Frequently Asked Questions (FAQ) (preview)

This page contains commonly asked questions about Verifiable Credentials and Decentralized Identity. Questions are organized into the following sections.


Azure Active Directory Verifiable Credentials is currently in public preview. This preview version is provided without a service level agreement, and it's not recommended for production workloads. Certain features might not be supported or might have constrained capabilities. For more information, see Supplemental Terms of Use for Microsoft Azure Previews.

The basics

What is a DID?

Decentralized Identifers(DIDs) are identifiers that can be used to secure access to resources, sign and verify credentials, and facilitate application data exchange. Unlike traditional usernames and email addresses, DIDs are owned and controlled by the entity itself (be it a person, device, or company). DIDs exist independently of any external organization or trusted intermediary. The W3C Decentralized Identifier spec explains this in further detail.

Why do we need a DID?

Digital trust fundamentally requires participants to own and control their identities, and identity begins at the identifier. In an age of daily, large-scale system breaches and attacks on centralized identifier honeypots, decentralizing identity is becoming a critical security need for consumers and businesses. Individuals owning and controlling their identities are able to exchange verifiable data and proofs. A distributed credential environment allows for the automation of many business processes that are currently manual and labor intensive.

What is a Verifiable Credential?

Credentials are a part of our daily lives; driver's licenses are used to assert that we are capable of operating a motor vehicle, university degrees can be used to assert our level of education, and government-issued passports enable us to travel between countries. Verifiable Credentials provides a mechanism to express these sorts of credentials on the Web in a way that is cryptographically secure, privacy respecting, and machine-verifiable. The W3C Verifiable Credentials spec explains this in further detail.

Conceptual questions

What happens when a user loses their phone? Can they recover their identity?

There are multiple ways of offering a recovery mechanism to users, each with their own tradeoffs. We're currently evaluating options and designing approaches to recovery that offer convenience and security while respecting a user's privacy and self-sovereignty.

How can a user trust a request from an issuer or verifier? How do they know a DID is the real DID for an organization?

We have implemented the Decentralized Identity Foundation's Well Known DID Configuration spec in order to connect a DID to a highly known existing system, domain names. Each DID created using the Azure Active Directory Verifiable Credentials has the option of including a root domain name that will be encoded in the DID Document. Follow the article titled Link your Domain to your Distributed Identifier to learn more.

Why does the Verifiable Credential preview use ION as its DID method, and therefore Bitcoin to provide decentralized public key infrastructure?

ION is a decentralized, permissionless, scalable decentralized identifier Layer 2 network that runs atop Bitcoin. It achieves scalability without including a special cryptoasset token, trusted validators, or centralized consensus mechanisms. We use Bitcoin for the base Layer 1 substrate because of the strength of the decentralized network to provide a high degree of immutability for a chronological event record system.

Using the preview

Why must I use NodeJS for the Verifiable Credentials preview? Any plans for other programming languages?

We chose NodeJS because it is a very popular platform for application developers. We will be releasing a Rest API that will allow the developers to issue and verify credentials.

Is any of the code used in the preview open source?

Yes! The following repositories are the open-sourced components of our services.

  1. SideTree, on GitHub
  2. The VC SDK for Node, on GitHub
  3. An Android SDK for building decentralized identity wallets, on GitHub
  4. An iOS SDK for building decentralized identity wallets, on GitHub

What are the licensing requirements?

An Azure AD P2 license is required to use the preview of Verifiable Credentials. This is a temporary requirement, as we expect pricing for this service to be billed based on usage.

Next steps