Non-Transferable NFTs for Secure Identity Verification
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current blockchain platforms lack effective regulation and oversight, leading to anonymity issues that hinder trust and compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations, particularly in unregulated environments like Web 3.0, where personal data security and identity verification are compromised.
Innovation Solution
A system that links regulated and unregulated digital wallets through a private ledger database and public ledger database, using non-transferable non-fungible tokens (NFTs) to authenticate and verify user identities, ensuring secure and compliant transactions by associating personal data with unique certificates and metadata, and using smart contracts to prevent alteration of NFTs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If personal data is communicated over open public networks for authentication in unregulated platforms, then account association and service access are enabled, but data security and privacy are compromised
Solution Approach 1:
The patent extracts sensitive personal data from the authentication process and stores it in secure offline vaults. Only cryptographic proofs and hashed identifiers are transmitted over the network, separating the sensitive data from the communication channel while maintaining authentication functionality.
Solution Approach 2:
The patent introduces cryptographic proofs and trusted intermediaries as mediators between the user and the service provider. These intermediaries verify identities without exposing personal data, acting as a buffer that enables authentication while protecting privacy and security.
2Object-affected harmful factors
If anonymity is maintained in unregulated blockchain platforms, then privacy is protected, but trust and compliance with AML/KYC regulations are hindered
Solution Approach 1:
The patent segments the identity verification process into multiple layers: public identifiers for transactions, hashed identifiers for linkage, and encrypted personal data stored in secure vaults. This segmentation allows different levels of information to be visible to different parties, enabling both privacy and compliance.
Solution Approach 2:
The patent transforms personal data into different parameter forms for different purposes: hashed identifiers for public verification, encrypted forms for secure storage, and cryptographic proofs for validation. These parameter changes enable the same data to serve multiple functions while maintaining security and compliance requirements.
3Object-affected harmful factors
If personal data is stored securely offline, then data protection is improved, but real-time verification and authentication are compromised
Solution Approach 1:
The patent performs preliminary actions by pre-generating cryptographic proofs, hashing personal data, and establishing trusted connections before actual transactions occur. This preparation work is done offline in advance, enabling fast real-time verification without compromising security during the actual authentication process.
Solution Approach 2:
The patent creates cryptographic copies and hashed representations of personal data that can be transmitted and verified without moving the actual sensitive data. These copies contain all necessary verification information while being mathematically derived from the original data, enabling fast verification while maintaining data protection.
Data Source
AI summary
Disclosed is a method and system, in FIG. 1, for verifying authenticity of specific personal data responsive to a unique wallet address (70) on a public ledger (66) of an unregulated platform (60). The wallet contains one or more non-transferable NFTs each locked to the wallet and related to specific personal data. The non-transferable NFT was minted from a regulated platform (27) to which there is a record (76) in the public ledger. Supplying the unique address of the wallet to a service supplier affects a log-in of a client (18) to the service supplier (90), whereafter message interactions over a network (12) between the service supplier and the unregulated platform (60) permits searching for a relevant (72) non-transferable NFTs (74) stored in the wallet and related to the specific personal data. Return of any relevant non-transferable NFT related to the personal data thus verifies authenticity of the specific personal data by association with a regulated platform.