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Unlocking Identity with Microsoft Entra Verified ID and DIDs

5 min read Microsoft LearnApr 23, 2026
PractitionerHands-on experience recommended

The traditional identity management systems are increasingly inadequate in addressing privacy and control. Microsoft Entra Verified ID emerges as a solution, providing a new form of identity that integrates technologies and standards to deliver self-ownership and censorship resistance. This is crucial in a digital landscape where users demand more control over their personal information.

At the core of this system are Decentralized Identifiers (DIDs), which are user-generated, self-owned, and globally unique identifiers rooted in decentralized trust systems. Coupled with verifiable credentials—data objects that consist of claims made by an issuer attesting to information about a subject—this framework allows users to manage their identities securely. The implementation relies on a technical foundation that includes user-owned identifiers, a user agent for managing keys, and encrypted, user-controlled datastores. This architecture ensures that users can present their credentials to verifiers without needing to contact a central authority, enhancing privacy and security.

In production, be mindful that the sign-in process still relies on traditional authentication methods, such as usernames and passwords, to verify identity with the issuer. This step is separate from the verifiable credential itself, which serves as a portable, cryptographically signed proof. Understanding this separation is key to effectively implementing Microsoft Entra Verified ID in your identity solutions.

Key takeaways

  • Understand Decentralized Identifiers (DIDs) as user-generated, self-owned identifiers.
  • Leverage verifiable credentials for secure, portable proof of identity.
  • Recognize the importance of traditional authentication in the sign-in process.
  • Implement user-controlled datastores for enhanced privacy and security.
  • Utilize a user agent to manage keys associated with DIDs.

Why it matters

This approach significantly enhances user privacy and control over personal data, which is increasingly critical in today's digital environment. By adopting these technologies, organizations can build trust and improve user experiences.

When NOT to use this

The official docs don't call out specific anti-patterns here. Use your judgment based on your scale and requirements.

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