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Application of Blockchain in Education: GDPR-Compliant and Scalable

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 applied
sciences
Article
Application of Blockchain in Education: GDPR-Compliant and
Scalable Certification and Verification of Academic Information
Christian Delgado-von-Eitzen * , Luis Anido-Rifón






Citation: Delgado-von-Eitzen, C.;
Anido-Rifón, L.; Fernández-Iglesias,
M.J. Application of Blockchain in
Education: GDPR-Compliant and
Scalable Certification and Verification
of Academic Information. Appl. Sci.
2021, 11, 4537. https://doi.org/
10.3390/app11104537
Academic Editors: Roberto Tonelli,
Marco Ortu and Andrea Pinna
Received: 12 April 2021
Accepted: 14 May 2021
Published: 16 May 2021
Publisher’s Note: MDPI stays neutral
with regard to jurisdictional claims in
published maps and institutional affil-
iations.
Copyright: © 2021 by the authors.
Licensee MDPI, Basel, Switzerland.
This article is an open access article
distributed under the terms and
conditions of the Creative Commons
Attribution (CC BY) license (https://
creativecommons.org/licenses/by/
4.0/).
Appl. Sci. 2021, 11, 4537. https://doi.org/10.3390/app11104537
and Manuel J. Fernández-Iglesias
atlanTTic, Universidade de Vigo, 36310 Vigo, Spain; lanido@det.uvigo.es (L.A.-R.); manolo@uvigo.es (M.J.F.-I.)
* Correspondence: christiandve@uvigo.es
Abstract: Blockchain technologies are awakening in recent years the interest of different actors in
various sectors and, among them, the education field, which is studying the application of these
technologies to improve information traceability, accountability, and integrity, while guaranteeing its
privacy, transparency, robustness, trustworthiness, and authenticity. Different interesting proposals
and projects were launched and are currently being developed. Nevertheless, there are still issues
not adequately addressed, such as scalability, privacy, and compliance with international regulations
such as the General Data Protection Regulation in Europe. This paper analyzes the application of
blockchain technologies and related challenges to issue and verify educational data and proposes
an innovative solution to tackle them. The proposed model supports the issuance, storage, and
verification of different types of academic information, both formal and informal, and complies with
applicable regulations, protecting the privacy of users’ personal data. This proposal also addresses
the scalability challenges and paves the way for a global academic certification system.
Keywords: blockchain; education; GDPR; scalability; lifelong learning; formal learning; infor-
mal learning
1. Introduction
The process of issuing and registering academic data is presently a process carried out
within each educational institution’s proprietary systems and largely isolated from other
organizations’ record-keeping procedures. This situation impacts directly the verification
of students’ educational data since, in many cases, the authentication of a transcript or
certificate can only be performed manually, which is very costly in resources and time.
With the growing need to demonstrate acquired abilities and skills in an increasingly
competitive world, this situation favors the appearance of fake academic certificates, that
come from five different sources: (1) “degree mills” that generate fake qualifications that
are sold to customers that pay for them [1]; (2) fabricated documents that are generated by
inexistent academic institutions [2]; (3) modified documents that alter authentic documents
with false dates, courses, specializations, etc.; (4) “in-house”-produced certificates, which
are fake academic records created by a real institution and printed and sealed as if they were
authentic but made by dishonest employees; and (5) inaccurate translations of authentic
documents that are used to accomplish certain requirements in another country with a
different language.
Thus, the increasing number of fake accreditations and bogus academic information
in a more and more connected society represents a real threat that must be addressed and
solved. However, there are neither universally accepted standards to represent academic
information nor centralized record-keeping systems for these types of records. Moreover,
if a presently active institution discontinues its educational activities and disappears, all
its educational data will probably vanish and the traceability between alumni and their
original completed studies will be lost, which, in turn, prevents the verification of such
studies by a third party. This affects both formal and informal learning, which seems to be
increasingly relevant in future professional environments with initiatives such as the one
https://www.mdpi.com/journal/applsci
Appl. Sci. 2021, 11, 4537 2 of 24

