As outline above and in the previous blog (“Breaking and forging the value chain anew with SSI”), there are many factors that contribute to the value of a credential.

As a further recap from the previous blog, value is embodied into the credential. Whereas historically companies deriving value from data paid directly for that data at the point of access, that does not work when the user / subject holds or controls the data. Hence, value is embodied within the credential.

Let’s break down the list above.

1. Insights derived from verifiable credentials

The value of credentials is greatly enhanced by the insights that can be derived from them. When a credential provides rich, actionable insights, it becomes more than just a piece of information—it transforms into a powerful tool for decision-making. For instance, a university degree not only confirms educational attainment but also offers insights into the individual’s knowledge, skills, and areas of expertise, which can be critical for employers making hiring decisions. 

In the business context, the insights derived from financial credentials, such as audited financial statements, can inform investment decisions, risk assessments, and strategic planning. For example, detailed financial records can reveal a company’s financial health, operational efficiency, and growth potential. These insights enable investors, partners, and regulators to make informed decisions based on the credentialed information. Therefore, the ability of a credential to provide meaningful, context-rich insights significantly boosts its value, as it empowers stakeholders to make informed, data-driven choices.

Obviously, a key criteria is relevancy. A credential that is highly relevant to the context at hand addresses the immediate demands and challenges faced by the businesses or individuals. For instance, certifications in emerging technologies like artificial intelligence or cybersecurity are extremely valuable in today’s job market when applying for those positions, where these skills are in high demand and qualification fraud is rife. Elsewhere, a credential may not be a crucial input to a decision but may be helpful in providing context. For example, the ability for a job applicant to submit multiple attendances language schools as part of a job application could support their statement of learning languages. Whilst not crucial to their application, these credentials do provide additional supportive context.

2. Effort expended in creating verifiable credentials

The value of credentials is significantly influenced by the effort expended by businesses in creating verifiable credentials. These credentials can either be created as evidence of a transaction (e.g. receipts) or may be the purpose themselves, (e.g. passports).

For a KYC provider, for example, this involves a series of rigorous processes to ensure the authenticity and accuracy of the credential being issued. This can include verifying identity documents, conducting background checks, and employing technologies like biometric verification. The extensive measures taken by the business to gather and authenticate this information add substantial value to the credential, making it reliable and trustworthy for any third party relying on it.

In contrast, a receipt issued by a store is a by-product of an existing transaction. Still, value is created by the detailed and accurate information compiled by the business, which could be used to be reimbursed expenses by an employer or as proof of purchase with an insurer.

3. Degree of data accuracy & precision

The value of credentials is fundamentally anchored in the accuracy of the data they contain. Accurate data ensures that the credential reliably reflects the truth, making it a trustworthy source of information. For instance, in the context of academic credentials, accurate records of grades, course completions, and degrees awarded are essential for validating a candidate’s qualifications and competencies. Any discrepancies or inaccuracies can undermine the credibility of the credential, leading to potential mistrust or legal complications.

In the business world, the accuracy of financial credentials, such as income statements or tax records, is equally critical. Accurate data in these documents ensures compliance with regulations and provides a truthful representation of a company’s financial status, which is vital for stakeholders like investors, regulators, and business partners. The rigorous processes undertaken to verify and authenticate the data before issuing these credentials further enhance their reliability and value. In essence, the more precise and error-free the data, the higher the credential’s utility and trustworthiness.

Similarly, the precision of data in credentials significantly contributes to their value by providing detailed and specific information. Precise data means that the credential includes exact figures, comprehensive descriptions, and specific timestamps, which enhance the clarity and usefulness of the information. For example, in a professional certification, precision might involve the exact competencies mastered, the level of proficiency attained, and the specific conditions under which the certification was granted. This level of detail allows employers and other stakeholders to make nuanced assessments about the credential holder’s capabilities and suitability for particular roles or tasks.

In financial contexts, the precision of data within credentials like financial reports or invoices is crucial for accurate analysis and decision-making. Detailed breakdowns of expenses, revenue, and profit margins allow businesses to track performance, forecast trends, and identify areas for improvement with greater confidence. Precision ensures that every aspect of the financial situation is transparent and comprehensible, enabling stakeholders to perform thorough audits, comparisons, and strategic planning. Consequently, the more precise the data in a credential, the more valuable it becomes as a reliable source for informed decision-making.

