Location-Based NFTs for Privacy-Preserving User Rewards
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Solution Overview
Problem
Current augmented reality and virtual reality technologies lack transactional capabilities at specific physical locations, leading to repetitive and short-lived experiences, and invasive privacy practices, failing to provide personalized and dynamic location-based experiences that leverage user engagement and behavior.
Innovation Solution
A system that records user data at specific locations and segregates it by time using non-fungible tokens (NFTs) associated with user positions and times, governed by smart contracts, enabling decentralized identity management and secure, transactional capabilities without compromising user privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If user location data is continuously tracked and stored with personally identifiable information, then location-based personalization and rewards are enabled, but user privacy is compromised
Solution Approach 1:
The patent extracts personally identifiable information (PII) from location tracking data by using decentralized identifiers (DIDs) and cryptographic hashing. Instead of storing raw location data linked to user identities, the system stores only hashed location signatures and transaction histories on the blockchain, separating identifiable information from behavioral data while maintaining personalization capabilities.
Solution Approach 2:
The patent introduces blockchain technology and decentralized identifiers as intermediaries between users and location-based services. The blockchain acts as a trustless mediator that verifies location events and stores rewards without requiring centralization of user data, enabling personalization through cryptographic proofs rather than direct access to PII.
2Ease of operation
If traditional centralized systems track user location for transactions, then transactional capabilities are achieved, but system complexity and security risks increase
Solution Approach 1:
The patent implements self-service through smart contracts that automatically execute location-based transactions without centralized intermediaries. When a user's device detects they are at a target location, the smart contract autonomously verifies the location proof and executes the reward distribution, eliminating the need for complex centralized transaction processing systems.
Solution Approach 2:
The patent replaces traditional mechanical centralized authentication and transaction systems with cryptographic verification mechanisms. Instead of relying on centralized servers to verify user identities and process transactions, the system uses blockchain-based cryptographic proofs to validate location events and execute transactions, reducing system complexity while enhancing security.
3Productivity
If location-based experiences are made dynamic and personalized, then user engagement increases, but data management complexity increases
Solution Approach 1:
The patent segments location-based experiences into discrete, independently verifiable blockchain transactions. Each location event is recorded as a separate transaction with its own cryptographic proof, allowing the system to manage complex personalized experiences through simple, atomic operations rather than requiring centralized data processing of continuous location streams.
Data Source
AI summary
A user position is tracked with a smart phone or other device or mechanism. NFTs associated with a current position are identified in real-time with movement. Certain NFTs are also related to a current time at the current position. Transactions are recorded in the associated NFTs.