What is Federated Identity?
Users often need to log in to many different systems in their daily work or study. Each system may ask for a separate username and password. This creates problems like password fatigue, security risks, and more time spent logging in and resetting forgotten passwords. It also makes it harder for organizations to manage user access across all systems.
One way to solve this issue is by using a trusted system to handle logins for multiple services. This setup allows users to access different systems without entering passwords again and again. The method that makes this possible is called Federated Identity. This article explains what it does, how it works, where it is used, and what problems it can solve.
What is Federated Identity?
Federated identity is a way to use one digital identity across different systems. It allows users to log in to many services using one set of login details. The login is managed by a trusted identity provider. The other systems accept this login without asking for the password again.
Benefits of Federated Identity
Single Sign-On (SSO) Convenience
Single Sign-On means logging in once and getting access to many services. The user enters their password only once with the identity provider. After that, other systems trust the user’s identity without asking for another login. This saves time and avoids repeating the same login steps.
Improved Security and Reduced Password Fatigue
Federated identity keeps user passwords in fewer places. This lowers the risk of password theft or misuse. Users do not need to remember many passwords. This reduces the chance of using weak or reused passwords. Fewer logins also mean fewer chances for attackers to try stealing credentials.
Easier User Management for Organizations
Organizations can manage user access from one central system. When a user joins or leaves, the identity provider updates their access in all connected services. This saves time for IT teams and keeps access under control. It also makes it easier to apply company policies to all users.
How Federated Identity Works
1. User Attempts to Access a Service Provider (SP)
The user opens a website or app that requires a login. This system is called a service provider. Instead of storing user accounts, it relies on another system to verify users. The user does not enter any password here. The service provider just knows that identity will be confirmed somewhere else.
2. Service Provider Redirects to Identity Provider (IdP)
The service provider sends the user to an identity provider. This is a trusted system that handles the login process. The redirection usually happens through a secure link. The identity provider is already been agreed upon by both sides. This helps to centralize identity checks instead of doing them at every service.
3. User Authenticates with the Identity Provider
The user enters login credentials into the identity provider. These are usually a username and a password. The identity provider may also ask for a second form of identity, like a code or fingerprint. If the credentials are correct, the identity provider prepares a confirmation message. The service provider never sees the password.
4. Identity Provider Issues an Authentication Token
After a successful login, the identity provider creates a secure token. This token includes user details such as user ID and session time. It acts like a digital proof of login. The token uses a standard format and is digitally signed to avoid tampering. The token confirms the user’s identity to other systems.
5. Token is Sent Back to the Service Provider
The token is sent to the service provider using the user’s browser. The service provider reads the token to understand who the user is. It does not need to check the password again. The trust is built through the identity provider, and the token serves as a verified message.
6. Service Provider Grants Access to the User
Once the service provider confirms that the token is valid, it gives the user access. The user now enters the system without needing to log in again. The session begins, and the user can use all allowed features. The token also helps define what level of access the user has.
7. Identity Provider Issues an Authentication Token (OpenID Connect)
OpenID Connect is a protocol used to create the authentication token. It works on top of OAuth 2.0 and adds identity information like user ID, email, and session time. OpenID Connect tokens are widely used in web and mobile apps. This protocol ensures that tokens are trusted, secure, and easy to use across services.
Common Use Cases of Federated Identity
Enterprise Systems and Employee Access
Companies use federated identity to let employees access different business tools with one login. The identity provider checks the login, and employees can open email, file storage, or HR systems without logging in again. This setup works well for large companies that use many cloud services.
Education and University Platforms
Schools and universities use federated identity to give students and teachers access to learning systems. A single login gives them access to course material, email, library tools, and other digital platforms. The identity provider is usually managed by the school or a trusted education network.
Third-Party App Integrations
Many websites and apps let users log in using another trusted service. For example, a user may sign in to a new app using their existing account from another platform. The app trusts the identity provider to confirm the user’s identity. This removes the need to create new accounts.
Federated Identity vs. Other Identity Models
Federated Identity vs. Centralized Identity
In a centralized identity model, one system stores all user credentials and manages login for every service. All services must connect to that single system. In a federated identity model, the services are separate but trust a shared identity provider. The identity is reused across different systems.
Federated Identity vs. Single Sign-On
Single Sign-On means logging in once to access many services. Federated identity uses Single Sign-On as one of its features. The main difference is that federated identity works across different organizations or domains. Single Sign-On can work inside one system or organization. Federated identity connects many systems.
Federated Identity vs. Identity Federation
Federated identity and identity federation are closely linked. Federated identity is the result that users see—one login for many services. Identity federation is the agreement or setup between the systems that makes this possible. Identity federation builds trust, and federated identity is how it works for the user.
Challenges and Considerations of Federated Identity
Trust Management Between Providers
Each service provider must trust the identity provider to verify users correctly. If there is no strong trust between them, the system may reject valid users or accept fake ones. This trust is built using digital certificates, security policies, and agreed-upon standards that both systems must follow.
SSH’s PrivX can help support trust management by allowing secure and temporary access based on user roles. It reduces the need to store permanent credentials, which lowers the risk of misuse. SSH also offers Zero Trust access control that makes sure only approved users get access at the right time.
Privacy and Data Sharing Risks
When identity is shared between systems, user data must also be shared. If this data is not protected, it can be read or changed during transfer. Service providers must follow privacy laws and only use the minimum data required. Strong encryption is needed to protect data in motion.
SSH’s Tectia Client and Server can protect these transfers using strong encryption. The Zero Trust Edition includes post-quantum-safe algorithms. This helps secure identity tokens and personal data during communication between systems. It ensures that the information is private and cannot be stolen or changed.
Implementation Complexity
Setting up federated identity involves configuring identity providers, service providers, and secure communication between them. It also needs protocol support like SAML or OpenID Connect. Each part must be set up correctly to avoid login errors or security problems.
SSH provides solutions like SSH Risk Assessment to help organizations understand their access environment before setting up federated identity. This helps reduce errors during setup. SSH also offers consulting and demos to support smooth integration with secure systems.
Make Federated Identity More Secure with SSH Solutions
Federated identity makes it easier to access many systems using one trusted login. But to keep this process secure, organizations need tools that manage access, protect login tokens, and control digital keys. SSH provides solutions that work with federated identity to improve security and reduce manual access handling.
SSH PrivX supports just-in-time access, helping users connect to systems without storing passwords. This matches the goals of federated identity by reducing risks and improving access control. Tectia Client and Server protect token exchanges using post-quantum-safe encryption. Universal SSH Key Manager (UKM) helps manage and remove old keys, making it easier to move toward keyless authentication.
Get a Demo or Trial of any SSH solution to see how it supports secure and efficient federated identity across your systems.
FAQ
1. What is federated identity?
Federated identity allows users to access multiple systems or services using a single set of login credentials managed by a trusted identity provider.
2. How does federated identity work?
When a user tries to access a service, they are sent to an identity provider to log in. If the login is correct, the user is allowed into the service without another login.
3. What are the benefits of federated identity?
It reduces the need for many passwords, saves time, and makes it easier for organizations to manage user access across systems.
4. What is the difference between federated identity and single sign-on (SSO)?
Single sign-on works within one organization. Federated identity connects different organizations or services using one login.
5. Is federated identity secure?
Yes, if set up correctly. It uses secure protocols and trusted systems to confirm identity and control access.
