VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT RESEARCH AND DEVELOP NFT MARKETPLACE WITH INTEGRATED KYC NGUYEN NAM KHANH Hanoi - Year 2024 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT RESEARCH AND DEVELOP NFT MARKETPLACE WITH INTEGRATED KYC SUPERVISOR: Doctor, Information Technology, Nguyen Van Tanh STUDENT: Nguyen Nam Khanh STUDENT ID: 19071608 COHORT: ICE 2019-A MAJOR: Informatics and Computer Engineering Hanoi - Year 2024 2 Chapter 1 Table of Contents ACKNOWLEDGMENTS. Overview of Blockchain Technology. Concept of Smart Contracts. Roles and Functions of Smart Contracts in Blockchain.
Advantages and Disadvantages of Smart Contracts. Overview of NFTs and the NFT Market. Benefits and Challenges of NFTs. The Role of Blockchain Technology in the NFT Market.
Analysis of Current NFT Market Platforms. Gaps and Opportunities in NFT Market Platforms. KYC solution and application. Concept of KYC.
Benefits of KYC in E-commerce Transactions. Identity Verification, Information Collection, and Information Security. Literature Review on Blockchain Security and KYC Integration. Conclusion of the Chapter.
ANALYSIS AND DESIGN OF AN NFT MARKETPLACE. System Analysis of the NFT Marketplace. NFT Marketplace architecture, components, and features. Architecture and Components of the NFT Marketplace.
KYC Integration Using Mindee. Features of the NFT Marketplace:. Functional Design Analysis. Use-Case Diagrams for System Functions:.
Rationale for Design Choices. EXPERIMENTATION WITH NFT MARKETPLACE SUPPORTING AND EVALUATING RESULTS. System Configuration and Setup. Configuration and Installation of the System.
Installation and Deployment of Experiments. Testing and Evaluating Results. User Study and Feedback. 76 4 ACKNOWLEDGMENTS I would like to sincerely thank Professor Nguyen Van Tanh, whose knowledge and wise advice helped me a lot during the semester in which I worked on my graduation project.
Professor Tanh's extensive knowledge and attention to detail contributed significantly to my acquisition of new knowledge and the successful completion of this challenging project. He was always willing to help answer questions and provide quick, helpful comments that really improved my research and development efforts. The NFC market with integrated KYC features is a new field for me so there were many obstacles in the process of researching and creating it. But Professor Tanh's constant encouragement and support has helped me gain an intuitive and easy-to-understand view through real-life examples, which has helped me become more confident and resilient.
His skill at demystifying complex ideas and his practical approach to problem-solving were essential in turning my initial concepts into a working prototype. Professor Tanh's dedication to the country's education system and his considerate concern for student success are clearly demonstrated through his contributions and new perspectives in the process. His methodical approach to research and development, along with his deep understanding of systems and operations, left a lasting impression on me. I appreciate the time he spent to help me really understand what resources I needed and for giving me the time one-on-one.
This project not only helped me in improving my technical knowledge but also helped me in developing my critical and researching capabilities. Therefore, I am so thankful to Prof Tanh for guiding me, and imparting his wisdom as well as supporting me unconditionally. I am grateful to have learned from him and hope to follow his model of academic and intellectual enthusiasm in the future. 5 DECLARATION I declare that this graduate project titled “Research and Development of an NFC Marketplace with Integrated KYC” is entirely my original work.
I have written it myself under the supervision of Professor Nguyen Van Tanh at the Department of Information Technology, Hanoi University of Science and Technology. Further submissions of this document are not allowed without permission from the copyright holder and author. Disclaimer: The content within this project is an attempt to provide information based on my own research, and the data and conclusion in this material are accurate to the best of my knowledge, This material may contain copyrighted work, and we referenced them using in-line citation. I referenced and acknowledged all the information that I have taken from other sources in the References section.
By presenting this work, we agree that all the data and knowledge used in this work are properly documented and corresponds to the ethical norms of this type of authorship. I also give the university permission to utilize my project for academic use in the library, course materials, collaboration within academic circles other than publishing, with appropriate attribution back to me as author. 6 ABBREVIATIONS AND ACRONYMS ERC721 Ethereum Request for Comment KYC Know Your Customer NFT non-fungible token JSON JavaScript Object Notation 7 Figures and Tables Figure 1. The function hierarchy diagram.
High-Level Use Case Diagram. NFT Management Use Case Diagram. Wallet Transaction Use Case Diagram. KYC Use Case Diagram.
Creating a Database Account. Creating a Database for the Project. Successful Database Connection. Successful Wallet Creation.
Metamask extention inteface. Metamask Digital Signature Request. KYC Verification Request. OCD OF ID for User Informatino Verificatino.
Successful KYC Verification. User's NFT Management Page. NFT Creation Page. Confirming NFT Identify with MetaMask.
Listing the NFT for Salw. Purchasing an NFT. After Purchase - Ownership of the NFT. 69 8 INTRODUCTION Urgency of the Topic: I took the decision to undertake this project, which involves development of an NFT marketplace with an integration of KYC.
