The Discussion: Inside the EU's Digital ID Wallet #17
May 24, 2023
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Andy Tobin, Commercial Director, Europe, Digital Trust Services at Gen, discusses the European identity system (eIDAS), digital wallets, and the future of credentials. Topics include verifiable credentials, security of digital credentials, the shift to digital identity, and the potential of the EU's digital ID wallet to create a new industry and ecosystem.
Digital wallets provide better privacy, security, and ease of use compared to traditional identity verification methods.
The EU's digital identity system, EIDAS, aims to create an open and standardized ecosystem for government and private sector credentials while balancing user control and governance.
Deep dives
The Importance of Digital Identity and Digital Wallets
Digital identity is crucial in the modern era to restore the convenience and control lost in the transition from physical to digital documentation. Instead of relying on third-party accounts for identity verification, digital wallets allow individuals to carry their own digital equivalents of paper or plastic documents. This evolution aims to provide better privacy, security, and ease of use. The European Identity System, known as EIDAS, plays a significant role, ensuring the legitimacy of government-issued digital credentials. This initiative is an open ecosystem, enabling both government and private sector credentials to be securely stored and easily shared for various use cases, such as proving employee ID or certifications. By embracing digital identity and wallets, it becomes possible to eliminate the dependency on usernames, passwords, and capture codes, as well as improving the privacy and security of personal data.
The Role of IDAS and its Key Features
IDAS, the largest digital credential initiative globally, is paving the way for a standardized European digital credential ecosystem. It combines legislative measures and technical specifications, ensuring legal legitimacy for government-issued credentials and defining the technical operations of the ecosystem. IDAS promotes interconnectivity across member states while fostering interoperability with private sector credentials. Additionally, IDAS enables selective disclosure, allowing individuals to share only relevant attributes for a given transaction, thereby safeguarding privacy. Revocation mechanisms are being developed to handle situations where credentials need to be invalidated, ensuring the security and integrity of the system. IDAS strives to strike a balance between centralization for governance purposes and user-centric control over their wallets and data.
The Potential Impact of Big Tech on Digital Identity
While IDAS aims to provide an open and interoperable ecosystem, the influence of Big Tech, such as Google and Apple, cannot be ignored. These companies already offer digital wallets that users find convenient and familiar. However, they maintain control over user data and may not prioritize the user's privacy and freedom of choice. If IDAS does not gain enough traction or fails to address user experience challenges, Big Tech may fill the void, potentially monopolizing the digital identity space. To avoid this, IDAS needs to place a strong emphasis on user-friendly design, simplicity, and trust. Legislation should ensure data portability and openness, allowing users to easily switch between different wallets and preventing any single entity from dominating the market.
Challenges and Future Outlook for Digital ID by 2030
By 2030, it is envisioned that digital identity will be widespread, with organizations issuing and verifying digital credentials as the new norm. This shift will grant individuals more control over their personal data and reduce reliance on traditional authentication methods like passwords. However, there are challenges to overcome, including ensuring seamless interoperability between different digital wallet providers, providing clear governance mechanisms for trusted lists of relying parties and issuers, and addressing potential security risks associated with cloud-based wallets. The success of digital identity will depend on a harmonious balance between privacy, security, user experience, and trustworthiness. Continued innovation, robust regulation, and collaboration among stakeholders will be critical in shaping a future where digital identity is user-centric, accessible, and widely adopted.
In this episode of The Discussion I’m joined by Commercial Director, Europe, Digital Trust Services at Gen, and all-round Digital Wallet and Innovation expert Andy Tobin for a detailed conversation about digital wallets.
We go deep into what the European identity system (eIDAS) is, how it works and why we need it. We cover the difference between identity cards and digital wallets and the role of verifiable credentials. We also explore why digital credentials are more secure than paper documents, the spectre of big tech and the future of credentials in general.
