Dynamic Asset Tokens With Hash-Verified Off-Chain Updates
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Solution Overview
Problem
Distributed ledgers, such as blockchains, fail to reflect modifications to assets represented by non-fungible tokens (NFTs) after their creation, limiting their utility in tracking changes to assets.
Innovation Solution
Implementing dynamic asset tokens that maintain an off-chain repository to store asset attributes and use cryptographic hashes to verify and update NFTs on a distributed ledger, ensuring that modifications to assets are recorded and verified.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If NFTs are created on a distributed ledger with immutable data storage, then data security and immutability are improved, but the ability to reflect modifications to assets over time deteriorates
Solution Approach 1:
The system divides the NFT data into two segments: immutable metadata stored on the distributed ledger and mutable attribute data stored off-chain in a repository. This allows the core identity and ownership information to remain immutable while enabling dynamic updates to asset attributes through off-chain storage that can be referenced by the NFT.
Solution Approach 2:
The patent introduces an off-chain repository as an intermediary between the distributed ledger and the asset attributes. This repository stores the actual asset data and modification history, allowing the NFT on the ledger to reference current attributes without compromising the immutability of the ledger itself, thus resolving the contradiction between immutability and adaptability.
2Measurement precision
If NFTs store all asset attributes directly on the distributed ledger, then data verifiability is improved, but storage capacity and system complexity deteriorate
Solution Approach 1:
The system extracts large amounts of asset attribute data from the distributed ledger storage and places it in an off-chain repository. Only essential NFT metadata and references are stored on the ledger, while detailed asset information is maintained externally, reducing on-chain storage requirements and system complexity while preserving verifiability through cryptographic references.
Solution Approach 2:
The patent moves asset attribute storage from the traditional on-chain dimension to an off-chain repository dimension. This dimensional shift allows the distributed ledger to maintain its primary function of secure, verifiable record-keeping while the off-chain repository handles the bulk of data storage, effectively separating storage concerns and reducing overall system complexity.
Data Source
AI summary
A system described herein may maintain a distributed ledger that includes records, such as Non-Fungible Tokens (“NFTs”), which may represent assets dynamic attributes. The system may record a first record, associated with a given asset, to a distributed ledger. The first record may include an identifier, such as an identifier associated with the asset. The system may receive a request to update the attributes of the asset, where the request may include the identifier. The request may include a hash of the previously recorded attributes of the asset, where such attributes may be maintained by an off-chain repository. The system may compare a hash of the attributes, as included in the first record, to the hash included in the request, and may authorize the recordation of a second record to the distributed ledger, including the updated attributes, when the hashes match.