NFT-based method for assetization of physical assets on blockchain

doi:10.3785/j.issn.1008-973X.2022.10.002

Journal of ZheJiang University (Engineering Science)

2022, Vol. 56

Issue (10): 1900-1911 DOI: 10.3785/j.issn.1008-973X.2022.10.002

NFT-based method for assetization of physical assets on blockchain

Liang SUN1,2(

),Xiao-feng LI2,He ZHAO2,*(

),Bin YU4,Tong ZHOU3,4,Xi-ru LI2

1. Institutes of Physical Science and Information Technology, Anhui University, Hefei 230601, China
2. Hefei Institutes of Physical Science, Chinese Academy of Science, Hefei 230031, China
3. CAS(Hefei) Institute of Technology Innovation, Chinese Academy of Science, Hefei 230088, China
4. Anhui ZhongKeJingGe Technology Limited Company, Hefei 230088, China

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Abstract

An NFT-based method for assetization of physical assets on blockchain was proposed aiming at the problem that the application of non-fungible token (NFT) was currently limited to virtual digital assets, such as digital collectibles, cryptographic artworks and game props, which was hard to cover widely existing physical assets. Smart contracts and automatic safe deposit boxes were combined to achieve strong bindings between off-chain physical assets and on-chain virtual assets based on the ability of NFT to confirm the rights of digital assets. A digital asset must be minted or circulated on blockchain (in virtual world) after its physical entity is locked off blockchain (in physical world). The corresponding NFT must be destroyed on blockchain before a physical asset is circulated off blockchain. The method avoids cross-domain double-spending attacks between the virtual world and the physical world, and offers a secure and trustworthy approach to transfer value and confirm ownership of physical assets on blockchain, which provides a feasible technical way for future circulation and trading of physical assets in the metaverse.

Key words： blockchain non-fungible token (NFT) automatic safe deposit box smart contract value transfer metaverse

Received: 14 March 2022 Published: 25 October 2022

CLC:

TP 311

Fund: 国家重点研发计划资助项目（2021YFB2700800）

Corresponding Authors: He ZHAO E-mail: q19201139@stu.ahu.edu.cn;zhaoh@hfcas.ac.cn

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Cite this article:

Liang SUN,Xiao-feng LI,He ZHAO,Bin YU,Tong ZHOU,Xi-ru LI. NFT-based method for assetization of physical assets on blockchain. Journal of ZheJiang University (Engineering Science), 2022, 56(10): 1900-1911.

URL:

https://www.zjujournals.com/eng/10.3785/j.issn.1008-973X.2022.10.002 OR https://www.zjujournals.com/eng/Y2022/V56/I10/1900

基于NFT的实物上链资产化方法

针对现阶段非同质化通证（NFT）的应用对象仅限于诸如数字收藏品、加密艺术品和游戏道具等数字资产，难以适用于广泛存在的实物资产的问题，提出基于NFT的实物上链资产化方法. 该方法借助NFT可对数字资产确权的属性，结合智能合约与自动保管箱，实现链下实物资产与链上虚拟资产的强绑定. 该方法中，数字资产在链上（虚拟世界）铸造/流通之前，实体资产必须在链下（物理世界）锁定；实体资产在链下流通之前，数字资产需要在链上销毁. 该方式避免了虚拟世界和物理世界之间的跨域双花攻击，为实物资产提供了安全可信的价值转移和链上确权方式，为将来实物资产在元宇宙中的流通与交易提供可行的技术路径.

关键词： 区块链, 非同质化通证（NFT）, 自动保管箱, 智能合约, 价值转移, 元宇宙

Fig.1 Cross-domain transmitting between physical world and virtual world with proposed method

Fig.2 Model of assetization of physical assets on blockchain

Fig.3 Automatic safe deposit box model

Tab.1 Box information deposit

Tab.2 Physical asset information

Fig.4 Schematic diagram of data anchoring between consortium chain and public chain

Tab.3 Experimental environment of assetization method of physical assets on blockchain

Fig.5 Screenshot of digital asset mobile terminal

Fig.6 Box information deposition

Fig.7 Mint physical asset NFT

Fig.8 Transfer physical asset NFT

Fig.9 Burn physical asset NFT information

Tab.4 Comparison of proposed method with other assetization methods

Tab.5 Probability of malicious nodes successfully tampering with data

Tab.6 Rent of automatic safe deposit box

Tab.7 Analysis of user operating cost


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