Verifiable credentials are tamper-proof credentials that can be verified cryptographically on the blockchain while representing all the same information as a physical credential. VCs are doing for physical credentials what crypto has done for cash. There are three parties involved in verifiable credentials:
Issuers. These create and transfer VCs to holders. VCs can be issued to represent milestones, accomplishments, and significant activities. Many of the projects we will get into function as issuers.
Holders. Holders possess VCs in their wallets and present them to others. They can be an individual like you and me or an entity.
Verifiers/relying parties. These receive the presented VCs from holders and rely on the credentials to grant access or process transactions.