Innovative Data Privacy Protection Through Asset Tokenization Makes "Data open but not shared" Possible
HONG KONG, Oct. 23, 2018 /PRNewswire/ -- ZhongAn Online recently announced that its wholly-owned technology subsidiary ZhongAn Technology published a white paper on "The PBT: A Novel Policy-Backed-Token That Built on Blockchain-Based Asset Protocol" ("White Paper") together with MIIT's China Electronics Standardization Institute, ZhongAn Online and Fudan University's School of Computer Science. The White Paper has proposed an innovative token -- asset-backed token, to achieve a new idea of "Data open but not shared" by using tokens to represent specific digital assets. The privacy protection for these assets is subject to chain's privacy and fine-grained authorization, solving the asset liquidity problem in the real economy.
Based on the tokenization approach under permissioned blockchain, asset-backed token provides a complete set of privacy protection measures: Within the permissioned blockchain, each node stores non-full data as it only stores related data on respective business and public data. When there is data request from external parties, the permissioned blockchain will arrange relevant nodes participating in handling query, calculation and giving feedback upon user authorization.
Since tokens represent specific data assets, token information can only be acquired upon holding the token or obtaining token authorization. Thus, privacy protection is subject to chain's privacy and fine-grained authorization to ensure users have control over data privacy, which is more secure than conventional data privacy protection. In addition to achieve the result of "Data open but not shared", it is not necessary for asset-backed token to install the essential MPC client for data privacy protection and it can avoid low efficiency problem under conventional data privacy protection approach.
According to the White Paper, there is an independent, professional third-party auditor in the permissioned blockchain to carry out audits for user requests, contract codes, account details of permissioned blockchain and alliance members' performance under contracts in order to ensure users' tokenized assets are secure and the permissioned blockchain is operating trustfully. At present, ZhongAn Technology is undergoing negotiation with PricewaterhouseCoopers (PwC) regarding the audit. It is expected that PwC will become a third-party auditing node of the blockchain in the future.
It is worth to highlight that asset tokenization helps the real economic assets circulate freely and safely in a closed blockchain world, effectively facilitates the transactions between assets and funds. Besides, it applies to a wide range of scenarios during the future economic development, such as P2P small loans, public welfare fundraising, agricultural farming, auto finance, etc. It is also feasible to apply tokenization on physical assets like data, bills and accounts receivables.
Li Xuefeng, Chief Technology Officer of ZhongAn Technology, said, "With asset tokenization, information of those assets becomes more transparent and trackable, thereby enhancing asset circulation and allocation across the society. As a result, financial innovation and value circulation of digital assets propel innovative development of the real economy."