NFT Watermarking With Smart Contracts for Copying Control

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Solution Overview

Problem

Item listing platforms lack comprehensive computing logic and infrastructure for blockchain-based digital watermarking of non-fungible tokens (NFTs, leading to issues with fraud and counterfeiting, which affect the security and efficiency of NFT transactions.

Innovation Solution

Implement a smart-contract-based watermarking service that integrates digital watermarks into NFTs using smart contracts, allowing for secure display and removal of watermarks based on authorization mechanisms, such as public and private keys, to authenticate and manage NFTs.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If blockchain-based NFT technology is used to ensure digital asset uniqueness, then digital asset authenticity is improved, but vulnerability to unauthorized copying and counterfeiting increases

Engineering Contradiction:
Improvedigital asset authenticityVSAvoidunauthorized copying
Core Design Contradiction:
ReliabilityVSObject-affected harmful factors

Solution Approach 1:

A watermarking service acts as an intermediary between NFT creators and consumers. The service embeds watermarks into NFT digital assets and manages their distribution through smart contracts, preventing unauthorized copying while maintaining asset authenticity. The watermarking service includes a watermarking engine that processes NFTs and a smart contract that controls watermark display based on authorization.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The system creates authorized copies of NFT digital assets with embedded watermarks. Instead of preventing all copying, the system controls copying by embedding watermarks that identify authorized replicas and prevent unauthorized counterfeiting. The smart contract manages which copies are legitimate by controlling watermark display.

Inventive Principle:
Principle #26Copying

2Reliability

If comprehensive watermarking infrastructure is implemented to prevent fraud, then security is improved, but system complexity increases

Engineering Contradiction:
ImprovesecurityVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The watermarking functionality is extracted as a separate, standalone service rather than being embedded throughout the entire NFT ecosystem. The watermarking service includes distinct components (watermarking engine, smart contract, user interface) that can be independently deployed and managed. This modular approach reduces overall system complexity while providing comprehensive security.

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The smart contract performs multiple functions: it controls watermark display, manages authorization, and prevents unauthorized copying. By consolidating these security functions into a single multi-functional smart contract, the system achieves comprehensive security without proportionally increasing complexity. The same smart contract handles authentication, watermark embedding, and display control.

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

3Object-affected harmful factors

If digital watermarks are embedded in all NFTs to prevent counterfeiting, then fraud prevention is improved, but processing overhead and CPU computation increase

Engineering Contradiction:
Improvefraud preventionVSAvoidCPU computation
Core Design Contradiction:
Object-affected harmful factorsVSUse of energy by moving object

Solution Approach 1:

Watermarks are embedded into NFT digital assets in advance during the minting or registration process, rather than being added in real-time during each transaction or display event. The watermarking engine processes and embeds watermarks beforehand, storing them with the NFT metadata. This preliminary action reduces CPU computation during NFT transactions, as the watermarking work is already completed.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The smart contract automatically manages watermark display and verification without requiring intensive real-time processing. Once watermarks are embedded, the smart contract handles their display and verification through automated logic that requires minimal computational resources. The system serves itself by using the embedded watermarks to automatically prevent fraud without continuous heavy processing.

Inventive Principle:
Principle #25Self-service

Data Source

PatentUS12354119B2Non-fungible token watermarking management system
Publication Date: 2025.07.08 EBAY INC
  • US12354119B2 patent drawing
  • US12354119B2 patent drawing
  • US12354119B2 patent drawing

AI summary

Methods, systems, and computer storage media for providing a smart-contract-based watermarking service. A smart-contract-based watermarking service includes smart contract programming for displaying and removing digital watermarks on NFTs. In operation, a request to execute a watermark-mining operation on a digital asset is accessed. The request comprises a set of digital watermarking request attributes. Based on the set of digital watermarking request attributes, a digital asset and a digital watermark are accessed. The digital asset is minted as a non-fungible token associated with the digital watermark and a smart contract that controls display of the digital watermark associated with the digital asset. A notification is communicated, the notification indicating that the watermark-minting operation has been executed. Based on a request having a set of digital watermarking request attributes that authorize display of the digital asset, the smart contract is used to authorize display of the digital asset without the digital watermark.