NFT Payment Card Tokenization for Stable Web3 Transactions
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Solution Overview
Problem
Current payment methods in Web3 and Metaverse environments are limited by volatile cryptocurrency prices and require users to enter payment methods on each platform, locking funds to specific ecosystems, and lack real-time fiat-to-crypto exchanges.
Innovation Solution
The use of non-fungible tokens (NFTs) to represent payment cards, allowing secure, transparent, and decentralized transactions across multiple blockchains, enabling real-time exchanges and secure payment data ownership.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If cryptocurrency tokens are used for payment in Web3/Metaverse, then payment can be made within the ecosystem, but the price is volatile and funds are locked to a specific ecosystem
Solution Approach 1:
The patent introduces a stablecoin as an intermediary asset that bridges fiat currency and cryptocurrency ecosystems. The stablecoin is backed by fiat reserves and maintains a stable peg to fiat currency, eliminating price volatility while enabling seamless transactions across Web3/Metaverse platforms. Users can convert fiat to stablecoins through integrated exchange services and use them for payments without exposing themselves to cryptocurrency price fluctuations.
Solution Approach 2:
The patent creates a universal payment system where a single stablecoin can be used across multiple Web3/Metaverse ecosystems and traditional platforms. The system enables cross-ecosystem transfers, allowing users to maintain a single payment method that works universally rather than being locked into ecosystem-specific tokens. The integrated exchange service provides multi-functional capabilities including fiat-to-crypto conversion, stablecoin issuance, and payment processing.
2Ease of operation
If users enter payment methods on each platform, then payment can be made on that specific platform, but it requires repeated entry and locks funds to each ecosystem
Solution Approach 1:
The patent merges multiple payment method entries into a single unified payment profile stored on the blockchain. Users enter their payment information once, and the system creates a tokenized representation that can be reused across multiple platforms and ecosystems. This eliminates the need for repeated payment entry while maintaining security through cryptographic verification and smart contract enforcement.
Solution Approach 2:
The patent creates digital copies of payment credentials in the form of tokenized payment methods stored on the blockchain. Instead of entering payment information repeatedly, users generate a cryptographic copy of their payment authorization that can be transmitted and verified across different platforms. The system uses tokenization to create secure, reusable payment representations without exposing actual sensitive data.
3Adaptability or versatility
If real-time fiat to crypto exchange is implemented, then payment flexibility is improved, but system complexity increases
Solution Approach 1:
The patent introduces a stablecoin as an intermediary that simplifies the fiat-to-crypto exchange process. Instead of directly converting between volatile cryptocurrencies and fiat, the system uses the stablecoin as a stable intermediate asset. The integrated exchange service automatically manages the conversion process, handling liquidity, pricing, and settlement through smart contracts, thereby reducing system complexity while enabling real-time exchanges.
Solution Approach 2:
The patent implements automated exchange functionality through smart contracts that execute real-time fiat-to-crypto conversions without requiring manual intervention. The system automatically manages order matching, liquidity provision, and settlement processes. The exchange service operates autonomously, reducing operational complexity while providing flexible real-time conversion capabilities between fiat, stablecoins, and cryptocurrencies.
Data Source
AI summary
Systems and techniques for digitization of payment cards for Web 3.0 (“Web3”) and metaverse transactions are provided. The described systems and techniques allow for the use of non-fungible tokens (NFTs) to represent a payment token for making a payment inside a Web3 and Metaverse environment. Indeed, the described systems and techniques provide a financial NFT enabled representation of a payment card account as a token in a blockchain network, which can then be used to facilitate Web3 payments with real-time fiat to crypto exchanges.