Dynamic NFT Account Rules for Real-Time Bank Compliance

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Solution Overview

Problem

Existing computing architectures struggle to manage complex, dynamic bank account rules in real-time, leading to missed opportunities and compliance issues due to the complexity of managing multiple accounts with varying contractual conditions.

Innovation Solution

A system utilizing a distributed ledger with non-fungible tokens (NFTs) and smart contracts to enforce and dynamically update account rules in real-time, ensuring compliance through a tamper-proof and auditable storage mechanism.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional computing architectures are used to manage multiple bank accounts with dynamic rules, then the system can handle basic account operations, but the complexity of managing and ensuring real-time compliance with multiple dynamic rules becomes too great for human operators and existing systems

Engineering Contradiction:

Improvecompliance with account rulesVSAvoidcomplexity of managing dynamic rules

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent replaces conventional computing architectures with a blockchain-based distributed ledger system. The blockchain network uses consensus mechanisms and smart contracts to automatically enforce account rules, eliminating the need for complex human-operated systems and achieving reliable real-time compliance through cryptographic verification and decentralized consensus.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system implements self-service through smart contracts that automatically execute account rules and compliance checks without human intervention. The blockchain network itself maintains the rules and enforces them through its consensus mechanism, making the system self-regulating and eliminating dependency on external operators to manage complexity.

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If the number of accounts with specific rules increases, then the system can provide more specialized financial services, but ensuring compliance with each specific rule becomes too complex to be handled by human operators

Engineering Contradiction:

Improvevariety of account types and rulesVSAvoidease of managing compliance

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent creates a universal blockchain-based platform that can accommodate multiple account types and rule sets through a single system. Smart contracts provide a universal mechanism for encoding different account rules, allowing the system to handle diverse financial products (savings accounts, investment accounts, checking accounts) with varying compliance requirements through the same underlying technology infrastructure.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system enables easy modification of account rules by changing smart contract parameters rather than rewriting entire compliance systems. Account rules are stored as configurable parameters in the blockchain, allowing financial institutions to adapt to new regulations or modify account terms by updating smart contract configurations, thereby maintaining ease of operation despite increased versatility.

Inventive Principle:

Principle #35Parameter changes

3Productivity

If human operators manually manage complex account rules, then the system can handle current account volumes, but opportunities to increase account value or liquidate accounts profitably are missed due to lack of real-time monitoring

Engineering Contradiction:

Improveaccount management efficiencyVSAvoidtime to detect and act on opportunities

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The blockchain system provides continuous real-time monitoring and automatic execution of account rules without interruption. Smart contracts continuously track account balances, transactions, and market conditions, enabling immediate detection and execution of profitable opportunities such as optimal liquidation timing or interest rate adjustments, eliminating the delays inherent in manual human operation.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The system implements continuous feedback loops where smart contracts monitor account conditions in real-time and automatically adjust operations based on current state. The blockchain network provides immediate feedback on transaction compliance and account status, enabling the system to react instantly to changing conditions and maximize account value through timely automated decisions.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS12481981B2Operational lifecycle management using a dynamic non-fungible token

Publication Date: 2025.11.25 BANK OF AMERICA CORP

AI summary

This application describes an autonomous system for utilizing a non-fungible token (“NFT”) to manage dynamic operational conditions applied to bank account. The autonomous system may include a dynamic NFT stored on a distributed ledger. The dynamic NFT may include non-editable fields and editable fields. The autonomous system may include a static NFT stored on the distributed ledger. The dynamic and static NFTs may be linked to an account. The static NFT may define operating conditions for the non-editable account number. The autonomous system may include a smart contract that executes on the distributed ledger. The smart contract may detect a change in a value stored in the editable field of the dynamic NFT. The smart contract may locate operating conditions stored in the static NFT. Based on the operating conditions and the value, the smart contract may take action to manage the corresponding account.