Open Source Wallets Could Change How We Verify People Online – How Will It Work?

Back in 2023, the Linux Foundation published a report that examined how digital wallets had become part of daily life for different things like ID and payments. The report referenced Worldpay data showing digital wallet transactions reached $15.9 trillion in 2021, which had a look at how much these tools apply in everyday.

It looked into how most wallets are restricted to one provider and that makes it hard for users to move their data or switch services. Many wallets only handle one function which sort of forces users to manage multiple different apps for different tasks.

Another part of the analysis was around security risks, with hackers targeting wallets with phishing and other such cyber attacks. When those attacks succeed, the losses affect both individuals and businesses using those systems.

And then there’s privacy, as wallet providers can collect detailed behavioural data and sell it to third parties. Many systems operate without transparency, which leaves users unsure about how their data is handled or protected.

Daniel Goldscheider, founder of the OpenWallet Foundation has said, “Digital wallets will permeate all facets of society, at the government, enterprise and peer to peer level.” He added, “The digital wallet could become the most important tool ever for asserting control and engendering trust in our digital lives.”

The report called for an open source wallet engine that developers could use to build systems that work together and give users greater control over their data.

What Has Harvard Recently Built Since Then?

Fast forward to today (April 2026, to be exact), where researchers at Harvard introduced Keyring, an open source identity wallet designed to give users control over their personal information. Instead of handing over full details each time they sign up for a service, users can prove only what is required.

This could mean confirming someone is over a certain age without revealing a full date of birth, or verifying the existence of an email account without sharing the address. Personal data stays on the user’s phone rather than being stored in company databases.

James Mickens, principal investigator at the Applied Social Media Lab, said, “Identity is actually deeply personal. Your age, your name, your location, your gender – all of these are inextricably tied to you as the user, not to some company or some particular piece of technology.”

The system uses biometric verification such as fingerprints or facial recognition, with that data stored only on the device. Users can also add verified credentials such as a digital driving licence or proof of employment and share them when needed.

Keyring also allows people to verify each other without handing data to a platform. Two people who meet at an event can confirm that interaction, and over time these verified connections form what researchers call a decentralised trust graph.

Brendan A. Miller, principal engineer, said, “Our hypothesis is that this type of trust graph can help address important challenges in social media, such as distinguishing people from AI agents, providing age assurance or determining the origin of certain content.”

Nicole Brennan, senior UX designer, focused on usability, saying, “We were handed a problem nobody had solved. We had no UX patterns, no templates, no precedent. And we built something that a real person can pick up and use in seconds.”

Does It Answer The Problems Raised In 2023?

The ideas behind Keyring reflect the same thinking found in the Linux Foundation report, particularly around user control and systems that work across different platforms. The wallet allows selective sharing of data, which means users decide what information they reveal and when they reveal it.

Harvard’s Advanced Digital Identity project also speaks to public frustration with current systems. According to the Pew Research Center, referenced in the project material, 4 out of 5 Americans said they are concerned about how companies use their data and feel they have little or no control over it.

Keyring responds by giving users a way to manage identity without handing everything to a single service. It also allows identity verification across multiple platforms, which could reduce reliance on large centralised systems.

The system also looks at how identity verification can help deal with automated accounts online. Confirming that an account belongs to a real person could improve trust in social spaces where bots and fake profiles are common.

What Could Go Wrong, Though?

For Keyring to function in everyday services, organisations and governments need to issue and accept verified credentials.

Yajaira Gonzalez, product leader at the Applied Social Media Lab, explained the situation, “Incentives for all of these entities to join into this model are misaligned, because currently they do benefit a lot from owning and controlling your data, because at the end of the day, they monetise it.”

Security risks also continue to exist, as digital wallets attract constant attention from attackers. The 2023 report did say that wallet systems face a range of threats, which means any new design must handle those risks carefully.

Coordination between different wallet systems would also be another challenge. Without shared standards, systems could fail to work together, which would limit how useful they are in everyday life.

Looking at the 2023 report and then at Harvard’s recent Keyring launch felt appropriate because it gives a full scope on how fast this area is (and has been) developing. The ideas have been discussed for years, and now a working model is available, leaving the next stage dependent on who decides to support it.