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April 1, 2024

SD-JWT: The Backbone of Next-Generation Digital Credentials in the EU

Lukas Han

Backend Developer

Introduction

In response to the increasing emphasis on digital privacy and security in online transactions, the European Union Digital Identity (EUDI) framework has embraced Selective Disclosure for JSON Web Tokens (SD-JWT) as the keystone technology for its digital credentials (VCs). This decision not only marks a significant shift towards enhanced digital privacy but also sets a new standard for secure, flexible information sharing across the EU and beyond. Celebrating this small but significant shift, in this post, we will explore the reasons behind the selection of SD-JWT, its implications for digital interactions, and its potential applications in various sectors.

Why SD-JWT? Overcoming the Limitations of JWT

SD-JWT was selected by the EUDI framework for its unique ability to address key limitations of traditional JWT technology—excessive data sharing. Unlike JWT, which discloses the entire content of a token, SD-JWT permits selective information sharing. In other words, SD-JWT utilizes its privacy controls to allow users to choose the information they wish to share and what they prefer to withhold. By giving individuals greater control over their personal information, this feature drastically changes how personal information is managed and shared in digital environments. By embracing SD-JWT, the EUDI framework thus aims to overcome JWT’s technical constraints and create a future where individuals have ownership over their personal information.

Still unsure how SD-JWT differs from JWT? Check our “From JWT to SD-JWT: The Evolution of Web Security and Privacy post for more.

The EU's Vision: Shaping the Future with SD-JWT

The EU's decision to incorporate SD-JWT into its digital identity framework reflects its proactive stance on digital privacy and security. Through SD-JWT, the EU is not only embracing a new standard but also promoting a digital culture that prioritizes user autonomy, privacy, and security. This decision is anticipated to have a profound impact on the digital landscape and set precedent for other regions and industries. A new age in digital interactions where user consent and selective information sharing are central is about to come.

Future Applications of SD-JWT

SD-JWT's security features make it an ideal technology for a wide range of applications within the EU and globally. Its potential uses include:

  1. Verifiable Credentials (VCs): In the EUDI framework, SD-JWT is a key technology for issuing and verifying digital credentials. Its selective disclosure capability ensures that individuals can share verifiable proofs of their identity, qualifications, or permissions without exposing additional data.
  2. Authentication: SD-JWT can streamline the authentication process across various services by allowing users to prove their identity without revealing unnecessary personal information. This approach reduces privacy concerns and the risk of data breaches.
  3. Medical Information Sharing: SD-JWT can transform how medical information is shared between patients, healthcare providers, and third parties. By allowing patients to share specific health data while keeping other details private, SD-JWT ensures privacy and security in sensitive healthcare interactions.

Conclusion

The EUDI framework’s adoption of SD-JWT is a huge step towards a world with better digital privacy and enhanced security in information sharing. By addressing the constraints of traditional JWT technology and enabling selective disclosure, the EU is setting a new standard for digital interactions. As we look to the future, SD-JWT stands out as a powerful tool for fostering a more secure, private, and user-centric digital world.

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