Those are some great questions, @manish_tripathi. I use Canvas Credentials for professional development and help colleagues use it with students, so I hope these answers to your questions are helpful.
I like using badges because they provide verification of skill attainment that is independent of the formal degrees or certificates my college offers. For students, we use it for some of our orientation programs where students earn badges for making appointments with a counselor, visiting the library, etc. - good things to practice that will help them be successful at the college. For professional development, I work with a couple of pathways where instructors can earn badges through completing training courses (culturally responsive teaching, authentic assessment, etc.).
One minor concern I have about badges is whether the receiving institution can deal with electronic badges. I have an example from work: Some of the colleges I work with require that their faculty complete specific training before they are eligible to be assigned an online course. They complete the courses that are offered, but their colleges' department chairs / area deans / HR departments still insist on a printed certificate of completion. That is possible with Canvas Badges so is minor, but it adds extra steps for faculty who need the certification.
If you haven't seen it yet, please read an excellent conversation that some of our colleagues have had about badges elsewhere in this part of the Community:
Canvas Badges / Credentials — Can the term 'Badges' be renamed?
I hope our colleagues in the Community share their experiences too!