Demystifying the Myths and Truths About Verifiable Credentials
Verifiable credentials are the need of the hour. These blockchain-based digital certificates help verify credentials instantly. Enhanced security, transparency, and tamper-proof are some other reasons why these credentials are gaining traction.?
However, this popularity has also birthed a few myths about the credentials. Since misinformation is a dangerous thing and will limit the credential’s usage, this article will bust a few popular myths about verifiable credentials and introduce a few truths in their stead.
Myth #1: Anyone Can Issue Verifiable Credentials
One of the most popular myths about verifiable credentials is that they can be issued by anyone. Well, that’s simply not true. Sure, issuing verifiable credentials is quite straightforward, but that doesn’t mean anyone with access to a stable internet and knowledge of decentralized technology can weaponize verifiable credentials to generate blockchain-backed fake certificates.
Verifiable credentials can only be issued by authorized individuals and entities. Moreover, the issuer has to comply with the rules laid down in the Verifiable Credentials Data Model 1.0 by the World Wide Web Consortium (W3C) for the issued digital certificate to be considered a verifiable credential.?
Basically, the following three rules must be followed by the issuer:
While these rules may seem too stringent, they ensure that the issued certificates overcome the cons associated with a regular digital certificate. The first rule aims to make the credential incredibly secure. The second aims to make certificate verification instant and easy. The third aims to protect the PII (personally identifiable information) of the holder. Combined together, these rules make verifiable credentials iron-clad and remove the possibility of alteration.?
Truth #1: Verifiable credentials can be verified instantly
Since verifiable credentials are hosted on the blockchain, they are easier to verify and authenticate. All a verifier has to do is verify its status on the blockchain to authenticate the document and ensure it isn’t a forged or altered copy of the original. It also makes it easier to catch counterfeit certificates issued by fake organizations.
Verifiable credentials end the need for lengthy manual processes and help an organization steer clear of fraudsters and save time, money, and effort. Currently, an organization has only two options: overlook the authentication process or spend a significant amount of resources on it without being sure of the results.
But verifiable credentials have given birth to a third option for the organizations: authenticate the document instantly without spending significant resources and being confident of the results, as the verification will yield information about the document’s issuer, the date it was issued on, and if any changes have been made to the verifiable credential since it’s generation. It also shows if the document has an expiration date.
Myth #2: Verifiable credentials are only useful for large organizations
It’s a common misconception that only large organizations with businesses spread across sectors can benefit from verifiable credentials. But this isn’t true. Verifiable credentials blockchain can benefit any and all organizations.
The most obvious contender? Educational institutions. They can issue graduation certificates for their students and rest assured that a fake certificate issued in their name would get caught. Now, think about how businesses functioning in the oil and gas, finance, food and beverage (F&B), insurance, HR, and healthcare industry benefit from a verifiable credential.?
For starters, an oil and gas company can issue safety certificates and have them verified quickly at the docks or government offices during the verification process to move forward. This doesn't just help the business. It also allows the dock agencies and government officials to be sure about the legitimacy of the certificate.
Similarly, F&B can employ verifiable credentials to smoothen supply chain management and keep all the key stakeholders in loop, in real-time. A medical practitioner can confidently issue a verifiable credential to their patient prescribing them medicine. Similarly, other industries can integrate verifiable credentials and use them to securely issue and instantly verify innumerous documents all day, every day.
Truth #2: Verifiable credentials help automate the certificate issuance process
Verifiable credentials minimize human involvement in the issuance stage and help automate the entire process. This makes it easy to issue certificates without spending days on end to print them or individually enter data every time a business needs to generate a digital certificate.
That being said, the automation process depends on the platform you use. For instance, some platforms will let you generate blockchain-based digital certificates within a few seconds. In comparison, platforms like ProofEasy allow to issue certificates in bulk in one go. All you have to do is define the template, mention the customizable fields (like, name), and upload the Excel sheet containing pertinent data.?
Then, you’ll be all set. The certificates will be issued automatically and will be stored on a blockchain network instantly. You can view the progress from the dashboard and keep an eye on the certificates issued. Moreover, you can begin sharing the secured verifiable credentials directly through the platform or copy the secure link and paste it in a message board.
Simply put, verifiable credentials require minimal human interference and can be issued within a few seconds.
Myth #3: Issuing verifiable credential is too costly
A lot of companies think verifiable credentials are too costly and the additional cost of the solution will throw their budget in disarray. However, that’s not true. Admittedly, there are some solutions that charge a pretty penny for the services they offer, but not all solutions are the same.
Case in point: Proofeasy. This patented blockchain and QR code solution doesn’t just help you issue digital certificates. It also provides credential verification services. Wondering why ProofEasy is cheaper compared to other similar solutions on the market? The minds behind the solution are the pioneers of blockchain and believe that this innovative technology should be available to all, despite their budget. Plus, they want to defeat document-fraud and remove its traces from the world.
So, we’ve carefully curated ?pricing plans to suit the needs and requirements of all types of businesses. The best part, though? You can sign up for a free trial before committing to the solution or parting with your hard-earned money.
Once you love the solution, the budget-friendly plans will take care of your growing business needs. However, if you don’t find anything that’s to your liking, you can contact us to get a custom quote for your unique business requirements.
Truth #3: Verifiable credentials are 100% secure
One of the primary reasons businesses opt for verifiable credentials is because of their secure nature. As mentioned in the rules laid down by the W3C, verifiable credentials need to be tamper-proof. This automatically ensures that the document will be impossible for fraudsters to alter.
But there’s more to verifiable credentials than this. A certificate needs to be signed by a recognized authority to be deemed legal and to serve as proof of the statement it claims. The same is true for blockchain-based digital certificates. But a regular digital signature won’t do for verifiable credentials.?
The issuer must use their private keys to cryptographically sign the issued verifiable credential. Since a private key can’t be duplicated (it can get lost and end in the wrong hands, though), this increases the document’s security and ensures its authenticity.?
Moreover, each of these certificates are stored on the blockchain, so a unique hash code is generated for them. The hash codes help a verifier authenticate a document, as discrepancies between the original and current hash code on the blockchain will clearly indicate that the document has been tampered with.?
Further, the data within the document is encrypted to keep it safe from bad actors. Though blockchain isn’t easy to hack and steal documents from, this step ensures that even if a secured document gets hacked, the hacker won’t be able to steal the confidential information.
Verifiable credentials are more secure than digital certificates and are necessary for businesses around the world to fight document fraud head-on without investing in expensive infrastructure or equipment.