Verifiable Credential Authentication With Decentralized Wallet Storage

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Solution Overview

Problem

Traditional user authentication methods, such as username and password combinations, are becoming less secure due to increased computational capabilities, and centralized storage of authentication data makes users vulnerable to data breaches, leading to potential access by third parties.

Innovation Solution

Decentralized identifiers (DIDs) and verifiable credentials are used to provide multifactor authentication, allowing users to manage their own authentication mechanisms, minimizing the risk of data breaches by limiting the impact of a single compromise to individual accounts.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If centralized storage of authentication data is used, then ease of operation is improved, but security deteriorates due to vulnerability to data breaches

Engineering Contradiction:

Improveease of operationVSAvoidsecurity

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent segments authentication data storage from centralized to decentralized locations. Each user stores their authentication credentials locally in a wallet application rather than in a centralized database. This segmentation ensures that even if the central system is compromised, individual user credentials remain secure and unaffected.

Inventive Principle:

Principle #1Segmentation

2Reliability

If decentralized authentication is implemented, then security is improved by limiting breach impact, but device complexity increases

Engineering Contradiction:

ImprovesecurityVSAvoiddevice complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent implements self-service through the wallet application that autonomously manages user credentials. The application automatically stores, protects, and provides authentication data without requiring manual intervention. This self-service mechanism simplifies user interaction while maintaining the security benefits of decentralized storage.

Inventive Principle:

Principle #25Self-service

3Ease of manufacture

If traditional password authentication is used, then ease of manufacture is improved, but security deteriorates due to increased computational capabilities

Engineering Contradiction:

Improveease of manufactureVSAvoidsecurity

Core Design Contradiction:

Ease of manufactureVSReliability

Solution Approach 1:

The patent replaces the mechanical/password-based authentication system with a cryptographic system. Instead of relying on passwords that can be guessed or stolen, the system uses cryptographic keys stored in secure wallets. This substitution maintains ease of use while providing superior security against computational attacks.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS12587523B2Decentralized identifier based authentication with verifiable credentials

Publication Date: 2026.03.24 AMERICAN EXPRESS TRAVEL RELATED SERVICES CO INC

AI summary

Disclosed are various approaches for authenticating users using verifiable credentials. An enrollment request is received from a browser. In response to the enrollment request, a set of authentication questions can be selected. The set of authentication questions can then be sent to the browser. Next, a set of answers to a subset of the set of authentication questions is received. Subsequently, a decentralized identifier communication (DIDComm) protocol connection is established with a wallet application. Then, a verifiable credential that represents the set of answers to the subset of the set of authentication questions is issued to the wallet application.