Decentralized Identity Verification With Selective Credential Disclosure

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Solution Overview

Problem

Centralized identity agencies store and retain sensitive user information indefinitely, leading to potential data breaches and loss of user control over their information, with users often sharing more than necessary and lacking control over data distribution.

Innovation Solution

Utilizing a blockchain-based decentralized identity verification system that allows users to store private data securely in a wallet and share a minimal set of information via decentralized identifiers (DIDs) for verification, ensuring control and privacy.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If users provide sensitive information to centralized identity agencies for verification, then verification can be performed, but users lose control over their information and data breaches become more risky

Engineering Contradiction:
Improveverification reliabilityVSAvoiddata breach risk
Core Design Contradiction:
ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent extracts sensitive user information from centralized databases and places it in decentralized wallets controlled by users. Only cryptographic proofs of specific claims are shared during verification, not the underlying sensitive data, thereby eliminating centralized data storage and reducing breach risk while maintaining verification reliability

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The patent segments user identity information into discrete verifiable credentials stored in user wallets, separate from the verification process. This allows selective sharing of specific claims without exposing the entire identity profile, reducing the impact of potential data breaches

Inventive Principle:
Principle #1Segmentation

2Reliability

If users share complete identity documents with verification entities, then verification is thorough, but users expose more information than necessary

Engineering Contradiction:
Improveverification thoroughnessVSAvoidinformation exposure
Core Design Contradiction:
ReliabilityVSLoss of information

Solution Approach 1:

The patent divides identity documents into discrete verifiable credentials, each containing specific claims (e.g., age, address, employment status). Users select and share only the specific claims needed for each verification scenario, achieving thorough verification of relevant information while minimizing overall information exposure

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent applies local quality by allowing different portions of identity information to have different visibility and access levels. Each verifiable credential can be selectively shared based on the specific verification requirements, enabling users to control the quality and extent of information disclosure

Inventive Principle:
Principle #3Local quality

3Duration of action of stationary object

If centralized identity agencies store user information indefinitely, then verification is always available, but users lose control over data retention and distribution

Engineering Contradiction:
Improveverification availabilityVSAvoiduser control over data
Core Design Contradiction:
Duration of action of stationary objectVSEase of operation

Solution Approach 1:

The patent implements self-service by enabling users to independently manage their own identity data in decentralized wallets without relying on centralized agencies. Users control their own data retention, sharing, and verification processes, eliminating the need for third-party data storage while maintaining verification availability through peer-to-peer verification

Inventive Principle:
Principle #25Self-service

4Ease of operation

If users rely on third-party services for identity verification, then verification process is simplified, but users depend on external services for data security

Engineering Contradiction:
Improveverification simplicityVSAvoiddata security
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent enables users to perform self-verification using decentralized wallets and verifiable credentials without requiring third-party services. Users independently manage their identity data, generate cryptographic proofs, and control the verification process, eliminating dependency on external services while maintaining operational simplicity

Inventive Principle:
Principle #25Self-service

Solution Approach 2:

The patent uses cryptographic proofs and verifiable credentials as intermediaries between users and verification entities. These intermediaries enable trustless verification without requiring users to share sensitive information with third parties, maintaining both simplicity and security

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentUS12511650B2Online decentralized identity verification for a multi-sided network
Publication Date: 2025.12.30 PAYPAL INC
  • US12511650B2 patent drawing
  • US12511650B2 patent drawing
  • US12511650B2 patent drawing

AI summary

Techniques are disclosed relating to facilitating secure communication of private user data between different entities for a verification process conducted during an electronic interaction between the user and a verifier entity. In disclosed embodiments, a verification service executing on a server computer system for a verification session for verifying a holder entity on behalf of a verifier entity receives a verification request from a remote computer system. The verification request includes an attestation proof generated from one or more credentials and the verification service communicates with a holder service that manages an identity storage storing credentials for the holder entity. The verification service transmits, to the verifier service, the attestation proof and then receives, from the verifier service based on the proof, verification results that are usable by the verifier to determine whether to process an action requested by the holder prior to requesting verification.