Why use VCs and DIDs for authentication. Privacy. Web3 introduced the ability to sign in using cryptocurrency wallets.
13 Mar 2023, 19:15
Why use VCs and DIDs for authentication?
Privacy 🛡
Web3 introduced the ability to sign in using cryptocurrency wallets. But with crypto wallets, all the user data that a developer can request and verify is on the blockchain, limiting the types of data that can be verified.
What if you need to verify users' private data?
No one wants their private data on an immutable public database.
Verifiable Credentials and DIDs enable Privacy-Preserving Attestations: they allow users to prove data about themselves while retaining privacy over their data.
VCs - like a Student ID card - are stored in a wallet app on your device, not the blockchain.
When you present the cred for verification, you can present only parts of it (Selective Disclosure) or even prove something without disclosing the data that backs up the proof (ZKPs).