Self-Authenticating Resource Transfer via NFT Smart Contracts

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Solution Overview

Problem

Unauthorized and unauthenticated resource transfers within electronic networks increase the likelihood of incorrect or falsified resource transfer requests, necessitating a secure and efficient authentication mechanism.

Innovation Solution

A system utilizing non-fungible cryptographic tokens (NFTs) and smart contracts stored on a distributed ledger to authenticate transferors and transferees, ensuring only authorized entities can initiate and complete resource transfers by verifying cryptographic addresses and asymmetric key pairs.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional authentication mechanisms are used for resource transfers, then the system is easier to operate, but the security and reliability against unauthorized transfers deteriorates

Engineering Contradiction:

Improveauthentication securityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system enables self-authentication where the resource transfer request automatically includes cryptographic proof of authorization. The transferor's digital signature on the resource NFT serves as self-contained authentication, eliminating the need for external authentication servers or manual verification processes, thus improving reliability without proportionally increasing system complexity

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent introduces cryptographic tokens (NFTs) and smart contracts as intermediaries that mediate the authentication process. These digital artifacts carry embedded authorization information and automatically verify credentials during transfer, acting as trusted intermediaries that enhance security while maintaining operational simplicity through automated verification

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If cryptographic authentication is implemented for resource transfers, then the reliability improves, but the processing time and operational complexity increases

Engineering Contradiction:

Improvetransfer authenticationVSAvoidauthentication time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary authentication by embedding the transferor's digital signature and authorization credentials directly into the resource NFT before the transfer occurs. This pre-packaging of authentication data means that during the actual transfer, verification is immediate and does not require time-consuming external validation processes

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces traditional mechanical or manual authentication systems with cryptographic mechanisms. Digital signatures and blockchain-based verification provide rapid, automated authentication that is both highly reliable and computationally efficient, reducing the time loss associated with manual verification while maintaining strong security

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Object-affected harmful factors

If NFT-based authentication is used, then unauthorized transfers are reduced, but the device complexity and implementation difficulty increases

Engineering Contradiction:

Improveunauthorized transfersVSAvoidimplementation complexity

Core Design Contradiction:

Object-affected harmful factorsVSDevice complexity

Solution Approach 1:

The resource NFT serves multiple functions simultaneously: it represents the resource being transferred, contains the transferor's authorization signature, carries the transferee's identification, and enables cryptographic verification. This multi-functionality consolidates what would otherwise require separate systems into a single unified token, reducing implementation complexity while effectively preventing unauthorized transfers

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent merges resource identification, authorization credentials, and authentication mechanisms into a single NFT structure. By combining these previously separate elements into one integrated digital artifact, the system reduces the number of moving parts and simplifies the overall implementation while maintaining robust protection against unauthorized transfers

Inventive Principle:

Principle #5Merging (Combining)

Data Source

PatentUS20240394707A1System and method for self-authenticating a transfer request within an electronic network

Publication Date: 2024.11.28 BANK OF AMERICA CORP

AI summary

Systems, computer program products, and methods are described herein for self-authenticating a resource transfer request within an electronic network. The present disclosure is configured to receive a resource transfer request within the electronic network between a transferor and a transferee; generate a self-authenticating smart contract comprised of a transferor NFT and a transferee NFT; authenticate the transferor and the transferee through the transferor NFT and the transferee NFT respectively; authenticate the resource transfer request upon authentication of the transferor and transferee; and trigger a resource transfer between the transferor and the transferee.