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    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Method for Ensuring the Reliability and Security of Personal Data in Blockchain Systems of State Registers⋆</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Valeriia Balatska</string-name>
          <email>v.balatska@ldubgd.edu.ua</email>
          <email>valeriia.s.balatska@lpnu.ua</email>
          <xref ref-type="aff" rid="aff0">0</xref>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Vasyl Poberezhnyk</string-name>
          <email>vasyl.poberezhnyk@gmail.com</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Ivan Opirskyy</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Lviv Polytechnic National University, Information Security Department</institution>
          ,
          <addr-line>79013 Lviv</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>Lviv State University of Life Safety, Department of Information Security Management</institution>
          ,
          <addr-line>79007 Lviv</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
      </contrib-group>
      <fpage>293</fpage>
      <lpage>310</lpage>
      <abstract>
        <p>Modern state registries play a pivotal role in the storage and processing of data related to citizens, legal entities, and material assets. However, traditional centralized information management systems face numerous challenges, among which the most critical are vulnerability to external attacks, reliance on a single point of failure, scalability issues, and high maintenance costs. Such systems often lack transparency, while data processing is complicated by dependence on human factors, increasing the risks of fraud and manipulation. This study proposes an innovative method for ensuring the integrity and security of personal data in state registries through the integration of blockchain technology with Layer 2 solutions. The foundation of the proposed approach is a decentralized blockchain architecture, which ensures data transparency and immutability. The use of cryptographic hashing guarantees data integrity, while the implementation of smart contracts automates key processes such as data verification, entry, and updates. A key innovation of this approach is the application of Layer 2 solutions, particularly rollups, which reduce the load on the main blockchain by aggregating transactions and recording only their root in the blockchain. This significantly enhances the system's scalability, reduces data storage costs, and ensures fast access to information. Furthermore, integration with the InterPlanetary File System (IPFS) enables efficient storage of large data volumes off-chain, leaving only critical metadata in the blockchain. The study describes the architecture of the proposed method, provides a detailed analysis of its advantages over centralized systems, and explores practical applications in real estate registries, citizen registries, and electoral systems. The practical implementation demonstrates that the combination of blockchain architecture with Layer 2 solutions achieves high efficiency, transparency, and trust in state registries while mitigating the risks of fraud and data loss. The results of the research indicate that the integration of blockchain technology with Layer 2 solutions is a promising pathway for modernizing state information systems. This opens up new opportunities for the development of resilient, reliable, and scalable registries that meet the contemporary demands of the digital society.</p>
      </abstract>
      <kwd-group>
        <kwd>eol&gt;blockchain</kwd>
        <kwd>Layer 2</kwd>
        <kwd>data integrity</kwd>
        <kwd>public registries</kwd>
        <kwd>decentralization</kwd>
        <kwd>information security</kwd>
        <kwd>smart contracts</kwd>
        <kwd>rollups</kwd>
        <kwd>scalability</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>Ensuring data integrity, security, and transparency is one of the key challenges for modern
information systems, especially in the public administration field. State registries play a pivotal role
in storing and processing data about citizens, legal entities, and material assets, serving as the
foundation for decision-making, implementation of social programs, and ensuring citizens’ rights.
However, traditional centralized approaches to organizing state registries face numerous
challenges that undermine trust in these systems and reduce their efficiency.</p>
      <sec id="sec-1-1">
        <title>The main problems of centralized registries include:</title>
        <p>Single point of failure. Failures in the central server can lead to data loss or system
downtime.</p>
        <p>Vulnerability to attacks. Centralized databases are often targeted by hackers, increasing the
risk of unauthorized access or data manipulation.</p>
        <p>Complex data integrity verification. Centralized systems lack effective mechanisms for
transparently tracking changes, complicating audits, and control over information
accuracy.</p>
        <p>Limited scalability. The growing volume of data significantly overloads centralized systems,
affecting their speed and performance.</p>
        <p>Dependence on human factors. Data verification, entry, and update processes in centralized
systems are often performed manually, increasing the risk of errors and misuse.</p>
        <p>
          The development of digital technologies, particularly blockchain, has opened new possibilities
for addressing these issues. Blockchain provides a decentralized data storage architecture, where
information is stored as transactions in a distributed ledger [
          <xref ref-type="bibr" rid="ref1">1</xref>
          ]. Through cryptographic hashing,
every record in the blockchain becomes immutable and transparent, ensuring its integrity and
accuracy. Furthermore, the introduction of smart contracts allows for the automation of key
processes such as data verification, access control, and transaction execution, minimizing
dependency on human factors [
          <xref ref-type="bibr" rid="ref2">2</xref>
          ].
