NFT Pairing for Physical Asset Transactions and Ownership Proof
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Solution Overview
Problem
Existing systems face challenges in integrating NFT-based transactions of digital assets with physical asset transactions, particularly in retail environments where physical items are typically sold in large quantities, leading to separate and unlinked NFT and physical item acquisitions.
Innovation Solution
A method and apparatus for automatically generating non-fungible tokens (NFTs) linked to physical asset transactions, using smart contracts and digital wallets to mint NFTs based on transaction information, ensuring a seamless integration of digital and physical aspects of purchases.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If physical assets are sold in large quantities through traditional retail systems, then transaction volume and sales efficiency are improved, but integration with NFT-based digital asset transactions deteriorates due to separate acquisition processes
Solution Approach 1:
The patent combines physical asset transactions and NFT minting into a single integrated process. When a physical item is purchased through the retail system, an NFT representing that physical item is automatically minted and linked to the same transaction record, merging two previously separate processes (physical goods purchase and digital asset creation) into one unified transaction flow.
Solution Approach 2:
The retail system is designed to perform multiple functions simultaneously: it processes traditional physical goods sales while also functioning as an NFT minting platform. The system can handle both conventional retail transactions and blockchain-based digital asset creation, making it versatile enough to serve both traditional and emerging digital market needs within a single platform.
2Device complexity
If separate systems are used for physical asset sales and NFT transactions, then system complexity is reduced, but transaction linkage and proof of ownership deteriorate
Solution Approach 1:
The patent merges the physical asset sales system and NFT transaction system into a single integrated platform. The same retail infrastructure that processes physical goods sales also handles NFT minting and ownership recording, eliminating the need for separate systems while ensuring reliable linkage between physical items and their digital representations through shared transaction records.
3Ease of operation
If manual processes are used for NFT creation and physical asset tracking, then system simplicity is maintained, but automation level and transaction speed deteriorate
Solution Approach 1:
The system performs preliminary setup by establishing the integration framework between retail operations and NFT minting capabilities in advance. Once configured, the automation handles the actual minting process automatically based on pre-set parameters and triggers, reducing the need for manual intervention while maintaining operational simplicity through standardized workflows.
Solution Approach 2:
The system enables self-service automation where the NFT minting process is automatically triggered and executed based on the completion of physical asset transactions. The system monitors transaction data, automatically initiates NFT creation when appropriate, and links the digital asset to the corresponding physical item without requiring manual intervention, thereby increasing automation while keeping the interface simple for users.
Data Source
AI summary
Disclosed are systems and techniques for automatically pairing physical assets to a non-fungible token. For example, a process can include obtaining transaction information of a selected item associated with an online transaction between a user device and a provider system, the transaction information including a user identifier of a user of the user device. A digital wallet address of the user can be determined based on the user identifier, the digital wallet address associated with a digital wallet system. A non-fungible token (NFT) can be automatically generated based on the transaction information and in response to verifying the online transaction for the selected item. Information regarding the NFT can be provided to the digital wallet system in accordance with the digital wallet address associated with the user, wherein the digital wallet system updates information stored at the digital wallet address based on the information regarding the NFT.