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Article

Decentralized Factoring for Self-Sovereign Identities

1
Department of Network Engineering, Campus Nord, Universitat Politècnica de Catalunya (UPC), 08034 Barcelona, Spain
2
Faculty of Electrical and Computer Engineering, Tarbiat Modares University, Tehran P.O. Box 14115-111, Iran
*
Author to whom correspondence should be addressed.
Academic Editors: Miguel Soriano and Javier Lopez
Electronics 2021, 10(12), 1467; https://doi.org/10.3390/electronics10121467
Received: 15 May 2021 / Revised: 13 June 2021 / Accepted: 15 June 2021 / Published: 18 June 2021
(This article belongs to the Special Issue Security and Privacy for Data Decentralized Marketplaces)
Invoice factoring is a handy tool for developing businesses that face liquidity problems. The main property that a factoring system needs to fulfill is to prevent an invoice from being factored twice. Distributed ledger technology is suitable for implementing the platform to register invoice factoring agreements and prevent double-factoring. Several works have been proposed to use this technology for invoice factoring. However, current proposals lack in one or several aspects, such as decentralization and security against corruption, protecting business and personally identifiable information (PII), providing non-repudiation for handling disputes, Know-Your-Customer (KYC) compliance, easy user on-boarding, and being cost-efficient. In this article, a factoring registration protocol is proposed for invoice factoring registration based on a public distributed ledger which adheres to the aforementioned requirements. We include a relayer in our architecture to address the entry barrier that the users have due to the need of managing cryptocurrencies for interacting with the public ledger. Moreover, we leverage the concept of Verifiable Credentials (VCs) for KYC compliance, and allow parties to implement their self-sovereign identities by using decentralized identifiers (DIDs). DIDs enable us to relay on the DIDComm protocol for asynchronous and secure off-chain communications. We analyze our protocol from several security aspects, compare it to the related work, and study a possible business use case. Our evaluations demonstrate that our proposal is secure and efficient, as well as covers requirements not addressed by existing related work. View Full-Text
Keywords: invoice factoring; public distributed ledger; blockchain; smart contract; decentralized identifiers; self-sovereign identities; DIDComm; relayer; dispute resolution invoice factoring; public distributed ledger; blockchain; smart contract; decentralized identifiers; self-sovereign identities; DIDComm; relayer; dispute resolution
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MDPI and ACS Style

Mohammadzadeh , N.; Dorri Nogoorani , S.; Muñoz-Tapia , J.L. Decentralized Factoring for Self-Sovereign Identities. Electronics 2021, 10, 1467. https://doi.org/10.3390/electronics10121467

AMA Style

Mohammadzadeh  N, Dorri Nogoorani  S, Muñoz-Tapia  JL. Decentralized Factoring for Self-Sovereign Identities. Electronics. 2021; 10(12):1467. https://doi.org/10.3390/electronics10121467

Chicago/Turabian Style

Mohammadzadeh , Nasibeh, Sadegh Dorri Nogoorani , and José Luis Muñoz-Tapia . 2021. "Decentralized Factoring for Self-Sovereign Identities" Electronics 10, no. 12: 1467. https://doi.org/10.3390/electronics10121467

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