Reusable Digital Identity: A User-Centric Future Built on Solid Data, Open Protocols, and Zero-Knowledge Proofs

The way we engage with services online, especially for sensitive use cases like banking, healthcare, travel, or even online purchases, has outgrown the limitations of basic multi-factor authentication (MFA). MFA is better than passwords alone, no question, but it’s not enough for the trust these scenarios demand. What’s really needed is verified onboarding and verified authentication, proof, not just promises, that you are who you say you are, delivered securely, efficiently, and without turning your privacy into collateral damage.

Today’s identity verification processes are clunky at best. For high-stakes services, businesses hoover up personal data to meet Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. It’s slow, it’s costly, and for the user, it’s a privacy minefield. Every new signup means starting over, handing over sensitive personally identifiable information (PII) that gets dumped into yet another centralized database. That’s not just friction, it’s a blinking neon sign for attackers.

Reusable digital identity changes the game. Picture an initial, rock-solid identity verification, backed by multifactor biometrics, that you can reuse across multiple relying parties (RPs) or verifiers. No more redundant IDV/KYC loops. Costs drop, friction vanishes, and the user experience gets a serious upgrade. But reusability alone doesn’t fix the privacy issue if all that PII still sits in a central store, begging to be breached.

Enter verified credentials (VCs). Imagine a digital “wallet” you control, holding credentials you present to services on your terms. The data stays with you, not the provider,no more honeypots. Now layer in open protocols like OpenID Connect for Verifiable Credentials (OIDC4VC), and you’ve got a system that’s dead simple for relying parties to integrate. “Log in with Verified Credentials” becomes the norm, a secure, seamless alternative to passwords and the mess of account sprawl.

But here’s where it gets really powerful: VCs don’t just streamline authentication, they pave the way for zero-knowledge proofs (ZKPs). For a lot of use cases, the question isn’t about exposing who you are down to the nitty-gritty, your exact date of birth, the school you graduated from, your precise credit score, or how much debt you’re carrying. What matters is whether you’re allowed to do the business at hand. Are you old enough? Did you earn a BA or MA in a relevant field? Is your credit score or debt load in an acceptable range? VCs can embed the truth of those answers, verified by trusted sources, without spilling the dangerous details. ZKPs take it a step further, letting you prove those facts to a verifier without revealing anything extra. Need to show you’re over 21? Done. Need to confirm your degree qualifies you for a job? Done. All without handing over your birth certificate or transcript.

This is identity stripped to its essentials: trust without oversharing. VCs provide the foundation, and ZKPs deliver the privacy magic, proving what’s needed and nothing more. Together, they cut through the noise, giving verifiers the certainty they require while keeping your PII off the table.

None of this works without the right plumbing. Solid data models are non-negotiable, build on shaky ground, and it all collapses. Open protocols and standardized data models, like OIDC4VC, are the glue for mass adoption and interoperability. If every platform cooks up its own solution, we’re stuck in silos. Open standards break that cycle, making it easy for services to trust and consume the credentials users bring.

Looking ahead, Generative AI (GenAI) will turbocharge these platforms. Imagine AI that not only verifies credentials but uses ZKPs to streamline complex flows, flag risks, or guide users, all while keeping privacy locked down. GenAI could turn reusable identity into something intuitive and predictive, amplifying what’s possible today.

The catch? Adoption. None of this takes off without a user-centered design approach, building identity around the user, for the user. Get that right, and the rising tide lifts all boats, businesses, developers, and individuals alike.

Reusable digital identity isn’t a luxury. It’s the future of trust online, privacy-centric, open, and powered by VCs and ZKPs. Let’s build it right, and let’s build it now.