1: The Future of Digital Identity: How Verified ID Works
- Harri Jaakkonen
- Jan 20
- 3 min read
The Evolution of Digital Trust
In an increasingly digital world, organizations face a critical challenge: how do you verify someone's identity without compromising security or user experience? Traditional approaches—passwords, security questions, one-time codes—are becoming obsolete. They're vulnerable to breach, difficult to manage, and create friction in critical workflows.
Enter Microsoft Entra Verified ID, a revolutionary approach to identity verification built on W3C standards for verifiable credentials. Unlike traditional identity systems where a central authority (like your bank or employer) maintains your information, Verified ID empowers individuals to hold their own credentials—much like a physical passport, but digital, cryptographically secured, and instantly verifiable.
What Are Verifiable Credentials?
Verifiable credentials are digital attestations of identity attributes—your name, qualifications, licenses, or any claim an authority wants to make about you. Here's what makes them different:
User-Controlled
You hold credentials in your digital wallet, not in a company database.
Cryptographically Signed
Issued and signed by a trusted authority, tamper-proof and verifiable.
Selective Disclosure
Share only the claims you need—not your entire identity profile.
Privacy-Preserving
Verifiers see proof of your claims, not your personal data.
The Verified ID Workflow
The Verified ID process follows three essential phases that work together to create a complete identity verification ecosystem:
1. Issuance: Creating Trusted Credentials
An authority (employer, government, financial institution) issues a verifiable credential to a user. This credential contains cryptographic proof of authenticity and can include claims like:
Employment status and role
Educational qualifications
Professional licenses
Government-issued identity attributes
Biometric data (photographs, fingerprints)
The user receives this credential in their Microsoft Authenticator mobile app, where it's stored securely in their digital wallet. The credential is bound to their device and can only be used when they approve it.
2. Verification: Proving Your Identity
When an organization needs to verify your identity, they request specific credentials from your wallet. Instead of sharing your entire identity, you share only what's necessary. The verification happens in real-time through a secure exchange, and the verifier receives cryptographic proof that your credentials are authentic and haven't been revoked.
3. Trust: Building Zero-Trust Security
Each credential is cryptographically signed by its issuer. A verifier can independently confirm authenticity by checking the digital signature against the issuer's published public key. This enables genuine zero-trust: you don't need to trust the verifier to protect your data—they can only see what you explicitly share, and they can verify authenticity without calling back to the issuer.
The Power of Standards: Verified ID is built on W3C standards (Verifiable Credentials Data Model), ensuring interoperability across platforms and ecosystems. This means your credentials can be used across multiple organizations and systems.
Why Organizations Are Adopting Verified ID
Companies across finance, healthcare, government, and technology are implementing Verified ID because it solves real business problems:
Reduced Fraud: Cryptographic proof makes impersonation nearly impossible
Faster Onboarding: Eliminate lengthy identity verification processes
Lower Costs: Reduce identity verification overhead and support tickets
Improved Compliance: Maintain audit trails and meet regulatory requirements
Better User Experience: Simple scanning with Microsoft Authenticator replaces complex forms
Data Minimization: Collect only what you need, reducing privacy liability
Real-World Impact: Organizations using Verified ID report 60% reduction in identity verification time and 40% fewer support requests related to authentication issues.
Fortytwo: Your Partner in Verified ID Implementation
Fortytwo is a recognized partner of Microsoft, specializing in identity and access management solutions. As a Microsoft Entra Verified ID Service partner, Fortytwo brings deep expertise in designing and implementing Verified ID solutions across enterprise organizations.
Fortytwo's experience includes:
Multi-tenant Verified ID architecture design and implementation
Integration of Face Check for biometric verification
Credential lifecycle management and issuance workflows
Compliance and audit trail implementation for regulated industries
Cross-tenant credential verification strategies
Custom credential types for industry-specific requirements
Fortytwo works with organizations to design identity solutions that fit their specific business needs while leveraging Microsoft's enterprise identity platform.
Fortytwo: Microsoft Entra Verified ID Service Partner
Available on Azure Marketplace for streamlined procurement and deployment
Verified ID on Azure Marketplace
Organizations looking to implement Verified ID solutions can now access Fortytwo's expertise directly through the Azure Marketplace. This offering provides:
Pre-Built Components
Reference architectures for common use cases
Rapid Deployment
Ready-to-use infrastructure as code
Consulting Support
Expert guidance on implementation and integration
Azure Native Integration
Seamless connection with existing Azure service
Coming up next in this series
Multi-tenant identity architecture at enterprise scale. We'll tackle the real challenge organizations face: managing identity verification across multiple business units, subsidiaries, or service offerings while maintaining security and compliance. How do you build identity infrastructure that scales without compromising isolation?
That's what we're covering next.
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