# Overview

**The Permission Protocol** is an on-chain ledger that records and maintains a public, auditable history of data-sharing agreements and permissions. It is designed to make data transactions more transparent by establishing a verifiable record of **who** is permitted to use data, **for what purposes**, **under which referenced terms**, and whether that permission is **active, expired, or revoked**. The Protocol does not store personal data; it records the binding facts that support compliance, governance, and dispute resolution.

### Entities

#### Data Providers

**Data Providers** are individuals or sources of data who authorize the use of their data. The Protocol enables providers to grant permission tied to a specific agreement and to revoke that permission when allowed by the agreement, creating an immutable record of authorization over time.

#### Data Consumers

**Data Consumers** are companies or agents that request access to data for defined purposes. The Protocol enables consumers to rely on a consistent, independently verifiable record that permission exists and to demonstrate the current status of permission to partners, auditors, and compliance teams.

#### Data Processors

**Data Processors** act on behalf of a consumer to store, analyze, or otherwise process data. The Protocol supports processor involvement by making permissions verifiable and referenceable, so processors can confirm that processing is tied to an active permission record and the governing terms.

### Service Providers

A **Service Provider** is a website or platform that implements the Permission Protocol to operate a real-world data-sharing system. The service provider typically:

* publishes or hosts the underlying terms referenced by agreements,
* collects and stores data off-chain,
* enforces access to that data based on on-chain permission status, and
* may reward providers for granting permission, using its own commercial and operational payout systems.

In short: **the Protocol records and proves permission; the service provider delivers the terms, the data access, and the user experience.**

### Key components

#### Decentralized Identifiers

The Protocol uses **Decentralized Identifiers** to represent parties in a consistent, portable way. These identifiers allow providers and consumers to be referenced across systems without relying on a single platform’s internal user database.

#### Agreements

An **Agreement** is the public on-chain record that references the governing terms and permitted purposes for data use. It anchors a fingerprint of the terms so the terms relied upon can be verified later.

#### Proof of Permission

A **Proof of Permission** is the on-chain record that a provider authorized a specific agreement, including the permission’s lifecycle status over time, such as active, expired, or revoked.


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