Schrödinger’s NFT — Unlock encrypted files with NFT key

In the upgraded NFT Service powered by Phala’s Phat contract logic, private files can be decrypted only via a designated key or stay…

Schrödinger’s NFT — Unlock encrypted files with NFT key

In the upgraded NFT Service powered by Phala’s Phat contract logic, private files can be decrypted only via a designated key — or remain locked forever.


What is Schrödinger’s NFT?

Schrödinger’s NFT is a new prototype by Apillon for unlocking encrypted files using a non-fungible token as a key.

The upgraded version of Apillon-built NFTs serves as a key that lets you open a decentralized storage box and reveals its contents. If the key is wrong, the contents remain locked permanently until you apply the right one.

Similar to Schrödinger’s cat, you don’t know what shall you find inside the box until you open it.

Proof of concept

The preliminary, standalone version of Schrödinger’s NFT was developed and designed to showcase the concept of using NFTs for encryption.

It was first presented publicly at the Polkadot Decoded 2023 conference as a demo of the soon-to-be another fully-fledged service on the Apillon platform for anyone to use in their Web3 world of projects.

NFT key decrypting files

We’ve came a long way from NFTs being mere digital art forms. With Schrödinger’s NFT key, you can keep files or other assets hidden from the public eye and unintended audiences. If others want to access them, they’d need a designated NFT key and only you could share it with them.

If the key works, the files are decrypted and can be downloaded to the new owner’s local disk.

Conversely, if the NFT key is wrong, the files remain encrypted and inaccessible until the correct key is applied.

There is no other way around it. As an NFT key owner, you should keep it safe, much like safeguarding the key to your house. In fact, even more so — your house could be broken in through a window, whereas key-protected files can’t be accessed with other means and could be lost forever without this unique piece of code.

How does it work?

Schrödinger’s NFT combines the features and capabilities of three Polkadot parachains — Moonbeam (or Astar), Crust, and Phala.

The solution is still in the proof-of-concept phase, providing insight into multi-chain use case possibilities. Much more enhanced usability, however, would stem from the original concept in future upgrades.

End-to-end decentralized and unstoppable

The first integration of Phala’s Phat contract on the Apillon platform joins forces with Moonbeam, Astar, and Crust to deliver encryption service using NFT keys.

But Schrödinger’s NFT goes even further. It is a completely decentralized method of sharing private files and thus unstoppable from third-party intervention.

  1. Encrypted files are stored on IPFS and pinned via Crust.
  2. The logic for file encryption and the decryption key are hosted via the Phala network’s decentralized cloud computing, powered by a Phat contract.
  3. NFT key is powered by Moonbeam’s (or Astar’s) smart contract, capable of decrypting private files.
  4. The UI of Schrödinger’s NFT is hosted on IPFS and pinned via Crust.

Once you create an NFT key on Moonbeam (or Astar), this custom version of Phat contract ensures that the encrypted files are pinned to IPFS via Crust Network. More advanced and expanded options would be introduced in later versions.

If you or the intended recipient of encrypted files try to unlock them, Phala’s Phat contract verifies whether the key matches the encryption lock and ownership records. If it does, the files are sourced on IPFS and decrypted for you or the new recipient to download to the local drive.

User interaction with NFT-key encrypted data stored on IPFS

The key can be imported into external wallets, such as MetaMask. Upon accessing an NFT-locked asset and connecting with your wallet, the platform can automatically use your key and give you access to its sealed contents.

Click-and-launch asset encryption with non-fungible tokens

Following the current demo version, a fully-fledged Schrödinger’s NFT key would upgrade the current NFT service on the Apillon platform and become available for everyone to use.

Such a standalone encryption service could be implemented in a range of use cases to offer exclusivity, data security, and privacy to target users.

Accessible through a few-click deployment on the Apillon dashboard or API connectivity to the code, the NFT-based encryption feature is an easy yet game-changing feature for both new and existing Web3 projects.

Example of a user trying to open an encrypted storage box using a correct and a wrong NFT key.

Certain things to have in mind

Capacity
Phala’s Phat contract has the ability to encrypt 2 MB of files. In the upcoming versions, these limits might be expanded, giving you more liberty in the development process.

NFT standard
The current version of Schrödinger’s NFT relies on the Moonbeam-supported ERC-721 NFT standard. In the future, more NFT standards could become available on the platform, enhancing your development flexibility.

Single-wallet access
By setting the NFT key to soulbound, you can link it to one wallet alone, and cut the possibility of sharing it with others, permanently attaching the accessibility to files to a single owner.

No encryption bypassing
The encryption key is never exposed to anyone. The files that can only be accessible via an NFT key are forever sealed on-chain (and remain there) in case the key is lost. The NFT decryption method is a brilliant upgrade to traditional file-sealing methods but should not be the sole. Consider storing your files also via alternative options to prevent permanent loss.

Local download
At this stage, the decrypted files can only be viewed by downloading them on your local drive. This means that you can’t reveal them on external platforms, such as marketplaces or wallets, upon decrypting. But, you can go and create a Web3 solution that enables file decryption and viewing on third-party platforms.

Use cases

Schrödinger’s NFT by Apillon works as an encryption/decryption method that seals and reveals private files on demand and to rightful viewers only.

It’s more than a password—a password can be shared with dozens of people and used by all to access the locked contents. Instead, the NFT key can only work for the person owning it in their wallet.

The NFT encryption of Schrödinger’s NFT could be used in the following scenarios (and more):

  • Sensitive files like business contracts, employment agreements, lease contracts, real-estate documents, etc., could be sealed for the intended recipient using NFT key encryption, preventing other parties from accessing them.
  • Exclusive digital pieces of music, digital artwork, or unique physical items could be sold with a raw recording, manuscript, or the rights to unlock them in a metaverse gallery or marketplace using a designated NFT key. Only rightful persons could get to hear the song, watch the video or access unique products until they decided to share them via other means.
  • Highly confidential, sensitive, or private matters, as well as limited-edition marketing campaigns and product launches, could include NFT keys to exclusive ownership rights, contracts, etc.

Bottom line, the NFT encryption key method comes in handy in the peer-to-peer transfer of assets, files, and other contents. It cuts the need for an intermediary or custodian just to reveal them and, instead, unlocks assets cryptographically.

Why not just try it and see how it works out for you?

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Fully and permanently decentralized locking

Schrödinger’s NFT is an end-to-end decentralized method of asset sharing, combining:

  • Decentralized storage by Crust and IPFS
  • Decentrally run encryption logic by Phala
  • Decentrally run NFT smart contract by Moonbeam and Astar

Every NFT-protected file or asset lives independently on-chain, free from third-party intervention or censorship. Essentially, Schrödinger’s NFT embodies an unstoppable way of sealed file transfer.


⧓ About Apillon

The Apillon platform serves as a unified gateway to the Web3 services provided by linked Polkadot parachains. Following the multi-chain vision, Apillon powers the transition of developers to Web3, simplifying its adoption in the real economy, and expanding its versatility as the ecosystem grows. With Apillon, Web3 services are within reach for every developer, regardless of their background and experience with blockchain technology.

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