Verifiable Credentials

Definition ∞ Verifiable Credentials are digital, tamper-evident attestations of qualifications, identity attributes, or other claims that can be cryptographically verified by a third party. They allow individuals to control and selectively disclose information about themselves without relying on a central authority for verification. This technology is foundational for decentralized identity systems, enhancing privacy and security in digital interactions. They provide a trustworthy method for asserting and confirming information. Context ∞ The application of Verifiable Credentials is a growing area of interest within the digital asset and blockchain space, particularly for identity management and KYC/AML compliance. News often covers pilot programs, the development of decentralized identity solutions, and the potential for these credentials to streamline user onboarding for crypto platforms. The ability to securely and privately verify user attributes is seen as a critical component for the future of decentralized applications and digital economies.