        </p>
        <p>However, even blockchain has its limitations, particularly in scalability. In this context, Layer 2
solutions, such as rollups, plasma, and sidechains provide an additional level of efficiency by
offloading part of the transaction processing to an auxiliary layer. This significantly reduces the
load on the main blockchain, ensuring high throughput, scalability, and cost efficiency.</p>
        <p>The use of Layer 2 solutions, particularly rollups, in combination with blockchain provides new
possibilities for improving the performance of state registries. This approach moves the processing
of large volumes of transactions off-chain, leaving only critical data in the main chain. As a result,
high-speed performance, economic efficiency, and compliance with the demands of digital
transformation are achieved.</p>
        <p>This study focuses on the development of a novel method for ensuring the integrity and
security of personal data in state registries by utilizing the usage of Layer 2 solutions on top of the
blockchain architecture. The proposed approach addresses both the key issues of centralized
systems and opens new opportunities for creating transparent, resilient, and scalable information
systems.</p>
        <p>Problem formulation. State registries are an integral part of the information infrastructure
that facilitates the storage and management of critical data about citizens, legal entities, real estate,
electoral systems, and more. However, traditional centralized systems for managing such registries
have significant shortcomings that jeopardize their functionality, reliability, and security. One of
the key challenges of centralized systems is their limited scalability. As transaction volumes
increase, database sizes grow, which significantly slows system performance and raises
maintenance costs. For state registries, which handle large volumes of information, this represents
a critical limitation that requires modern technological solutions.</p>
        <p>The primary issues include:



</p>
        <p>Dependence on a single point of failure: Centralized systems are vulnerable to technical
failures that can lead to data loss, system compromise, or total downtime.</p>
        <p>Susceptibility to cyberattacks: Centralized architecture creates ideal conditions for
attackers, allowing them to gain access to vast amounts of information stored at a central
node.</p>
        <p>Complexity in ensuring transparency: The absence of mechanisms to track data changes
opens opportunities for manipulation and complicates registry audits, undermining
citizens’ trust in state information systems.</p>
        <p>Limited scalability: As data volumes increase, centralized systems suffer from overloads
that severely impact their performance and transaction processing speed.</p>
        <p>Dependence on human factors: In centralized systems, many processes are performed
manually, increasing the risks of errors, delays, and internal threats.</p>
        <p>High maintenance costs: Centralized systems require substantial financial resources for
infrastructure upkeep, security assurance, and regular updates.</p>
        <p>These issues become even more pronounced in the context of digital transformation, where data
volumes are continuously growing, and the demands for security, speed, and transparency in
registries are becoming increasingly stringent.</p>
        <p>At the current stage of technological advancement, blockchain offers a promising approach to
addressing these problems. Its decentralized architecture eliminates dependence on a single point
of failure, ensures data immutability, and enhances the transparency of all operations. However,
even blockchain faces limitations, such as scalability issues and high transaction processing fees in
large networks.</p>
        <p>A solution to these shortcomings lies in the integration of Layer 2 solutions. Such as rollups,
plasma, and sidechains into the blockchain, which enables the offloading of transaction processing
to an additional layer, leaving only critical information on the main blockchain. This approach
significantly improves system performance, reduces costs, and ensures fast access to data.</p>
        <p>Thus, this raises the need to develop a new method for ensuring data integrity and security that
combines the advantages of blockchain and Layer 2 solutions, capable of being consistent with the
modern challenges and requirements of state registries.</p>
        <p>
          Recent research and publications analysis. Recent research indicates a significant interest
in using blockchain technologies to ensure data security, transparency, and availability in various
information systems, including public registries [
          <xref ref-type="bibr" rid="ref3 ref4">3, 4</xref>
          ]. In particular, scientific works demonstrate
the advantages of blockchain in ensuring data immutability and the possibility of transparent
transaction tracking. Researchers emphasize that the decentralized nature of blockchain allows for
minimizing the risks associated with dependence on a single point of failure, which is a typical
problem of centralized registries [
          <xref ref-type="bibr" rid="ref5">5</xref>
          ]. Blockchain is also distinguished by its ability to store a history
of changes that is available to all network participants, thereby ensuring transparency and
increasing trust in the system.
        </p>
        <p>
          One of the key areas of research is the use of cryptographic hashing to ensure data integrity.
Hashing allows the creation of unique digital fingerprints of data that change with any
intervention, making manipulation attempts obvious. This solution is widely studied in the context
of increasing the level of data security in public registries [
          <xref ref-type="bibr" rid="ref6">6</xref>
          ]. In addition, the use of hashing in
combination with a decentralized architecture provides rapid identification of changes, which is
critical for government information systems.
        </p>
        <p>
          In addition, the implementation of smart contracts is seen as an effective way to automate data
access management processes and ensure that operations are performed based on established rules
and user consent [
          <xref ref-type="bibr" rid="ref7">7</xref>
          ]. Smart contracts eliminate the need for human intervention, reducing the risk
of errors and fraud. They can be used to automatically update data in registries, simplify
verification procedures, and ensure transparency in query execution.
        </p>
        <p>
          Of particular interest are works devoted to decentralized file systems, such as IPFS
(InterPlanetary File System) [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ]. This technology provides increased availability and storage of
large amounts of data in a distributed environment, which is an important aspect for government
registries that operate with large amounts of information. IPFS is also seen as a tool that allows
only critical metadata to be stored in the blockchain, which significantly reduces the cost of its
maintenance. Due to its architecture, IPFS can provide high fault tolerance by storing duplicate
data on different nodes of the network, which makes the system reliable even in the event of
failure of individual components.
        </p>
        <p>
          At the same time, recent studies emphasize the challenges associated with the scalability of
blockchain systems [
          <xref ref-type="bibr" rid="ref9">9</xref>
          ]. In this context, Layer 2 solutions such as rollups, plasma, and sidechains
might be the way of addressing the challenge. They allow the processing of some transactions
outside the main blockchain, reducing the load on it and increasing the speed of the system. This
opens up new opportunities for the use of blockchain in public registries, which require processing
a large number of transactions in real-time. Layer 2 solutions also reduce the cost of transactions,
which is important for implementing the technology in large-scale projects.
