Collectors Universe has filed a patent for a system and method to generate non-fungible tokens (NFTs) for collectibles. The system verifies physical ownership of the collectible before allowing the creation of an NFT. The value of the NFT is determined based on the total number of NFTs already generated for the collectible and its current value. The system ensures that the cost of generating an NFT increases proportionally as more NFTs are created for the collectible. GlobalData’s report on Collectors Universe gives a 360-degree view of the company including its patenting strategy. Buy the report here.
According to GlobalData’s company profile on Collectors Universe, image-based product classification was a key innovation area identified from patents. Collectors Universe's grant share as of June 2023 was 1%. Grant share is based on the ratio of number of grants to total number of patents.
Generating non-fungible tokens for collectibles with authentication and value tracking
A recently filed patent (Publication Number: US20230126016A1) describes a method and system for generating non-fungible tokens (NFTs) for collectibles. The method involves receiving a request to generate a token for a collectible and authenticating the physical ownership of the collectible using a vault authentication device. The system retrieves previously generated tokens for the authenticated collectible from a non-fungible token database and the current value of the collectible from a collectible value database. The fiat currency value of the NFT is generated based on the number of previously generated tokens and the current value of the collectible. The NFT is then generated in a blockchain network and digital ownership is assigned to the requesting entity.
The method also includes authenticating the requesting entity in a collectible entity database and using a vault authentication device that can dynamically record the presence of the collectible or record the unique identifier of an NFC device embedded within a sealed case of the collectible. The fiat currency value of the NFT can be increased as the number of previously generated tokens increases or can exceed the current value of the collectible when the number of tokens exceeds a threshold value.
The system includes a vault authentication device, a non-fungible token database, and a non-fungible token generation system. The system authenticates physical ownership of the collectible, retrieves previously generated tokens and the current value of the collectible, generates the fiat currency value of the NFT, generates the NFT in the blockchain network, and assigns digital ownership to the requesting entity.
The method and system also involve minting the collectible by assigning a grade and a unique identifier, sealing an indicator of the grade and unique identifier with the collectible in a sealed case, and generating the current value of the collectible based on the assigned grade. Additionally, the method includes generating a contract for the NFT that automatically transfers a portion of the transaction price to an originator account when the NFT is transferred to a new owner.
Furthermore, the method and system allow for the delivery of physical ownership of the collectible to a delivery entity upon authentication of the digital ownership of the NFT.
In summary, the patent describes a method and system for generating NFTs for collectibles, involving authentication of physical and digital ownership, retrieval of previously generated tokens and current value, generation of fiat currency value, and assignment of digital ownership in a blockchain network. The method and system also include features such as minting, contract generation, and delivery of physical ownership.