Decentralized Identity Wallets for Verifiable Credential Control

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Solution Overview

Problem

Conventional centralized identity systems lack user control and are prone to security vulnerabilities, leading to potential data breaches and loss of personal information, as well as inefficiencies in identity verification and credential management.

Innovation Solution

Implementing decentralized identity methods using cryptographic techniques, allowing individuals and organizations to manage their own identity credentials through digital wallets, enabling secure and self-sovereign control over their identity data, and facilitating cryptographically-verifiable transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If centralized identity systems are used, then identity verification can be achieved through centralized authorities, but user control over identity data is lost and security vulnerabilities increase

Engineering Contradiction:

Improveidentity verification reliabilityVSAvoidsecurity vulnerabilities and data breach risk

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent segments the centralized identity verification system into distributed components. Identity credentials are divided into verifiable claims that can be independently verified, and the verification process is distributed across multiple nodes in a network rather than relying on a single centralized authority. This segmentation reduces the attack surface and eliminates single points of failure.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces cryptographic proofs and verifiable credential structures as intermediaries between identity holders and verifiers. These cryptographic intermediaries enable trustless verification without requiring users to directly trust centralized authorities, thereby maintaining verification reliability while reducing security vulnerabilities associated with centralized data storage.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If centralized authorities manage identity credentials, then credential issuance can be controlled, but user autonomy and control over personal data are reduced

Engineering Contradiction:

Improvecredential management convenienceVSAvoiduser control and autonomy

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent implements self-sovereign identity where users directly control their own credentials through digital wallets. Users can issue, store, manage, and revoke their own verifiable credentials without requiring centralized authority intervention. This self-service model maximizes user autonomy while maintaining operational simplicity through automated cryptographic verification processes.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent inverts the traditional identity model by giving control to the individual rather than the authority. Instead of centralized authorities holding and managing user credentials, the system enables individuals to hold their own credentials in self-custody wallets, fundamentally reversing the power dynamic while simplifying the verification process through cryptographic proofs.

Inventive Principle:

Principle #13The other way round (Inversion)

3Reliability

If cryptographic verification is implemented, then security and authenticity are enhanced, but system complexity increases

Engineering Contradiction:

Improvecredential verification securityVSAvoidsystem architecture complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent uses cryptographic copies and hashes of identity data that can be verified without exposing the original sensitive information. Verifiable credentials contain cryptographic representations (proofs) that replicate the verification function while maintaining security. This approach enhances security through cryptographic verification while managing complexity by working with standardized cryptographic formats rather than custom complex protocols.

Inventive Principle:

Principle #26Copying

Data Source

PatentUS20250356371A1Decentralized Identity Methods and Systems

Publication Date: 2025.11.20 STATE FARM MUTAL AUTOMOBILE INSURANCE COMPANY

AI summary

The present techniques relate to, inter alia, cryptographically-verifiable insurance credentials and cryptographically-verifiable property transfer. The novel methods and systems of decentralized identity discussed herein improve user experience (whether individual or organizational) by moving control over identity from the hands of centralized entities, back to where it belongs—i.e., to the hands of individual organizations and users. In one aspect, a method includes obtaining a scanned image; processing the scanned image; transmitting a claim request; and receiving and storing an attestation response, and a computing system includes a processor; and a memory having stored thereon computer-executable instructions that, when executed by the one or more processors, cause the computing system to: receive a claim request; cryptographically verify the claim; and transmit an attestation response.