        </p>
        <p>Blockchain in combination with Layer 2 solutions and decentralized data storage systems is a
promising direction for solving the problems of public registries. This allows the creation of
systems that meet the requirements of digital transformation, providing transparency, fault
tolerance, and a high level of trust from citizens. Future research in this area may be aimed at
adapting these technologies to the specific conditions of government information systems and
ensuring their integration with existing digital platforms.</p>
        <p>The purpose of the paper. The purpose of the paper is to develop a concept for an innovative
method to ensure the reliability, security, and transparency of data in public registries by
integrating blockchain technologies with Layer 2 solutions, which allows for increased efficiency,
scalability, and resilience to threats. The main objectives of the paper are:





</p>
        <p>Analyze the problems of centralized systems in state registries, in particular their
dependence on a single point of failure, vulnerability to attacks, and difficulty in scaling.
Investigate the properties of blockchain technologies that ensure transparency,
immutability, and data security.</p>
        <p>Develop an architecture for integrating blockchain with Layer 2 solutions to reduce the
load on the main blockchain and ensure high system speed.</p>
        <p>Assess the possibilities of using smart contracts to automate key processes of data access
management in state registries.</p>
        <p>Study the use of decentralized file systems, such as IPFS, for efficient storage of large
amounts of data.</p>
        <p>Compare the advantages of the developed approach with traditional centralized systems in
terms of transparency, security, and resilience to external threats.</p>
        <p>These tasks are aimed at creating an effective and reliable method for ensuring the security,
authenticity, and availability of data in state registries that meet modern technological challenges
and the requirements of digital transformation.
2. Development and justification of a method for ensuring the
reliability and security of personal data in state registers
2.1. Analysis of current challenges and problems in the functioning of state
registers
Modern state registries serve as a crucial tool for managing information related to citizens, legal
entities, and their assets. They enable the execution of key administrative functions, provision of
public services, and support of the legal system. However, the growing volume of data and its
processing is accompanied by numerous challenges concerning the reliability, security, and
transparency of information.</p>
        <p>
          The centralized architecture of state registries is one of the main drawbacks of traditional
systems. This architecture involves storing data in a single repository, which creates risks of
unauthorized modification or loss caused by technical failures or cyberattacks. Such vulnerabilities
result in situations where changes in registries remain unnoticed or cannot be tracked,
jeopardizing the reliability of the data, especially in critically important systems [
          <xref ref-type="bibr" rid="ref10">10</xref>
          ].
        </p>
        <p>
          Another issue is the lack of transparency in data entry and update processes. The absence of
effective control mechanisms in centralized systems allows malicious actors or internal staff to
introduce incorrect information without proper auditing [
          <xref ref-type="bibr" rid="ref11">11</xref>
          ]. This leads to financial losses, legal
disputes, and a decline in public trust in state institutions.
The human factor remains one of the key sources of threats to centralized systems. Manual data
entry, operator errors, and malicious actions significantly increase the risk of information
compromise [
          <xref ref-type="bibr" rid="ref12">12</xref>
          ]. Weak validation mechanisms for entered data further expose such systems to
unauthorized changes, which is particularly dangerous for state registries [
          <xref ref-type="bibr" rid="ref13">13</xref>
          ].
        </p>
        <p>These problems are exacerbated in the context of modern cyber threats. Attacks on state
information systems are growing both in frequency and sophistication. Phishing techniques, social
engineering, and direct attacks on databases are becoming increasingly advanced, necessitating
higher levels of protection for such systems.</p>
        <p>In this context, blockchain technologies emerge as a promising solution. Blockchain ensures
data immutability through its decentralized structure and the mechanism of chained blocks, where
each transaction is recorded chronologically. This addresses the problem of data entry control by
enabling auditing and tracking of all changes. Research confirms that the use of blockchain can
significantly enhance public trust in state registries due to the transparency of their operations and
resistance to unauthorized changes.</p>
        <p>
          Thus, the challenges associated with centralized state registry systems highlight the need to
develop innovative solutions to ensure their reliability, security, and transparency. The application
of blockchain technologies is one of the promising approaches that allow the modernization of
existing systems and improve their resilience to modern threats.
2.2. The potential of blockchain technologies to increase the reliability and
security of data in public registers
Blockchain technologies provide an innovative solution to the challenges of ensuring the
reliability, security, and transparency of state registries. The primary advantage of blockchain lies
in its decentralized architecture, which eliminates dependence on a central data repository.
Information in blockchain systems is recorded as sequential blocks linked together by
cryptographic hashes, ensuring data immutability and preventing unauthorized modification or
deletion [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ].
        </p>
        <p>
          In traditional state registries, data is stored in centralized repositories, exposing them to risks of
compromise through cyberattacks or system errors. Blockchain, on the contrary, distributes copies
of the registry across network nodes, enhancing reliability and fault tolerance. Every operation is
recorded in a block that cannot be altered without the consensus of the entire network, making
blockchain systems resistant to forgery and data manipulation [
          <xref ref-type="bibr" rid="ref15 ref16">15, 16</xref>
          ].
