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Understanding Digital Identity

In an increasingly digital world, governments are turning to digital identity solutions to streamline the delivery of citizen services, enhance the security of Government-to-citizen interactions, and reduce fraud. A well-designed digital identity system enables secure, seamless access to government programs, travel credentials, and other essential services.

This guide explores what digital identity is, how it works, and the key frameworks shaping its implementation globally.

What is Digital Identity?

Without context, it is very difficult to land on a single definition of digital identity that satisfies everyone. NIST Special Publication (SP) 800-63-3 describes it as the unique representation of a subject (such as a person or entity) engaged in an online transaction. 

More simply, a digital identity is a one-to-one representation of a person online. It reflects an individual’s or entity’s presence across digital systems, often including multiple data points, credentials, and attributes — also known as digital identifiers. However, it’s not to be confused with the terms “user” or “account.”

  • A user is a person or entity that interacts with a specific system. They’re typically associated with a single set of credentials for that system.
  • Account refers to a single instance of access or registration on a platform tied to the user and their digital identity. Critically, a digital identity can include multiple accounts.

Identity proofing establishes that the subject is who they claim to be, while authentication confirms whether a subject has one or more valid attributes associated with their digital identity. The latter process allows them to access a digital service.

The Role of Digital Identity in Government

Governments are increasingly recognizing the importance of digital identity and are working to define and implement secure, reliable, and user-friendly digital identity systems. For example, the European Union is developing a digital identity framework that will be available to all EU citizens, residents, and businesses who want to identify themselves or provide confirmation of certain personal information. The framework can be used for both online and offline public and private services across the EU.

Estonia (e-Resident digital ID), Singapore (SingPass), India (Aadhar), Germany (Personalausweis), and France (France Identité) are examples of countries that have made significant strides into digital identity, allowing for seamless access to digital services. As more public and private organizations make their resources available online, citizen identity solutions are accelerating the path to digital government.

The Growing Importance of Digital Identity

Digital identity has existed for several decades, but there has been renewed global demand for digital identity. According to Gartner’s 2025 CIO Agenda: Top Priorities and Technology Plans for Government CIOs, over 98% of government CIOs have identified excelling in citizen experience as the most critical outcome for their digital transformation investments.

The leading reasons for this demand stem from a greater focus on elevating citizen experience when accessing government services and increasing operational efficiencies in governance.

According to an Entrust survey of >3000 citizens from size countries of the G20, a majority preferred to conduct their interactions digitally. Furthermore, 67% of respondents say prolonged wait times are their biggest pain point when interacting with the government. The citizens expect faster, more convenient service delivery with safe and frictionless identity verification.

Fortunately, modern digital identity solutions are enabling exactly that. Today’s electronic ID systems offer numerous benefits and advantages, including:

  • Access to government services: Digital identity provides a secure and convenient way for citizens to engage with government services, pay taxes, and vote.
  • Enhanced security: Digital identity can reduce the risk of fraud by enabling strong authentication.
    Improved efficiency: Digital IDs facilitate seamless access to public services by streamlining administrative duties and improving public service delivery by eliminating paperwork and manual processes.
  • Cost savings: They also reduce the need for physical service delivery infrastructure, allowing governments to lower operating costs and save taxpayer money.
  • Cross-border travel: Digital IDs make it easier for citizens to travel internationally. With a digital passport, they can cross borders quickly without as many restrictions, while governments can still securely verify their identities before they arrive at the border.

How Digital Identity Works

Digital identity uses electronic methods to represent and verify an individual online, checking their digital identifiers against a database. It combines personal data and credentials to enable secure access to services and systems.

A digital identifier is a unique data element used to distinguish an individual or entity in a digital system. Examples include:

  • Personal identifiers: Social Security, passport, national identity or driver’s license numbers
  • Biometric identifiers: Fingerprints, face, and/or iris scans
  • Behavioral identifiers: Patterns like typing speed or login locations

Digital identity systems authenticate these attributes using several verification methods, usually in combination. This provides the greatest level of assurance. For instance, two of the most common and effective techniques include:

  • Document verification: Comparing uploaded IDs or official documents with database records
  • Biometric verification: Matching live or captured biometric data (e.g., face scans) against stored templates

The process typically works like this:

  1. Identity creation: Your digital identity begins when personal information (e.g., name, date of birth, or government-issued ID details) is collected and verified by a trusted authority, like a government or organization.
  2. Credential issuance: Once verified, you receive a digital credential, such as a digital ID card, mobile ID app, or encrypted key, which is stored securely on a device like your smartphone or in a digital wallet.
  3. Authentication: To use your digital identity, you authenticate yourself through secure methods — such as biometrics, PINs, or passwords — to confirm that you are the rightful owner of the credentials.
  4. Verification: When accessing a service or system, your digital identity is verified in real-time by cross-referencing the credentials with the issuing authority, ensuring authenticity and validity.

Examples of government digital identity documents include:

  • National eIDs
  • Mobile Driver Licenses (mDLs)
  • Digital Travel Credentials (DTCs)

Building a Robust Digital Identity System

The ISG provides all the essential technological building blocks to operationalize secure digital identities. These core components include:

  • Digital onboarding – ensures a secure and seamless registration process for users by verifying their identity remotely or in person.
  • Credential issuance – once an identity is verified, a secure digital or physical credential is issued.
  • Lifecycle management – efficiently oversee updates, revocations, and renewals while maintaining rigorous governance and audit protocols.
  • Roots of trust – security elements that establish trust across digital services, including cryptographic services, certification authorities, and hardware security modules.
  • Authentication – dynamically assess and adjust to the risk level of each access request
  • Digital signing – enhances trust in electronic transactions by ensuring the authenticity of the signer and the integrity of the signed document, enabling legally binding digital transactions and streamlining paperless processes. 

A complete identity orchestration system should provide for interfaces that allow citizens to access government services securely and conveniently across different platforms, ensuring a consistent experience across devices. Digital service channels are designed to support seamless user interaction across desktop portals, mobile applications, or integration points with third-party services. 

Digital Identity Solutions from the ISG

A robust digital identity system is essential for secure, efficient, and user-friendly government services. Entrust’s Citizen Identity Orchestration solution provides end-to-end identity management, from onboarding and credential issuance to authentication and lifecycle management.

The composable, microservices-based solution allows for easy customization and scalability, supporting the transformation of public services into a streamlined, secure, and citizen-centric digital ecosystem. It also allows for the integration of future services and technologies, ensuring the platform remains adaptable and resilient in an ever-changing digital landscape.

Talk with your local ISG Member Dealer about your specific identity management needs. Our nationwide network can assist you with  any identification, tracking and access solutions that your organization might need.

Original article by Jyotsna Pantula for Entrust.

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