Scaling Trust with Digital ID Platforms

One of my main takeaways from our live podcast with Tim C. and Henrique Bernardes B Teixeira came from a discussion about one of IAM’s most persistent pain points: cross-company access. For decades, the standard approach has been federation: establishing direct, trusted connections between organizations so users can securely access each other’s systems. But here’s the truth: federation, as it is, doesn’t scale. Setting it up is time-consuming and rigid: > You need technical integrations for each partner. > You need legal agreements. > You need alignment between IT teams on both sides. > And you need to repeat the process for every new identity provider. That works if you're collaborating with a few long-term vendors. But it completely breaks down when you’re dealing with hundreds of external users like freelancers, contractors, suppliers, or ecosystem partners who need access today, not after a two-week firewall security review. Digital verifiable credentials offer a new approach: one that preserves trust but removes the need for pre-established integrations. Instead of linking systems and requiring users to log in with weak credentials like usernames and passwords, you give the user a passwordless verified ID credential tied to their biometric. The user can then present the credential wherever it’s needed by scanning a QR code, without the issuing and verifying systems being directly connected or the organization having to manage passwords. The biometric ensures only the right user can access the systems. This unlocks a powerful new model: > No federated trust setup required: You can grant access based on a passwordless verified ID credential from a trusted organization, without needing to setup a new SAML or OIDC connection > Faster affiliation-based access: Authenticate returning users and confirm granular details—such as employer, role, or specific permissions—almost instantly. > Built-in revocation and expiration: Revoke or expire credentials to remove access the moment it’s no longer needed, even across disconnected systems. Today, most systems rely on bilateral federation, one connection per relationship. Digital credentials flip that model. They decouple trust from integration, enabling a future where you don’t need to share infrastructure to trust someone’s identity, link accounts to validate someone’s role or rebuild your workflow each time you bring someone into your system. Digital credentials aren’t just a new identity format. They’re a new trust model. One that works across organizations, platforms, and ecosystems without the heavyweight baggage of federation.

Australia ❤️ is good at digital govt. But in a world of rapid change, good isn’t good enough 🤷♂️ When people think of world-leading digital nations, they point to Singapore, Estonia, and increasingly, the UAE. Yes - they’re small, agile, and highly coordinated. But size is no excuse. 🇺🇦 Ukraine (pop. ~40 million) is racing toward Gov 3.0 maturity via its Diia platform - even during a war. 🇮🇳 India (pop. 1.5 billion 🤯) is delivering digital transformation at national scale. The India Stack, anchored by Aadhaar, is enabling inclusion, innovation, and economic uplift for over a billion people. ✳️ Why does this matter? One word: Productivity As population growth and participation rates flatten, productivity becomes the key to prosperity. Treasurer Jim Chalmers is right ✅ to put it front and centre - he’s convening a national productivity roundtable on 25 August to build consensus for reform. Last year, I co-led a productivity roadshow across Australia and New Zealand, asking: Which govt services would deliver the biggest productivity dividend if digitised at scale? The result? The GX5 : Five digital initiatives with the biggest productivity upside We assessed 24 govt digitalisation opportunities and filtered them through three lenses: 1. Citizen-facing – high visibility and public benefit 2. Deployment-ready – proven globally, good to go 3. High productivity impact – across govt, business, and individuals The top five: 🟦 Digital ID – secure, streamlined identity verification 🟦 Digital Skills Wallet – verified, portable credentials 🟦 Digital Front Door – one-stop access to govt services 🟦 Digital Health Record – accessible, coordinated medical data 🟦 Digital Licences & Permits – instantly verifiable credentials 📊 According to the attached GX5 report, Digital ID alone could unlock $19–32 billion per year in economic benefits - up to 1.2% of GDP - based on results from Singpass (Singapore) and Aadhaar (India) . Importantly, the Federal Govt passed legislation last year 🙏 to enable an opt-in digital ID system - a critical reform that will boost security, privacy, and service delivery across the country. This attached report was a collaboration between Ember Advisors and ServiceGen, with support from Amazon Web Services (AWS). If we want to stay globally competitive, we must build and embrace public digital infrastructure. It’s how we move from good to great 🙏🏼

#DPI : Digital Public Infrastructure can drive a sustainable increase in #revenue collection and build trust in government. -India's adoption of digital public infrastructure has helped reduce the country's income tax return processing time. Trust in government and government effectiveness have a reciprocal relationship. Trust is enhanced when political institutions are strong and governments implement policies and initiatives that are aligned with the public interest and improve people’s daily lives. And governments can be effective only when their citizens trust them enough to comply with laws, thereby creating the space for reforms. Of course, trust in government needs more than just robust digital platforms. But the building of India’s digital platform infrastructure has laid some of the foundations for increasing trust by creating an inclusive platform for citizens to transact digitally and empowering users to have more control over their data. Good digital infrastructure can create trust between any two counterpart actors by introducing tamperproof components for identity, #payments, and #security , which allows citizens and businesses to be certain of the #identity of their counterpart and of the legitimacy of the transaction. This allows the reduction in explicit and implicit costs to citizens when they interact with their government, and for businesses in their transactions with individuals, other businesses, and the government. -Kamya Chandra, Tanushka Vaid, and Pramod Varma's article in  International Monetary Fund 's September 2024 F&D (Finance & Development) Edition

As digital privacy concerns grow, businesses must rethink identity management to balance security with user control, reducing reliance on centralized databases. Embracing decentralized identities isn't just about compliance—it's about creating trust in a digital-first world. Decentralized identities (DCI) shift personal data control from organizations to individuals, reducing the risk of breaches while enhancing user privacy. Unlike traditional models that store identity information in centralized databases prone to cyberattacks, DCI leverages blockchain and cryptographic methods to validate credentials without exposing sensitive details. This approach benefits businesses by lowering regulatory risks and improving compliance with privacy laws such as GDPR. It also streamlines authentication, enabling seamless verification across platforms without constant data exposure. Interoperability challenges and regulatory adaptation remain critical factors for widespread adoption, requiring standardized frameworks and global cooperation to unlock its full potential. #DecentralizedIdentity #Blockchain #Cybersecurity #DataPrivacy #DigitalTransformation