Decentralized Identifiers and NFT-Driven Blockchain Solution for Personal Data Trading

Abstract

With the onset of the AI era, the demand for personal data is on the rise. Numerous companies are gathering user data to enhance their services. As the utilization of this personal data surges, its intrinsic value also escalates. Despite individuals being the source of this valuable personal data, it's the centralized service providers that reap the profits. This research introduces a blockchain-based trading framework for personal data utilizing Decentralized Identifiers (DID) Non-Fungible Token (NFT). The proposed system empowers users to amass personal data within their designated storage space provided by the system. DID and NFT serve the roles of verifying user identity and establishing data ownership, respectively, all without relying on centralized systems. To guarantee data integrity and transaction history, Ethereum is employed, which constitutes a decentralized blockchain nodes. The operational demonstration of our system is showcased through a monitoring setup that offers real-time insights into user data and trading activities. The research validates that our proposed system enables seamless personal data transactions between two parties - a seller and a buyer - eliminating the need for centralized service providers.