NFT Asset Management via Cryptographic Embedding
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Solution Overview
Problem
Current NFT systems lack secure coupling between digital and physical assets, leading to invalidation of NFTs if the linked digital asset changes and vulnerability to fraudulent activities, as buyers only purchase the NFT rather than the asset it represents, which can result in loss for creators and violation of copyright.
Innovation Solution
A system that generates and stores cryptographically secured assets representing ownership, copyright, and distribution rights for digital and physical assets on a blockchain, embedding these assets within the digital or physical asset representations, allowing for secure validation and proof of ownership through computer algorithms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If NFT contains a link to digital asset, then NFT can represent digital asset, but if the link is changed the NFT becomes invalid and worthless
Solution Approach 1:
The patent merges the NFT with the actual digital asset by embedding the NFT directly into the digital asset file structure. This creates an integrated system where the NFT and digital asset become a unified entity, eliminating the separate link that could be broken or changed. The NFT is no longer a separate token pointing to an asset, but is instead permanently embedded within the asset itself.
Solution Approach 2:
The patent introduces a file structure intermediary layer that sits between the NFT data and the digital asset content. This intermediary structure (with fields like 'nft' containing 'data' and 'hash') acts as a stable binding mechanism that ensures the NFT remains permanently associated with the digital asset it represents, preventing invalidation even if external links change.
2Ease of operation
If anyone can generate NFT for digital asset, then NFT creation is accessible, but fraudulent activity increases and creator copyright is violated
Solution Approach 1:
The patent performs preliminary validation by computing and storing a cryptographic hash of the digital asset within the embedded NFT structure before the NFT is created or transferred. This pre-established hash serves as a permanent fingerprint that proves the specific version of the digital asset the NFT represents, preventing fraudsters from creating NFTs for unauthorized or modified versions of the asset.
Solution Approach 2:
The patent implements a validation feedback mechanism where systems can verify NFT authenticity by checking if the embedded hash matches the hash of the actual digital asset. This creates a closed-loop verification system that provides immediate feedback on whether an NFT is legitimate, enabling buyers, creators, and platforms to automatically detect and reject fraudulent NFTs.
3Productivity
If buyer purchases NFT but not the digital asset, then transaction can occur, but buyer loses economic benefit and creator rights are violated
Solution Approach 1:
By embedding the NFT directly into the digital asset file, the patent ensures that when a buyer purchases the NFT, they are effectively purchasing the digital asset itself. The NFT and digital asset become inseparable, so transferring the NFT automatically transfers ownership of the underlying asset, eliminating the disconnect between NFT ownership and asset ownership that enables fraud.
Solution Approach 2:
The patent creates a cryptographic copy (hash) of the digital asset that is embedded within the NFT structure. This cryptographic copy serves as an immutable fingerprint that travels with the NFT, ensuring that the NFT always represents the specific version of the digital asset it was created for, maintaining the integrity of the ownership relationship throughout the asset's lifecycle.
Data Source
AI summary
In summary, the present invention, in some embodiments thereof, relates to digital and physical assets security and, more specifically, but not exclusively, to systems and methods for registration, validation, and distribution of assets digitally. The invention describes a system and method to establish an asset management system that registers, hosts, and validates submitted digital assets or digital representations of physical assets using cryptographically secured assets, such as digital non-fungible tokens (NFTs).