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A digital twin (DT) is an exact digital replica of a physical world object or asset that aids in managing, controlling, or monitoring the real object. The current systems used for managing DTs are centralized and not easily accessible. Typically, a DT is built by the original equipment manufacturer (OEM) and becomes hard to access and manage once its physical asset is transported or sold to a new owner. Moreover, a physical asset or object is typically comprised of many other physical sub-components. This translates to having one DT comprised of other sub-DTs. In this paper, we show how non-fungible tokens (NFTs) can be used to manage ownership of DTs and to provide proof of delivery (PoD) of their associated physical assets in a decentralized, secure, traceable, and transparent manner. Specifically, we propose, implement, and evaluate a solution to manage DTs and their sub-DTs using NFTs and sub-NFTs. The DTs and their sub-DTs are represented in a hierarchical way, whereby a sub-NFT maps to a sub-DT along with its physical object. We present the system architecture and design, as well as the implementation of algorithms and smart contracts along with thorough testing and validation details. We present the security analysis as well as discuss the generalization aspect of the proposed solution. All developed smart contract codes are made publicly available on GitHub.
•We propose an NFT-based solution to manage ownership of DTs and provide PoD of their associated physical assets.•We present algorithms for registering the participating entities, minting NFTs, purchasing physical assets and their DTs, transferring ownership, tracking ownership changes, PoD, and payment settlement.•We evaluate the proposed solution using various parameters and present the security analysis. The results show that the system design and the smart contracts are secure enough against security threats and attacks.