Blockchain Digital Asset Provisioning for Controlled NFT Scarcity
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Solution Overview
Problem
The unauthorized reproduction and sale of digital products erode brand value and exclusivity, complicating a brand owner's control over digital object scarcity and limiting their ability to engage with consumers effectively.
Innovation Solution
A system and method utilizing cryptographic digital assets, decentralized computing systems, and blockchain control logic to create, distribute, and manage digital objects linked to physical products, enabling controlled scarcity and user interaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If digital products are made freely available, then accessibility and user engagement are improved, but brand exclusivity and value are eroded due to unauthorized reproduction
Solution Approach 1:
The patent divides the digital product into two separate components: a physical product and a unique digital token (NFT). The physical product can be accessed and used by consumers, while the digital token maintains exclusivity and brand value. This segmentation allows the physical and digital aspects to be treated differently, enabling accessibility without compromising exclusivity.
Solution Approach 2:
The patent introduces a blockchain-based digital token as an intermediary between the physical product and the digital realm. This intermediary element (the NFT) serves as a verifiable proof of authenticity and ownership, allowing consumers to access and use the physical product while maintaining brand exclusivity through the unique digital identifier.
2Quantity of substance
If digital objects are freely duplicated, then availability and user engagement are improved, but control over supply and exclusivity is lost
Solution Approach 1:
The patent uses cryptographic hashing and blockchain technology to create a unique digital copy (NFT) that can be verified but not copied. The digital token contains a hash of the physical product's identifier, creating a verifiable copy that proves authenticity without allowing unlimited duplication. The blockchain records ensure that each token is unique and cannot be replicated.
Solution Approach 2:
The patent changes the fundamental parameter of digital object identity from replicable data to unique cryptographic identifiers. By assigning each digital object a unique NFT with a specific hash value and blockchain record, the system transforms digital objects from easily duplicable copies to verifiably unique entities, enabling supply control while maintaining availability.
3Measurement precision
If physical anti-counterfeiting techniques are applied to digital products, then authentication accuracy is improved, but the ability to control digital scarcity and brand engagement is compromised
Solution Approach 1:
The patent replaces physical anti-counterfeiting techniques (such as holograms, serial numbers, and physical security features) with a digital cryptographic system. The blockchain-based NFT system provides authentication accuracy through cryptographic verification while enabling precise control over digital scarcity and brand engagement through programmable token characteristics.
Solution Approach 2:
The patent creates a universal digital token system that serves multiple functions simultaneously: authentication of physical products, verification of digital ownership, control of supply through programmable token characteristics, and enablement of brand engagement. The blockchain-based NFT system consolidates multiple functions into a single versatile platform, overcoming the limitations of physical anti-counterfeiting techniques.
Data Source
AI summary
A method of provisioning or distributing a cryptographic digital asset and supervising a secondary transfer of the digital asset includes receiving a transaction confirmation indicative of a completed transaction of a product from a first party to a second party; determining or receiving a unique owner identification (ID) code or wallet address of the second party; recording or transmitting a request to record ownership of the cryptographic digital asset to the unique owner identification (ID) code or wallet address of the second party; receiving a request to transfer the cryptographic digital asset to a second unique owner identification (ID) code or second wallet address; and recording or transmitting a request to record ownership of the cryptographic digital asset to the second unique owner identification (ID) code or second wallet address.