Verifiable credentials are basically a data structure that contains three things. Metadata that tells us a bit about what type of credential it is, who created it, and when. Claims data is the content of the credential, it is the information being shared about the holder of the credential. A signature that provides cryptographic proof that the data in the claims came from the specified organization, that it is about the subject, and that the claim data has not been tampered with.
Verifiable credentials are issued by an organization to the subject of the credential, the subject (person, organization, or device) holds the credential. The holder can present the credential as proof to a relying party that the information in the claim is accurate, authentic, and authorized.
Verifiable credential scan be used for any type of document that is generated by one organization and used as proof of that for another. Think of any process where a document is created that vouches for a person or organization. They can be used as identity documents, utility cards, legal documents, auditable documents, titles, warranties, medical records, or anything else that you need to show as proof.