promoted by Google [3], which plans to issue certificates for six-months online courses to
students and treat them as the equivalent of a four-year degree if learners pretend to apply
for a related job at the company. Amazon (https://aws.amazon.com/certification/?nc1
=h_ls accessed on 2 April 2021) and Microsoft (https://docs.microsoft.com/en-us/learn/
certifications/ accessed on 2 April 2021) (combining resources from LinkedIn and GitHub)
develop similar initiatives.
Furthermore, without a worldwide easily accessible academic information platform,
it is not possible to obtain a general perspective of what type of studies, formal or even
informal, are the most demanded, or compare how students from different countries
acquire their qualifications.
A trustful blockchain-based system can be a solution for these issues since it can
tamperproof register academic information to be easily verified by third parties. However,
it must be scalable and efficient to record all the related educational data, as well as protect
the privacy of every piece of personal information, complying with applicable regulations.
Insofar international regulations are concerned, the General Data Protection Regula-
tion (GDPR [4]) is one of the most relevant and restrictive regulations insofar privacy is
concerned for companies and institutions in Europe and in other countries since it provides
an overarching coverage of all relevant issues in data protection and was conceived as a
robust legal body able to cope with present-day and future challenges. It comprehensibly
addresses personal rights in different scenarios, including rights of access to collected data,
erasure, restriction of processing, to be notified on any personal data operation, portability
of data, objection, or even rights related to automatic decision making and profiling and its
limitations. It is important to remark that the regulation is applied to personal information
such as name, age, etc. as well as to other data that, in combination with other means, can
be used to identify a natural person. Infringements of the GDPR can lead to significant
administrative fines.
This research proposes a novel and innovative solution to issue, store, recover, share,
and verify heterogeneous and unrestricted types of academic information using blockchain,
a technology whose characteristics of resistance to unauthorized modifications and trace-
ability of the operations carried out make it perfect to achieve the pursued objectives.
Without changing proprietary information systems, the educational actors can generate
and tamperproof register any type of educational data, both formal or informal, and send
it to the holder automatically and securely whenever it is requested so the owner can
transfer it to a third party who can seamlessly check for its authenticity. In this design, the
holder of the academic data has the possibility to share all or only some parts of the issued
information with the third party according to their interests. The system also contemplates
that if for any reason, the academic institution disappears, under certain conditions, the
issued academic accreditations could still be verified and even recovered by the holder.
It is also important to remark that, as it will be later discussed, the existing blockchain-
based initiatives to generate and validate academic data utilize diverse approaches to
record the information, but they do not take into consideration the strict restrictions
imposed by the General Data Protection Regulations (GDPR) in their design, they do not
conveniently address the problem of scalability when an increasing number of documents
is generated, or both. The proposed solution in this research, which complies with the
restrictions imposed by the GDPR, addresses these requirements in an integral way by
proposing a solution to face scalability problems when the volume of information is very
high, especially strengthening the protection of personal data.
To sum up, the main contributions of this research are as follows:
• It analyzes the application of blockchain technologies to issue and verify educational
data;
• It proposes an innovative model that supports the issuance, storage, and verification
of different types of academic information under different scenarios that comply
with the GDPR and tackles the scalability challenge present in almost every present
blockchain initiative;
Appl. Sci. 2021, 11, 4537 3 of 24

• It performs a security analysis of the described model;

• It proposes an implementation of the model as a constructive proof of concept with
the objective of confirming the feasibility of the designed framework using available
state-of-the-art technologies.
The rest of the paper is organized as follows: the main features of blockchain tech-
nology and its application in the educational sector and a comparison of related work
to the proposed design in this research are introduced and described in Section 2. Then,
Section 3 is devoted to introduce some features of the General Data Protection Regulation
(GDPR) and to detail the conceptual design of the proposed solution. Section 4 proposes a
proof-of-concept implementation with existing technology. Section 5 discusses the results
of the proposed model. Finally, conclusions are drawn and future research perspectives are
analyzed in Section 6.

2. Preliminaries
Blockchain is an emerging technology introduced in 2008–2009 as the supporting
ledger for the Bitcoin cryptocurrency [5], a peer-to-peer electronic cash system aimed to
set financial transactions without going through a financial institution or a third party.
However, this technology is also used in other platforms such as Ethereum or Hyperledger
and applied in more and more sectors with increasing relevance, for the Bitcoin economy
and education, as is discussed in this paper, as well as in sectors such as energy [6], agri-
culture [7], health [8,9], transports or logistics [10], IoT [11,12], in which applications [13],
use cases [14] and open issues [15] are identified. In a nutshell, a blockchain consists of a
time-ordered set of blocks in which each block is cryptographically linked to the previous
one, constructing a chain. As a consequence, a blockchain is almost impossible to alter
once created. All the information recorded is tamperproof and distributed across a shared
peer-to-peer network.
Each one of these blocks contains transactions of different types (depending on the
blockchain) that are created and distributed by the peers of the network. To register new
information in the chain, a consensus about its truthfulness has to be reached among
the participating peers without the need for a third party. The most extended consensus
mechanisms are proof of work (PoW), proof of stake (PoS), and proof of authority (PoA).
With the PoW mechanism [5], transactions are validated by solving cryptographic puzzles
using brute force, which requires a lot of energy and time for its execution. The active
member of the network (called miner) who first solves the puzzle is rewarded.
On the other hand, in systems using PoS [16], the selection of the active member of
the network who validates and decides how will the next block be added is performed
randomly among all peers, with a probability of being selected proportional to the stake
that each member owns in the current blockchain. Therefore, the process of validating and
adding new blocks is not as complex as in the PoW consensus mechanism and it is more
energy and time efficient.
Finally, some systems utilize a PoA [17] consensus mechanism. With this approach, a
small number of active network members are authorized to verify a new block, synchroniz-
ing blocks of the chain with the rest of the network peers. A difference with PoW or PoS is
that these participants will not always be participating in this process since they will be
randomly selected depending on their activity.
Since every piece of information in the blockchain has to be verified before it is
included in a block by one or more active members of the network, depending on the
consensus mechanism, the amount of data that can be registered is limited, typically
some kilobytes. If a larger amount of information needs to be stored, projects such as the
InterPlanetary File System (IPFS) [18] can be utilized. IPFS is a hypermedia protocol and a
distributed peer-to-peer resilient file system to tamperproof store and share information
that can handle bigger file sizes. When a data file is uploaded, a hash digest value of
the content is calculated, and this result is used to find the file and recover the data
upon request.
Appl. Sci. 2021, 11, 4537 4 of 24

