System and method for providing a mixed reality minting of encrypted digital assets

Abstract

A computer-implemented method includes receiving, by a computer system, data indicating that a user has acquired an encrypted digital asset representing an article of footwear or apparel; responsive to receiving the data, granting authorization to produce a maximum predetermined number of physical units of the article of footwear or apparel represented by the encrypted digital asset; receiving, by the computer system via an electronic order portal, a purchase order from the user for a specified number of physical units up to the maximum predetermined number of physical units authorized to be produced; and fulfilling, by the computer system, the purchase order to provide the specified number of physical units to the user.

Description

[0001] Cross-references to related applications

[0002] This application claims the priority benefit of U.S. Patent Application No. 18 / 444,327, filed February 16, 2024, which is incorporated herein by reference in its entirety and covers all the contents thereof. Technical Field

[0003] This disclosure generally relates to encrypted digital assets, the distribution, use and interaction of encrypted digital assets, and the physical production rights of digital assets. Background Technology

[0004] High-quality footwear manufacturers have long been plagued by the sale of counterfeit footwear, which is designed to deceive buyers into believing they are purchasing genuine products from the real manufacturer. A similar problem exists in the digital realm, where digital products frequently suffer from unauthorized sales and duplication. This unauthorized / counterfeit production and / or digital duplication can undermine brand value and / or exclusivity, negatively impact a company's profitability, and potentially damage consumers' subjective perception of the product as a "collectible."

[0005] In free markets, market participants and brand enthusiasts often assign higher value to an object when supply is limited and / or demand is excessive. While these realities are evident in the physical world (especially for avid collectors), similar market realities exist in the digital realm.

[0006] In the physical world, numerous anti-counterfeiting technologies have been developed to help identify counterfeit goods and prevent illicit sales. Unfortunately, in the digital realm, supply is often unrestricted, either by the original developer or by subsequent parties who freely (or illegally) replicate digital objects in their entirety. This typically complicates the ability of brand owners to control the exclusivity of digital objects and / or influence their value. The lack of control over the exclusivity of digital objects then reduces the opportunity for product enthusiasts and collectors seeking them (as often seen with the "sneaker fanatic" phenomenon during limited-edition sneaker releases) to gain free brand promotion.

[0007] With the proliferation of first-person and third-person video games featuring customizable skins, clothing, and gear, there is an opportunity to engage and influence users in the digital realm through collectible objects, enabling them to interact more deeply with brands in the physical world. Similarly, retailers need to have more direct influence and / or control over the nature and ultimate supply of digital objects in this virtual marketplace. Summary of the Invention

[0008] This paper presents cryptographic digital assets for footwear and apparel, methods for providing such cryptographic digital assets, methods for mixing such cryptographic digital assets, and a decentralized computing system with accompanying blockchain control logic for mining, mixing, and exchanging blockchain-enabled digital footwear and apparel. More specifically, the technology described here relies on the trust established and built upon in blockchain technology, enabling companies to control the creation, distribution, representation, and use of digital objects representing their brands. Furthermore, this technology allows companies to limit the overall supply of digital objects (or object traits) to create controlled scarcity where desired.

[0009] This disclosure envisions that, in some instances, a digital object can represent: a physical object for retail sale; a 2D or 3D design rendering or design file that can be used for future production; a virtual representation of an object that is not currently intended for physical creation / production; or other such objects.

[0010] To further promote brand engagement and the use of digital objects, in some embodiments, the visual representation of the displayed digital object can be altered through user interaction with the object, user interaction with the associated retail product or app, or other such metrics of object / brand engagement. In some embodiments, the attributes of the digital object and / or its visual representation may influence the behavior of the object or user-controlled character within a video game environment.

