NFT Protection Architecture With Overlay Ledger and Cold Storage

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Solution Overview

Problem

Existing digital asset exchange systems lack robust security and authorization checks, making digital assets vulnerable to compromise and exposure of protected or private information, and they are resource-intensive and slow in processing NFT exchanges.

Innovation Solution

A protection architecture that utilizes a data processing system with memory and processors to secure NFTs through a control structure, cold storage objects, and blockchain ledgers, isolating protected data and private keys, and using an overlay ledger for faster, resource-efficient NFT exchanges.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If existing digital asset exchange systems are used, then NFT exchanges can be processed, but security is insufficient and private information is vulnerable to compromise

Engineering Contradiction:

ImprovesecurityVSAvoidvulnerability to compromise

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The system segments the NFT into multiple components: the NFT data structure, metadata object, control structure, and cold storage object. Each component is stored separately with restricted access, so that compromising one element does not expose the entire asset. The metadata object is segmented into public and private information, with only public portions accessible without authorization.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

A control structure acts as an intermediary between the NFT and the metadata object. This control structure enforces authorization checks and restricts access to private information. The system introduces multiple intermediaries including the data processing system, overlay ledger, and cold storage ledger that mediate access to protected information, preventing direct exposure.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If existing digital asset exchange systems are used, then NFT transfers can occur, but resource requirements are high and processing is slow

Engineering Contradiction:

Improveexchange processing speedVSAvoidresource requirements

Core Design Contradiction:

ProductivityVSUse of energy by moving object

Solution Approach 1:

The system divides NFT exchange operations into separate layers: the overlay ledger handles rapid exchange recording and ownership tracking, while the cold storage ledger securely stores private keys and sensitive metadata. This segmentation allows high-speed processing on the overlay ledger without the resource overhead of constantly accessing secure storage, enabling real-time exchanges with reduced computational requirements.

Inventive Principle:

Principle #1Segmentation

3Reliability

If existing digital asset exchange systems are used, then NFT exchanges can be processed, but authorization checks are insufficient

Engineering Contradiction:

Improveauthorization securityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system performs preliminary authorization checks through the control structure before any access to the NFT or metadata object. The control structure is pre-configured with authorization rules and restrictions that automatically validate access requests. Private keys are pre-stored in cold storage with restricted output, ensuring authorization is verified before sensitive operations occur.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The control structure serves as an intermediary that implements authorization logic, separating the complexity of security checks from the NFT exchange process. This intermediary layer manages the complexity of authorization rules, key management, and access control, while presenting a simplified interface for NFT transfers.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Ease of operation

If private keys and protected data are stored together, then access is convenient, but security is compromised

Engineering Contradiction:

Improveaccess convenienceVSAvoiddata protection

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system physically and logically segments private keys from protected data. Private keys are stored in the cold storage ledger as cold storage objects with restricted output capabilities, while the NFT and its public metadata are stored in the overlay ledger. This segmentation maintains ease of operation for public access while ensuring private keys remain isolated and protected.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system extracts private keys from the main NFT storage structure and places them in separate cold storage objects. This extraction removes the vulnerability of storing sensitive cryptographic material alongside accessible NFT data, while still enabling convenient access to the NFT itself through the overlay ledger without requiring private key exposure.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS12572925B2Protecting tokenized structures using a protection architecture

Publication Date: 2026.03.10 WELLS FARGO BANK NA

AI summary

Systems, methods, and computer-readable storage media to protect non-fungible tokens (NFTs) using a protection architecture. One method includes receiving an NFT, authenticating the NFT including authenticating or verifying the NFT using a key and authenticating the link of the NFT, and protecting the NPT including generating a public-private key pair, encapsulating the NFT within a control structure, updating an NFT account in an overlay ledger, generating and storing a cold storage object in a cold storage ledger, and broadcasting the NFT to a blockchain storage.