IOTA Boosts ID Framework with Post-Quantum Crypto

Published Date : 10/17/2025 

The IOTA Foundation has released a new beta version of its decentralized identity framework, integrating post-quantum cryptography to protect digital credentials. This update includes hybrid signatures and the ability to publish verifiable credentials on-chain. 

The IOTA Foundation has released a new beta version of its decentralized identity framework, introducing post-quantum cryptography to protect digital credentials. The release implements the ML-DSA, an algorithm recommended by the U.S. National Institute of Standards and Technology (NIST).

For now, the post-quantum signatures are being released as an experimental feature for developers. The decentralized blockchain infrastructure organization believes, however, that this foundation will help address the advent of quantum computing, which could render the widely used encryption methods of today obsolete.

Aside from post-quantum signatures, the IOTA Identity 1.7 Beta also introduces hybrid signatures for Verifiable Credentials (VCs), which combine traditional cryptographic algorithms with post-quantum algorithms, such as ML-DSA. The signatures were developed with the non-profit research center LINKS Foundation.

“Organizations using hybrid signatures can begin adopting post-quantum security gradually, without replacing their existing systems,” the Germany-based non-profit explains in a release.

The Alpha version of IOTA Identity was launched in March this year with the purpose of streamlining identity verification and management. The scheme is based on Self-Sovereign Identity (SSI) and W3C Decentralized Identity Standards, and uses decentralized identifiers (DIDs) to enable individuals, organizations, and devices to create, own, and control their digital identities.

Another news brought by IOTA Identity 1.7 Beta is that it allows organizations to publish Verifiable Credentials on-chain to a public IOTA address. This ensures VCs are discoverable and verifiable through a DID Document and turns them into publicly accessible proofs.

“This is especially useful for organizational or product-related credentials such as certifications, technical specifications, or proofs of origin – cases where transparency and broad accessibility matter,” says IOTA.

The IOTA Foundation recently announced a partnership with the Global Legal Entity Identifier Foundation (GLEIF). According to the deal, GLEIF will integrate its system of unique and verifiable IDs for companies with IOTA’s distributed ledger technology. The system will be part of the IOTA’s Trade Worldwide Information Network (TWIN), a decentralized trade infrastructure that facilitates real-time and verifiable data sharing beyond borders. 

Frequently Asked Questions (FAQS): 

Q: What is the IOTA Foundation?

A: The IOTA Foundation is a non-profit organization based in Germany that develops and supports the IOTA distributed ledger technology. It aims to enable secure and seamless data and value transfer in the Internet of Things (IoT).

Q: What is post-quantum cryptography?

A: Post-quantum cryptography refers to cryptographic algorithms that are secure against attacks by quantum computers. Traditional cryptographic methods may become vulnerable as quantum computing advances, making post-quantum cryptography crucial for future security.

Q: What are hybrid signatures in IOTA Identity?

A: Hybrid signatures in IOTA Identity combine traditional cryptographic algorithms with post-quantum algorithms, like ML-DSA. This allows organizations to gradually adopt post-quantum security without replacing their existing systems.

Q: What are Verifiable Credentials (VCs)?

A: Verifiable Credentials (VCs) are digital credentials that can be verified and trusted. They are used to prove identity, qualifications, or other attributes and are based on W3C standards. IOTA Identity 1.7 Beta allows these credentials to be published on-chain for public accessibility and verification.

Q: What is the Trade Worldwide Information Network (TWIN)?

A: The Trade Worldwide Information Network (TWIN) is a decentralized trade infrastructure developed by the IOTA Foundation. It facilitates real-time and verifiable data sharing across borders, enhancing transparency and trust in global trade transactions. 

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