[0011] This paper presents, through examples rather than limitations, crypto-digital assets provided by a blockchain ledger of transaction blocks. Crypto-digital assets are used in part to link real-world products (such as physical shoes) to virtual collectibles (such as digital shoes). When a consumer purchases a pair of physical shoes (commonly known as "kicks"), a digital representation of the shoe can be generated, associated with the consumer and assigned a crypto token. The digital shoe and the crypto token together represent "CryptoKick." The digital representation can include a computer-generated avatar of the shoe or a limited-edition artist reproduction of the shoe. Digital assets can be protected by cryptographically secured blocks containing hash pointers, transaction timestamps, and transaction data that serve as links to related blocks in a decentralized blockchain. Using digital assets, buyers can securely trade or sell a pair of physical shoes, trade or sell digital shoes, store digital shoes in cryptocurrency wallets or other digital blockchain lockers, mix or "breed" digital shoes with another digital shoe to create "shoe offspring," and customize the newly bred shoe offspring into a new pair of physical shoes based on rules of acceptable shoe manufacturability.

[0012] In some embodiments, purchasing a pair of physical shoes can enable or “unlock” the corresponding cryptographic digital asset and the digital shoe associated with that digital asset. For example, when a person purchases a pair of real-world shoes from a registered seller, the physical shoe’s unique (e.g., 10-digit) Physical Shoe Identifier (ID) code can be linked to the buyer’s unique (e.g., 42-digit) Owner ID code. Simultaneously, an access hint with a unique (e.g., 64-digit) key is issued to the cryptocurrency wallet account associated with the Owner ID code, allowing the buyer to retrieve the digital shoe using cryptographic tokens; the key, tokens, and digital shoe are assigned to the Owner ID code. For example, a first Ethereum Request for Comments (ERC) 721 or ERC1155 token can be authorized to authenticate and trade the physical shoe, and a second ERC721 / ERC1155 token can be authorized to access, breed, and trade the digital shoe. For at least some implementations, real-world environmental effects, such as the specific type of use of the physical shoe, may influence the digital representation of the shoe. You can assign separate crypto tokens to the physical shoe and the crypto digital asset; alternatively, you can assign a single crypto token to both the physical shoe and the crypto digital asset.

[0013] In some embodiments, digital assets may include genotypic and / or phenotypic information of digital shoes. This genotypic / phenotypic data may represent certain traits, attributes, colors, styles, backgrounds, etc., of the digital asset and can be coordinated according to “breeding rules” governing any mixing of digital shoes with one or more other discrete digital shoes. Phenotypic characteristics may depend on genotypic information, and vice versa, and any one or more of the following: virtual environment and collateral effects; time-related mixing restrictions (e.g., virtual shoe offspring cannot be bred until both reach a pre-set maturity); virtual user interactions that alter (e.g., accelerate or slow down) maturity or increase / decrease the likelihood of developing certain traits; real-world user interactions (e.g., running increases the number of good / ideal qualities, accelerates the maturation of virtual offspring, etc.); shoe cloning and allowing the owner to set the total number of cloned shoes that can be produced from desired offspring for actual real-world production. Some optional features may also include: surrogacy features for breeding programs between two or more discrete digital shoes; parenting / nanny features provided by a third-party entity that does not own the digital shoes; behavioral and animation features designed to make the digital shoes appear more realistic (e.g., personality that changes over time); the “breeding rights” of the digital shoes may be subject to one or more real-world manufacturing restrictions; ownership of each subsequent generation of digital shoes may be traced back to the original real-world shoe via an encryption key to the original associated virtual product (e.g., wholly or partially; percentage of genotype contribution, etc.).

