NFT-Based IoT Device Registration for Zero-Trust Payments
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Solution Overview
Problem
Existing IoT devices in payment systems face security risks due to unauthorized interactions, necessitating a secure zero trust mechanism to validate ownership and transactions.
Innovation Solution
The use of non-fungible tokens (NFTs) on a blockchain system to validate IoT devices and transactions, managed by smart contracts, ensuring tamper-proof verification and authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional security methods are used for IoT devices in payment systems, then system simplicity is maintained, but security against unauthorized interactions deteriorates
Solution Approach 1:
The patent introduces NFTs as an intermediary mechanism between IoT devices and the payment system. The NFT acts as a digital credential that mediates the trust relationship, allowing the system to validate device ownership and authorization without requiring complex centralized security verification mechanisms. The smart contract serves as another intermediary that automatically enforces validation rules.
2Reliability
If NFTs and smart contracts are implemented for IoT device validation, then security and validation reliability are improved, but system complexity increases
Solution Approach 1:
The patent creates a digital copy of the IoT device's ownership and transaction history in the form of an NFT on the blockchain. This digital copy serves as a verifiable record that can be independently validated without accessing the physical device or maintaining complex centralized databases. The NFT contains encoded information about device ownership, authorization status, and transaction history.
3Reliability
If comprehensive validation of both device and transaction is implemented, then payment security is improved, but processing time increases
Solution Approach 1:
The patent performs preliminary validation actions by pre-issuing NFTs to IoT devices during the registration phase. The NFT contains pre-encoded validation rules and device information, so that during actual transaction processing, the system only needs to verify the NFT's authenticity and check if validation rules are met, rather than performing comprehensive device verification in real-time.
Solution Approach 2:
The smart contract provides automated feedback by automatically validating transactions against predefined rules and immediately approving or rejecting them based on the NFT's properties. This automated feedback mechanism eliminates manual verification delays and ensures consistent, rapid decision-making.
Data Source
AI summary
Systems and methods are disclosed for validating transactions executed by Internet of Things (IoT) devices leveraging non fungible tokens (NFTs) stored on a blockchain. The system generates a first NFT paired with metadata associated with an IoT device, a second NFT paired with metadata associated with a transaction requested by the IoT device, and a third NFT merging the first and second NFTs together. The NFTs are used in validation processes to ensure an IoT device and/or a transaction requested by an IoT device are valid. The NFTs are bound to smart contracts assigned one or more rules related to validating an IoT device and/or transaction requested by an IoT device. A transaction requested by an IoT device executes based on the validation processes.