NFT Universal Digital Identification Authentication

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Solution Overview

Problem

Existing authentication systems require users to create unique credentials for each location or service, leading to security risks due to password reuse and management difficulties, as users are often encouraged to create new usernames and passwords for each separate location or service.

Innovation Solution

The use of non-fungible tokens (NFTs) stored on a distributed ledger, such as a blockchain, allows for universal digital identification and authentication, where a singular NFT can be used across multiple services, with the user controlling the private key for secure authentication, transferring the responsibility of authentication from services to the user and the blockchain.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If users create unique credentials for each location or service, then security is improved, but user management complexity and difficulty increase

Engineering Contradiction:
ImprovesecurityVSAvoidauthentication system complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent implements a universal authentication system where a single NFT-based credential can be used across multiple locations and services. The NFT contains verification data that can be validated by any service provider implementing the same verification protocol, eliminating the need for service-specific credentials while maintaining security through cryptographic verification.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a blockchain-based NFT as an intermediary credential that mediates between the user and multiple service providers. Instead of each service maintaining its own credential system, the NFT serves as a universal intermediary that carries verification data recognizable by all participating services, simplifying user management while preserving security.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Ease of operation

If users reuse usernames and passwords across services, then ease of operation is improved, but security deteriorates due to increased risk of malicious activity

Engineering Contradiction:
Improvecredential management easeVSAvoidsecurity
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The NFT-based authentication system provides a single universal credential that works across all participating services, improving ease of operation by eliminating the need to manage multiple passwords. Security is maintained through cryptographic verification of the NFT's authenticity and integrity, ensuring that the single credential cannot be easily compromised or reused maliciously.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent replaces traditional mechanical password-based authentication with cryptographic verification of NFTs on a blockchain. Instead of relying on users to manage complex passwords, the system uses cryptographic keys and blockchain verification to authenticate users, making the system both easier to use (simple NFT transfer) and more secure (cryptographic guarantees).

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

3Speed

If services store authentication credentials locally, then authentication speed is improved, but security risk increases due to storage responsibility

Engineering Contradiction:
Improveauthentication speedVSAvoidsecurity risk from credential storage
Core Design Contradiction:
SpeedVSObject-affected harmful factors

Solution Approach 1:

The patent extracts authentication credentials from local service storage and relocates them to a decentralized blockchain ledger in the form of NFTs. Services no longer store sensitive credential data locally; instead, they verify authentication by checking the blockchain for valid NFTs. This eliminates the security risk of local credential storage while maintaining fast authentication through efficient blockchain verification.

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The blockchain serves as an intermediary ledger that stores authentication credentials centrally yet securely, eliminating the need for services to store credentials locally. The NFT acts as a portable credential that users present to services, which then verify it through blockchain checks, achieving both security (no local storage) and speed (direct verification).

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentUS12014363B2Apparatus and methods for non-fungible tokens as universal digital identification
Publication Date: 2024.06.18 BANK OF AMERICA CORP
  • US12014363B2 patent drawing
  • US12014363B2 patent drawing
  • US12014363B2 patent drawing

AI summary

Apparatus and methods for utilizing non-fungible tokens (“NFTs”) as universal digital identification are provided. A user may be assigned an NFT on a distributed ledger attesting to the user's identity. The user may request to be authenticated. The user may be prompted to transfer the NFT to a smart contract on the distributed ledger. An authentication program may check the NFT and the NFT's history on the ledger to determine that the NFT belongs to the user. When the NFT belongs to the user, the authentication program may authenticate the user. The smart contract may transfer the NFT back to the user, so that the user may use the NFT again to be authenticated.