Containerized NFT Format Transformation Across Fiat Denominations
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Solution Overview
Problem
Conventional systems struggle to accurately identify market characteristics that drive the value of digital assets with varying scarcity characteristics and cannot effectively execute transactions involving non-fungible tokens (NFTs) across different denominations.
Innovation Solution
A method and system for transferring NFTs in a financial institution that involves registering an NFT account, identifying NFTs with transfer properties and volatility metrics, determining a modified value property, and transferring the NFT and currency based on these properties to ensure compatibility and security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional systems are used to transfer digital assets, then system simplicity is maintained, but the ability to accurately identify market characteristics and execute transactions involving NFTs across different denominations is insufficient
Solution Approach 1:
The patent introduces an NFT transaction processor as an intermediary component that bridges conventional financial systems and NFT markets. This processor contains specialized modules (NFT identification module, valuation module, volatility analysis module) that enable the system to handle NFT transactions across different denominations without requiring complete system redesign, thus improving adaptability while controlling complexity.
Solution Approach 2:
The system is segmented into distinct functional modules: NFT identification module that detects transfer properties and volatility metrics, valuation module that determines modified value properties, and transaction execution module that processes transfers. This segmentation allows each module to specialize in specific tasks, improving overall system adaptability to NFT transactions while maintaining manageable complexity through modular design.
2Measurement precision
If NFT valuation is based on multiple factors including volatility metrics, then valuation accuracy is improved, but computational requirements and processing time increase
Solution Approach 1:
The system performs preliminary actions by pre-calculating and storing volatility metrics and transfer properties of NFTs before actual transactions occur. The NFT identification module continuously monitors and updates these parameters, so when a transaction is initiated, the valuation module can quickly retrieve pre-computed data and perform rapid valuation, improving both accuracy and speed by reducing real-time computational burden.
Solution Approach 2:
The system dynamically adjusts valuation parameters based on real-time conditions. The valuation module modifies the value property of NFTs by incorporating volatility metrics and transfer properties, creating a modified value property that reflects current market conditions. This parameter adjustment approach enables accurate valuation without requiring complete re-analysis of all underlying factors for each transaction.
3Reliability
If transfer properties and volatility metrics are monitored for each NFT, then transaction security and compliance are improved, but data processing complexity and storage requirements increase
Solution Approach 1:
The NFT identification module is designed with multi-functionality, serving multiple purposes: identifying transfer properties, calculating volatility metrics, verifying transaction compliance, and providing data for valuation. This universal module reduces overall system complexity by consolidating multiple specialized components into a single versatile unit that handles various aspects of NFT transaction monitoring and security.
Data Source
AI summary
Aspects of this technical solution can include identifying an NFT linked with a first public and private key pair associated with the source account, having a transfer property indicating that the NFT is transferable from the source account, having a value property denominated in fiat currency, and having a volatility metric based on one or more requests to transfer the NFT prior to or concurrently with the request, transferring the NFT from the first public and private key pair to a second public and private key pair linked with the NFT transaction processor and associated with an institution account of the financial institution, generating a third public and private key pair linked with the second customer computing device and associated with the recipient account, and transferring the amount of currency from the second public and private key pair to the third public and private key pair.