How to Issue a Verifiable Credential

Step-by-Step Instructions on Creating and Issuing a Verifiable Credential

Introduction

Verifiable Credentials (VCs) are digital attestations that provide secure, tamper-proof proof of identity, qualifications, or other attributes. Issued by trusted entities and stored in decentralized identity wallets, VCs enable seamless identity verification without relying on centralized databases.

This guide provides a step-by-step process for issuing a verifiable credential using decentralized identity frameworks and OnePass Credentials.

Prerequisites

Before issuing a verifiable credential, ensure you have:
✔️ Access to a decentralized identity platform (such as OnePass Credentials)
✔️ A registered issuer identity (DID – Decentralized Identifier)
✔️ Defined credential schema (structure of the credential)
✔️ A recipient with a digital identity wallet to receive the credential

Step 1: Define the Credential Data

A verifiable credential consists of key components:

• Issuer Information – The entity issuing the credential (e.g., university, government agency, financial institution)
• Subject Information – The holder receiving the credential
• Claims – Data being verified (e.g., academic degree, professional certification, business registration)
• Expiration Date (Optional) – Sets a validity period for the credential
• Cryptographic Signature – Ensures authenticity and prevents tampering

🔍 Example: A University Issuing a Diploma Credential

• Issuer: University of Example
• Subject: John Doe
• Claims: Bachelor’s Degree in Computer Science
• Expiration Date: Does not expire
• Signature: Cryptographically secured

Step 2: Prepare the Credential Schema

A credential schema defines the format and structure of the verifiable credential. This ensures interoperability between different identity platforms.

Example Schema in JSON-LD Format:

{
  "@context": ["https://www.w3.org/2018/credentials/v1"],
  "type": ["VerifiableCredential", "DiplomaCredential"],
  "issuer": "did:example:university123",
  "credentialSubject": {
    "id": "did:example:john.doe",
    "degree": {
      "name": "Bachelor of Computer Science",
      "university": "University of Example"
    }
  },
  "issuanceDate": "2024-06-01",
  "proof": {
    "type": "Ed25519Signature2020",
    "created": "2024-06-01T12:34:56Z",
    "proofPurpose": "assertionMethod",
    "verificationMethod": "did:example:university123#keys-1"
  }
}

Step 3: Generate & Sign the Verifiable Credential

Issuers must cryptographically sign the VC using their Decentralized Identifier (DID) to ensure authenticity.

✔️ Use a decentralized identity platform (e.g., OnePass) to generate and digitally sign the credential.
✔️ Ensure the credential is tamper-proof with secure cryptographic encryption.
✔️ The verifiable credential is now ready for issuance.

Step 4: Issue the Credential to the Holder

Once the credential is generated, the issuer must send it to the recipient’s decentralized identity wallet.

✔️ The credential can be shared via QR code, secure link, or direct wallet integration.
✔️ The recipient stores it in their compatible wallet (e.g., Talao Wallet, Walt.id Wallet).

⚡ Example: Sending a Credential via QR Code:

• The issuer generates a QR code.
• The recipient scans it with their identity wallet.
• The credential is added to their secure storage.

Step 5: Enable Third-Party Verification

Verifiers (e.g., employers, financial institutions) can now request the credential from the holder. The verification process involves:

1. The holder presenting the VC to the verifier.
2. The verifier checking its authenticity using cryptographic proof.
3. No need to contact the issuer directly—reducing verification time.

✔️ Zero-Knowledge Proofs can be used to confirm specific attributes without revealing full credential data (e.g., proving age without sharing birthdate).

Benefits of Issuing Verifiable Credentials

✅ Instant Verification – Eliminates manual checks and delays.
✅ Enhanced Security – Cryptographic protection ensures tamper-proof credentials.
✅ Privacy-Preserving – Users control when and how their credentials are shared.
✅ Interoperable – Works across decentralized identity ecosystems and verified globally.
✅ Reduces Fraud – Removes risks associated with document forgery and identity theft.

Conclusion

Issuing verifiable credentials improves security, transparency, and efficiency in identity validation. By leveraging decentralized identity technologies, organizations can streamline verification processes, enhance data privacy, and facilitate trust-based interactions.