By: Geeq  on Oct 11, 2023

• Completed implementation of two of the three NFT milestones
• Started work on NFT proxy transactions
• Network Actor Record (NAR) update bug resolved

When NFTs first came on the scene, they were often touted as a technology that would change how we exchange and pay for content and files. The ostensible purpose of an NFT was to enable a digital file — such as image, text, music or video — to be owned and transferred without a centralized intermediary. This promised to make copyright and other transactions related to intellectual property more efficient. Thinking more broadly, it could also be used to trace the ownership of data in enterprise scenarios, such as the receipt of an order docket or invoice. 

But here’s the problem: in practice, legal and copyright disputes are settled in court, not on the blockchain, and NFTs confer no ownership rights on their own. Some projects have taken steps to try and address this shortcoming, but the precise legal significance of NFTs remains murky. 

To overcome this challenge, Geeq is building a 2-in-1 NFT solution that combines two of the core functionalities of the network: NFTs and data attestation. This will make it possible for the first time to transfer both an NFT and the associated legal documentation at the same time — traceably, without an intermediary, and without the security risks of smart contracts. Last month, we worked towards completing our NFT milestones, while also performing some bug fixes and network optimization work.  

Progress on NFT milestones 

Last month, we implemented the Application Layer Ledger (ALL) and integrated NFT proxy accounts into the protocol to complete the second NFT milestone. In recent weeks, we began work on the third and final milestone pertaining to NFTs. 

Data objects of any type may be hashed and stored in an NFT on the ALL, with the full file saved on an off-chain data storage solution. This will make it possible to prove these data objects existed, as well as who owned them, when the NFT was minted. Proofs of ownership for a uniquely identified item are the key to applications such as chain of custody, data provenance, and underwriting.

Proxy Records at Geeq

Proxy records play an important role in making Geeq both accessible and feature rich. For enterprise, proxy accounts enable a system admin and/or designated users to perform certain actions on the behalf of others. For example, in the case of data attestation, proxy records can be used to create and pay for notary transactions. They can also be used to create and modify multisig accounts. Geeq uses proxy accounts to distinguish these business cases from individually controlled coin accounts.

With regard to NFTs, the proxy NFT mint accounts enables an administrator to mint NFT records on the application layer and transfer them to any Geeq account, including to multisig accounts. Alternatively, the proxy NFT mint could retain ownership and control of the NFTs. Geeq’s 2-in-1 product offers flexibility while ensuring the ownership of the tokenized object and the laws governing them are provably on-chain.

Here is a practical example. A patent office could create a proxy notary account to validate the hashes of new applications as they are submitted. When a firm mints each new invention, it could specify the rights associated with the invention to the inventor (e.g. a specific employee) while retaining ownership of the NFT.  If the NFT is controlled by a multisig account, then the rules set up by that account would control who and how many signatures must endorse the transfer. However, the original inventor’s rights (and any evolution of the rights) will always be preserved on-chain, regardless of current ownership.    

Bug fixes and network integration

In addition to the ongoing NFT development mentioned above, we also fixed a minor bug that was preventing the Network Actor Record (NAR) from updating correctly in certain circumstances. The NAR is used to store information about network actors including nodes, relays, and the chain administrator. The bug, which had affected NAR updates, has now been resolved. In addition, we have continued integrating Rust into the Geeq ecosystem as discussed in our August update and we have been optimizing network behavior to conform to protocol.

Conclusion

Over the past month, we have begun working on proxy NFT mint accounts, which simplifies Geeq’s white-labeled mints without smart contracts. We are confident the 2-in-1 approach has important practical benefits that can move NFTs from being a largely speculative, collectible market to become an important and useful tool for a much wider range of users including enterprise clients. 

As always, thank you for reading and for your continued support.    

– The Geeq Team