Using NFTs to Enhance Authentication and Warranty System of Decentralised Digital Transactional Platforms

Abstract

Concerns about security, trust, authentication, fraud, and risk of loss are often cited as among the most significant barriers to the growth of online transactional platforms. A particularly important factor feeding the uncertainty is that traditional authentication mechanisms based on the physical inspection are not feasible online. Both buyers and sellers on online platforms face high levels of uncertainty.This paper attempts to use NFTs to create a digital warranty system using bloackchain smart contracts. Smart contracts are automated transaction protocols that carry out a contract’s terms. The goals are to lessen the necessity for trustworthy intermediaries, the expense of arbitrations and enforcement proceedings, fraud losses, and the occurrence of malicious and unintentional exceptions. Digital warranties give customers authentication and ownership of products when purchasing assets online. It provides the purchasing history, warranty period, and other item information. The warranty card includes the item’s serial number and is sent to the customer’s smartphone. The aims to solve authentication and transactional issues from customers, sellers, and marketplace perspectives. The objective is to create a trustable, secure and error proof e-commerce system. The proposed solution tries to utilise the feature sets of Non Fungible Tokens (NFTs) to provide a more trustable and secure transactional system.