        </p>
        <p>
          Blockchain systems also provide full transparency, as every transaction is viewable by all
network participants. This ensures complete oversight of changes made to the data, enhancing the
transparency of state registry operations. Any attempts at unauthorized intervention or erroneous
data entries can be easily detected and corrected. This mechanism is crucial for public institutions,
as it fosters citizen trust in the information stored in registries [
          <xref ref-type="bibr" rid="ref17">17</xref>
          ].
        </p>
        <p>
          Automation of data validation and entry processes through blockchain-based smart contracts
minimizes the risks of human error or intentional manipulation. Smart contracts are self-executing
programs that automatically enforce the conditions of agreements between network participants.
They allow controlled data updates in the state registry only when predefined rules are met,
significantly enhancing security levels [
          <xref ref-type="bibr" rid="ref18">18</xref>
          ].
        </p>
        <p>The distributed nature of blockchain systems also increases their resilience to cyberattacks.
Unlike centralized systems, where a single point of access can be targeted, attackers would need to
simultaneously alter all copies of the registry across all network nodes—a computationally
infeasible task.</p>
        <p>
          Blockchain systems also support scalability, enabling state registries to handle large volumes of
data with potential for future expansion. Models designed for transaction speed and storage
optimization make blockchain adaptable to the needs of government management systems [
          <xref ref-type="bibr" rid="ref19">19</xref>
          ].
The main challenges of centralized systems, such as vulnerability to attacks, lack of transparency,
and reliance on human intervention, can be effectively addressed through blockchain technologies.
Table 1 presents a comparison of the characteristics of centralized and blockchain-based systems,
highlighting their capabilities in overcoming these issues.
        </p>
        <sec id="sec-1-1-1">
          <title>Limited: lack of clear audit trails</title>
          <p>Data immutability</p>
        </sec>
        <sec id="sec-1-1-2">
          <title>Data can be altered or deleted</title>
          <p>Security
Process automation
Control over changes
Maintenance costs</p>
        </sec>
        <sec id="sec-1-1-3">
          <title>Dependent on external protection Built-in security through</title>
          <p>mechanisms cryptography and consensus</p>
        </sec>
        <sec id="sec-1-1-4">
          <title>Limited: requires human verification</title>
        </sec>
        <sec id="sec-1-1-5">
          <title>Low: prone to errors and manipulations</title>
        </sec>
        <sec id="sec-1-1-6">
          <title>High due to centralized infrastructure</title>
        </sec>
        <sec id="sec-1-1-7">
          <title>Decentralized (distributed ledger)</title>
        </sec>
        <sec id="sec-1-1-8">
          <title>High: changes require consensus</title>
          <p>from all network nodes</p>
        </sec>
        <sec id="sec-1-1-9">
          <title>High: all changes are recorded and</title>
          <p>available for verification</p>
        </sec>
        <sec id="sec-1-1-10">
          <title>Immutability is ensured by the chain structure of blocks</title>
        </sec>
        <sec id="sec-1-1-11">
          <title>High: smart contracts automate processes</title>
        </sec>
        <sec id="sec-1-1-12">
          <title>High: all changes are validated by the network</title>
        </sec>
        <sec id="sec-1-1-13">
          <title>Moderate: automation reduces</title>
          <p>costs
The above comparative analysis shows that blockchain systems significantly outperform traditional
centralized solutions in key indicators. Decentralized architecture provides resistance to attacks
and failures, and data immutability makes it impossible to modify them without authorization.
High transparency and the ability to fully audit all changes increase user trust, which is especially
important for state registries.</p>
          <p>
            Thus, the implementation of blockchain technologies creates conditions for ensuring the
reliability, transparency, and protection of state registries from modern threats, eliminating the
main disadvantages of centralized systems [
            <xref ref-type="bibr" rid="ref20">20</xref>
            ].
2.3. Development of a method for ensuring the reliability and security of personal
data in state registers based on blockchain technologies
The proposed method for ensuring the reliability and security of personal data in state registers is
based on blockchain technology. Its main goal is to create a system that ensures immutability,
transparency, and resistance to threats in the process of data processing and storage.
          </p>
          <p>The key idea of the method is a distributed blockchain registry, in which each operation is
recorded in blocks that are linked together using cryptographic hashes. This ensures:
1.
2.</p>
          <p>Data immutability: any changes leave a trace in the system.</p>
          <p>Transparency: all participants have access to records in the registry to verify their
reliability.</p>
          <p>Access control: the system automatically regulates the entry and update of data based on
smart contracts.</p>
        </sec>
      </sec>
      <sec id="sec-1-2">
        <title>The architecture of the proposed method consists of four main components:</title>
        <p>1. User (Data Submitter)
Initiates requests to enter new data, update
existing records, or view information in the state register.
2. Validation Module</p>
        <p>Checks the correctness of the request: data syntax, user access rights, and compliance with the
rules for making changes.</p>
        <p>3. Smart Contracts</p>
        <p>Automatically control the conditions for performing operations. Allow or block changes
depending on the specified access rules.</p>
        <p>4. Blockchain Registry</p>
        <p>A decentralized database that records all confirmed operations. A new block is written to the
registry after consensus is reached by network nodes.</p>
        <p>Fig. 1 shows the flowchart of the proposed method, which reflects the main stages of interaction
between system components.</p>
        <p>Step 1. Initiating a request
The user sends a request to enter, update, or view data via the system client interface.
