# US 12,118,527 B2 · Methods and systems for awarding non-fungible tokens to users using smart contracts

> Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt

- Number: US 12,118,527 B2
- Document ID: US12118527B2
- Status: Granted
- Kind: B2
- Application number: 17/364,961
- Filed: 2021-07-01
- Published: 2021-10-21
- Granted: 2024-10-15
- Earliest claimed: 2018-11-02
- Assignees: Verona Holdings Sezc
- Applicants: Verona Holdings Sezc
- Inventors: Jonathan Yantis; William Edward Quigley; Lukasz Jakub Sliwka
- Web page: https://patentgrep.com/patent/US12118527B2

## CPC

- G06Q 20/123: {Shopping for digital content}
- G06F 21/602: {Providing cryptographic facilities or services}
- G06F 21/64: Protecting data integrity, e.g. using checksums, certificates or signatures
- G06Q 20/065: {using e-cash}
- G06Q 20/326: {Payment applications installed on the mobile devices}
- G06Q 20/342: {Cards defining paid or billed services or quantities}
- G06Q 20/3676: {Balancing accounts}
- G06Q 20/38215: {Use of certificates or encrypted proofs of transaction rights}
- G06Q 20/387: {Payment using discounts or coupons (relating to marketing G06Q30/02)}
- G06Q 20/389: {Keeping log of transactions for guaranteeing non-repudiation of a transaction}
- G06Q 20/40: Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
- G06Q 20/4016: {involving fraud or risk level assessment in transaction processing}
- G06Q 20/405: {Establishing or using transaction specific rules}
- G06Q 30/0185: {Product, service or business identity fraud}
- H04L 9/50: {using hash chains, e.g. blockchains or hash trees}
- G06Q 20/1235: {with control of digital rights management [DRM]}
- G06Q 20/3672: {initialising or reloading thereof}
- G06Q 2220/00: Business processing using cryptography
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06F: ELECTRIC DIGITAL DATA PROCESSING (computer systems based on specific computational models G06N)
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

In embodiments of the present invention, methods are provided for executing a smart contract that facilitates electronic transfer of non-fungible tokens to a user according to a recipe. Each respective non-fungible token may be cryptographically linked with a digital representation of a respective asset that can be won by the user. A recipe may define a respective probability that the respective non-fungible token is awarded to the user and a manner by which the respective non-fungible token is awarded to the user. A smart contract may be generated using a random number and one of the non-fungible tokens selected based on the random number and the recipe and transferred to a digital wallet of the user.

## Claims

### Claim 1

A method comprising:
accessing, by one or more node devices that host a blockchain, a plurality of virtual representations corresponding to a plurality of assets based on item attributes of its respective asset, each of the plurality of virtual representations including a data record that includes the item attributes of its respective asset, the item attributes including media content associated with and depicting the respective asset;
generating, by the one or more node devices, a plurality of non-fungible tokens corresponding to the plurality of assets based on the corresponding plurality of virtual representations, wherein the plurality of non-fungible tokens are tokenized versions of the plurality of assets;
recording, by the one or more node devices, the plurality of non-fungible tokens on the blockchain;
executing, by the one or more node devices, a smart contract that facilitates electronic transfer of the non-fungible tokens to a user according to a recipe, wherein each respective non-fungible token is cryptographically linked with a particular virtual representation of a respective asset that can be awarded to the user and the recipe defines a respective probability that the respective non-fungible token is awarded to the user and a manner by which the respective non-fungible token is awarded to the user, wherein the recipe defines respective ranges of numbers corresponding to different non-fungible tokens, wherein each respective range of numbers represents the respective probability that a corresponding non-fungible token is awarded to the user, wherein the recipe designates two or more tiers of non-fungible tokens that may be awarded to the user, wherein the two or more tiers of non-fungible tokens include replenishable non-fungible tokens and non-replenishable non-fungible tokens, and wherein the recipe further defines respective probabilities of non-fungible tokens from each tier being awarded to the user;
receiving, by the one or more node devices, an indication that the user has initiated execution of the smart contract;
generating, in response to the indication and by the one or more node devices via the smart contract, a random number;
determining, by the one or more node devices via the smart contract, a particular non-fungible token of the non-fungible tokens to award to the user based on the random number and the recipe, wherein determining the particular non-fungible token includes:
identifying the particular non-fungible token from a particular tier of the two or more tiers of non-fungible tokens based on a respective range of numbers defined in the recipe in which the random number falls, wherein the particular non-fungible token corresponds to the respective range of numbers; and
automatically transferring, by the one or more node devices via the smart contract, the particular non-fungible token to a digital wallet of the user, wherein transferring the particular non-fungible token to a digital wallet of the user includes:
verifying a public address of a blockchain account of the user via the blockchain, and
updating the blockchain with ownership data that indicates the transfer of the particular non-fungible token to the blockchain account of the user indicated by the public address.

### Claim 2 (depends on 1)

The method of claim 1, wherein the respective assets are digital works of art.

### Claim 3 (depends on 1)

The method of claim 1, wherein the respective assets are physical items.

### Claim 4 (depends on 3)

The method of claim 3, wherein the particular non-fungible token is redeemable for the respective asset that is cryptographically linked to the particular non-fungible token.

### Claim 5 (depends on 1)

The method of claim 1, wherein the blockchain is a public blockchain.

### Claim 6 (depends on 1)

The method of claim 1, wherein the blockchain is a private blockchain.

### Claim 7 (depends on 1)

The method of claim 1, wherein the particular non-fungible token is transferrable by the user to another user.

### Claim 8 (depends on 7)

The method of claim 7, wherein the user transfers the particular non-fungible token using a graphical user interface of the digital wallet.

### Claim 9 (depends on 8)

The method of claim 8, wherein transferring the particular non-fungible token transfers redemption rights to the item represented by the particular non-fungible token to the other user.

### Claim 10 (depends on 8)

The method of claim 8, wherein transferring the particular non-fungible token transfers ownership rights to the item represented by the particular non-fungible token to the other user.

### Claim 11 (depends on 1)

The method of claim 1, wherein the determined non-fungible token is replenishable and represents a fungible item.

### Claim 12 (depends on 1)

The method of claim 1, wherein the particular non-fungible token is non-replenishable and corresponds to a non-fungible item.

### Claim 13 (depends on 1)

The method of claim 1, wherein the one or more processors receive the indication that the user has initiated execution of the smart contract upon the user providing payment from the digital wallet of the user.