NFT Valuation Engine for Resource Authenticity Assessment
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Solution Overview
Problem
Existing systems lack a method for real-time assessment of the authenticity and value of resources composed of independent portions, which are crucial for accurately evaluating non-fungible tokens (NFTs) associated with such resources.
Innovation Solution
A system that generates and links new NFTs for each restored resource portion, using an NFT generator and valuation engine, and records these on a distributed ledger to track authenticity and value, ensuring accurate valuation of the resource based on authentic portions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If a single NFT is used to represent a resource made of independent portions, then the NFT structure is simple, but the system cannot accurately track and assess the authenticity and value of individual portions
Solution Approach 1:
The patent divides a single NFT into multiple independent NFTs, each representing a specific resource portion. This segmentation allows the system to track and assess the authenticity and value of individual portions separately, thereby improving measurement precision without significantly increasing overall system complexity through the use of metadata layers for organization.
Solution Approach 2:
The patent implements a nested structure where multiple portion-specific NFTs are contained within an overarching resource NFT. Each portion NFT can reference and be referenced by the parent resource NFT, creating a hierarchical relationship that enables detailed tracking of individual portions while maintaining a unified view of the entire resource.
2Measurement precision
If the system tracks authenticity of each resource portion separately, then valuation accuracy improves, but the time and computational resources required increase
Solution Approach 1:
The patent establishes NFTs for resource portions in advance, during the resource creation or restoration process. This preliminary action ensures that when valuation is needed, the authenticity assessment can be performed quickly by referencing already-established NFT data, rather than creating and verifying NFTs at the time of valuation.
Solution Approach 2:
The patent uses metadata layers to store and replicate authenticity information across multiple NFTs. Once a portion's authenticity is verified and recorded in its specific NFT, this information can be efficiently copied and referenced by the parent resource NFT and valuation engines, reducing redundant verification time.
3Reliability
If multiple NFTs are generated for resource portions, then tracking capability improves, but the system complexity and operational difficulty increase
Solution Approach 1:
The patent designs the NFT structure with universal metadata layers that can serve multiple functions: storing authenticity information, linking portions to parent resources, and providing valuation data. This multi-functionality reduces the need for separate tracking mechanisms and simplifies system operation despite the presence of multiple NFTs.
Solution Approach 2:
The patent introduces metadata layers as intermediaries between individual portion NFTs and the parent resource NFT. These metadata layers act as mediators that automatically manage the relationships and data flow between multiple NFTs, reducing the operational burden on users and simplifying the management of complex NFT structures.
Data Source
AI summary
The invention receives an indication that a resource has been restored using a first resource portion and retrieves from a metadata layer of a first NFT associated with the resource portion, a value of the first resource portion; retrieves a second NFT associated with the resource; and links the first NFT associated with the first resource portion with the second NFT associated with the resource by recording such link at least in a metadata layer associated with the second NFT on a distributed ledger. The system retrieves from a metadata layer of the second NFT, a value of the resource and determines, using an NFT valuation engine, a new value of the resource, wherein the new value for the resource is based on at least a value of the first resource portion. The system records the new value in a metadata layer associated with the second NFT.