Token Server for Crypto Asset Licensing
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Solution Overview
Problem
Current NFT transactions face challenges such as complex computing methods, long settlement times, high transaction costs, and uncertain future direction, particularly due to the need for network node confirmation and high 'gas' fees on the blockchain, which hinder adoption and result in real entities, like players and teams, missing out on revenue from the use of their identities in fantasy sports and games.
Innovation Solution
A system and method for licensed tokenized assets using a token server to create and manage non-fungible tokens (NFTs) linked to unique digital or physical assets, allowing real entities to manage their identities and receive royalties, with features like automatic price setting, subscription fees, and smart contracts to regulate transactions and ensure compliance with legal requirements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transactions are processed on the blockchain with network node confirmation, then transaction security is improved, but transaction time and costs increase
Solution Approach 1:
The system segments the transaction verification process by separating the licensing authority's role from network node confirmation. The licensing authority issues and verifies NFTs directly, while blockchain nodes only record the licensing transactions, reducing the verification burden on the entire network and accelerating settlement.
Solution Approach 2:
The patent introduces a licensing authority as an intermediary between the NFT issuer and the blockchain network. This intermediary pre-issues and verifies NFTs before they are recorded on the blockchain, allowing the network to focus only on recording transactions rather than verifying asset authenticity, thus reducing settlement time while maintaining security.
2Reliability
If transactions are processed on the blockchain with network node confirmation, then transaction security is improved, but transaction costs increase
Solution Approach 1:
The system segments the verification responsibility from the entire blockchain network to a specific licensing authority. The authority verifies NFT authenticity off-chain, and the blockchain network only processes simple transaction recordings, significantly reducing the computational energy required for each transaction.
Solution Approach 2:
The licensing authority performs preliminary verification and issuance of NFTs before they are transferred on the blockchain. This preliminary action ensures that only pre-verified assets are recorded on the blockchain, eliminating the need for expensive and energy-intensive network-wide verification of each asset's authenticity.
3Reliability
If NFT transactions require complex computing methods for network node confirmation, then transaction security is improved, but device complexity increases
Solution Approach 1:
The patent extracts the complex verification logic from the blockchain network nodes and concentrates it in the licensing authority's system. Network nodes only need to perform simple transaction recording operations, while the licensing authority handles the complex NFT issuance and verification using specialized algorithms and metadata validation.
4Reliability
If high gas fees are charged for blockchain transactions, then network maintenance is improved, but adoption feasibility deteriorates
Solution Approach 1:
The system creates a hybrid model where the blockchain network maintains a simplified copy of the licensing ledger with minimal verification requirements, while the full verification and asset management functions are handled by the licensing authority's separate system. This copying approach reduces the computational burden on the blockchain network, allowing for lower gas fees while maintaining network security and functionality.
Data Source
AI summary
A system for crypto token linked assets in at least one of a game, a fantasy sport, and a wagering opportunity, the system including a token server storing at least one transaction of at least one licensor crypto token over a network, the token server being programmed to create proof of ownership for at least one of a unique digital asset and a unique physical asset of at least one licensor, analyze the at least one transaction, and associate the at least one licensor to the at least one licensor crypto token, at least one licensor apparatus being programmed to generate and distribute the at least one licensor crypto token, and send the at least one licensor crypto token to the token server, and at least one licensee apparatus being programmed to request use of the at least one licensor crypto token on the token server, and obtain a license to use the at least one licensor crypto token in response to completing the at least one transaction.