Additionally, some blockchains support running smart contracts proposed by Nick

Szabo [19]. These are computer programs (Turing-complete in the case of Ethereum [20])
recorded on a block that are executed autonomously by all the active participants in the
network. These smart contracts can read, write, modify, and process data according to their
programming. Every action is tamperproof registered in the ledger to add confidence.
With respect to the nature of the peers participating in a blockchain, there are three
main blockchain types. Public blockchains present no restrictions for joining or leaving, or
for accessing the information recorded. In general, all information is public, but in some
specific blockchains, some information may be encrypted. On the other hand, in private
blockchains, participants may join only if they are invited; hence, they are closed systems
operated within institutions. All the information remains private among the authorized
members. Finally, consortium blockchains are a combination of the two previous types and
are operated by a group of institutions that have a common goal. In this case, authorized
partners can join or leave the blockchain upon invitation.
The educational sector addresses blockchain technology and how it could be applied to
efficiently protect academic information with relevant initiatives and projects since 2013 [21].
Although there is a growing number of blockchain-based educational applications, most of
them are in an early stage of practical development and only a few of them can be actually
used by academic institutions and their stakeholders [22].
After a thorough analysis of the scientific literature reporting on blockchain applica-
tions in education [22–27], the most frequent category of blockchain use cases in this field is
the issuance and verification of academic certificates, although there are many other appli-
cations [28,29]. Among the most illustrative examples of the introduction of blockchain for
certificate management, the University of Nicosia was the first higher education institution
to use Bitcoin to register such certificates [21]. As an additional example, the MIT Media
Lab designed, prototyped, and developed an open source platform called Blockcerts on
the top of the Bitcoin and the Ethereum blockchains, to issue academic diplomas and let
them be verified easily by third parties [21]. Both projects basically register the hash digest
of academic certificates (not the full data) in the corresponding blockchain to safeguard
the information.
Since these projects do not record the complete information on the chain, if the
educational organization disappears and the learner loses their certificate, it cannot be
recovered. To solve this, initiatives such as [30] save the whole information of the academic
credential on the private Hyperledger Fabric blockchain what, as it will be later discussed,
is not always a valid solution from the GDPR’s point of view.
Other relevant initiatives such as EduCTX [31] are focused on different aspects of the
educational process since they propose issuing tokens as credits for learning units similar
to the European Credit Transfer System (ECTS), which academic institutions transfer to the
students for the courses that they complete.
From Tables 1 and 2, where different related proposals are described and compared
with the proposed design in this work, it can be concluded that almost all the initiatives
analyzed, except [32] and this proposal, utilize one single blockchain. This simplifies design
and implementation but limits performance and compromises scalability. Wahab et al. [33]
suggest the use of Tangle, a special rapid blockchain. However, at this time, it does not
fully support smart contracts.
Compliance with the GDPR and its requirements (e.g., data portability, accountability
of accesses and operations, data modification support, right to be forgotten, etc.) is not fully
addressed by any of the initiatives investigated, except for the design presented in this
research. Only Daraghmi et al. [17] and Lam and Dongol [34] take partially into account
some related aspects, but none addresses them specifically.
Academic information is stored in a combination of off-chain and blockchain systems
in 20 out of the 32 initiatives collected, according to different approaches. This storage
strategy is also utilized in this proposal. The rest of the works store data directly on-chain in
Appl. Sci. 2021, 11, 4537 5 of 24

