§01Lesson · Foundation

What is Federation?

Why federation exists and what problem it solves

04 min readLast reviewed 2026-06-05Foundation

The Problem

Imagine a world where every application that needs to verify a user's identity must establish a direct, individual relationship with every identity provider. With 5 apps and 4 identity providers, that's 20 separate connections to configure, secure, and maintain. As the ecosystem grows, the number of bilateral relationships explodes — it's an N × N problem.

OpenID Federation solves this by introducing a trust hierarchy. Instead of every entity connecting to every other, entities join a federation where trust is mediated by a Trust Anchor — a trusted third party at the top of the hierarchy (§1.2). Intermediates can further delegate authority, creating a clean, scalable tree.

See the Difference

Without federation: chaotic connectionsApp 1App 2App 3App 4App 5IdP 1IdP 2IdP 3IdP 4Without Federation — Every entity connects to every other (N x N)
Fig. 1aWithout federation — every application authenticates directly against every identity provider. 5 × 4 = 20 bilateral relationships.

Key Takeaway

Without federation, trust relationships grow as N × M (every app times every identity provider). With federation, entities only need to trust the hierarchy — turning it into a linear problem (§4).

Key Terms Introduced

Multilateral Federation
Abstract
Federation where bilateral agreements are impractical; trust is mediated by a trusted third party.
Entity
Section 1.2
Something with separate and distinct existence that can be identified in a context.
Entity Identifier
Section 1.2
A globally unique URL using the https scheme with a host component. MAY contain port and path. MUST NOT contain query parameter or fragment components.
Trust Anchor
Section 1.2
The top-level authority in a federation. Every Trust Chain ends at a Trust Anchor. Represents a trusted third party whose keys are distributed out-of-band.
Trust
Section 1.2
Cryptographic assurance verified through signed statements up a chain of authority.
Scalability
Abstract
Federation turns the N-squared bilateral problem into a linear, hierarchical one.