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Definition
An Identity Provider (IdP) is a trusted service that manages and authenticates user identities. It verifies login credentials and provides authentication tokens to external applications or services through protocols like SAML, OAuth, or OpenID Connect. IdPs are a key part of single sign-on (SSO) systems and federated identity management.

Why it matters
By centralizing identity verification, an IdP simplifies access for users and strengthens security across applications. It reduces the need for multiple passwords, supports secure cross-platform logins, and ensures that access is granted only to verified individuals or devices.

Example use case
An enterprise uses an Identity Provider like Okta or Azure AD to manage employee access. Once authenticated through the IdP, employees can securely access email, project management tools, and internal systems without logging in to each one separately.