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Identity Wallets

Definition

An identity wallet is a software application (typically mobile) where individuals store, manage, and present their digital identity credentials — like a physical wallet but for verified digital claims.

Wallet Architecture

graph TD
    A[Identity Wallet App] --> B[Credential Store<br/>Encrypted local storage]
    A --> C[Key Management<br/>Private keys in secure enclave]
    A --> D[Presentation Engine<br/>Select + share credentials]
    A --> E[Communication Layer<br/>DIDComm, OpenID4VP]

    B --> F[Identity Credential<br/>from Government]
    B --> G[Driving License<br/>from Transport Authority]
    B --> H[Bank Account Proof<br/>from Bank]
    B --> I[Diploma<br/>from University]

    style A fill:#4051B5,color:#fff

Major Wallet Implementations

Wallet Region Status Key Feature
EUDI Wallet EU (27 states) Pilots 2024-2025, mandatory 2026-2027 Cross-border, selective disclosure
India DigiLocker India Live (200M+ users) Government document storage (not full SSI)
BC Wallet British Columbia, Canada Pilot Hyperledger Aries-based
ID Wallet Germany Pilot German eID integration
NSW Digital ID Australia (NSW) Live State government credentials

Wallet Security Requirements

Requirement Implementation
Key protection Private keys in hardware secure enclave (TEE/SE)
Biometric binding Wallet unlocked only with owner's biometric
Credential encryption AES-256 at rest
Backup/recovery Secure cloud backup with user-controlled encryption
Tamper detection App integrity checks, root/jailbreak detection
Selective disclosure ZKP or SD-JWT for minimal data sharing

Key Takeaways

Summary

  • Identity wallets are the user-facing component of digital identity — store and present credentials
  • EUDI Wallet is the most important for eKYC — 450M potential users, banks must accept
  • DigiLocker (India) is the largest existing implementation — but stores documents, not verifiable credentials
  • Wallet security relies on hardware secure enclaves for key protection + biometric binding
  • For eKYC providers: must add wallet credential acceptance alongside document verification