Digital identities and credentials are undergoing a major transformation. With the EU Digital Identity Wallet (EUDI Wallet), eIDAS 2.0, and emerging standards around Verifiable Credentials (tamper-proof digital proofs), a new ecosystem is taking shape that opens up entirely new possibilities for organizations.
In the near future, qualifications, identities, and authorizations can be issued and verified digitally, securely, and automatically. One of the key building blocks enabling this transformation is OpenID for Verifiable Credentials (OpenID4VC).
What is OpenID4VC?
OpenID4VC is an extension of the well-known OpenID standard, specifically designed for the secure exchange of digital credentials (Verifiable Credentials). The standard ensures that digital credentials, particularly in the context of the EUDI Wallet, can be trusted and used interoperably across Europe. OpenID4VC defines the interaction between three key roles within the credential ecosystem:
- Issuer: Issues digital credentials (e.g. employers, public authorities, health insurers)
- Holder: Possesses and manages these credentials in a wallet (e.g. employees, citizens, policyholders)
- Verifier: Checks the authenticity and validity of the credentials (e.g. HR departments, police, hospitals)
Why OpenID4VC Matters for Businesses and Public Authorities
Organizations today face the challenge of verifying credentials efficiently and securely. Application documents, memberships, or authorizations often still need to be checked manually. This process is time-consuming, error-prone, and vulnerable to manipulation. OpenID4VC enables new secure digital processes that can deliver results in seconds instead of days while remaining compliant with EU standards. Data protection is also a key advantage. Holders only share the information that is actually required, maintaining full control over their personal data through selective disclosure.
OpenID4VC also enables organizations to issue their own digital credentials. Companies can provide employment certificates, qualification credentials, membership confirmations, or other verified digital proofs. To support this, organizations require a complete infrastructure that includes an OpenID4VC implementation, a flexible backend with credential templates and cryptographic signatures, a revocation mechanism for invalid credentials, and seamless integration into existing IT systems.
Verification of credentials is standardized through OpenID for Verifiable Presentations (OpenID4VP). This standard enables automated verification processes. Whether for digital onboarding, qualification checks, or authorization proofs, credentials can be verified easily via QR code or link. During verification, authenticity is automatically validated, the revocation status is checked, and users disclose only the necessary information through selective disclosure.
Industry Use Cases: Where OpenID4VC Creates Real Value
OpenID4VC is more than just a technical specification. It is becoming a key enabler for new digital processes across industries such as business, education, and public administration. Especially in the context of the EUDI Wallet, practical applications are already emerging that simplify everyday processes for organizations and citizens:
- HR & HCM: Digital employment references, qualification credentials, and onboarding credentials issued directly from SAP SuccessFactors, SAP HCM, or other ERP/HR systems
- Public Administration: Citizen services, digital permits, and credentials such as social benefit cards or municipal authorizations
- Education: Digital diplomas, certificates, and participation confirmations for schools, universities, and training providers
- Healthcare: Patient identification, insurance verification, and secure digital communication between healthcare providers and patients
- Insurance: Digital communication compliant with German insurance contract law (VVG), policy management, claims processing, and verifiable insurance credentials
Conclusion: OpenID4VC as the Foundation for Digital Credentials and Wallets in Europe.
OpenID4VC is becoming one of the core standards for the future of digital identity in Europe. Organizations that start engaging with the standard today lay the foundation for secure, efficient, and user-centric digital processes. With its wallet portfolio and deep developer expertise, js-soft supports organizations in implementing OpenID4VC in practice, whether as Issuer, Verifier, or strategic partner on the path toward EUDI Wallet readiness.
More informations here.
FAQs
What is OpenID4VC used for?
OpenID4VC is used to issue and verify digital credentials such as employment certificates, social benefit cards, educational certificates, or insurance proofs via digital wallets.
What are Verifiable Credentials?
Verifiable Credentials are cryptographically signed digital credentials that are tamper-proof and globally verifiable.
What role does the EU Digital Identity Wallet play in OpenID4VC?
The EU Digital Identity Wallet uses standards like OpenID4VC to make digital identities and credentials interoperable and usable across Europe.
What is the difference between OpenID4VC-I and OpenID4VP?
OpenID4VC-I defines the standard for issuing digital credentials, while OpenID4VP defines how these credentials are presented and verified.
Who can issue credentials with OpenID4VC?
Issuers such as employers, universities, public authorities, or insurance companies can issue legally compliant digital credentials.
