cNFTs enable advanced privacy features for NFTs to push the boundaries and enable new use cases for NFTs.
Confidential NFTs allow using NFTs to control, log and manage access to valuable data, software features, restricted areas, physical devices and much more.
NFT metadata is currently public and not bound to an NFT. By encrypting NFT metadata like high-resolution images or license files, only the current owner of the NFT can access them. When an NFT is traded ownership and access privileges are transferred to the new owner.
cNFTs leverage trusted execution environments (TEEs) to make sure that only the current owner has access to the cNFT. Users can further verify that the software runs within the TEE has not been altered on a bytecode level.
The trustless NFT Oracle tracks the current owner of cNFTs and for example decrypts NFT metadata on-demand. Since the oracle runs inside a trusted execution environment no trusted third party is needed.
cNFTs can be enabled as a service for marketplaces built with Nifty Erdstall. We plan to extend the service to other L2 networks in the future.