Left Arrow
Butterfly Design

BLOG BY VASILLY S. IVANOV

Blockchain MFA (Multi-Factor Authentication)

Version 1.2 - 2025

In today’s digital world, authentication remains a fundamental challenge. Traditional centralized models, such as password-based logins and third-party authentication providers (e.g., Auth0, Google Authenticator), create security vulnerabilities through centralized control, data breaches, and lack of user ownership.

This whitepaper introduces a decentralized, blockchain-powered MFA ecosystem, integrating World Mobile Token (WTMX) for authentication and Cardano-based NFTs for subscription-based access control. Customers will stake Five Nines Consulting Token (FNC) to gain and retain access, distributing staking rewards to service providers for a self-sustaining authentication infrastructure.

By leveraging API-driven MFA with NFT-based access control, our model ensures:

  1. User-funded authentication via WTMX (reducing business expenses).
  2. Decentralized, tamper-proof access control through NFTs.
  3. Automated enforcement via smart contracts (burning NFTs for non-payment).

This system shifts authentication costs from businesses to end-users, creating a scalable, efficient, and tamper-proof authentication infrastructure.

Introduction

1. The Security Challenge in Authentication Modern authentication systems suffer from:

  1. Credential theft: Phishing, password leaks, brute force attacks.
  2. Centralized security risks: Auth0, Google Authenticator rely on single points of failure.
  3. Inefficient subscription management: Manual tracking and billing.

A decentralized authentication model enhances security, efficiency, and user control.

2. The FNC MFA NFT Marketplace Solution system provides:

  1. API-driven MFA Authentication – Users authenticate via SMS/email, paying WTMX fees.
  2. Staking based Subscription Access – Businesses stake FNC for service access.
  3. Smart Contract Enforcement – Automatic NFT burning removal of staking.

By integrating Cardano smart contracts, NFTs, and WTMX-powered transactions, this system ensures cost efficiency, decentralization, and tamper-proof authentication.

A hand gesture representing observation

System Architecture

1. Multi-Factor Authentication (MFA)

  1. User requests authentication via SMS/email (hashed for privacy).
  2. WTMX Nodes handle OTP-based authentication.
  3. User pays a WTMX transaction fee.
  4. Business API verifies user authentication.

2. NFT-Based Access Control Model

  1. Owner NFT – Full control over authentication settings.
  2. Admin NFTs – User role management.
  3. User NFTs – Provides access to authentication services.

2. NFT-Based Access Control Model

  1. Businesses stake FNC to retain NFT-based access.
  2. If staking requirements are unmet, NFTs are burned via smart contract enforcement.
  3. Staking rewards flow to service providers, ensuring financial sustainability.

This system automates subscription tracking and access enforcement.

A hand gesture representing observation

Technical Implementation

1. Blockchain & Smart Contracts

  1. Cardano Blockchain - Secure, Plutus-based smart contracts.
  2. Soulbound NFTs (SBTs) - Tied permanently to user wallets for secure authentication.
  3. IPFS/Arweave Storage - Decentralized metadata hosting ensures long-term integrity.

2. Payment & Transaction Flow

  1. UUsers pay WTMX for authentication services, such as SMS or email OTPs.
  2. Businesses stake FNC tokens to mint and maintain access to NFTs.
  3. Failure to stake FNC results in NFTs being burned via smart contract enforcement.

Automated through smart contracts, ensuring decentralization and transparency.

Business Model & Monetization

1. Revenue Streams

  1. MFA API Licensing – Businesses pay to integrate authentication services.
  2. WTMX Authentication Fees – Users fund authentication per transaction.
  3. FNC Staking Model – Businesses stake FNC, with rewards going to service providers.

2. Competitive Advantage

Feature
Auth0 / Google Authenticator
FNC MFA System
Decentralization
Auth0 / Google Authenticator: Centralized servers
FNC MFA System: Blockchain-based
User Authentication Costs
Auth0 / Google Authenticator: Billed to businesses
FNC MFA System: Paid by users (WTMX)
Subscription Enforcement
Auth0 / Google Authenticator: Manual billing
FNC MFA System: Smart contract-based
Security & Tamper-Proofing
Auth0 / Google Authenticator: Prone to breaches
FNC MFA System: Immutable NFTs

Sample Transaction Flow

1. Business Onboarding

  1. Business stakes FNC to access the service.
  2. NFT Collection is minted (Owner, Admin, and User NFTs).
  3. Organization distributes NFTs to wallets for secure access.

2. Ongoing Authentication & Access Control

  1. User requests authentication (OTP via SMS/email).
  2. WTMX transaction fee is deducted from the user.
  3. Business API validates authentication via NFT-based permissions.
  4. Failure to maintain FNC staking results in NFT revocation.

Roadmap & Development Phases

Phase 1: Core Development (Months 1-3)

  1. Implement MFA API with WTMX integration.
  2. Deploy basic NFT minting & burning contracts.

Phase 2: Marketplace Expansion (Months 4-6)

  1. Integrate businesses into the system..
  2. Develop enterprise-focused NFT authentication layers.

Phase 3: Advanced Features (Months 7-9)

  1. Introduce Zero-Knowledge Proofs (ZKPs) for enhanced privacy.
  2. Deploy decentralized authentication nodes for redundancy.
A hand gesture representing observation

Conclusion

The FNC MFA NFT Marketplace is a decentralized, blockchain-powered authentication solution. By integrating user-funded authentication (via WTMX) and business-controlled staking (via FNC), it ensures tamper-proof security, automated enforcement, and scalable infrastructure. With eliminated reliance on centralized identity providers, this model offers unparalleled security, efficiency, and cost savings.

For partnerships & API integration inquiries, contact: tehrus@gmail.com

A hand gesture representing observation