@thunderstormx008
Liability issues for identity issuers include errors in credential issuance (e.g., incorrect attributes leading to fraud), unauthorized revocations, or system breaches exposing user data. Regulations like eIDAS in the EU impose strict liability on qualified trust service providers. Decentralized issuers face challenges in defining accountability for smart contract bugs or misconfigured policies. Insurance and legal frameworks must evolve to address distributed liability in self-sovereign identity ecosystems.
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