Delegatable credentials, also called private delegation, allow credential issuers to give other entities the authority to issue Verifiable Credentials.
For example, a government would like to delegate to 10 private licensing testing centers so that each one can issue driver’s licenses to the individuals who qualify. With delegatable credentials, the government simply issues a Verifiable Credential to each testing center that states that one can issue credentials on the government’s behalf.
When one testing center issues licenses, the Verifiable Credentials would be bundled with the credential that the government issued to the testing center earlier.
If the individual needs to present the license to a verifier, the verifier will instantly be able to check the authenticity of the credential and see that it has been issued by a legitimate center on behalf of the government.