A Novel Approach to Manage Ownership and VAT Using Blockchain-Based Digital Identity

Abstract

Blockchain is a revolutionary technology due to its security and transparency . A digital identity system based on blockchain technology can play an important role in securing the asset ownership information and protecting it against any discrepancy. However, there has been no work that combines the advantages of blockchain technology and an individual’s biometric information in creating a digital identity that can be used for ownership system, thereby preventing any fraud in ownership system. In this paper, a Blockchain-based Ownership and Value Added Tax (VAT) management system have been proposed depending on a digital identity system that is implemented on blockchain technology using individuals’ biometric information. The Ownership system along with VAT management was implemented using Ethereum smart contract. The experimental results of testing our system indicate that an intruder cannot perform any modification illegally to ownership data in the system. Any adversarial attempt is aborted instantly and thereby the security of citizen’s ownership information is ensured. Moreover, appropriate amount of VAT is automatically assigned to the owner while changing the ownership of suitable products. Our proposed system can be very useful for protecting the digital ownership information of citizens of a country and ensuring fair payment of VAT for suitable products.