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📖 What is Microsoft Entra ID Verified ID?

Microsoft Entra ID Verified ID is a decentralized identity solution based on open standards that allows users to hold and present digitally signed credentials in a secure wallet. It enables verifiable claims without relying on a central identity provider.

🥋 Sensei Says:

"Think 'Decentralized Identity' (DID). It is about the user owning their identity data rather than the organization owning the account."

📚 Certification: Microsoft 365 Administrator (MS-102)

🔑 What are the Key Concepts of Microsoft Entra ID Verified ID?

  • The Trust Triangle involves three roles: the Issuer who creates the credential, the Holder who stores it in a wallet, and the Verifier who checks it.
  • Decentralized Identifiers (DIDs) are globally unique identifiers that allow users to prove ownership of their identity without relying on a central authority.
  • Verifiable Credentials are digitally signed claims that can be cryptographically verified, ensuring the data remains untampered since the moment of issuance.
  • User Sovereignty ensures the individual controls their own identity data, deciding exactly which claims to share with a verifier to minimize PII exposure.
  • Adherence to W3C open standards ensures interoperability, allowing credentials to be recognized across different platforms and organizations regardless of the identity provider.

🎯 How does Microsoft Entra ID Verified ID appear on the MS-102 Exam?

A scenario might describe a company wanting to issue digital employee badges that staff can present to third-party vendors without creating guest accounts in Entra ID.

You may be asked to identify the best solution for a university to provide students with digitally signed diplomas that are instantly verifiable by future employers.

Expect questions where you must distinguish between traditional B2B collaboration and a decentralized approach for verifying professional certifications or identity claims.

❓ Frequently Asked Questions

How does Verified ID differ from Entra ID B2B collaboration?

B2B collaboration focuses on granting external users access to your organization's resources via guest accounts. Verified ID focuses on proving specific claims or attributes about a user without requiring an account in your directory.


What happens if a user loses the wallet containing their Verified ID?

Because the identity is decentralized, the wallet is just a storage mechanism. The user must contact the original Issuer to have the credential re-issued to a new secure wallet.


Does the Verifier need a direct trust relationship with the Holder?

No. The Verifier only needs to trust the Issuer. By verifying the Issuer's digital signature on the credential, the Verifier can trust the information provided by the Holder.

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