Decentralized Identity: How to Build a Decentralized Identity with Parami Protocol

The emergence of blockchain as a technology has undoubtedly improved the way mankind does things. Tasks that previously involved an individual following due protocols one after the other, which can be time-wasting can now be accomplished through one medium and in a more effective manner. This is just an example of how impactful Blockchain has been to mankind and the innovation continues to be a stronghold for various financial industries.

Decentralized Identity

A lot of people just align the blockchain technology to just an innovation that enables the ownership of digital currencies. Of course, it did that but the true meaning and effect of blockchain runs deeper.

The creation of a decentralized identity is just one of the very big effects of Blockchain we keep hammering on. Blockchain enables a decentralized identity for individuals; a process whereby identity power is collected from central authorities and given back to the individual. There have been reported cases of data theft, modification, or mishandling of information by a particular authority, all because they wield the power to store the information provided by their customers. Data theft and unwanted modification especially can be prevented with blockchain because it runs with a means that prevents tampering.

There is also the case whereby an individual travels to a new location and decides to register for new services; this will involve registering with each service provider one after the other and providing your identity all over again, which can be very exhausting. Blockchain stores your information in a permissible network and can distribute it to every service provider you grant permission to.

While it is still in its early phases, the decentralized approach to identification promises to provide individuals with greater independence, better security and encourages digital transformation across various industries.

There appears to be a platform plying its trade in the advertising industry that provides this decentralized identity to users.

Parami Protocol

Parami Protocol is a substrate-based protocol that is revolutionizing the advertising industry. The Parami protocol is made up of the Substrate blockchain development framework and Polkadot’s cross-chain technology. It aims to build the next-generation digital advertising ecosystem using the InterPlanetary File System (IPFS) distributed storage technology.

The Parami Protocol is proposing AD 3.0 theory for Web 3.0, with a protocol layout that builds a user-centric tokenized advertising market. The AD3.0 is a blockchain-powered user-centric and privacy-preserving network in which users are smart-rewarded for their attention and data while their self-sovereign identity is secured on a trust-free basis. The AD network is democratic; with all token holders governing it. Future network traffic is directly generated from the influence of each creator and token holder, instead of being obtained through a specific website or application. On Parami, users have complete control over their own identity and data. They will also receive smart-rewards depending on their attention and relevance score.

The Parami Protocol consists of three layers:-

1. The DID Layer

2. The AD Privacy Layer

3. The Application Layer

Decentralized Identity (DID) Layer

The Parami Decentralized Identity (PDID) layer is the foundation layer of the ecosystem; it is where user data is linked with a person’s identity.

The DID layer, according to Parami, is a virtual registry where user identification is handled in a decentralized manner. Your social profile is connected to the blockchain network through the DID layer. This aids in the rewarding process as the identity of a user can be easily gotten and rewarded. Users can utilize Parami’s DID to validate the correctness of their identity without having to go through the popular and stressful Know Your Customer (KYC) process. Parami enables all these by building social graphs and running anti-sybil analysis.

Parami’s DID verification process is also Web 2.0 compatible for users with Web 2.0 social media identities.

AD Privacy Layer

This is the layer where users have control over their data, how advertisements are delivered, etc. The AD privacy layer is dependent on the Personal Crypto Advertising Preference (PCAP) document, which covers all of the user’s requirements. The PCAP document is not just for payment but also for storing user preference data. The preserved data can be used but cannot be seen.

The Parami protocol is designed in such a way that advertisers follow the guidelines outlined in the PCAP document and Ad networks must accomplish whatever task available without visible access to the data.

• Blind Signature

Advertisers employ blind signature to prove that they have validated user interaction with AD, preventing future fraudulent conduct

• Homomorphic Encryption

User’s PCAP data is homomorphic encrypted, allowing advertisers to update users’ PCAP in an encrypted manner.

• Zero-Knowledge Proof based

The Zero-Knowledge Proof (ZKP) algorithm is used to ensure that users receive the reward they deserve. To determine the reward, the ZKP generates the corresponding proof and verifies it on-chain.

Application Layer

The application layer provides a decentralized oracle that collects data from the Internet for AD verification. It also provides the interfaces for tokenized advertising decentralized applications that want to acquire AD privacy support.

• PCAP data fetch: A Dapp can fetch PCAP data (ZKP) of some DID in order to determine and validate the reward a particular user deserves.
• PCAP data update: The Dapp can update PCAP data each time it sends a reward to a user, with the updated data encrypted homomorphically.

Conclusion

The Parami Protocol offers room for great improvement to the somewhat struggling advertising network. Its adoption of blockchain technology which utilizes a special identity process will attract more users to the industry and improve it.

Get to know more about the project:

Official Website: https://parami.io/

Twitter: https://twitter.com/ParamiProtocol

Discord Community: https://discord.gg/bxFuekgvYJ

Medium Blog: https://paramiprotocol.medium.com/

Telegram Community: https://t.me/ParamiProtocolEN