Good news! After a helpful discussion with the W3C Credentials Community Group, we’ve aligned on a verification method that works cleanly with did:nostr and the Verifiable Credentials stack:
w3c-ccg/community#254 (comment)
I’ve already patched the did:nostr draft to reflect this.
What this unlocks
1. Production-ready reference implementations
2. Compatibility with the wider W3C Credentials ecosystem
3. A straightforward path to issuing industry-standard credentials (badges, awards, driver’s licences, etc.) over Nostr
4. The ability to sign and exchange JSON payloads between Nostr services (relays optional)
It’s a nice step up in standards alignment and Nostr functionality.
Many thanks to everyone who weighed in, feedback very welcome!

