Blockchain transaction system and method

Abstract

The invention aims to provide a way to preserve the uniqueness and ownership information of physical artworks while making them tradeable and manageable globally. [Solution] This invention proposes a method that utilizes blockchain technology to obtain characteristic data of a physical artwork and transmit it to the blockchain to generate a unique NFT. A smart contract is then created to divide this unique NFT into i shares (i is an integer greater than or equal to 1). The smart contract is then tied to the i shares and further divides these shares equally into n unique NFT partial values ​​(n is an integer greater than or equal to 1). This method converts real-world artworks into digital token NFTs, overcoming geographic and physical constraints and significantly improving the artwork's liquidity and market accessibility.

Description

[Technical Field]

[0001] The present invention relates to the fields of blockchain technology, digital art and financial investment technology, and in particular to a blockchain trading system and method. [Background technology]

[0002] The development of smart contracts on blockchain platforms such as Ethereum has enabled increasingly complex transaction types, enabling the art market to implement the types of transactions required for futures and options trading. These developments have made it possible to create complex financial products in the blockchain space, similar to traditional financial markets but with the additional benefits of decentralization, transparency, and security that blockchain offers. Additionally, the concept of decentralized finance (DeFi) has also developed, providing the foundation and precedent for creating and trading complex financial products on the blockchain. Traditionally, art investment required physical ownership, which came with high barriers to entry, limited liquidity, and provenance challenges. The emergence of blockchain technology and NFTs has begun to change this investment model, making it possible to digitize art assets, provide immutable provenance, and increase liquidity through digital markets. However, these advancements have primarily focused on immediate ownership of digital or digitized artworks, leaving the potential for future value speculation and investment strategies common in other asset classes underutilized. Therefore, we designed a blockchain transaction system and methodology. Summary of the Invention [Problem to be solved by the invention]

[0003] The object of the present invention is to provide a blockchain transaction system and method for solving the problems raised in the background art above. [Means for solving the problem]

[0004] To achieve the objectives of the present invention, the following technical means is provided: a token trading method based on blockchain technology, which includes the following steps: acquiring characteristic data of a real artwork, and transmitting the characteristic data to a blockchain to generate a unique NFT. Create a smart contract to split the unique NFT into i shares, where i is an integer greater than or equal to 1, and bind the smart contract to these i shares. Equally divide the value of n unique NFT portions based on i shares, where n is an integer greater than or equal to 1. When the same account purchases i shares, a smart contract is entered into by default. Preferably, the characteristic data of the physical artwork includes its creator, history, provenance and image data, obtaining a brightness value for each pixel of the image data and sequentially arranging all brightness values ​​of the physical artwork in a unique order, encrypting and hashing all brightness values ​​of the physical artwork arranged in the unique order to obtain a unique identification information of the physical artwork, and transmitting the identification information to a blockchain cloud storage. Preferably, the smart contract includes the contract duration, the strike price of the option, the expiry date of the futures contract or the exercise conditions of the option. Preferably, feature data of the actual artworks corresponding to the i shares is distributed and stored. Preferably, the method for creating a smart contract includes setting up a terms and conditions confirmation field and setting up an escrow and contractual obligation confirmation field. Preferably, the method for purchasing i shares includes verifying identity, selecting and purchasing i shares, verifying terms and conditions, and verifying escrow and contractual obligations. Preferably, the method for automatically executing a smart contract includes obtaining the current time in real time and comparing the contract period with the current time to determine whether to terminate the contract, and obtaining the market price in real time and comparing the strike price of the option with the market price to determine whether to terminate the contract. Preferably, if the current time is equal to or greater than the contract period, it is determined that the contract has ended, and if the current time is less than the contract period, it is not determined that the contract has ended. Preferably, if the market price is equal to or higher than the exercise price of the option, it is determined that the contract has terminated, and if the market price is lower than the exercise price of the option, it is not determined that the contract has terminated.

[0005] This is a token trading system that applies to token trading methods based on blockchain technology, and its features are as follows: The token trading system includes an art asset tokenization and derivatives module for converting physical art assets into digital asset NFTs and linking the physical art NFTs with smart contracts. Includes transaction security and automation modules, executing transaction processes, enforcing terms, escrow and contractual obligations. and to include crowdfunding, P2P and presale integration modules to build a public crowdfunding platform for physical art NFT owners. [Effects of the Invention]

[0006] The present invention provides a blockchain transaction system and method, which has the following beneficial effects: Through the tokenization and derivatives module for art assets, real-world physical artworks are converted into digital tokens (NFTs), allowing them to be traded and managed globally while retaining their uniqueness and ownership information. This transformation breaks down the geographical and physical constraints of the traditional art market, significantly improving the liquidity and market accessibility of physical artworks.

