Non-fungible tokens (NFTs)

Non-fungible tokens (NFTs)

NFT ownership representation:

Non-fungible tokens (NFTs): The document proposes a method of using NFTs to represent ownership of physical items stored in a secure vault on the blockchain. Each NFT is unique and represents a specific ownership.

Secure custody: Stored in a secure vault, the owner of the NFT interacts with the custodian, issuer, auditor, etc. through smart contracts on the blockchain.

Smart contracts and NFT management:

Smart contract functions: Smart contracts contain a variety of functions that allow NFT owners to perform custody transfers, audit requests, set KYC status, update descriptions and image links, etc.

Read and write contracts: Smart contracts are divided into read contracts and write contracts. Read contracts are used to obtain information without changing the blockchain state, and write contracts are used to trigger transactions and state changes.

Custody and transfer process:

Custody transfer: NFT owners can indicate to the custodian that they will transfer to a new custodian by writing a signal message to the NFT. The new custodian takes over custody by confirming the transaction and paying any fees due.

Verification and storage: Before delivery to the custodian, it will be verified by the verification agency. After the verification, the custodian will store it securely and record the location and status on the blockchain.

NFT market and trading:

NFT market: NFT can be listed and sold on the NFT market. Buyers transfer NFTs to their wallets through blockchain transactions and can choose to deliver the physical to a specified address.

Direct transactions: NFTs can also be transferred directly from the current holder to subsequent buyers through the blockchain without the need for an intermediary market platform.

NFT information and transparency:

Features: The physical characteristics of the NFT (such as shape, color, clarity, cut, weight) will be recorded in the NFT and can be queried on the blockchain to increase the transparency of the transaction.

Audit and verification: Auditors can audit the NFT and record the audit results in the NFT. NFT owners can verify the authenticity and characteristics by reading this information.

Privacy and security:

Privacy protection: NFT transactions are conducted on the blockchain, and there is no need to disclose identity information between buyers and sellers, which protects the privacy of traders.

Secure escrow controller: The escrow controller containing a trusted program module (TPM) is used by the escrow party to manage private keys, ensuring the security of transactions and the security of private keys.

User interface and operation:

NFT dashboard: Provides a dashboard for NFT owners, showing detailed information, escrow status and audit history, and supports writing signal messages to trigger escrow and audit operations.

Operation interface: Users can submit write contract calls through the user interface and sign blockchain transactions using TPM to ensure the safe execution of operations.

Summary of short answer questions:

What is an NFT system?

The NFT system is a method of using blockchain technology to represent ownership of physical assets stored in a secure vault on the blockchain through non-fungible tokens (NFTs). The system allows owners to manage and trade securely and transparently on the blockchain through NFTs.

What role does a smart contract play in an NFT system?

Smart contracts play a core management role in the NFT system. It contains a variety of functions, such as escrow transfers, audit requests, KYC status settings, etc., allowing NFT owners to trigger transactions and status changes by writing signal messages. Smart contracts also ensure the immutability of features and transaction history.

How is the NFT managed and transferred in the system?

The NFT is stored in a secure vault and is kept by the custodian. The NFT owner can instruct the custodian to transfer the NFT by writing a signal message to the NFT. The new custodian takes over the custody of the NFT by confirming the transaction and paying the fees due. The entire process is transparently carried out on the blockchain, ensuring the security and traceability of the transaction.

How to ensure the authenticity and transparency of transactions in the NFT system?

The system ensures the authenticity and transparency of transactions through multiple mechanisms. First, the physical characteristics of the NFT (such as shape, color, clarity, etc.) are recorded in the NFT and can be queried on the blockchain. Second, auditors can audit the NFT and record the audit results in the NFT, and the NFT owner can verify the authenticity and characteristics of the NFT by reading this information. Finally, all transactions are conducted publicly on the blockchain, and anyone can verify the legitimacy and validity of the transaction.

How does the NFT system protect the privacy of users?

The NFT system protects the privacy of users through the anonymity of the blockchain. In transactions, buyers and sellers do not need to disclose their identity information, but only need to interact through blockchain wallet addresses. In addition, the custodian uses a custodial controller containing a trusted program module (TPM) to manage private keys, ensuring the security of transactions and the security of private keys, further protecting the privacy of users.

What is the function of the NFT dashboard?

The NFT dashboard provides an intuitive interface for NFT owners to display detailed information, custody status, and audit history. Owners can submit write contract calls such as requesting audits, transferring custody, etc. through the dashboard, and use TPM to sign blockchain transactions to ensure the secure execution of operations. The dashboard improves the usability and user experience of the system.