This is in response to the urgent demand that has emerged within the current market scenario. The recent upsurge of NFT scams and the weaknesses in popular markets point out that there is a need for a secure platform. We plan to address these issues by using advanced blockchain encryption technology plus state-of-the-art KYC — be ready to go through detailed procedures on your identity, including a reliable government ID check — thus creating an atmosphere of trustworthiness for our users. Most often these traditional systems are found wanting in these regards— they fall prey to security lapses due to vulnerabilities and lackluster KYC measures borne out inadequacy.
The decision: based on two primary factors (first being security)— and guided by my knowledge resource base which includes professors' expert guidance plus access at academic levels (university) here where I am studying, to cutting edge technological tools— certainly represents a unique opportunity for me as well as you all involved, towards effective contribution in this specialized field brimming with innovation and creativity from our end. Objectives of the Project: The goal of this initiative is to address the major issues of security and user authentication in Non-Fungible Token (NFT) trades by building a safe, convenient, and legally admissible market place. The philosophical underpinning for this pursuit draws upon the doctrines of blockchain technology at its core— along with smart contract security principles and user-centric design approaches. We aim to unveil an exemplar of how a more effective and secure NFT marketplace can be designed by weaving these three threads together.
Scope of the Project: This project's scope targets digital artists, collectors, and traders— the users directly involved in the NFT market, seeking a more secure place of work with clear and trustworthy ownership records. This choice of audience is strategic; it 9 prioritizes those who stand to gain the most from better security details along with an uncomplicated transactional system. 1) User Registration and Verification: A key step in establishing trust and ensuring compliance with regulatory standards. The platform will implement a full KYC process aimed at verifying all users to make sure they are who they claim to be.
This will entail gathering and validating personal identification documents as well as any other necessary details. Remember that user verification is not just about confirming an individual's identity but also demonstrating the commitment to security and accountability of user activities on the platform. 2) NFT Creation and Management: The creation and management of NFTs: In the near future, users will be able to mint their digital assets as non-fungible tokens with metadata and a file attachment feature. It is an artist-friendly process that allows creators to easily tokenize their works.
3) Marketplace Transactions: Our marketplace utilizes multi-signature smart contracts, offering an additional layer of security for high-value NFT transactions. This empowers users to control their assets and eliminates the risk of fraudulent activity often associated with centralized platforms. 4) User Interface Design: The web interface will be designed to be intuitive and user-friendly, catering to both novice and experienced users. The design will focus on ease of navigation, accessibility, and providing comprehensive information about NFTs and transactions.
5) Backend Infrastructure: The backend will be robust and scalable, built using best practices in software engineering and blockchain technology. This includes secure data storage, efficient transaction processing, and seamless integration with blockchain networks. 6) Security Measures: Advanced security protocols will be implemented to protect user data and transactions. This includes encryption, multi-factor authentication, and regular security audits to ensure the platform remains secure against potential threats.
10 7) Community Features: The platform will include features to foster a sense of community among users, such as forums, discussion boards, and social media integration. This will help build a strong, engaged user base that can drive organic growth. While blockchain and web3 represent relatively new markets, the potential profits and opportunities they offer are immense. Even modest contributions in this space can have a significant impact due to the high value and transformative nature of these technologies.
This project aims to capture this potential by creating a robust, secure, and compliant platform that can lead the way in the evolving digital asset landscape. Research Methods: The project will be carried out using a combination of qualitative and quantitative research methods. This includes a literature review to gather insights and existing knowledge, followed by system development based on iterative design and development methodologies. Testing will involve both simulated environments and user testing groups to ensure the system meets its design specifications.
Significance and Conclusion: The completion of this project is anticipated to provide significant contributions to the field of digital assets, offering a scalable, secure platform that could serve as a benchmark for future developments in the NFT marketplace sector. This initiative not only fulfills an academic requirement but also addresses a pressing need in the digital economy for more reliable and transparent platforms. Structure of the Report: The report will be organized into several key sections, including the Introduction, Literature Review, Methodology, Results, Discussion, and Conclusion. Each section will be designed to elaborate on the project's development process, findings, and theoretical contributions.
Overview of Blockchain Technology Blockchain technology is a decentralized data storage system that is immutable and tamper-resistant. It is structured as a chain of data blocks, where each block contains a record of information and a cryptographic hash of the preceding block. This linkage creates a continuous chain, making it exceedingly difficult to alter any single block without modifying all subsequent blocks. Key aspects of blockchain technology include: - Decentralization and No Central Control: Unlike traditional systems, blockchain operates without a central control point.
Data is distributed across a network of nodes (computers), which helps prevent centralization of power and reduces the risk of data loss from a single point of failure. - Immutability and Tamper Resistance: Due to the cryptographic hashing and the interlinked nature of blocks, altering data within any block would necessitate changes across all subsequent blocks, thereby rendering tampering attempts highly impractical and secure against attacks. - Secure and Reliable Transactions: Transactions on a blockchain are verified through consensus mechanisms and, once recorded, are nearly impossible to alter or reverse. This enhances the security and reliability of transactions.
- Smart Contracts: Blockchain technology is often associated with smart contracts, which are self-executing contractual states stored on the blockchain that operate without the need for intermediaries. - Applications Beyond Cryptocurrencies: While initially popularized by its application in cryptocurrencies, blockchain technology extends to various other fields such as supply chain management, insurance, healthcare, education, and more.