IoT Telemetry Sharing via NFTs for Privacy-Preserving Recommendations

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Solution Overview

Problem

Existing IoT systems face challenges in securely transmitting telemetry data to authorized third parties while ensuring data integrity and user privacy, and determining device-specific recommendations.

Innovation Solution

The system utilizes Non-Fungible Tokens (NFTs) minted by IoT device manufacturers, linking device and user identifiers, with smart contracts defining data transmission criteria, enabling secure and real-time data transfer to third parties via a bridge protocol and machine learning models for user-specific recommendations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If IoT telemetry data is transmitted to third parties, then data utilization and recommendations are improved, but user privacy and data security are compromised

Engineering Contradiction:
Improvedata utilizationVSAvoiduser privacy exposure
Core Design Contradiction:
Adaptability or versatilityVSObject-affected harmful factors

Solution Approach 1:

The patent introduces NFTs as intermediary tokens that mediate between IoT devices and third parties. These NFTs contain cryptographic proofs and device identifiers without exposing raw user data, enabling third parties to verify device authenticity and receive telemetry data while user identity remains protected. The NFT acts as a trustless intermediary that facilitates data sharing without direct exposure of sensitive user information.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent transforms user identity protection from a binary state (exposed/hidden) to a cryptographic parameter space. By using cryptographic proofs, hashed identifiers, and token-based authentication, the system changes the parameter of identity representation from plaintext user data to mathematical proofs that verify authenticity without revealing underlying identities. This allows data utilization while maintaining privacy through parameter transformation.

Inventive Principle:
Principle #35Parameter changes

2Speed

If real-time telemetry data transmission is implemented, then system responsiveness and recommendation accuracy are improved, but network bandwidth and system complexity increase

Engineering Contradiction:
Improvedata transmission speedVSAvoidsystem complexity
Core Design Contradiction:
SpeedVSDevice complexity

Solution Approach 1:

The patent implements preliminary actions by pre-minting NFTs with embedded device identifiers, cryptographic proofs, and access permissions before data transmission occurs. These NFTs are stored in distributed ledgers in advance, so when real-time telemetry data needs to be transmitted, the authentication and authorization framework is already in place. This eliminates the need for complex real-time authentication negotiations, reducing system complexity while maintaining fast data transmission.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The patent uses cryptographic copying mechanisms where NFTs contain replicated device identifiers and authentication proofs that can be verified by multiple third parties simultaneously. Instead of creating complex point-to-point authentication channels for each data transmission, the system creates cryptographic copies of device identity proofs in NFT format that can be independently verified, reducing the complexity of real-time authentication infrastructure.

Inventive Principle:
Principle #26Copying

3Reliability

If third parties access IoT device identifiers, then data verification and trust are improved, but user anonymity and privacy protection are reduced

Engineering Contradiction:
Improvedata verificationVSAvoiduser anonymity
Core Design Contradiction:
ReliabilityVSLoss of information

Solution Approach 1:

The patent segments device identification information into multiple cryptographic components stored within NFTs. Instead of containing the full device identifier in plaintext, the NFT stores segmented cryptographic proofs, hashed portions of identifiers, and zero-knowledge proof components. This segmentation allows third parties to verify device authenticity through cryptographic validation while the complete device identifier and user identity remain segmented and hidden, maintaining both verification reliability and user anonymity.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent replaces mechanical/exposure-based verification systems with cryptographic verification mechanisms. Instead of third parties directly accessing and viewing device identifiers through traditional authentication channels, the system substitutes this with cryptographic proof verification using NFTs. Third parties verify device authenticity through mathematical proofs and cryptographic signatures embedded in NFTs, eliminating the need for direct exposure of device identifiers and user information.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS12530677B2Machine learning based system for processing device telemetry in a distributed computing environment
Publication Date: 2026.01.20 BANK OF AMERICA CORP
  • US12530677B2 patent drawing
  • US12530677B2 patent drawing
  • US12530677B2 patent drawing

AI summary

Real-time transmission of IoT telemetry data to a third-party and use of such data by the third-party for purposes of determining IoT device-related recommendations specific to the IoT device user. Machine learning models receive the IoT telemetry data, as a least a part of the inputs, to determine recommendations that are tied to the IoT device and specific to the IoT device user. Non Fungible Tokens (NFTs) are minted by the IoT device manufacturer/distributor and hold a link to an IoT device identifier and an IoT device user identifier and include a smart contract formed between the third-party and the IoT device user that defines the criteria for the telemetry data that is to be acquired by the third-party. Use of the NFT allows for IoT gateways/data listeners to determine which IoT telemetry data is to be transmitted to the third-party and allows for the transmission to occur without identifying the IoT user in the transmissions.