various types of blockchain. Only in a few cases [1,17,35–37], data are encrypted to protect
them. The solution proposed in this paper also implements encryption for data protection.
The proposal discussed in this paper also includes provisions for data regeneration
to prevent information loss [31,34,35,38–44]. Moreover, all initiatives analyzed support
educational information to be directly verified except for Nicosia’s development [21], which
relies on a Portable Document Format (PDF) file to list the hash digests of issued certificates.
This contribution also supports a rich variety of academic data types [32,34–36,43–50],
including flexible record formats [34,46,47].
Another relevant feature provided by this conceptual framework is the possibility of
sharing only specific parts of the educational information of a given holder [32,45].
To facilitate access and verification of academic information, our solution supports
the generation of QR codes or websites [17,30,41,48,51].
Only two initiatives [38,52] in addition to this proposal support learning analytics
or statistics from the registered information. This feature may provide in the future still
unknown information on worldwide educational trends, the most demanded studies, the
profile of alumni from the characteristics of diplomas issued, etc.
Finally, some initiatives were identified that provide persistent storage even if the
issuing academic institution disappears [31,35,38,39,43–45]. To address this situation,
several approaches are utilized and, in the case of the contribution discussed in this paper,
it is addressed in a way that is compatible with the GDPR.
After a thorough analysis of the scientific literature about blockchain applications
in the field of education including relevant surveys [22–27], relevant challenges were
identified. They are enumerated below, together with the approaches followed in this
research to address them.
1. Education is a discipline with a global dimension that encompasses many stake-
holders who must exchange information despite the fact that their organizations are
independent. Blockchain brings many applications to this field that require a new
interconnection model [49] that is difficult to integrate into the proprietary systems of
each entity. The system proposed in this research is adaptable and does not require
different organizations to modify their information systems.
2. Achieving privacy in blockchain applications is a real challenge when personal in-
formation, protected by many regulations in different countries, is processed. Public
blockchains should not be chosen to tamperproof store personal information, even
encrypted [35], and consequently, private or consortium blockchains should be pre-
ferred [1]. However, from a privacy and regulatory point of view, in some countries
(e.g., European Union countries under the scope of the GDPR), it may not be a valid
solution [4]. Conscious of this issue, some proposals [1,17,38,46] store information
offline but register the corresponding hash digests on the blockchain to ensure the
integrity and traceability of information. Nonetheless, in some countries with more
permissive regulations (e.g., Brazil [39]) personal information can be openly stored
if related to public education. On the contrary, as pointed out above, the European
GDPR forbids registering any personal data in unmodifiable permanent storage such
as a blockchain [53], which must be anonymized. This is a relevant design constraint,
and it is important to emphasize that hashing personal data, from the GDPR’s point of
view, cannot be considered a completely valid anonymization technique [4]. Finally,
the immutability feature of blockchain also makes it impossible to modify or delete
data, even for legitimate reasons, which, in turn, collides with GDPR’s right to be
forgotten. The model proposed in this research solves this challenge with a design
that preserves the privacy of users and complies with the GDPR.
3. Storage, scalability, and performance of blockchain-based systems to issue, store,
and verify academic information are also key challenges to be addressed in order to
achieve its general adoption when the number of transactions containing academic
information increases. Present-day blockchain frameworks (Bitcoin, Ethereum, . . . )
have a very limited storage capacity, compared to other systems [35]. For example,
Appl. Sci. 2021, 11, 4537 6 of 24

the Bitcoin core protocol limits blocks to 1 MB in size [57], although there are spe-
cialized blockchain-based decentralized storage networks to store higher amounts
of data (IPFS, Storj, Sia, Filecoin, Swarm, etc.) [58]. The current blockchain-based
proposals present some issues related to their scalability, that is, the ability to handle
large volumes of transactions at high speeds. In general, state-of-the-art blockchain
implementations exhibit relatively low transaction efficiency and high confirmation
delays. As an example, seven transactions per second (tps) are achieved in Bitcoin
and 15 tps in Ethereum. In the case of Hyperledger, hundreds or even thousands
of tps can be obtained depending on the actual configuration utilized. In contrast,
centralized systems such as VISA can process a maximum of 24,000 tps [33,59].
Nowadays, millions of academic certificates are issued annually around the world.
As an example, according to the European Tertiary Education Register (ETER) [60], there
are 2465 higher education institutions hosting more than 17 million students at Bachelor,
Master, and PhD levels and 225 million students around the world in 2018 [61]. To address
the challenges of increased storage requirements, scalability and performance, the proposed
model combines on-chain and off-chain storage and distributes the blockchain system into
interconnected blockchains, respectively. Note that the aforementioned situation, with
many independent educational document issuers, facilitates a distributed approach.
Section 5 below discussed the model proposed in Section 3 to solve these issues,
together with related specific proposals with similar objectives summarized in Section 2.
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