What is Federated Identity and How Does It Work

The world is full of countless websites, apps and services that we use every day. Each one often requires us to create a username and password, leading to a dizzying array of login credentials to remember. 

This is where Identity Federation comes in, offering a solution to simplify our online lives while maintaining security. In this blog, we'll explore what federated identity is, how it works, and why it's becoming increasingly important in our interconnected digital landscape.

What is Identity Federation?

Federated identity, also known as identity federation, lets people log in to more than one service or app using the same information. Individuals don't need to create and remember various usernames and passwords for every service. They can instead show who they are on all of their devices by using a trusted identity service.

Imagine that you have a single key that can open a lot of doors. Federated identity does a lot of the same things for all of your online accounts. Because it connects different services, you can use the same login information to get into many websites and apps.

How Does a Federated Identity Work?

To understand how federated identity works, we need to familiarise ourselves with a few key components:

1. Identity Provider (IdP): It is a trusted entity that creates, maintains, and manages user identities. It's responsible for authenticating users and providing information about their identity to other services.
2. Service Provider (SP): It is an application or website that relies on the identity provider to authenticate users. Instead of managing user credentials itself, it trusts the IdP to verify a user's identity.
3. User: The user is the person trying to access various services using their federated identity.

The Basic Flow of Federated Identity:

1. The user attempts to access a service provider's application.
2. The service provider recognises that the user isn't logged in and redirects them to the identity provider.
3. The identity provider asks the user to log in with their credentials.
4. Once the user successfully logs in, the identity provider creates a security token containing information about the user's identity.
5. The identity provider sends this token back to the service provider.
6. The service provider verifies the token and grants the user access to its resources.

This process happens quickly and seamlessly, often without the user realising all the steps involved.

Identity Federation Protocols

A number of standards have been made to make federated identity work flawlessly. Different systems can safely talk to each other using these protocols, like languages. Some of the most common identity federation protocols include:

1. SAML Federation (Security Assertion Markup Language): SAML is a popular system for parties to share information about who they are and what they can do. In corporate environments, it's very useful and is often used for single sign-on options.
2. OAuth (Open Authorisation): OAuth is a standard for giving other people access. It lets people give websites or apps access to information about them on other websites without having to provide them their passwords.
3. OpenID Connect: Built off of OAuth 2.0, OpenID Connect adds an identity layer, making it easier for developers to verify user identity across websites and apps.

These protocols ensure that information is exchanged securely and efficiently between identity providers and service providers.

Benefits of Federated Identity

Federated identity has many benefits for both people and businesses, such as:

1. Improved User Experience: Federated identity makes the user experience better because they only have to remember one set of login information to access multiple services. "Password fatigue" decreases and it's easier for people to use different online sites without getting frustrated.
2. Enhanced Security: Federated identity can actually make security better by putting all identification in one place with a trusted identity provider. People are less likely to use weak passwords on various sites and companies can make security better at the IdP level.
3. Simplified Management for Organisations: Federated identity can make handling user accounts a lot easier for businesses and IT teams. A single, centralised identity management system can be used instead of keeping different user records for each app.
4. Increased Collaboration: Federated identity makes it easier for businesses to work together by letting everyone securely access shared resources without having to make a new account for each client or partner.

Challenges and Considerations

Identity federation has a lot of benefits, but it also has some drawbacks:

1. Single Point of Failure: If the identity provider has difficulties or shuts down, it could affect access to many services that use it for identification.
2. Privacy Concerns: Some users might not like the idea of having one company handle their name across multiple sites. It is very important for businesses to be open about how they handle and protect user information.
3. Complexity in Implementation: It can be hard to set up a shared identity system, especially for businesses that have older systems or special security needs.
4. Trust Between Parties: The identity provider and service providers must trust each other for federated identity to work. Building and keeping this trust can be hard, especially when a lot of people are involved.

Real-World Examples of Federated Identity

To better understand how federated identity works in practice, let's look at some common examples:

1. Social Media Login: Federated identity is what you use when you use your Facebook or Google account to log in to other websites. You don't have to make new accounts to use these social media sites because they act as identity providers.
2. Enterprise Single Sign-On: Many large organisations use federated identity systems to allow their employees to access multiple internal and external applications with a single set of credentials. This is often implemented using Active Directory Federation Services (ADFS) or similar technologies.
3. Educational Institutions: Universities often use federated identity to give students and faculty access to various online resources, library services, and partner institutions using their university credentials.

The Future of Federated Identity

Because our digital lives are getting more complicated, we need easier-to-use, safer ways to log in. It's possible that federated identity will become even more important in the future, with advancements in areas such as:

1. Biometric Authentication: Adding biometric data (like fingerprints or face recognition) to federated identity systems might make them safer and easier to use.
2. Blockchain Technology: Some experts think that blockchain could change federated identity by making it possible to manage digital identities in a safe, decentralised way.
3. Internet of Things (IoT): As more devices become connected, federated identity could help manage access and security across a wide range of smart devices and services.

Conclusion

Federated Identity makes access to resources easier and safer by letting us use the same set of passwords for more than one service. Identity federation has clear benefits, even though it does come with some drawbacks, much like other security frameworks. 

It is likely that federated identity will become more important in handling our online identities and keeping them safe as technology continues to improve. At InstaSafe, we believe in making security simple yet powerful. Our Multi-Factor Authentication (MFA) solution adds an extra layer of protection to your accounts, going beyond just passwords. 

With InstaSafe MFA, you can use your smartphone, biometrics, or security tokens to verify your identity. It's easy to set up, user-friendly, and significantly reduces the risk of unauthorised access. Protect your digital life with InstaSafe MFA - because your security matters to us.

Frequently Asked Questions (FAQs)

1. What is the difference between SSO and federated identity?

SSO lets users access multiple systems with one login, typically within a single organisation. Federated identity allows users to access systems across different organisations using a single set of credentials. Federated identity is broader and enables cross-organisation authentication.

2. What are the three most important components of federated identity?

The three most important components of federated identity:

• Identity Provider (IdP): Manages user identities and credentials.
• Service Provider (SP): Offers services and relies on the IdP for authentication.
• Trust Relationship: An agreement between IdP and SP to accept each other's authentication assertions.

3. What are the types of federated identity?
   • SAML (Security Assertion Markup Language): XML-based protocol for exchanging authentication data.
   • OAuth: Allows third-party apps to access resources without sharing passwords.
   • OpenID Connect: OpenID Connect adds an identity layer on top of OAuth.
   • Social Login: Uses existing social media accounts for authentication on other sites.