[0007] In addition to supporting the direct buying and selling of physical artworks, the introduction of derivatives such as futures and options into the NFT ecosystem allows investors to speculate on the future value of physical artworks, bringing new investment strategies and tools to the art market, allowing investors to realize capital appreciation through predictions of future art values.

[0008] Through the transaction security and automation module, the system utilizes distributed ledger technology and smart contracts to ensure the secure execution of transactions, and provides decentralized escrow services and automated contract enforcement, a mechanism that significantly reduces fraud risks in the transaction process and strengthens trust among market participants.

[0009] The crowdfunding, P2P and presale integration module integrates crowdfunding, P2P trading and presale mechanisms to fund art projects and realize a direct connection between artists and investors, providing artists with more diverse funding options and investors with more direct participation and early investment opportunities.

[0010] Through the application of blockchain technology, the history of all transactions and physical artworks is recorded on the chain in an immutable manner, providing a strong guarantee of market fairness and transparency. DETAILED DESCRIPTION OF THE INVENTION

[0011] Hereinafter, with reference to the drawings in the embodiments of the present invention, the technical means in the embodiments of the present invention will be clearly and completely described. Obviously, the described embodiments are only some embodiments of the present invention and do not cover all embodiments. Based on the embodiments of the present invention, a person skilled in the art can understand that all other embodiments obtained without creative efforts are included in the protection scope of the present invention. [Example]

[0012] See Figure 2. In this example, a token trading system based on blockchain technology is provided. The token trading system includes: Art Asset Tokenization and Derivatives Module: This module converts physical art assets into digital asset NFTs and ties physical art NFTs to smart contracts. NFTs (Non-Fungible Tokens) are unique digital assets that use blockchain technology to prove the ownership and authenticity of specific items or content (artworks, music, videos, etc.). NFTs have unique attributes and cannot be exchanged for other NFTs. This module enables the buying, selling, and trading of digital artworks and collectibles in online marketplaces, ensuring that the rarity, provenance, and ownership of digital items are reliably verified. Transaction Security and Automation Module: This is for executing the transaction process and enforcing the terms of the transaction, escrow and contractual obligations. Crowdfunding, P2P and Presale Integration Module: This is to establish a public crowdfunding platform for physical art NFT owners.

[0013] Specifically, the Art Asset Tokenization and Derivatives Module (AATD Module for short) will consist of the following: Physical Art Asset Tokenization Sub-Module: The primary purpose of this module is to convert physical art assets into digital asset NFTs. This process preserves the authenticity and ownership details of the artworks, allowing these assets to be traded and managed within the digital ecosystem. This component uses Ethereum's ERC-721 standard to mint unique NFTs for each art asset. The minting process includes recording the artwork's detailed information (creator, history, provenance, etc.) on the blockchain, ensuring each NFT is a true digital representation of the real-world art asset. NFT Derivatives Sub-Module: In addition to simple tokenization, the AATD module introduces the management and trading of NFT futures and options based on physical or digital artworks. This brings new financial complexity to the art market, allowing investors and collectors to speculate on the future value of these digital art assets. This sub-module features a derivatives trading platform for issuing, managing, and trading NFT futures and options based on physical or digital artworks. This significantly increases the liquidity of artworks as an asset class, opening up the art market to a wider audience, making it accessible to those interested in the speculative value of art, but who are not necessarily collectors in the traditional sense.

[0014] Next, the Transaction Security and Automation module (abbreviated as TSA module) includes: Distributed Ledger Submodule: This submodule uses distributed ledger technology (DLT) to securely process transactions, specifically on the Ethereum blockchain. Blockchain properties such as immutability, transparency, and decentralization strengthen the system's defense capabilities and prevent fraud and tampering. Transaction Integrity Using Smart Contracts: At the heart of TSA is the use of smart contracts to automate the transaction process and enforce terms, escrows, and contractual obligations, ensuring that each party adheres to the agreed-upon terms without the need for intermediaries. Decentralized Escrow Sub-Module: The TSA module provides a decentralized escrow service, holding assets and funds securely on the blockchain until transaction conditions are met. Contract Fulfillment Submodule: This submodule monitors the fulfillment of contract milestones and automatically triggers required actions when conditions are achieved. [Example]

[0015] See Figure 1. Based on the above embodiment, a token trading method based on blockchain technology is provided. The method is implemented using the above token trading system based on blockchain technology, and includes: It captures the characteristic data of the actual artwork and sends it to the blockchain to generate a unique NFT. Create a smart contract to split the unique NFT into i shares, where i is an integer greater than or equal to 1, and bind the smart contract to these i shares. Equally divide the value of n unique NFT portions based on i shares, where n is an integer greater than or equal to 1. When the same account purchases i shares, a smart contract is entered into by default.