Step 2. Validating the request
The validation module checks:


</p>
        <p>The user’s identification and access rights.</p>
        <p>The correctness of the structure and content of the request.</p>
        <p>Compliance with the rules for entering data into the registry.
Step 3. Executing the smart contract</p>
        <p>After successful validation, the smart contract automatically checks the conditions of the
transaction and, if all criteria are met, generates a new block for addition to the blockchain registry.</p>
        <p>Step 4. Block generation
The new block contains:



</p>
        <p>The hash of the previous block for connection in the chain.</p>
        <p>The timestamp of the transaction.</p>
        <p>User data and the content of the transaction.</p>
        <p>The transaction hash code is a confirmation of data integrity.</p>
        <p>Step 5. Recording in the blockchain registry</p>
        <p>After reaching consensus, the block is added to the distributed registry, where it becomes
available for verification by all network participants.</p>
        <p>Step 6. Audit and confirmation of the operation</p>
        <p>The user receives confirmation of a successful operation with the identifier of the new block. All
records are available for auditing and verification of their authenticity.</p>
        <p>
          Fig. 1 demonstrates the architecture of the method for ensuring the authenticity and security of
personal data in blockchain systems of state registries. The basis of the proposed approach is a
distributed blockchain registry, in which each operation is recorded in the form of immutable
blocks linked by cryptographic hashes. This ensures both the technical impossibility of
unauthorized changes and the transparency of the system for all participants. The method
integrates automated validation modules and smart contracts that regulate the entry and update of
data by the specified access rules [
          <xref ref-type="bibr" rid="ref21">21</xref>
          ].
        </p>
        <p>The proposed implementation algorithm is based on a clear interaction between the key
components of the system: users, the validation module, smart contracts, and the blockchain
registry. The user sends a request to enter or update data, which is automatically checked by the
validation module. Smart contracts provide control over the fulfillment of the conditions of the
operation, after which a new block is formed. After reaching a consensus among the nodes, the
block is added to the blockchain registry, where the data becomes immutable and available for
further audit.</p>
        <p>A feature of the method is its resistance to external threats due to the decentralized structure,
which eliminates the risk of a “single point of failure.” Transparency of operations is achieved
through the ability to audit any record in the registry, which increases user trust. In addition, the
automation of processes provided by smart contracts minimizes the impact of the human factor,
and the separation of access rights contributes to effective information management.</p>
        <p>
          Thus, the proposed method provides a reliable mechanism for controlling the entry, updating,
and verification of data in state registers, which is confirmed by the scheme in Fig. 1. Its application
allows for modernizing traditional registration systems, increasing the level of data reliability,
minimizing the risks of manipulation, and ensuring the transparency of the functioning of state
information systems.
2.4. Justification of the efficiency of the proposed method based on an analysis of
its advantages compared to traditional methods
Modern state registries that rely on centralized data management systems face numerous
challenges related to ensuring the reliability, integrity, and security of information. Among the
most common issues are vulnerabilities to failures due to single points of failure, low transparency
in processes, and dependence on human factors during data processing. Moreover, centralized
registries are susceptible to internal threats, as administrators or other authorized personnel can
make changes without proper recording in the transaction history [
          <xref ref-type="bibr" rid="ref22">22</xref>
          ]. Auditing such systems is a
labor-intensive process that requires additional resources and time, making them less efficient in
the dynamic environment of digital transformation.
        </p>
        <p>The proposed method for ensuring the reliability and security of data based on blockchain
technologies provides a scientifically justified solution that eliminates the shortcomings of
traditional systems through the application of distributed ledgers, automated smart contracts, and
cryptographic hashing. Its key feature lies in the immutability of each record within the system,
with all changes transparently recorded and accessible for verification. This ensures fundamental
data reliability and integrity in registries, which is critical in the context of growing digital threats
and information manipulation.</p>
        <p>Unlike centralized approaches, the proposed method utilizes a decentralized architecture that
eliminates the “single point of failure” problem and significantly increases resilience to both
external and internal threats. Data in a blockchain registry is stored across distributed network
nodes, with each new block of information cryptographically linked to the previous one. This
makes unauthorized changes virtually impossible, as any interference would compromise the
integrity of the entire chain. Moreover, blockchain ensures complete process transparency,
enabling participants to audit transactions and verify data integrity in real-time. In contrast to
centralized systems, where verifying changes requires additional procedures, every operation in a
blockchain-based system is automatically recorded and readily available for analysis.</p>
        <p>
          The integration of smart contracts within the proposed method addresses another significant
issue of traditional registries—dependence on human factors in request processing. Smart contracts
are automated algorithms that control the entry and updating of data according to predefined
conditions. This minimizes the risk of errors and accelerates operations, which is especially
relevant for state systems that handle large volumes of information daily [
          <xref ref-type="bibr" rid="ref23">23</xref>
          ].
