Microsoft Security, Compliance, and Identity Fundamentals (SC-900)Describe the capabilities of Microsoft EntraHard

An organization wants to implement a solution where users can verify their identity using a decentralized, verifiable credential issued by a trusted third party, rather than relying solely on a centralized identity provider. This credential would then be used to access certain applications. Which Microsoft Entra capability supports this approach?

  1. AMicrosoft Entra Verified ID
  2. BMicrosoft Entra Conditional Access
  3. CMicrosoft Entra Identity Protection
  4. DMicrosoft Entra Privileged Identity Management
Show answer & explanation

Correct answer: A. Microsoft Entra Verified ID

Microsoft Entra Verified ID enables organizations to issue, hold, and verify decentralized digital identities (verifiable credentials). This allows users to present a verifiable credential from a trusted issuer to access resources, moving beyond traditional centralized identity models.

Why the other options are wrong

  • B. Conditional Access enforces policies based on centralized identity signals, not decentralized credentials.
  • C. Identity Protection detects risks in centralized identities, not decentralized credentials.
  • D. PIM manages privileged access within a centralized directory, not verifiable credentials.

Microsoft Entra Verified ID

A decentralized identity solution that enables organizations to issue, hold, and verify verifiable credentials. It allows individuals to own and control their digital identities.

  • Based on open standards for decentralized identifiers (DIDs) and verifiable credentials (VCs).
  • Increases trust, privacy, and security by empowering users with self-sovereign identity.
  • Used for various scenarios like secure onboarding, remote identity verification, and access to resources.
  • Reduces reliance on centralized identity providers and data stores.

Memory trick: Entra's got IDs for all, from central hubs to decentralized calls.

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