The issue of proving ownership of digital assets in blockchain networks remains the subject of legal and technical debate, particularly in the context of digital inheritance. While experienced users may evaluate the convenience and functionality of existing mechanisms, an objective assessment must also address their shortcomings. One of the persistent challenges is determining how to reliably prove ownership of a digital asset within a decentralized network.
A proposed solution to this issue has been introduced by Ukrainian attorney Artem Zakablukivskyi. His patent, titled “System and Method for Cryptographic Verification of Ownership of a Digital Asset in a Blockchain Network Without Disclosure of a Private Key Using a Zero-Knowledge Protocol,” was designed to address this problem through a technical approach aimed at enhancing security and reliability in digital asset management (Official Application No. 63/984,563).
Who Is Artem Zakablukivskyi
Artem Zakablukivskyi is a Ukrainian-trained attorney with extensive professional experience and a researcher in digital asset management. He currently resides in the United States and serves as a Senior Research Fellow and Project Manager at the NOTA Digital Currency Research Center in Sacramento, California, where he focuses on legal frameworks for digital assets, automation of crypto-compliance processes, and international tax and financial reporting standards for tokenized wealth.
His professional expertise includes:
- legal classification and identification of digital assets;
- transfer of ownership rights and digital inheritance;
- harmonization of Ukrainian regulation with international standards (EU MiCA, IFRS, and U.S. practices);
- lifecycle management of tokenized assets.
He is also the author of academic publications addressing the legal and economic aspects of digital assets, as well as the above-mentioned patent concerning cryptographic verification of ownership in blockchain networks, which represents a significant milestone in his professional work.
The Path to the Patent: The Driving Force Behind the Development
The development of the patent was driven by practical experience in working with digital assets and by challenges faced by asset holders during the transfer and inheritance of tokens. A central issue in these situations is establishing legally defensible ownership of virtual property. In his legal practice, Artem Zakablukivskyi observed the limitations of traditional mechanisms used in inheritance procedures and the risks they may pose to users.
These challenges led him to design a technical mechanism enabling confirmation of ownership without disclosing a private key. The proposed approach aims to enhance user security within blockchain networks and to provide a more transparent and reliable method for confirming ownership in the context of digital inheritance and asset management.
Patent of Artem Zakablukivskyi
Artem Zakablukivskyi’s patent titled “System and Method for Cryptographic Verification of Ownership of a Digital Asset in a Blockchain Network Without Disclosure of a Private Key Using a Zero-Knowledge Protocol” was submitted to the United States Patent and Trademark Office (USPTO) as a proposed technical solution to a pressing issue of the digital era — the verification of ownership rights.
Official Application Number: 63/984,563
Substance of the Patent and System Operation
The core concept of the invention is to enable a legal entity or individual to prove ownership of a digital asset while ensuring more reliable control over virtual property. The system utilizes a Zero-Knowledge Proof protocol to achieve this objective.
The proposed system consists of the following main components:
- a user computing device on which the private cryptographic key used to manage the digital asset is stored;
- a cryptographic proof generation module implementing a Zero-Knowledge Proof algorithm;
- a blockchain network with a deployed smart contract or verification node;
- a secure communication channel for transmitting the generated cryptographic proof.
Importantly, the private key is neither transmitted over the network nor copied to any external information systems.
In practical use, the system is designed for operational simplicity combined with a high level of security. A user initiates a request to verify ownership, after which a Zero-Knowledge Proof is automatically generated on the user’s device to confirm possession of the private key. The proof is then transmitted to the network, where nodes or a smart contract verify its correctness using the public parameters of the blockchain address and confirm ownership accordingly.
The ownership verification process includes several cryptographic stages.
On the user side:
1) Using the private key and the public parameters of the blockchain address, the system generates a cryptographic commitment.
2) This is achieved by computing a one-way hash function based on the value of the private key or its derivative combined with a random parameter (random nonce), which acts as a secret witness.
3) Based on the generated commitment, a Zero-Knowledge Proof is created that mathematically confirms possession of the corresponding private key without disclosing the key itself.
The generated proof is transmitted to a smart contract or verification node, which applies a cryptographic verification algorithm using the public parameters of the blockchain address and the user’s public key.
Upon successful verification, the system may authorize specific actions with respect to the digital asset, including:
- confirmation of ownership for third parties or legal procedures;
- granting access to the asset without openly signing a transaction;
- transfer of management rights;
- participation in decentralized protocols;
- integration with crypto wallets, exchanges, or other software and hardware infrastructures.
At no stage do confidential cryptographic parameters leave the user’s device.
Advantages of the Patent
Artem Zakablukivskyi’s analysis of traditional approaches to ownership verification in blockchain systems allowed him to identify structural weaknesses and security limitations in existing models. Based on this assessment, he developed a system designed to address those vulnerabilities through a cryptographically secure verification mechanism.
The proposed technology offers several key advantages:
1) Confidentiality. No third-party gains access to the private key or any sensitive cryptographic data of the user initiating the ownership verification request.
2) Operational efficiency. Ownership verification is initiated directly from the user’s device, after which the system automatically generates and transmits the necessary cryptographic proof without requiring manual exposure of sensitive credentials.
3) Security. The system relies on established cryptographic primitives and eliminates the need to transmit private keys or derivative data. The private key never leaves the user’s device, significantly reducing the risk of unauthorized access or fraud, even in the event of intercepted network traffic.
Verification of ownership through this mechanism may also serve as legally relevant evidence of control over a digital asset, which can simplify inheritance procedures and other legal processes involving digital property.
The technical effect of the proposed solution lies in reducing the attack surface of the user’s cryptographic infrastructure. Unlike traditional models that require transaction signing or the transmission of signed data for verification purposes, the proposed system eliminates the need to disclose any derivative information that could potentially enable reconstruction of the private key. Even if network traffic is intercepted, an attacker does not obtain sufficient information to compromise the key or the associated digital asset.
Innovative Approach: Distinctive Features of the Patent
The objective of the development was not merely to create another ownership verification mechanism, but to establish a more secure and reliable technological framework that minimizes the risk of asset loss or unauthorized manipulation.
Confidentiality is therefore a central feature of the system. The technology integrates cryptographic architecture with legal considerations, creating a solution that is both technically secure and applicable in legal contexts. This integrated approach enables users to confirm ownership of digital assets efficiently while maintaining the integrity of sensitive cryptographic data, including in inheritance-related scenarios.
Significance for the Scientific Community and Society
The work of Artem Zakablukivskyi contributes to ongoing research at the intersection of law, economics, and blockchain technology. The patented solution introduces a structured method for ownership verification that may enhance trust in digital asset management systems by strengthening security and reliability.
The development also supports further research in cryptographic verification mechanisms and blockchain-based authentication models. By proposing a framework that reduces exposure of private cryptographic material while preserving verifiability, the patent offers a potential foundation for improved standards in digital asset governance across business, legal, and technological environments.
Potential Fields of Application
The proposed system may be integrated into:
- crypto wallets for secure user authentication;
- decentralized applications (dApps);
- digital asset exchanges;
- digital inheritance management systems;
- corporate platforms for managing tokenized assets;
- governmental or judicial procedures requiring confirmation of digital asset ownership.
The solution is particularly relevant in situations where legal proof of control over a digital asset is required without executing a blockchain transaction or disclosing a private key to third parties.
