A credential wallet is a digital application that securely stores cryptographic proofs of your identity on your device. Unlike a traditional leather wallet that holds physical plastic cards, a credential wallet holds W3C Verifiable Credentials (VCs).
How it Works
When you complete a KYC process, a trusted issuer (like AssureLocker) generates a digital credential. This credential contains specific claims (e.g., "Over 18", "Indian Citizen") and is digitally signed using advanced cryptography.
Instead of storing this credential on a central server, it is delivered directly to your credential wallet.
Zero-Knowledge and Selective Disclosure
The magic of a credential wallet lies in privacy. If a service requires proof that you are over 18, you can use your wallet to present a cryptographic proof without revealing your actual date of birth. This is known as Selective Disclosure.
By keeping the data on the user's device, credential wallets eliminate the "honeypot" risk associated with centralized databases, perfectly aligning with modern data privacy laws.