What is SD-JWT VC (Selective Disclosure JWT Verifiable Credentials)?

SD-JWT VC is a credential format that packages claims as a signed JSON Web Token accompanied by separate salted disclosures, so a holder can reveal individual attributes and withhold the rest while the issuer's single signature still validates. This selective disclosure lets someone prove they are over an age threshold without handing over a full date of birth, and the format supports binding the credential to a key the holder controls.