Geographic NFTs for Location-Based Digital Asset Trading
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Solution Overview
Problem
Existing systems lack an efficient approach to create, manage, and monetize non-fungible tokens (NFTs), particularly in digital asset markets, limiting creators' and collectors' ability to value and trade digital assets effectively.
Innovation Solution
A system and method that utilizes a computing device connected to a database via a network, incorporating modules for input, location determination, tokenization, search, trade, and payment, allowing users to create, manage, and trade NFTs by linking digital assets to geographic boundaries and enabling location-based searches and transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If digital assets are manually managed and traded, then creators can sell digital assets to collectors, but the capacity to monetize digital assets is limited due to lack of efficient search and management systems
Solution Approach 1:
The patent creates a multi-functional NFT platform that combines digital asset management, geographic location tracking, search capabilities, and trading functions into a single system. The NFTs serve multiple purposes: they represent ownership of digital assets, encode geographic location data, enable search functionality, and facilitate automated trading through smart contracts. This multi-functionality resolves the contradiction by increasing monetization capacity through integrated features while avoiding the need for multiple separate complex systems.
Solution Approach 2:
The patent introduces NFTs as an intermediary that bridges creators and collectors. The NFT acts as a mediator that encapsulates digital asset metadata, geographic location information, and trading rules, enabling automated matching between creators and collectors based on location criteria without requiring complex manual management processes. This intermediary resolves the contradiction by simplifying the trading process while enhancing monetization opportunities.
2Adaptability or versatility
If digital assets are associated with geographic locations, then location-based search and trade capabilities are enabled, but the system complexity increases due to integration of location modules and geographic boundary management
Solution Approach 1:
The patent merges geographic location data and geographic boundary definitions directly into the NFT structure itself. Instead of maintaining separate location management systems, the geographic information is combined with the digital asset metadata in a single integrated NFT object. This merging resolves the contradiction by enabling location-based trading versatility while reducing overall system complexity through consolidation.
Solution Approach 2:
The NFT serves as a universal container that simultaneously holds digital asset data, geographic location coordinates, and geographic boundary definitions. This multi-functional design enables the same NFT object to be used for asset representation, location-based search, and trading logic execution, resolving the contradiction by providing versatility without requiring separate specialized systems.
3Productivity
If NFTs are created with geographic boundaries and location data, then efficient location-based search and automated trading are enabled, but the tokenization process becomes more complex
Solution Approach 1:
The patent implements preliminary action by pre-defining geographic boundaries and location criteria within the NFT during the tokenization process. Instead of requiring complex real-time location verification during trading, the geographic constraints are established in advance as part of the NFT metadata. This preliminary configuration enables efficient automated trading by pre-computing location-based matching logic, resolving the contradiction by improving trading efficiency while managing tokenization complexity through upfront setup.
4Ease of operation
If manual management of digital asset transactions is used, then simple system structure is maintained, but it is difficult to manage sets of digital assets and related transactions
Solution Approach 1:
The patent implements self-service through automated smart contracts that execute trading logic based on pre-defined geographic criteria. The system automatically matches buyers and sellers based on location data embedded in NFTs, verifies geographic constraints, and executes transactions without requiring manual intervention. This self-service automation resolves the contradiction by dramatically improving ease of operation for managing multiple digital assets while the automated nature of the system prevents exponential complexity growth that would occur with manual management of large asset sets.
Data Source
AI summary
A system and method for creating, collecting, and managing non-fungible tokens (NFT) is disclosed. The system comprises a computing device in communication with a database via a network. Further, a first user device associated with a first user and a second user device associated with a second user is in communication with the computing device. The computing device is configured to receive information related to digital assets from the first user. The computing device is further configured to receive the digital asset from the first user. The computing device is configured to receive a geographic information determined by the first user to trade the digital asset and associate the digital asset to the geographic information. Further, a NFT comprising the digital asset is created. The computing device enables to trade the NFT when a geographic information of second user corresponds to the geographic information of the digital asset.