Physical Item Authentication for Flexible Tokenized Transactions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional e-commerce platforms lack flexibility in purchase selection, payment, transfer of possession, and delivery timing, and do not adequately address the value and reliability issues associated with both physical and virtual item transactions.
Innovation Solution
A platform that enables secure tokenization of links between unique physical and virtual representations of items, allowing for flexible transactions, including the generation of non-fungible and fungible tokens, and the use of a distributed ledger to manage ownership and control, facilitating transactions through digital and virtual reality marketplaces.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional e-commerce processes are used, then transactions can be completed, but flexibility in purchase selection, payment, transfer of possession, and delivery timing is limited
Solution Approach 1:
The patent introduces a tokenization intermediary layer between physical items and digital transactions. Tokens serve as mediators that represent ownership of physical items, enabling flexible transactions without direct physical handover. The tokenization platform acts as an intermediary system that manages the linkage between physical and digital realms, resolving the contradiction by adding a mediating layer that provides flexibility while maintaining system manageability.
Solution Approach 2:
The patent segments the transaction process into separate components: token generation, token transfer, and physical fulfillment. By dividing the e-commerce process into discrete segments (creating tokens, transferring tokens, then delivering physical items), the system achieves flexibility in timing and delivery while maintaining clear system boundaries that prevent excessive complexity.
2Ease of operation
If virtual items are used, then convenience of digital transactions is achieved, but value reliability is compromised due to ability to create unlimited copies
Solution Approach 1:
The patent segments virtual items into two distinct types: fungible tokens (representing value that can be copied and transferred) and non-fungible tokens (representing unique physical item ownership). This segmentation allows the system to maintain the convenience of digital transactions while ensuring value reliability through the non-fungible token layer that prevents unlimited copying of unique items.
Solution Approach 2:
The patent creates a composite token system that combines properties of both fungible and non-fungible tokens. The tokenization platform integrates multiple token types into a unified system that leverages the convenience of digital token transfer while incorporating the scarcity and uniqueness guarantees of non-fungible tokens, thereby achieving both ease of operation and value reliability.
3Adaptability or versatility
If physical items are delivered immediately, then transaction completion is achieved, but flexibility for delayed delivery or future fulfillment is lost
Solution Approach 1:
The patent applies preliminary action by creating and transferring tokens before the physical item delivery occurs. The token is generated and transferred to the buyer in advance, establishing digital ownership and payment completion before the physical fulfillment step. This allows the physical delivery to be delayed or scheduled for future times without compromising transaction validity, as the token-based transaction is already complete.
Solution Approach 2:
The patent introduces dynamic timing flexibility into the transaction workflow. The system allows the physical fulfillment to occur at different time points relative to token transfer - immediately, later, or in the future - while maintaining transaction integrity. This dynamic approach enables adaptability in delivery timing without requiring retransaction, resolving the contradiction between immediate delivery and flexible timing.
Data Source
AI summary
The present disclosure includes methods for authenticating items in part of a tokenization workflow. In embodiments, the method includes receiving a photograph of, and information relating to, an item, and generating a virtual representation of the item. The item may be authenticated by making an authentication request via a portal to subject-matter authentication experts, wherein the portal displays the virtual representation of the item in the portal. An authentication report may be received from the experts, and a non-fungible digital token having a unique token identifier may be generated. The non-fungible token may be cryptographically linked to the virtual representation of the item on a cryptographic ledger and ownership data of the non-fungible token is updated to associate an account of an owner of the item with the digital token on the cryptographic ledger.