A digital identity wallet is a secure app or system that stores verified identity attributes, such as age, residency, or a credential issued by a trusted authority. Instead of sending a full ID document, the wallet can selectively reveal only the minimum proof needed for a service, such as "over 18" or "member of this organization." This matters in cyber security because it supports data minimization: fewer personal details are exposed, stored, or copied by websites and platforms.
In real deployments, wallets are used for age assurance, access control, and reusable login or credential checks. Defenders value them because they can reduce breach impact and limit profiling, especially when backed by strong cryptography, device protection, and issuer verification. Attackers, however, may target the wallet app, try phishing to capture approval prompts, exploit weak recovery flows, or abuse compromised devices to extract credentials. A well-designed wallet helps prove identity claims without turning the user into a full, trackable identity record.