Design
The Design: The Internet of Blockchains
Implementing the Small Data Network paradigm involves addressing several key technological challenges to ensure successful deployment and operation. Some of these critical technical aspects include:
Privacy-Preserving Data Processing: Developing and integrating privacy-preserving algorithms and techniques is crucial. These methods should enable data computations and analysis while preserving privacy and confidentiality. Techniques like secure multi-party computation, homomorphic encryption, and federated learning can play a vital role in ensuring that data remains protected throughout processing.
Data Interoperation Protocols: Developing standardised and secure protocols for data interoperation is fundamental. These protocols should facilitate seamless data exchange while respecting Data Owners’ preferences, privacy, and security. They must also support the negotiation of access terms, data quality, and pricing, ensuring smooth interactions between data owners and application service providers.
Data Property-Based Routing: Implementing efficient data routing mechanisms based on data properties or attributes is essential. This routing system should allow data to be directed to the correct destination based on specific criteria, such as data type, access conditions, or quality requirements. It ensures that data is delivered to the appropriate parties without unnecessary exposure to sensitive information.
Self-executing Data Access and Payment Protocols: Implementing automated payment mechanisms within Data Access Protocols is essential for seamless financial transactions. These systems should accurately calculate and execute payments based on data usage, ensuring that data owners are compensated while simplifying the billing process for service providers.
Consensus Building: Developing mechanisms for building consensus on data quality and reliability based on feedback from application service providers is essential for maintaining a reliable network. These consensus-building processes should prioritise and use high-quality data sources within the network.
Scalability and Performance: Ensuring the scalability and performance of the Small Data Network is critical for accommodating a growing number of data sources and users. Solutions should be designed to handle increased data traffic, maintain low latency, and offer high availability to support various applications.
At the core of NetX's design is adopting blockchain technology, encompassing critical elements like a decentralised data ledger, smart contracts, decentralised applications (DApps), built-in incentive mechanisms, and consensus-building protocols. Incorporating blockchain technology plays a pivotal role in achieving the objectives of the Small Data Network and is harnessed in various ways:
Decentralisation: Blockchain is inherently decentralised, with data stored across a distributed network of nodes. This aligns with the Small Data Network’s vision of a decentralised and interconnected data web. It reduces reliance on central authorities and intermediaries, promoting peer-to-peer communication and data sharing.
Data Integrity and Trust: Blockchain provides a tamper-proof and immutable ledger for recording transactions and data. When data is stored on a blockchain, it ensures data integrity and trust. In the Small Data Network context, the data can be trusted to be accurate and unaltered, making it suitable for machine-to-machine communication and automated reasoning.
Data Provenance: Blockchain records the provenance of data, providing a transparent history of data transactions and modifications. This provenance information can be valuable in the Small Data Network for tracing the origins and changes to data, enhancing data quality and trust.
Data Ownership and Control: Blockchain allows individuals and organisations greater ownership and control over their data. Users can grant or revoke access to their data as needed, enhancing privacy and data control. In the Small Data Network, this aligns with Data Owners having more control over their data and who can access it.
Smart Contracts: Smart contracts are self-executing agreements with predefined rules deployed on the blockchain. They can automate data transactions and enforce Data Interoperation Protocols and Data Access Protocols in the Small Data Network.
Interoperability: Blockchain networks can define and adhere to common standards and protocols, enabling interoperability among blockchain platforms and systems. This interoperability can extend to the Small Data Network, ensuring semantic data can be easily shared and integrated across diverse sources.
Incentives for Data Sharing: Blockchain can introduce token-based incentives for sharing and contributions. Users and organisations can be rewarded with tokens for sharing high-quality semantic data or providing valuable services within the Small Data Network ecosystem. This incentivises data sharing and collaboration.
Accordingly, NetX builds a network of interconnected blockchains featuring three distinct types: private chains, federated chains, and public chains. These blockchains serve specific roles within the network and are deployed in various settings to enable controlled and secure data sharing.
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