Metadata Privacy in Decentralized Identity Applications

Abstract

Transparency and immutability of blockchains can expose metadata and raise concerns about its classification as personal data under privacy regulations. This paper investigates privacy risks associated with metadata in blockchain-based identity systems. Additionally, two privacy-preserving mechanism designs, namely Zero-Knowledge Proof (ZKP) and Homomorphic Encryption (HE), to protect metadata are proposed. As a result, this work introduces the first use case of HE privacy-preserving mechanism in the context of Decentralized Identity (DI) and Self-Sovereign Identity (SSI) systems.