your gut. It’s a patchwork of assumptions and ad hoc checks.
Multiply that across new hires, partners, customers, and vendors — and the inefficiencies stack up. Friction creeps in, security weakens, and IT ends up managing identity risk they didn’t ask for.
This is the verification gap. VDCs bridge it with tamper-proof, reusable trust signals that help reduce guesswork and restore control.
The trust layer we’ve been missing
As a quick refresher: VDCs are tamper-proof, user-controlled credentials that can help verify attributes like identity, employment, or qualifications — that are issued by a trusted party (like an employer or government), held by the user, and presented only when needed.
Think of them like a digital work badge — except you can use them across tools, systems, and even companies. And no one needs to call the original issuer to check if it’s real. Instead of building ad hoc identity checks into every flow, VDCs let you establish high-trust relationships once and reuse them across interactions.
Use cases solving today’s problems
1. Customer onboarding
Let’s say you’re signing up for a new insurance policy. The first step? Proving you are who you say you are — usually by uploading a photo of your driver’s license, recording a selfie video, and waiting a day or two for some background process to clear you. It’s slow, clunky, and frankly, it can share more personal information than you’d give to a new friend.
The problem today
Whether you're renting a car, opening a new credit card, or accessing an age-restricted app, businesses need to verify your identity or eligibility. But most solutions today are:
- Friction-heavy: Manual uploads and selfies can frustrate users.
- Costly: Third-party identity checks add up fast.
- Inconsistent: Risk of false positives or drop-off during long waits.
How VDCs help
Enter the mobile driver’s license (mDL) — a modern, digital version of the ID you already carry. As a VDC, it's cryptographically signed by an issuer (like your state DMV) and reusable across different services.
That means
Real-time verification: No waiting on a third-party response
Selective disclosure: Only share what’s needed (e.g. “Over 21” instead of your full birthdate)
Reusable credentials: Use once, store in a wallet, reuse anywhere
Why it's better
- Privacy by design: Reduce data collection by verifying only what’s necessary
- Faster onboarding: Lower friction, higher conversion
- Reduced cost over time: Fewer one-time vendor checks
2: Workforce verification, reimagined with Work ID
Imagine this: You're managing IT for a mid-sized company. One of your engineers gets locked out of his account while traveling and contacts the help desk. You want to help — but how can you be sure it’s really him? Enter Work ID, a verifiable digital credential issued by an employer that confirms a person’s employment. It’s built on open standards and can be reused securely across internal systems or external partners.
The problem today
Verifying employment status or job roles is a common need. For example:
- Help desk account recovery
- Role-based access to apps and tools
- Contractor or partner onboarding
- Eligibility for employee benefits
But today’s methods are often:
- Slow: Relying on emails, HR spreadsheets, or calls
- Inconsistent: Usually at the discretion of the person helping with verification
How VDCs can help
Employers can issue a Work ID verifiable digital credential once, and employees can present it where needed. For example:
- Account recovery: If an engineer loses a device or account access and needs to prove their identity to the helpdesk to regain access, they can prove their active employment and role with Work ID — no back-and-forth needed.
- Contractor verification: Staffing partners can quickly validate someone’s work credentials or certifications without contacting HR.
- Access control: Internal systems can require a Work ID check before granting access. When someone changes roles or leaves the company, revoking access is as simple as updating or invalidating the credential — no manual permissions audit needed.
Why VDCs are better
- Always up-to-date: Credentials can be revoked and re-issued as roles change
- Access tied to proof, not assumptions
- Works across organizations: Ideal for gig, remote, or temporary workforces
3. Certification and training verification
Let’s be honest: We’ve all seen LinkedIn profiles stacked with certifications. But how many are still valid? And how many were ever earned?
Whether it’s an AWS Cloud Cert, OSHA compliance, food safety training, or a professional license, organizations need better ways to verify these claims. Individuals need easier ways to present them without screenshots, email chains, or outdated PDFs.
The problem today
Verifying certifications and training is harder than it should be. Most organizations rely on:
- PDF attachments, email confirmations, or screenshots
- Siloed learning management systems (LMS) that don’t talk to each other
- Manual, error-prone audits or re-verification
It’s inefficient for HR and compliance teams — and frustrating for the people doing the actual work.
How VDCs help
With VDCs, certifying bodies, training providers, and schools can issue tamper-proof digital credentials for skills, licenses, and achievements. These credentials are:
- Issued once and can be reused as needed
- Owned by the individual
- Shareable with employers, partners, or platforms
- Instantly verifiable, without contacting the issuer
Why it’s better
- Tamper-proof, portable proof of qualifications
- Instant verification means no paperwork or back-and-forth
- Track compliance and skills with less manual effort
This unlocks a smoother experience for everyone — whether you’re applying for a job, proving compliance, or managing workforce credentials at scale.
Beyond today: A future of reusable identity
Today’s VDC use cases are grounded in the known pain points of digital identity: slow onboarding, repeated verification, and everchanging compliance requirements.
But what happens when this model scales? In a future where VDCs are more widely adopted, we could see:
“Bring your own ID” everywhere: From opening a bank account to proving your degree on a job board, credentials move with you.
Minimal data sharing: Services can verify “over 21” or “California resident” without ever seeing your birthdate or address.
Interoperable trust ecosystems: Built on open standards, credentials work across industries, vendors, and platforms.
Simplified federated trust: No more starting from scratch every time. A verified credential can unlock new experiences without creating new accounts.
And just like passports or work badges, VDCs could eventually act as composable building blocks for digital interactions — forming the backbone of more secure, efficient, and user-controlled ecosystems.
Coming up next
Verifiable digital credentials help reduce friction, improve security, and restore control to the people behind the data. Whether you’re verifying a new customer, hiring a contractor, or validating compliance training, VDCs help businesses solve problems faster and start imagining what comes next.
At Okta, we’re building toward a future where organizations can accept — and eventually issue — VDCs. We’re starting with government-issued IDs like mobile driver’s licenses and expanding to support custom-issued credentials like Work ID and more.
Learn more and see VDCs in action — visit oktacredentials.dev.
