We have developed this section to provide you with detailed information about the changes planned in the eIDAS Regulation, how these will affect electronic identification, and how we interact with public administrations and private entities through electronic means. Additionally, we will analyze the potential impact of these changes on our society and economy and explain how we can help the public and private sectors to quickly adapt and benefit from this update.
In a nutshell, what is eIDAS and eIDAS 2?
Regulation (EU) 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/ 93/EC, commonly known as the eIDAS Regulation, is a standard mandatory for all member states of the European Union that regulates electronic identification and trust services such as the issuance of digital certificates and electronic seals, electronic signature and time stamping (among others) and its cross-border application in Europe.
In September 2020, the European Commission proposed updating the eIDAS Regulation, which we now commonly refer to as "eIDAS 2", to drive further digital transformation in the EU and better adapt to constantly changing technological and social changes, while, at the same time, focusing on the privacy of citizens' data.
What are the main changes planned by eIDAS 2?
While trust service providers already offer businesses simple, agile, and secure identity verification and electronic signature solutions, the new eIDAS 2 framework expands current regulation to improve cross-border digital services by creating a new digital identity trust model — called European Digital Identity, EUid or e-ID — based on the use of digital identity wallets or wallets that will allow not only the online and offline identification of the individual but also the use and control of multiple attributes linked to their identity and the creation of qualified electronic signatures, putting the user at the centre of the transaction and respecting the privacy of their data at all times.
In the proposed amendment, known as eIDAS 2, the European Union Digital Identity Wallet (EUDI) is defined as: “a product and service that allows the user to store identity data, credentials and attributes linked to their identity, in order to provide them to informed parties at their request and to use them for authentication purposes, online and offline, for a service by the provisions of Article 6 bis, as well as to create signatures and qualified electronic seals".
Additionally, the draft includes the creation of new trust services such as the issuance of attribute declarations (commonly known as “verifiable credentials”), the electronic filing of electronic documents, the management of remote devices for creating electronic signatures and electronic seals, and the recording of electronic data in an electronic ledger.
When will the eIDAS 2 changes come into effect?
This proposal has yet to be adopted but is expected to come into force this February 2024.
Although an official date has not yet been set, the European Commission has published a preliminary roadmap with a timeline for its review, adoption, and implementation, with the primary legislative process expected to be completed in the first quarter of 2024, and then the Member States start implementing eIDAS 2.
It is important to note that the use of the wallet will be optional for citizens; However, each member state must provide its citizens with at least one identity wallet and issue (at no cost to the citizen and through the appropriate public bodies) some primary data such as your address, age, sex, marital status, family composition, nationality, qualifications, academic titles and licenses, qualifications, professional titles and licenses, public permits and licenses, powers of representation and social and legal financial data of individuals.
In addition, the main economic agents represented by the sectors of transport, energy, banking and financial services, social security, health, drinking water, postal services, digital infrastructure, education or telecommunications, as well as the so-called "very large online platforms" must accept this new digital identity model when they relate to their users through reinforced electronic authentication mechanisms.
The goal is to provide more than 80% of the European population by 2030 with a digital wallet to prove their identity and authenticate themselves when accessing online services.
These changes will create a world of unlimited opportunities and global growth prospects for all sectors of the economy.
Although today, any person can be identified through a KYC (Know Your Customer) process or by issuing a qualified digital certificate to carry out transactions remotely with a high degree of security and guarantees thanks to AML regulations and eIDAS, moving towards a model where digital identification revolves around a wallet will simplify public and private procurement processes, and improve interoperability between national identification systems. The implementation of eIDAS 2 will benefit several business sectors, particularly transportation, energy, banking, healthcare, telecommunications, and online services.
What benefits does the new eIDAS 2 framework provide?
Most people are still used to carrying their physical wallet full of cards everywhere they go. However, not all cards we carry are widely accepted everywhere and by anyone.
Although our official identifications (ID, Driver's License, etc.) and private ones are examples of commonly trusted and accepted physical credentials, in the physical world, we have not been able to transpose their usability to the digital world; in addition, they frequently present problems linked to counterfeiting and cross-border admissibility. On the other hand, there are other accreditations, such as proof that we work for a certain company or that we have certain skills or academic qualifications to prove this information, it would be necessary to provide several documents, which are usually easy to falsify and complicated to present. Finally, physical credentials often have no equivalent in the digital world.
What role does Validated ID play in the European and international markets?
As a Qualified Trust Service Provider by the European Union and regulated by the eIDAS Regulation (EU), our product portfolio was initially related to electronic signatures, but since 2016, we have been developing pioneering digital identity and credential verification solutions with the aim of helping companies from all sectors — public and private — benefit from this new decentralized and digitalized world that we just talked about.
VIDidentity: EU Large Scale Pilot Projects (LSP)
The benefits of VIDwallet and VIDidentity are currently being evaluated in several real-world scenarios — opening bank accounts, applying to universities, or applying for a SIM card — through the EU's Large Scale Pilots (LSP) initiative, where Validated ID is currently leading several pilot projects:
Gavius is an EU initiative funded by ERDF to provide European cities with resources to address current urban challenges.
SportChain is an EU-funded project and part of the TruBlo program to create a decentralized ecosystem for the sports industry.
Start4big is the first European multi-sector open innovation initiative promoted by Aigües de Barcelona, CaixaBank, Naturgy, SEAT, and Telefónica.
The eIDAS Bridge project is an initiative of the European Commission (EC) - within the ISA2 - program where Validated ID participated as an expert in PKI and SSI.
TRUSSIHEALTH addresses the exchange and storage of sensitive health data and proposes decentralized exchange systems based on SSI.
Provides a customized environment that demonstrates a complete SSI system, allowing the issuance of verifiable credentials, the use of VIDwallet, and access to a verification portal.
The EU Digital Wallet Consortium (EWC) will transform how we approach digital identity and travel, such as providing information to passengers, purchasing goods and services, and trusted B2B interactions.
TRACE4EU designs and tests holistic solutions to ensure product and data traceability and make processes in decentralized ecosystems evident to third parties, including long-term preservation.
CEMTRO Clinic has, for example, achieved unassisted access for its patients to physical therapy and sports traumatology sessions through VIDsigner, VIDwallet and VIDidentity. On the other hand, this innovative project has been carried out by Common MS Solutions for Healthcare.
EU4Innovation Kosovo is a project that wants to establish an electronic identification system in Kosovo and align with European regulations.
Camins wants to facilitate the exchange of information between universities and simultaneously empower students as owners of their data through a "wallet" linked to their identity.
Validated ID presented a case where a student obtained discounts on municipal public services using his university student card.
Successful projects that are ready to be commercialised across multiple sectors:
This pioneering project (already marketable) was created to help physiotherapy and trauma patients access their sessions automatically and unassisted without having to go through reception. In this video, we provide all the details of the identity verification process using the VIDsigner signature and the VIDwallet identity wallet.
- Automatic access to VIDsigner Centralized with VIDwallet: With VIDwallet, our clients can access the VIDsigner Centralized portal without passwords and sign documents by simply scanning a QR code from the VIDsigner Centralized home page.
As we have seen in this blog, offering an advanced SSI-based platform that quickly verifies and manages digital credentials while embracing privacy is a challenging task. It requires a lot of work, years of preparation, and a young, talented team with experience in this new and cutting-edge sector.