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Identity systems handle credential translation by using standardized schemas and protocols like W3C’s VC Data Model. These frameworks define common attributes (e.g., name, date of birth) across jurisdictions, enabling interoperability. Translation services map local credentials to universal formats, preserving semantic meaning. Zero-knowledge proofs (ZKPs) allow verification without exposing raw data, while decentralized identifiers (DIDs) ensure cross-border trust. AI-driven tools may automate schema alignment for real-time translation.