[0016] Specifically, to obtain characteristic data of the physical artworks, various devices such as cameras, scanners, and sensors are used to photograph, scan, or collect the physical artworks. The data obtained by these devices includes the image, size, material, color, shape, and other characteristics of the artworks. This characteristic data is digitized and encryption algorithms are used to ensure the security and integrity of the data. The digitized characteristic data of the physical artworks is then sent to the blockchain network.

[0017] How unique NFTs and share allocation are implemented: A hashing algorithm is used on the blockchain to calculate the characteristic data of a physical artwork and generate a unique identifier for the characteristic data of the physical artwork (NFT). To achieve share allocation, a smart contract is created to manage the division and trading of the NFT. The smart contract equally divides the NFT into i shares, and each share is associated with a smart contract. In this way, each share represents a portion of the characteristic data of the physical artwork and can be traded and authenticated independently. This provides a new financial tool for investment and trading in artworks, realizing a more efficient and secure trading environment.

[0018] The basic principles, main features and advantages of the present invention have been shown and described above. Those skilled in the art should understand that the present invention is not limited to the above embodiments, and that the above embodiments and the description in the specification are merely preferred examples of the present invention and are not used to limit the present invention. Various changes and modifications can be made to the present invention without departing from the spirit and scope of the present invention, and they fall within the scope of the claimed invention. The scope of the claimed invention is defined by the appended claims and their equivalents. [Brief explanation of the drawings]

[0019] [Figure 1] 1 is a flowchart of a token trading method based on blockchain technology of the present invention. [Figure 2] 1 is a flow diagram of a token trading system based on the blockchain technology of the present invention.

Claims

1. A token trading method based on blockchain technology, comprising the following steps: acquiring characteristic data of a physical artwork and transmitting the characteristic data to a blockchain to generate a unique NFT; creating a smart contract to divide the unique NFT into i shares, where i is an integer greater than or equal to 1, and associating the smart contract with the i shares; and equally dividing the partial value of n unique NFTs based on the i shares, where n is an integer greater than or equal to 1. The process by which a smart contract is entered into by default when the same account purchases i shares.

2. The token trading method based on blockchain technology as recited in claim 1 is characterized in that the characteristic data of the physical artwork includes its creator, history, provenance and image data, obtaining the brightness value of each pixel of the image data and sequentially arranging all brightness values ​​of the physical artwork in a unique order; encrypting and hashing all brightness values ​​of the physical artwork arranged in a unique order; obtaining unique identification information of the physical artwork and sending the identification information to blockchain cloud storage.

3. The token trading method based on blockchain technology as described in claim 1 is characterized in that the smart contract includes a contract period, an option exercise price, and a futures contract maturity or option exercise condition.

4. The token trading method based on blockchain technology as described in claim 1 is characterized as follows: characteristic data of physical artworks corresponding to i shares are distributedly stored.

5. The token trading method based on blockchain technology as described in claim 1 is characterized as follows: the smart contract creation method includes setting a transaction conditions confirmation field and setting an escrow and contract obligation confirmation field.

6. The token trading method based on blockchain technology as recited in claim 5 is characterized in that the method for purchasing i shares includes verifying identity information, selecting and purchasing i shares, checking the transaction terms confirmation section, and checking the escrow and contractual obligation confirmation section.

7. The token trading method based on blockchain technology as recited in claim 3 is characterized as follows: the method for automatically executing a smart contract includes obtaining the current time in real time, comparing the contract period with the current time to determine whether to terminate the contract, and obtaining the market price in real time, comparing the option exercise price with the market price to determine whether to terminate the contract.

8. The token trading method based on blockchain technology as described in claim 7 is characterized as follows: if the current time is equal to or greater than the contract period, it is determined that the contract has ended, and if the current time is less than the contract period, it is not determined that the contract has ended.

9. The token trading method based on blockchain technology as described in claim 7 has the following features: if the market price is equal to or greater than the strike price of the option, it is determined that the contract has terminated, and if the market price is less than the strike price of the option, it is not determined that the contract has terminated.

10. A token trading system applicable to the token trading method based on blockchain technology as claimed in any one of claims 1 to 9, characterized in that the token trading system includes an art asset tokenization and derivatives module for converting physical art assets into digital asset NFTs and linking the physical art NFTs with smart contracts; a transaction security and automation module for executing the transaction process, enforcing transaction terms, escrow, and contractual obligations; and a crowdfunding, P2P, and pre-sale integration module for building a public crowdfunding platform for physical art NFT owners.

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