Verifiable Credential

A Verifiable Credential is a digital representation of a claim made by an issuer about a subject, which can be presented to a verifier to prove a specific attribute. These credentials are cryptographically signed, ensuring their integrity and authenticity can be checked instantly without contacting the original issuer.

In the cryptocurrency domain, they are used to prove attributes like accreditation status, citizenship, or age for participation in regulated financial products. They empower users to share only the necessary information required for a transaction, enhancing privacy while satisfying regulatory obligations.

The format is standardized to ensure interoperability across different wallets and blockchain platforms.