NFT Resource Tracking System with Dynamic Control
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Solution Overview
Problem
There is a need for a system that allows digital resource owners to create, store, and manage non-fungible tokens (NFTs) associated with their digital assets, enabling control over usage and distribution, as well as receiving a portion of the sale price in subsequent transfers, which existing technologies do not effectively address.
Innovation Solution
A system that electronically receives digital resources and distribution rules, creates NFTs, predicts their value using a machine learning engine, and facilitates transfers while ensuring compliance with predetermined rules, including percentage-based payments and transfer limitations, by integrating with a managing entity system for financial transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If NFT ownership is transferred to enable trading and distribution, then liquidity and marketability improve, but control over usage and distribution is lost
Solution Approach 1:
The patent implements dynamic control mechanisms where distribution rules are not fixed but can be updated and modified by the original content owner over time. The system allows rules to be changed based on current conditions, enabling the owner to adapt control parameters (such as permitted uses, geographic restrictions, or time-based limitations) while the NFT is in circulation, thus maintaining control while enabling trading.
Solution Approach 2:
The system incorporates feedback loops where the original content owner receives notifications and can respond to NFT transfers and usage events. The distribution rules include mechanisms for the owner to monitor and react to how their digital content is being used and redistributed, allowing them to maintain oversight and adjust rules based on actual usage patterns and market conditions.
2Loss of energy
If original owners receive a portion of subsequent sale prices, then ongoing revenue and incentive are improved, but transaction complexity increases
Solution Approach 1:
The patent implements preliminary action by having the original content owner establish distribution rules and revenue sharing parameters at the time of NFT creation, before any subsequent transfers occur. These pre-configured rules automatically execute upon transfer events, eliminating the need for complex manual negotiations or additional transactions later. The smart contract or system automatically handles the revenue split according to pre-set terms, reducing ongoing transactional complexity.
Solution Approach 2:
The system enables self-service through automated execution of distribution rules. When an NFT is transferred, the system automatically calculates and distributes revenue according to the pre-configured rules without requiring manual intervention from the original owner or complex coordination between parties. The automated enforcement of rules simplifies the transaction structure while ensuring the original owner receives their entitled portion.
3Reliability
If distribution rules are enforced to maintain ownership control, then reliability of control is improved, but ease of transfer and trading is reduced
Solution Approach 1:
The patent replaces manual control mechanisms with automated digital enforcement through smart contracts or system-based rule execution. Instead of requiring manual verification and enforcement of distribution rules during each transfer, the system uses automated code-based logic to check and enforce rules programmatically. This substitution maintains reliable control enforcement while significantly simplifying the transfer process for users, as the automated system handles compliance verification without requiring manual intervention.
Data Source
AI summary
Embodiments of the invention relate to systems, methods, and computer program products for resource origination tracking, the invention including: electronically receiving, from a first user device associated with a first user, a digital resource and a set of distribution rules associated with the digital resource; creating an NFT associated with the digital resource; predicting, via a machine learning engine, a value of the NFT; electronically receiving, from a second user device associated with a second user, a request to complete a resource transfer; transferring ownership of the NFT associated with the digital resource from the current owner to the second user; and transmitting, to a managing entity system, instructions to transfer, from an account associated with the second user, a first amount of financial resources to an account associated with the current owner and a second amount of financial resources to an account associated with the first user.