        </p>
        <p>The effectiveness of the proposed method is demonstrated in ensuring data immutability, which
is critical for property registries, citizen registries, electoral systems, and other information
databases where the accuracy and reliability of information determine the legitimacy of
administrative decisions. For instance, in property registries, every purchase-sale transaction is
recorded as an irreversible transaction, eliminating the possibility of fraud or document forgery. In
corporate registries, blockchain technologies enhance transparency and trust by providing access
to the history of changes and facilitating effective monitoring of company activities and their
beneficiaries.</p>
        <p>To verify the authenticity of data obtained from the registry, the proposed model employs the
“proof of existence” principle, which ensures that specific data exist in their original state since
their creation. This can be achieved through the integration of decentralized principles and
blockchain technology.</p>
        <p>In such an approach, it is advisable to use technologies other than blockchain for general data
storage, as data volume negatively impacts network performance and maintenance costs.
Blockchain should be reserved for storing critical data that need to remain immutable and occupy
relatively small space, such as data fingerprints. This principle requires the separation of data
storage and the preservation of proof of their authenticity.</p>
        <p>Data integrity can be ensured using cryptographic hashing, which allows the creation of data
fingerprints of a fixed size regardless of the input data volume. Furthermore, cryptographic
hashing ensures that the input data cannot be reconstructed from the hash code, making it suitable
for processing various types of data, including restricted access, personal data, and classified
information.</p>
        <p>
          Additionally, any alteration in the data results in a completely different hash due to the
“avalanche effect” [
          <xref ref-type="bibr" rid="ref24">24</xref>
          ], effectively making unauthorized changes detectable, as any alteration
would result in a modified hash code, immediately indicating data tampering.
        </p>
        <p>The application of IPFS technology is justified by its decentralized nature, which prevents the
existence of privileged users in the network while enhancing system resilience by eliminating
central points of vulnerability. This ensures system functionality even when some nodes fail.
Another advantage of IPFS is the decentralized data storage, allowing data to be stored across
multiple network nodes simultaneously. This approach not only improves data access speed by
selecting the closest node to the system user but also ensures data redundancy across various
nodes, maintaining access even if the nearest node becomes unavailable.</p>
        <p>These technological capabilities make the combination of blockchain and IPFS a promising
foundation for systems capable of storing, transmitting, and verifying data for authenticity and
integrity. Such a combination can serve as the backbone of next-generation state registries.</p>
        <p>Fig. 2 illustrates the structure of the proposed registry.
In this concept, each independent unit of data, such as a generated document or a record in a
registry, appears in the form of a set of values stored in the blockchain:</p>
        <p>Entry ={SID , CID , ID , H },
(1)
where Entry is a registry entry; SID is a smart contract identifier; СID is a data identifier in IPFS; ID
is an owner identifier; H is a data hash.</p>
        <p>In addition to the technologies mentioned earlier, this system requires the use of additional
technologies, in particular smart contracts, which will allow automation of the operation of the
system, which will reduce the amount of human intervention in the system, which will
simultaneously increase trust in the system and minimize the number of users with special rights
who could negatively affect the operation of the system or commit unauthorized actions.
Moreover, the use of smart contracts will allow automating not only the storage or verification of
data but also restricting access if necessary.</p>
        <p>When creating a new record in the registry, the data addition algorithm will look like this:
1. The data provider creates new data and transfers it and the data owner identifier (ID) to the</p>
        <p>IPFS registry.
2. IPFS generates a data identifier (CID) and a cryptographic hash of the data and creates a
smart contract based on it.
3. The smart contract specifies the CID, data hash, and owner identifier.
4. The smart contract is stored in the blockchain part of the registry and receives an identifier.
5. The user receives the smart contract identifier and is considered its owner.
6. If necessary, the user receives data from the registry via the access module, providing his
identifier and the smart contract identifier.</p>
        <p>Obtaining access to data by the user will have the following steps:
1. The user sends a request to the access module, providing the ID and SID.
2. The access module authenticates the request by comparing the received user ID and the
user ID stored in the smart contract pointed to by the SID.
3. If the identifiers match, the access module sends a request containing the CID to IPFS, if the
identifiers do not match, access is denied.
4. IPFS returns the specified data to the access module, and the access module sends the data
to the user.</p>
        <p>If necessary, to verify the data received from the user, the validation process will have the
following steps:
1. The validator receives the data and the smart contract identifier.
2. The validator calculates a cryptographic hash of the data and sends a validation request
containing the calculated hash and the smart contract identifier.
3. The validation module receives data from the blockchain for validation from the smart
contract, the identifier of which is the provided SID.
4. If the calculated hash and the hash stored in the smart contract match, the validator receives
a response about successful validation, if the hashes do not match, he receives a message
about a validation error, if it may indicate a violation of the integrity or reliability of the
data.</p>
        <p>
          However, the use of these technologies may also have negative aspects, which are most often
associated with the nature of the technologies used. For example, the size of the blockchain will
negatively affect the speed of the entire system, since over time it will grow, and the speed of data
processing in the network depends on the size of the blockchain. A way to solve this drawback
may be to “reset” the blockchain when information from old blocks is deleted, and only the hash of
the previous block remains, which allows maintaining the chain in working condition, and the full
version of the blockchain is stored in archive nodes. This approach will reduce the level of
decentralization in the network since the network will depend on a certain number of archive
nodes [
          <xref ref-type="bibr" rid="ref25">25</xref>
          ].
