Cross-Chain-Based Decentralized Identity for Mortgage Loans

Tianxiu Xie, Yue Zhang, Keke Gai, Lei Xu

Abstract: Decentralized Identity (DID) has been deemed an ideal mechanism for identity sharing and authentication, which allows users to process control over identity information. However, the centralized storage of DID hinders further expansion due to security issues. Combining the existing blockchain technology with the DID theory has a great development prospect in terms of privacy protection and security enhancement. In order to address the identity authentication issue of collateral in financial loans, this paper proposes the Cross-chain Channel-based DID (C3-DID) model, which realizes the distributed storage of DID and allows relay-based cross-chain data exchange. We deploy the loan process and the identity verification process on consortium blockchains, separately. In addition, a permission chain channel, called peer-to-peer Matching Channel (MC), is established to accomplish cross-chain data exchange. Our security analysis indicates that the proposed model can resist multiple threats.