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Figure 12: Roles and Relationships of Verifiable Credentials

Issuer Verifiable data registry
A role an entity might perform by asserting claims A role a system might perform by mediating the
about one or more subjects, creating a verifiable creation and verification of identifiers, keys, and
credential from these claims, and transmitting the other relevant data, such as verifiable credential
verifiable credential to a holder. In the context of schemas and revocation registries, which might be
digital finance, this would be a government entity required to use verifiable credentials. In the context
or any such entity having this mandate, in terms of of e-KYC for digital financial services, this would be
issuing an identity credential based on the national a network of nodes supporting a public decentral-
identity of the holder. These verifiable credentials are ized identity (DID) registry. This registry provides the
held by citizen-controlled and -permissioned digital foundation of trust in the digital credentials used to
wallets. verify identity.

Verifier Verifiable Credentials
A role an entity might perform by receiving one or From the W3C Verifiable Credentials Data Model
more verifiable presentations for processing. Other specification:
specifications might refer to this concept as a relying A verifiable credential can represent all the same
party. In digital finance, the Verifier will be the party information that a physical credential represents. The
who will perform the e-KYC verification (e.g., the DFS addition of technologies such as digital signatures
provider). makes verifiable credentials more tamper-evident
and therefore more trustworthy than their physical
Holder counterparts.
A role an entity can perform by possessing one or A Verifiable Credential request can be made by
more verifiable credentials. A holder is usually, but sending a specific message from the Holder to the
not always, the subject of the verifiable credentials Issuer (using off-chain communication mechanism).
they are holding. Holders store their credentials in The identity information is embedded in the verifi-
credential repositories. Any Holder with an identity able credential delivered through a secure off-chain
credential issued by the government will be able to channel by the Issuer to the Holder. This information
securely authenticate their official identity with digi- is never sent through, nor stored on the distributed
tal financial services providers to support e-KYC for ledger. There is a proofing mechanism (e.g., a signa-
new account opening and ongoing customer due ture) embedded within the verifiable credential.
diligence (CDD).

e-KYC use cases in digital financial services 29