Cars are no longer just machines that take us from point A to point B. They have become smart, connected devices on wheels, constantly communicating with the world around us. 

Just like how each person has a unique identity, modern cars now have their own digital identities, which allows them to interact with other vehicles, infrastructure, and various services. It is estimated that the number of connected vehicles will surpass 367 million worldwide by 2027.  

So, as the number of connected cars is increasing along with their dependency on technology, cybersecurity has become a priority. In 2024, the digital identity and security market size is estimated to grow by $64.4 billion at a CAGR of 21.23% between 2023 and 2028. 

Here, we will discuss how secure automotive digital identity is, its need, and how decentralized identity and verifiable credentials (VCs) can provide a powerful solution to automotive digital identity. 

What is Automotive Digital Identity and Its Role in Connected Vehicles 

In the automobile industry, automotive digital identity means the unique digital identifiers assigned to vehicles. This unique identity contains various data like make, model, features, and ownership. They serve as a digital fingerprint for a car, essential for secure communication and transactions in connected automotive systems. This includes functionalities such as digital key access, vehicle-to-vehicle (V2V) communication, vehicle-to-everything (V2X) and personalized user settings. 

Connected vehicles are essentially mobile data centers. They interact with multiple devices, servers, apps, and services. This connectivity allows for enhanced functionalities like real-time traffic updates and remote diagnostics but also introduces significant cybersecurity challenges. Digital identity plays a crucial role in ensuring that only authorized entities can access vehicle systems and data. 

The Need for Secure Automotive Digital Identity 

So, it is clear that the integration of digital identities in vehicles offers numerous benefits, such as more security, better user experience, and the potential for innovative business models.  

However, there are also some significant cybersecurity challenges. With vehicles becoming more connected, they are increasingly vulnerable to cyber attacks that can compromise safety and privacy. For example, unauthorized access to a vehicle’s digital identity could allow hackers to take control of the vehicle or steal sensitive data from it. 

What Are Risks with Automotive Digital Identity 

1. Remote Hacking 

Hackers can attempt to gain unauthorized access to a vehicle’s systems remotely and take control of critical functions like braking and steering. 

2. Data Privacy Concerns 

Connected cars collect vast amounts of data, which raises concerns about how this information is stored, used, and protected. Unauthorized access to this data can lead to privacy violations and identity theft. 

3. Software Vulnerabilities 

As vehicles receive over-the-air software updates, they can be vulnerable to software bugs and vulnerabilities that hackers can exploit. 

4. Supply Chain Vulnerabilities 

The automotive supply chain involves numerous suppliers and components, and weaknesses in any part of the chain can introduce vulnerabilities to the vehicle’s software and hardware. 

5. Compliance with Regulations 

The automotive industry is subject to various cybersecurity regulations and standards, such as the UNECE WP.29 regulations and the ISO/SAE 21434 standard. In order to be compliant with these requirements is a significant challenge for manufacturers. 

6. V2X Communication 

Today’s vehicles are manufactured with the capability to communicate with one another and their infrastructure (V2X). To secure these communication channels it is important to prevent unauthorized access and ensure the safety of connected vehicles. 

7. Keyless Car Theft 

The popularity of keyless entry systems has led to a rise in relay attacks, where thieves capture and replicate the signal from key fobs to gain unauthorized access to vehicles. 

Decentralized Identity & Verifiable Credentials: Their Role in Automotive Digital Identity 

To address the growing cybersecurity threats in the automotive industry, decentralized identity and verifiable credentials (VCs) can be solutions. These technologies offer a secure, privacy-preserving, and tamper-proof way to manage digital identities and share verified information. 

Decentralized Identity

Decentralized identity is a new approach to manage digital identities that gives users control over their personal information. Unlike traditional centralized systems, where identity data is stored and managed by a single entity, decentralized identities are user-centric and cryptographically secure. 

In the context of the automotive industry, decentralized identity solutions can be used to create a secure and decentralized network of trusted digital identity issuers and verifiers. This enables manufacturers, dealerships, and service providers to securely exchange information about vehicles and their owners without relying on a central authority. 

Verifiable Credentials (VCs) 

VCs are digital, tamper-proof, and cryptographically verifiable versions of physical credentials (documents), such as driver’s licenses, vehicle registration documents, and manufacturing supply chain documents. They allow users to selectively share specific attributes of their identity with third parties, while maintaining control over their personal data. 

In the automotive sector, verifiable credentials can be used to securely share information about a vehicle’s history, ownership, and maintenance records. This enables faster and more efficient processes, such as vehicle registration, insurance claims, and recalls, while ensuring the integrity and privacy of the data. 

Also Read This: Authenticate and verify credentials for trusted decentralized digital ID and interactions

The Benefits of Decentralized Identity and Verifiable Credentials in Automotive Cybersecurity 

Implementing decentralized identity and verifiable credentials in the automotive industry offers several key benefits: 

1. Self-ownership and control: Users have full control over their identity data, reducing the risk of unauthorized access and data breaches. 

2. Enhanced privacy: Decentralized identity and VCs enable privacy-preserving verification and data minimization, allowing users to share only the necessary information for a given transaction. 

3. Interoperability: Decentralized identity solutions make data portable and compliant with W3C open standards, ensuring seamless integration across different systems and platforms. 

4. Fraud prevention: Verifiable credentials are tamper-proof and instantly verifiable, reducing the risk of fraud and identity theft. 

5. Streamlined processes: Decentralized identity and verifiable credentials can facilitate faster customer onboarding, create new ecosystems of verifiers, and support the adoption of electronic IDentification, Authentication and trust Services (eIDAS) and mobile driving licenses (mDLs). 

Conclusion 

In today’s time, the importance of secure digital identities is increasing in the automotive industry. Decentralized identity and verifiable credentials offer a complete solution to the challenges faced by traditional identity systems. With decentralized identity and VCs, automotive companies can ensure security, easy integration of connected devices, and the secure exchange of information. As more organizations adopt these technologies, the automotive industry can look forward to a future where digital identities are not only secure but also empower users with greater control over their data. 

To learn more about how decentralized identity and verifiable credentials can transform your automotive business, visit EveryCRED, a leading provider of decentralized identity solutions.  

We can help you secure your automotive digital identities. Contact us to learn how our solutions can be the best for the automotive industry.