Digital credential refers to a broad term that is used to verify a person’s identity within a system. There can be different types of digital credentials, including digital badges, digital certificates, or other online credentials that can be used to verify and authenticate a user or their achievements without having to carry a paper credential.
Digital credentials have an important role to play in the field of cybersecurity as they reduce identity-based attack risks. Cyberattackers today prefer hijacking genuine user accounts instead of breaching systems directly. It is evident from the fact that misuse of valid credentials is the top method of gaining unauthorized access and constitutes 30% of all reported incidents (IBM).
Digital credentials are much harder to exploit as compared to traditional passwords and weak authentication methods. It requires hackers to gain control of an account by stealing the credentials themselves, which is far more difficult than simply guessing or cracking a password.
Let’s explore digital credentials in more detail and understand why cybersecurity professionals should be aware of their types and benefits.
Types of Digital Credentials
Digital credentials are provided and managed by organizations using enterprise-grade credentialing platforms that can handle the entire credential lifecycle, from creation to deactivation.
Through application programming interfaces (APIs), these platforms can integrate with other systems and help with seamless identity verification across all services. In some cases, users can also share credentials manually through links, QR codes, digital files, blockchain, and encryption-based apps.
Digital credentials are available in the following types:
1. Digital Badges
This is proof of your earned credentials. For example, you can receive a digital badge for completing a cybersecurity certification. They can also be provided as proof of identity or of a user’s attendance at any event or conference.
These are like digital images or icons and contain all the details like the name of the issuer, the recipient’s information, certification validity, etc. It can be verified using cryptographic signatures.
2. Microcredentials
These are short and focused learning certifications validating an individual’s specific skills and knowledge in a particular field. These are often provided by educational institutions and professional platforms to help learners gain essential and latest skills in a short span of time and demonstrate their expertise to potential employers without completing a full degree program.
3. Open Badges
Open Badges are digital representations of skills and achievements earned through learning experiences. They contain embedded metadata that helps with verification of the issuer, the criteria, and the individual receiving the credential. It was developed by Mozilla, who follow an open standard so that sharing and verifying credentials across different platforms becomes easy.
4. Digital Certificates
Digital certifications are secure, and electronic documents are used to confirm that an individual has completed a course, certification, or training program. Digital certificates contain information like the name of the recipient, details of credentials earned, issuer information, validity, etc. These digital certificates are also protected with encryption and digital signatures to ensure they are authentic and free from tampering.
5. Blockchain Credentials
Blockchain credentials use decentralized blockchain technology to issue, store, and verify academic or professional qualifications. They do not rely on a central authority and thus are tamper-proof and can be verified easily. This makes them highly beneficial for international recognition and long-term validation of credentials.
6. Verifiable Digital Credentials
Verifiable digital certificates are secured using cryptography techniques that verify a person or entity. These machine-readable credentials are issued by trusted parties and can be instantly verified. These are mostly used to verify identity, education, or professional qualifications. Since they are built on open standards, they give individuals greater control over how and when to share their credentials.
Where are Digital Credentials Used?
Digital credentials can be used in a lot of places and come with many use cases as follows:
- Authenticating user identities
In areas like airports, banking, or government services, digital credentials can be used to verify individual identity securely using apps or encrypted credentials.
- Verifying professional credentials
Professionals can use digital credentials to prove licenses, certifications, educational qualifications, and other important credentials so that employers can confirm their authenticity and prevent resume fraud.
- Complying with data privacy mandates
Digital credentials also support selective data sharing that allows users to share only necessary information. This helps comply with regulations like GDPR or HIPAA.
- Authenticating physical assets and resources
Organizations can also issue digital credentials for products using blockchain and help to track authenticity, track origin, and prevent counterfeiting in supply chains.
Benefits of Digital Credentials
To summarize, the benefits of digital credentials are many. First of all, it improves Identity and Access Management (IAM) by offering secure and verifiable alternatives to traditional passwords and security keys.
They also make identity verification easier by minimizing friction and allowing easy sharing using APIs, links, and QR codes. They can be verified quickly using AI or third-party services. Thus, it enhances the overall user experience and also encourages sign-ups through simplified authentication.
Additionally, digital credentials also offer long-term reliability, especially when secured with blockchain, even if the issuing institutions are shut down, and ensure continuous verification and trust.
Overall, digital credentials are a great way to deliver better security, convenience, and long-lasting value for identity management and verification.
Summing up!
The digital credentials are transforming how we verify identity, skills, and access in a secure, efficient, and user-friendly way. As they can outlast traditional methods and also support privacy compliance, they can be a great future-ready solution for individuals and organizations who want to build trust and gain access to this digital world.
