NFT-Linked Digital Payment Instrument Dual Verification

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Solution Overview

Problem

There is no existing mechanism to utilize non-fungible tokens (NFTs) for enabling customization of digital payment instruments, despite consumer interest in customization and exclusivity, particularly in the financial industry.

Innovation Solution

A dual verification process is implemented to combine an NFT with a digital payment instrument, where a user proves ownership of both a transaction account and an NFT through authentication, allowing the NFT to be used as the face of the digital payment instrument, ensuring exclusivity and immutability via a blockchain.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If NFTs are integrated with digital payment instruments to enable customization, then consumer exclusivity and personalization are improved, but system complexity and verification requirements increase

Engineering Contradiction:

Improvecustomization capabilityVSAvoidverification process complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The verification process is segmented into two independent verification steps: first verifying the digital payment instrument belongs to the user through authentication credentials, and second verifying the NFT belongs to the user through blockchain validation. This segmentation allows each verification to be handled by specialized systems while maintaining overall system manageability.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The processing server acts as an intermediary that coordinates between the user's authentication system and the NFT blockchain verification system. It receives both sets of credentials, performs the appropriate verification for each, and combines the results to determine whether to issue the customized digital payment instrument.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If dual verification is implemented to ensure NFT and account ownership, then security and exclusivity are improved, but processing time and user experience are worsened

Engineering Contradiction:

Improveownership verification reliabilityVSAvoidverification processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary verification of the digital payment instrument's association with the user's account before processing the NFT verification. This ensures that the payment instrument is legitimately linked to the user, and only then proceeds to verify NFT ownership through blockchain validation, optimizing the sequence to minimize total processing time.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The NFT verification process replaces traditional mechanical authentication mechanisms with blockchain-based cryptographic verification. The processing server validates digital signatures on the blockchain, which provides secure verification while being more efficient than traditional multi-factor authentication processes.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS20250023738A1Method and system of associating custom card designs with non-fungible tokens

Publication Date: 2025.01.16 MASTERCARD INT INC

AI summary

A method for performing dual verification to combine a non-fungible token (NFT) with a digital payment instrument includes: receiving a first set of authentication credentials and a second set of authentication credentials, the first including a transaction account identifier, and the second set including an NFT identifier and a public key of a cryptographic key pair; performing a first verification process using the first set of authentication credentials based on at least a comparison of the first set of authentication credentials with data associated with a transaction account identified using the transaction account identifier; performing a second verification process using at least the second set of authentication credentials based on validation of a digital signature using the public key, the digital signature being identified using the NFT identifier; and transmitting a result of the first verification process and the second verification process to a computing device.