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Federated identity is a secure way for disparate systems to get access to your identity information. Your information may only exist in one system. But, with federated identity, other systems can also have access this information.

The key to federated identity is trust. The system that holds your information and the system that is requesting your information must trust each other. The system that holds the information must trust the system that is requesting the information, in order to make sure your information is being transmitted to a trusted place. The system requesting the information has to trust the sender to ensure they are getting accurate and trustworthy information.

Basically, an application is trusting another entity, namely an IdP(or Identity Provider), when that entity says who a particular user is. The application does not perform any actions to verify the user's identity itself. It just believes what the IdP says. Before an application will believe an IdP, a trust relationship must be established. The application must be configured with the address of the IdP that it will be trusting. The IdP must be configured with the address of the application. In most cases some type of keys will be exchanged between the two entities to actually establish the relationship. These keys are used by the entities to identify itself with the other entity.

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Q: What is federation in identity management?
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