Storing & Accessing Private Data on the Blockchain with an NFT — #builditonXDC

Non-fungible tokens (NFTs) have soared in popularity over the past year or so, and now have a solid footing in our consciousness. That being said, the public perception of NFTs and their usefulness is largely limited to trendy artwork and internet buzzwords. While use cases for NFTs are almost limitless as a blockchain-based accounting mechanism, crypto enthusiasts and developers have only scratched the surface of their capabilities.

You may even hear about using NFTs for art, gaming, fashion, social media, and music — or perhaps the digitization of real-world assets. But a lot of the most practical uses are understated, especially as trade accounting tools, as methods of ownership, and even for ownership and access to data.

The XDC Network made headlines when it was used to complete the first trade-finance based transaction with an NFT, but there are a host of other NFT use cases with XDC’s Network able to store private information in smart contracts to access it later.

It would be relatively easy to create a dApp allowing multiple parties to pass data from one contract to another while keeping access totally restricted to those who are authorized by the token on the XDC Network.

This data could be KYC data, ticket info, medical data, identity information, login information, or anything else extremely sensitive and worthy of protection.

In this example, we’ll store a Social Security Number in a contract that will mint an NFT on the XDC network while placing the SSN data into the contract & only allowing the data to be seen by the holder of the token. Fundamentally, the concept of minting a token is no different than minting any other NFT. The contract code governs the use of the token, and this contract gives the holder of the token a security tool to manage data.

This is only possible on blockchains with privacy capabilities. Most blockchains are public, while the XDC hybrid Network has both Public/Private ledgers, allowing the safe access of private data. Users of these future dApps will not have to worry about their information falling into the wrong hands with a DB breach or being broadcasted to the entire world publicly. With XDC’s low gas fees, fast performance, and privacy, the XDC Network can create an ecosystem of reliable trade finance and security tools on the blockchain.

About the Author: R Quincy Jones XDC Foundation developer, who on behalf of the XDC Network is building new standards and applications for the XDC Network. With over four years in cloud development, and a growing following on YouTube: CoinClubCrypto, is well-suited to break down the fundamentals of blockchain-based technologies for general audiences.

GitHub link: https://github.com/QCloud-DevOps/PrivateAccessToken

The content above represents my own individual perspective as an XDC community member and does not reflect the official stance of XDC Foundation

1. @PlugandPlayTC has announced a new accelerator focused on real-world asset (RWA) #tokenization on the XDC Network!

This initiative is designed to drive innovation and accelerate the development of advanced #RWA applications within the blockchain space.

https://x.com/PlugandPlayTC/status/1824114011257844193

2. Angus O'Callaghan from @XinFin_Official's Markets Team will be at the Wyoming Blockchain Symposium 2024, connecting #XDCNetwork with key players in the digital assets space.

Discover how XDC Network can play a role in shaping the future of blockchain. 👇

3. Introducing the 8 startups finalized with XDC Network's accelerator program in partnership with @tenity_global!

https://tenity.com/press/the-8-startups-ready-to-make-a-splash-with-xdc-networks-first-accelerator-program

XDC Weekly August 11th - August 17th, 2024

In recent years, digital currencies have been all the rave. However, the idea that digital assets are exclusively some form of currency is slowly falling by the wayside as different use cases are emerging and being rapidly adopted. This May, The Fintech Times is looking to showcase some of these new methods and explore how the digital asset ecosystem is evolving.

What Would it Take to See an NFT Revival?

Non-fungible tokens (NFTs) took the world by storm in 2020 and 2021, as seemingly everyone discussed the relatively new concept, and some spent significant amounts to become sole owners of NFT art. However, it didn’t take long for the bubble to burst and the hype to die down.

Most NFTs saw a significant reduction in value as interest in the concept rapidly reduced across the globe. However, in the last couple of years, behind the scenes, some developers have continued to bet on the technology for other use cases.

But can NFTs truly make a comeback, even to half of the extent of popularity seen a few years ago? To find out, we asked industry leaders what it would take for us to see an NFT revival.

By embracing another use case, NFTs have already begun their own revival, says Billy Sebell, executive director of the XDC Foundation, an open-source blockchain protocol specialising in tokenisation for real-world assets (RWAs) and decentralised finance.

“In a sense, NFTs are already seeing a revival. RWAs are the new NFTs. Through NFTs, we know that by digitising a real-world asset on-chain, that asset becomes tokenised, and its rights of ownership can be held, traded, or used as collateral for other investment instruments.

“With the increased confidence in blockchain technology’s capabilities, fintech innovators will create high-demand RWA projects in areas that stretch beyond the current landscape.

“RWA tokenisation will solve problems in big industries such as trade finance, where the $5 trillion trade finance gap has long limited micro, small and medium enterprises (MSMEs) from participating in global trade.”

Featuring: David Lutz — Manager, Financial Crimes Advisory

In the second episode of XDC The Stream podcast series, hosts Lance Lilly and Dave Marcus are joined by David Lutz, who has a long career in the areas of risk management and financial compliance. Together, they discuss money laundering, US government regulations and sanctions, KYC, digital identity, forensic audits, the potential role of blockchain, and so much more related to financial accountability.