NFT-Based Multifactor Authentication via Distributed Ledger

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Solution Overview

Problem

Conventional user authentication methods, such as passwords and biometrics, are inadequate for ensuring the verifiability of user authentication processes, especially in situations requiring multifactor or elevated authentication.

Innovation Solution

The use of a Non-Fungible Token (NFT) for secure tokenization in user authentication, where an authentication NFT is generated using user credentials, verified through a private distributed trust computing network, and stored on a distributed ledger in an inactive state, which can be activated for authentication purposes.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional user credentials (passwords, biometrics) are used for authentication, then the authentication process is simple and easy to operate, but the security and verifiability are inadequate

Engineering Contradiction:

Improveauthentication securityVSAvoidauthentication system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The authentication system is segmented into multiple independent components: a distributed ledger for credential storage, smart contracts for authentication logic, and NFT-based credential tokens. This segmentation allows each component to specialize in specific security functions while maintaining overall system reliability without excessive complexity.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

A distributed ledger acts as an intermediary between users and authentication services, providing a trusted, decentralized verification mechanism. This intermediary enables secure authentication without requiring complex centralized credential management systems.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If conventional credentials are stored and used, then the operation is straightforward, but the credentials can be compromised and lack verifiability

Engineering Contradiction:

Improvecredential verifiabilityVSAvoidauthentication operation

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

User credentials are preliminarily transformed into NFT tokens and stored on a distributed ledger before authentication is needed. This preliminary action ensures credentials are securely anchored in an immutable ledger, providing verifiability while simplifying the actual authentication operation to merely presenting and verifying the NFT.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The traditional mechanical credential storage and verification system is replaced with a cryptographic system based on blockchain technology. NFTs use cryptographic proofs and smart contracts to provide verifiable authentication without requiring complex manual verification processes.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If multifactor authentication is implemented, then the security is enhanced, but the system complexity and operational difficulty increase

Engineering Contradiction:

Improveauthentication securityVSAvoidauthentication system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The NFT-based credential system serves multiple authentication functions simultaneously: it acts as a password, stores biometric data, provides verification credentials, and enables multifactor authentication all through a single token. This multi-functionality enhances security without requiring separate systems for each authentication method.

Inventive Principle:

Principle #6Universality (Multi-functionality)

4Ease of operation

If credentials are reset remotely or accessed in elevated scenarios, then user convenience is maintained, but security risks increase without proper verification

Engineering Contradiction:

Improvecredential access convenienceVSAvoidauthentication security

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The distributed ledger provides real-time feedback on credential status and verification results. When credentials are reset or accessed in elevated scenarios, the system immediately updates the ledger and notifies relevant parties, providing feedback that enhances security while maintaining operational convenience through automated processes.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS12294576B2System for implementing multifactor authentication based on secure tokenization

Publication Date: 2025.05.06 BANK OF AMERICA CORP

AI summary

Leveraging secure tokenization, such as a Non-Fungible Token (NFT), for purposes of multifactor and/or elevated user authentication. In this regard, an authentication NFT is generated based at least on a user's authentication credentials. Subsequently, the authentication NFT is verified/validated via a private distributed trust computing network and stored, in a deactivated state, on a distributed ledger. Once the user is confronted with an elevated and/or multifactored authentication process, the user may initiates use of the authentication NFT by checking-out the authentication NFT from the distributed ledger and moving the authentication NFT from the deactivated state to an activated state, in which the user credentials are accessible to the user for purposes of authentication.