        </p>
        <p>Another way to solve the problem of the speed and size of the blockchain can be the use of the
Layer 2 approach. The essence of this is to process data outside the blockchain and store only the
result of the processing in it. For example, the blockchain roll-up method allows combining several
transactions performed outside the blockchain into one transaction, the result of which will be
stored in the blockchain. This approach allows for an increase in the scalability and speed of the
blockchain network. At the moment, there are several options for building Layer 2 solutions aimed
at increasing the scalability and speed of blockchain networks. Although they are all aimed at
solving problems associated with the use of Layer 1, that is, the blockchain itself, they may also
have their drawbacks. The advantages and disadvantages of the methods are given in Table 2.</p>
        <sec id="sec-1-2-1">
          <title>A block of transactions is High scalability. Security created off-chain, compressed, is managed by the main and submitted for verification blockchain. on the main blockchain.</title>
          <p>
            Given the characteristics of the described methods, the most suitable for application in registry
systems is the rollups-based method. This method aggregates multiple transactions, summarizes
them, and records only a single transaction in the blockchain that describes the overall state of the
transaction block [
            <xref ref-type="bibr" rid="ref8">8</xref>
            ]. For instance, each document or file created can be considered a single
transaction, while a set of such transactions of a predetermined size can be grouped as a
transaction block. This block can then be represented by a specific value.
          </p>
          <p>In this context, the Merkle tree is particularly well-suited, as it allows the representation of a
relatively large volume of data with a comparatively small structure. One of the key advantages of
this approach is not only its efficient use of storage but also its capability to verify the integrity of
the data it represents. This is achieved because the Merkle tree consists of hashes of data and
cumulative hashes.</p>
          <p>Fig. 3 illustrates the concept of this approach.
The criterion for the readiness of a data block can be the number of documents included in one
block and their size, it is permissible that the number of documents should not exceed 10 and the
block size should not exceed 10 MB, so this method will have the following algorithm:
1. The Layer 2 processor generates a document until their number does not exceed 10 units
and the total size is less than 10 MB.
2. When one or both criteria are met, a data block is formed and transferred to the hash tree
generation module.
3. The module generates a hash tree and sets the top hash of the tree as the block integrity
identifier.
4. The generated hash is stored in the blockchain.</p>
          <p>This approach allows to saving of only one hash in the blockchain, which will represent 10
documents, instead of saving 10 separate hashes that represent each document, which will reduce
the load on the blockchain network, while maintaining the ability to confirm the integrity of the
data that was processed on another layer.</p>
          <p>One of the key points of this concept is the identification of data and its belonging to a certain
top-level hash, since the presence of a hash of only the data, or only the top-level hash, will not
allow to confirm the validity of the data. The solution to this problem is the use of roll-up smart
contracts, which will allow to establish a connection between transactions and the top-level hash.
Also, the use of smart contracts will allow to determine the owner of the data, by forming pairs
between the owner identifier and the data identifier. Fig. 4 presents the concept of such a smart
contract.</p>
          <p>
            When using such a model, a smart contract allows to identify of the data and its owner, which
allows the ability to differentiate access if necessary [
            <xref ref-type="bibr" rid="ref26">26</xref>
            ].
          </p>
          <p>Fig. 5 shows the concept of a registry built based on the proposed method.
The proposed system consists of the main blockchain, Layer 2 provider, unifying smart contract,
and a module for interacting with the system, which is responsible for data validation, data access,
etc.
The Layer 2 provider consists of IPFS, a hash tree generation module, and a data processor, which
is responsible for forming data blocks, which will then be represented by a hash tree stored in IPFS.</p>
          <p>The blockchain is responsible for storing smart contracts and verifying transactions.</p>
          <p>With this approach, three functions can be distinguished that such a system will perform: data
creation, data retrieval, and data verification. Data creation will have the following algorithm:
1. The user sends the data to be stored in the system through the interaction module.
2. The interaction module transfers them to the Layer 2 data processor.
3. The data provider receives the data and waits for the requirements for forming a data block
to be met.
4. After reaching the criteria for creating a new block, it is created and transferred to the hash
tree generation module and stored in IPFS.
5. After generating the hash tree, it is written to the smart contract, along with the formed
UID: CID pairs, where UID is responsible for user identification, and CID is data
identification in IPFS.
6. The smart contract is stored in the blockchain.</p>
          <p>Such an algorithm allows you to separate data from the blockchain and transfer their processing
outside its boundaries while maintaining the ability to confirm the integrity and authenticity of
data by storing their metadata in the blockchain, which reduces the load on the blockchain
network, and the presence of pairs of identifiers allows you to establish the owner of the data and
delimit access if necessary.</p>
          <p>Obtaining data from such a registry must be authorized by the request for receipt, since the data
may contain information of various kinds that contradicts the possibility of presenting it in an
open form. For this, existing pairs of identifiers are used.</p>
          <p>Obtaining data from the proposed system will have the following steps:
1. The user sends the CID to the data access module and the address of the smart contract.
2. The access module receives the smart contract data from the blockchain and verifies the
provided pair of identifiers.
3. If the provided pair does not match the one stored in the smart contract, the request is
blocked and the user is denied access.
4. If the provided pair of identifiers matches the stored pair, the access module sends a request
with the CID to the layer 2 processor.
