SYSTEMS AND METHODS FOR BLOCKCHAIN-BASED NON-FUNGIBLE TOKEN (NFT) AUTHENTICATION

Smart overview of the Invention

Systems and methods are developed to generate blockchain-based dynamic non-fungible tokens (NFTs) for user authentication. The process begins with a request from a user's mobile device, followed by capturing images or videos using sensors to gather biometric data. This biometric data is processed and encoded to create dynamic NFTs, which are stored on a distributed blockchain. These NFTs are linked with smart contracts and transmitted to various service providers for user authentication.

Field of Disclosure

The technology pertains to transaction authentication mechanisms, focusing on blockchain-based NFT authentication. It aims to streamline the onboarding process by reducing the friction users face when registering with service providers, especially financial institutions. By addressing security concerns associated with storing personal data on centralized servers, this system enhances user experience and data protection.

Background

Traditional onboarding processes often require users to input extensive personal information, leading to high abandonment rates due to complexity and security concerns. Users are wary of leaving sensitive data on centralized servers vulnerable to breaches. There is a need for a simplified, secure onboarding process that minimizes these issues while ensuring data protection.

Summary

The disclosed system leverages dynamic NFTs for user authentication by utilizing mobile devices equipped with sensors. These devices capture biometric data, which is then encoded into NFTs stored on a blockchain. This approach not only simplifies the onboarding process but also enhances security by decentralizing data storage. The system allows users to have control over their digital identity while providing service providers with a reliable authentication method.

Advantages

The implementation of blockchain-based dynamic NFTs reduces onboarding friction and abandonment rates by offering a streamlined KYC process. This method mitigates security risks associated with centralized data storage and provides users with control over their digital identities. By utilizing modern technology infrastructure, the system efficiently manages user verification, leading to increased revenue for service providers and improved user satisfaction.