# Security and Ownership in User-Defined Data Meshes
## 2 Technical Background
### Understanding Blockchain and NFTs  
Blockchain serves the purpose of providing a secure and transparent means for recording and transferring data. Notably, it addresses privacy concerns by anonymizing personal data, contributing to its increasing popularity and integration into infrastructure, opening avenues for innovative applications [16]. Functioning as a decentralized database on a peer-to-peer network, Blockchain establishes a distributed communication network enabling non-trusting nodes to interact without relying on a central authority. Its protocols ensure a verifiable and trustworthy system, offering traceability, transparency, and enhanced privacy and security features. In essence, Blockchain is evolving into a fundamental technology with wide-ranging applications and use cases such as IoT, smart contracts, NFTs, cybersecurity and cryptocurrency, providing a foundation for secure and trustworthy data transactions [17]. Algorithmically, Blockchain includes a number of essential elements, procedures, and guidelines to create a strong and feature-rich decentralized system. Initializing basic elements, such as a consensus mechanism and cryptographic algorithms for secure key management and hashing, are the first steps in the process. Implementing token and smart contract standards like ERC-20 and ERC-721 increase functionality by managingthe creation, transfer, and ownership of assets [18]. With zero-knowledge proofs as an example, the method smoothly incorporates Decentralized Identity Standards (DIDs) to guarantee secure identification and privacy standards, offering strong user data security. Interledger Protocol and other interoperability standards also make cross-chain communication easier [19]. The integration of decentralized storage protocols, such IPFS, ensures file storage that is dispersed and impervious to censorship. Governance norms support secure and efficient decision-making. Security measures provide protection against vulnerabilities, compliance standards guarantee conformity to legal requirements, and governance standards support efficient decision-making. This all-encompassing strategy creates a conceptual framework for the building of a Blockchain that integrates fundamental criteria, promoting a safe, compatible, and consider decentralized ecosystem. Non-Fungible Tokens (NFTs) are a ground-breaking innovation in the ownership and management of digital assets. Because every NFT is distinct and has a unique identifier, it cannot be copied or traded. Blockchain technology is used to accomplish this uniqueness. NFTs are used to verify ownership of a wide range of digital and physical goods [20], including digital art, music videos, real estate, gaming avatars, etc. NFTs are also crucial to Web 3.0, the next iteration of the Internet that many companies and analysts are pushing. Blockchain's decentralized structure guarantees the integrity and transparency of ownership data, and smart contracts streamline transactions by automating tasks like ownership transfers and royalty distribution. Finally, the NFT process algorithm starts with the digital asset being initialized, having its nature defined, and being given a unique identification. The implementation of a smart contract that oversees the NFT requires integration with a Blockchain platform, such as Ethereum, via the ERC-721 standard [21]. An NFT is created during the minting process by adding ownership information and other pertinent metadata to the smart contract. Smart contract updates enable ownership transfers, guaranteeing safe and transparent transactions documented on Blockchain. The NFT ecosystem is made more efficient by automating features in the smart contract, such as the distribution of royalties upon resale. NFTs are posted on NFT marketplaces such as OpenSea (New York, NY, USA) or Raible (Wilmington, NC, USA), where buyers and sellers can transact to make them more widely available [20].