Lab: Deploying Decentralized Identity Wallets for Enterprise SSO

Lab: Deploying Decentralized Identity Wallets for Enterprise SSO

This lab configures a passwordless enterprise environment by connecting Decentralized Identity (DID) wallets to a Single Sign-On (SSO) gateway. Organizations use this setup to stop credential theft by completely removing central password databases.

Architecture and Core Mechanics

In a traditional network, a central server holds all user passwords. If hackers breach that server, they steal everything. Decentralized Identity changes this by letting the user hold their own digital ID on their device. To build this, we use three main components: the Issuer, the Holder, and the Verifier.

  1. The Issuer (HR System): The enterprise acts as the Issuer. It creates a Verifiable Credential (VC), which is a tamper-proof digital ID card. The Issuer signs this card with a private cryptographic key and sends it to the employee.
  2. The Holder (Employee Wallet): The employee is the Holder. They store the VC in a secure digital wallet app on their smartphone.
  3. The Verifier (SSO Gateway): The SSO portal acts as the Verifier. When the employee tries to log in, the Verifier asks for proof of employment.

Under the hood, this process relies on the OpenID Connect for Verifiable Presentations (OIDC4VP) protocol. When the user scans a QR code on the login page, their wallet sends a cryptographic proof to the SSO gateway. The gateway checks the Issuer’s public key on a public ledger to confirm the digital ID is authentic. You can explore the deeper theory behind this trust model in our guide on Advanced IAM: Decentralized Identity (DID) and Cross-Cloud Federation.

Lab Execution Steps

Step 1: Configure the Enterprise Issuer

The enterprise must first establish a trustworthy identity on the network.

  • Generate a public and private key pair for the company.
  • Register the company’s public key on a Verifiable Data Registry. This is a public, unchangeable database, often built on blockchain technology. This action creates the company’s unique DID (Decentralized Identifier).
  • Connect the Issuer software to your active employee directory so it knows who works for the company.

Step 2: Provision the Employee Wallet

The employee must receive and store their Verifiable Credential.

  • The employee downloads an enterprise-approved digital wallet to their mobile device.
  • The employee opens the wallet, which generates their own personal DID.
  • The enterprise Issuer sends the VC to the employee’s wallet. The wallet securely stores this digital ID card in its encrypted vault.

Step 3: Configure the SSO Verifier

The SSO system must know how to ask for and check the digital ID.

  • Update your SSO gateway to accept OIDC4VP login requests.
  • Define a Presentation Definition. This is a specific rule that tells the SSO gateway exactly what information to ask the wallet for (for example, “I only need proof this person is an active employee, not their home address”).
  • Set the Verifier to automatically check the Verifiable Data Registry to confirm the company’s signature on the digital ID is valid.

Step 4: Execute the Login Flow

Test the complete authentication path to ensure data flows correctly.

  • The user navigates to the enterprise login page.
  • The SSO portal generates and displays a login QR code.
  • The user scans the QR code with their digital wallet.
  • The wallet creates a Verifiable Presentation (VP). This is a temporary cryptographic package that proves the user’s identity to the SSO portal.
  • The SSO portal validates the VP and grants the user access to the network without ever asking for a password.

Authoritative References

https://www.w3.org/TR/did-core/
https://www.w3.org/TR/vc-data-model/
https://openid.net/specs/openid-4-verifiable-presentations-1_0.html


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