A Federation provides a standard, pre-negotiated set of contracts that allow organizations to recognize identities issued by one another.  A federation agreement might specify user roles, governance, security and verification policies, or specific technical methods. The federation is organized around a Contract Hub, which is responsible for the agreements. Organizations with similar goals or structure create a standard agreement rather than negotiating individually.

When to Use: A large number of organizations can agree upon roles and governance, and can create a standard contract.

Advantages: Organizations can recognize identities that one another issue without having to negotiate individual agreements with every party.

Disadvantages: Not customized for individual member organizations. Because of the need to create an agreement that a large number of parties can agree to, the federation might be limited to lowest common denominator roles.

Ability to Scale: Very high.