5. Layer 2 transmits the data to the user via the access module.</p>
          <p>The data verification algorithm will have a similar form to the amendment to check the
integrity and authenticity of the received data and will have the following steps:
1. The user sends the document and the address of the smart contract to the validator.
2. The validator calculates the hash value of the document.
3. The validator sends the address of the smart contract and the calculated hash value to the
validation module.
4. The validation module receives data from the blockchain about the specified smart contract
and searches its hash tree for the provided hash.
5. If the provided hash is found in the smart contract, the validator receives a response
confirming the data provided to it.
6. If the hash is not found, the validator receives a message about the lack of confirmation of
the provided data.</p>
          <p>With this approach, data can be confirmed without actually receiving them from the registry, by
checking the hash values of the provided data and stored in the blockchain, which allows for
reducing the load on the system, since the volume of data circulating in it with each such request is
reduced, namely the calculation of the hash value is performed on the validator side.</p>
          <p>It is worth noting that the proposed method has the following drawback: the data generated in
this way cannot be updated, since its hash value will change, which will make it impossible to
confirm it due to the existing stored value of hash in the blockchain.</p>
          <p>However, the proposed system has many ways to improve or modify it depending on the needs.
This possibility is due to the use of a combination of the aforementioned technologies, which
expand the capabilities and potential of the system.</p>
          <p>
            For example, expanding the functionality of a smart contract can add not only an authorized
user for access but also other users or organizations that will have access to the document. Also,
through a smart contract, the validity period of a document or its existence in IPFS can be
managed, for example, in a smart contract the existence time of a document can be defined and
after its expiration, such a document will be deleted from IPFS. Accordingly, even if the user of the
system has such a document, its validity will no longer be confirmed because it will not exist in
IPFS and its validity period stored in the smart contract will also indicate the termination of the
validity of such a document [
            <xref ref-type="bibr" rid="ref27">27</xref>
            ]. Another possible improvement is the method of transmitting data
to the validator, the role of which can be any interested party that receives documents from the
user. In the proposed system, the user provides a document and a smart contract address to verify
the document for authenticity, however, when expanding the functionality of the smart contract,
which will allow third parties to access the generated documents, the need to transfer the
document itself can be avoided. Authorizing the validator to access the document will allow the
user to transfer only the CID of the document, which will allow the validator to independently
access the document and obtain the document itself from a trusted source.
          </p>
          <p>However, it is worth remembering that when working with systems based on blockchain
technology, it is necessary to maintain a balance between the complexity of smart contracts and
network maintenance, since the high complexity of contracts leads to an increase in the cost of
network maintenance.</p>
          <p>The use of blockchain technologies in state registers is not only technically feasible but also a
strategically important solution that meets the modern requirements of the global information
space and increases the level of trust in state institutions.</p>
        </sec>
      </sec>
    </sec>
    <sec id="sec-2">
      <title>Conclusions</title>
      <p>With the growth of digital information and increasing demands for personal data security, the
importance of reliable, scalable, and transparent systems is becoming crucial. Analysis of modern
systems has shown that centralized approaches to data storage have significant limitations, such as
dependence on a single point of failure, low transparency, difficulty in scaling, and high risks of
attacks. These shortcomings emphasize the need to implement decentralized solutions that can
provide a high level of security and trust in government information systems.</p>
      <p>The study confirmed that blockchain is an effective tool for ensuring data immutability and
transparency of operations. The use of smart contracts allows for the automation of data access
management and control over their processing, which minimizes the risks associated with the
human factor. Blockchain also provides the ability to instantly verify the legitimacy of operations
by providing a transparent data storage structure.</p>
      <p>Additionally, the implementation of Layer 2 solutions, such as rollups, allows for a significant
reduction in the load on the main blockchain, increasing the speed and scalability of the system.
This approach allows for the aggregation of transactions while keeping only key metadata in the
main blockchain. This reduces data processing costs and paves the way for blockchain to be used in
large-scale government registries.</p>
      <p>The use of decentralized file systems, such as IPFS, adds another layer of data protection. This
approach provides efficient storage of large amounts of information, leaving only hashes in the
blockchain for verification. This solution not only supports the principles of data confidentiality
and availability but also reduces the risks associated with technical failures or centralized attacks.</p>
      <p>The results of the study show that the proposed method of integrating blockchain technologies
with Layer 2 solutions creates the prerequisites for increasing citizens’ trust in government digital
platforms. The transparency of the system, data immutability, and process automation increase the
efficiency of government agencies and help reduce the risks of fraud. This approach also complies
with international data protection standards, such as the General Data Protection Regulation,
making it relevant for implementation on a global scale.</p>
      <p>The study confirmed that the use of decentralized technologies in public registries is not only
technically sound but also strategically important for ensuring their long-term sustainability.
Further development of such systems may include optimizing data processing processes,
integration with other digital platforms, as well as developing new methods for ensuring
information security. This opens up prospects for the creation of a new generation of public
registries that will meet the modern challenges of the digital age, ensuring reliability, transparency,
and protection of personal data.</p>
      <p>Declaration on Generative AI
While preparing this work, the authors used the AI programs Grammarly Pro to correct text
grammar and Strike Plagiarism to search for possible plagiarism. After using this tool, the authors
reviewed and edited the content as needed and took full responsibility for the publication’s content.</p>
    </sec>
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