5. Currentness 

The value of credentials is significantly influenced by their currentness, i.e. how up to date it is, appropriately reflecting new facts and updates. There are many easy examples where lack of currency massively degrades the usefulness and value of a credential: a driving licence credential which does not reflect that the licence itself has been revoked could be considered not just to be of little value but actively creating negative value depending on the context, e.g. falsely allowing someone to rent a vehicle they should be barred from.

6. The usability of a credential’s format

Currentness could also refer to whether the credential reflects the most recent technical standards, e.g. the credential format, contents and exchange protocol(s).

The credential format specifically significantly impacts its value, as it determines how easily and effectively the information can be accessed, understood, and utilised. A credential in a usable format is structured and presented in a way that facilitates efficient navigation and comprehension. For instance, digital credentials with standardised formats offer convenience and accessibility, allowing stakeholders to quickly verify and authenticate the information they contain. Likewise, credentials with clear and intuitive layouts, whether physical or digital, enhance usability by presenting information in a logical and organised manner, minimising the effort required to extract relevant details.

• Credentials can be paired with specific schemas, detailing how they should be formatted in wallets or verifying software
• Overlay Capture Architecture allows for credentials to appear in different colours or languages depending on the context
• Commonality in the structure of the VC data model allows for applications to parse credentials with consistency
• JSON-LD contexts enable references to be made to external, linked data sources, to gain more insights into the credential’s structure

Moreover, the usability of a credential’s format extends beyond its accessibility to encompass its compatibility with existing systems and processes. Credentials that can seamlessly integrate with verification platforms, databases, or credential management systems enhance efficiency and interoperability across various stakeholders. Additionally, customisable formats that allow for the inclusion of additional context or metadata further enhance usability by tailoring the credential to specific needs or requirements. Ultimately, a credential’s usability in format not only enhances its practical utility but also contributes to its overall value by streamlining workflows and facilitating seamless information exchange.

7. Perceived prestige or reputation of the credential-granting institution

The reputation and prestige of the institution or organisation issuing the credential can substantially influence its value. Credentials from reputable universities, professional associations, or industry-leading organisations often carry more weight and are highly regarded by employers, colleagues, and other stakeholders.

Let’s consider a graduate who earns a verifiable credential in finance from a prestigious business school such as Harvard University. The reputation of Harvard as an elite educational institution adds weighty value to the credential, as it is synonymous with academic excellence and rigorous standards. Employers and industry professionals view credentials from such institutions with high regard, recognizing the rigorous curriculum, esteemed faculty, and global network associated with them.

Relying on the reputation of the institution is being proposed as one of the main pillars for combating disinformation, e.g. via content credentials. In this situation, content (and credentials) from verifiably and historically trustworthy news sources will be trusted more than content from a new website with low domain authority, or alternatively a news source which has to frequently issue corrections due to mistakes, or downright falsehoods.

Similarly, credentials issued by an organisation with a real or perceived strong reputation are typically inherently more trustworthy and valuable than self-attested information given that information has been independently verified by a third party rather than just stated by an individual. cheqd experienced an example last year when we were contacted by a recruiter checking a reference for an individual falsely claiming to work for us. The individual had self-attested on LinkedIn that they worked for us, whereas all of our staff hold cheqd-issued credentials proving they either are or have worked for us.

8. Degree of Portability

The degree of portability greatly influences the value of credentials, as it determines their versatility and applicability across different contexts and scenarios. Highly valuable credentials offer a broad spectrum of utility, serving multiple purposes and meeting diverse needs. For example, a professional certification recognized internationally not only validates expertise but also opens up opportunities for career advancement and mobility across borders. Similarly, credentials that can be easily translated or adapted to various formats or languages enhance their portability, ensuring they remain valuable assets regardless of geographical or linguistic barriers. In short, credentials with a high degree of utility and portability empower individuals to navigate dynamic professional landscapes with confidence and agility, enhancing their long-term success and competitiveness.

The ability to port and re-use credentials has a colossal impact on their value, creating huge opportunities for organisations, industries and ultimately the global economy. As a result, it is worth exploring this impact in detail.

Ayra, of which cheqd is a founding member, for example, describes Ayra network credentials “that are explicitly designed to be issued and accepted across any Ayra-recognized ecosystem that needs them”, i.e. have maximal portability and hence the value is not limited to within the ecosystem.