[0014] Various aspects of this disclosure relate to methods for providing, mixing, and / or exchanging cryptographic digital assets for footwear. In one example, a method for automatically generating cryptographic digital assets associated with footwear products is presented. This representative method, in any order and in any combination with the features and options disclosed above or below, includes: receiving transaction confirmations from remote computing nodes (e.g., point-of-sale (POS) terminals, personal computers, smartphones, etc.) via a server-level (middleware or back-end) computer on a distributed computing network, the transaction confirmations indicating the transfer of verified genuine footwear from a first party to a second party; determining, via the middleware server computer, a unique owner ID code (e.g., a membership ID of a cryptocurrency wallet or digital locker) associated with the second party from an encrypted relational database; generating cryptographic digital assets associated with the footwear, the cryptographic digital assets including digital shoes (e.g., computer-generated avatars) and unique digital shoe ID codes (e.g., keys and cryptographic tokens); linking the cryptographic digital assets with the unique owner ID codes via the middleware server computer; and transmitting the unique digital shoe ID codes and unique owner ID codes via the middleware server computer to a distributed blockchain ledger (e.g., Bitcoin, Ethereum, Litecoin, etc.) for recording on a transaction block.

[0015] Other aspects of this disclosure relate to decentralized computing systems with accompanying blockchain control logic for mining, mixing, and exchanging blockchain-enabled digital shoes. As an example, a decentralized computing system for automatically generating cryptographic digital assets associated with footwear products is presented. This decentralized computing system includes: a wireless communication device connected to one or more remote computing nodes via a distributed computing network; and a cryptographic digital asset registry storing digital shoes and unique digital shoe ID codes associated with multiple cryptographic digital assets. Other peripheral hardware may include a network interface bus, resident and / or remote storage, user location tracking devices, UPC / UPID scanners, etc.

[0016] Continuing with the example above, the decentralized computing system also includes a server-level (middleware or backend) computer operatively connected to a wireless communication device and a cryptographic digital asset registry. This middleware server computer is programmed to execute stored firmware and software to receive electronic transaction confirmations from remote computing nodes via a distributed computing network, indicating the verified transfer of certified footwear from one party to another. In response to receiving the transaction confirmation, the server-level computer retrieves the transferee's unique owner ID code from an encrypted relational database and generates a cryptographic digital asset associated with the footwear product. This cryptographic digital asset includes a computer-generated digital shoe provided with a unique tokenized code having a corresponding access key. The server-level computer then links the cryptographic digital asset to the unique owner ID code in the cryptographic digital asset registry and transmits the unique digital shoe ID code and the unique owner ID code to a distributed blockchain ledger for recording on a transaction block.

[0017] For any of the disclosed systems, methods, digital assets, and footwear, a unique digital shoe ID code may include a cryptographic token key with a code string that is segmented into a series of code subsets. The first code subset may include data indicating the attributes of the digital shoe. This attribute data may include genotypic and phenotypic data of the digital shoe. The second code subset may include data indicating the attributes of real-world footwear, such as the footwear's color scheme, materials, manufacturing process, brand, sustainability / eco-responsibility, and / or model data.

[0018] For any of the disclosed systems, methods, digital assets, and footwear, the server-level decentralized system computer can respond to a received transaction confirmation by sending an electronic notification to a second party containing information for accessing the encrypted digital asset. The server-level computer can then receive a scan confirmation from the second party's handheld personal computing device, verifying that a Universal Product Code (UPC) and / or Unique Product Identifier (UPIN) corresponding to the brand and model of the footwear has been scanned. Linking the encrypted digital asset with a unique owner ID code can be performed in response to receiving the scan confirmation. In some applications, the unique digital shoe ID code may include a crypto token, and the digital notification sent to the second party may include a unique key with a hash address pointing to that crypto token.

[0019] For any of the disclosed systems, methods, digital assets, and footwear, a server-level computer can receive a digital propagation request (from any participant) requesting the mixing of a cryptographic digital asset with a third-party cryptographic digital asset. Upon receiving this request, the server-level computer can responsively generate descendant cryptographic digital assets having a combination of one or more features from the second-party cryptographic digital asset and one or more features from the third-party cryptographic digital asset. For example, a corresponding unique cryptographic token key can be assigned to each cryptographic digital asset, having a code string segmented into a series of code subsets. One or more of these code subsets may include data indicating the corresponding digital shoe attributes. The descendant cryptographic digital assets are provided via a unique cryptographic token key having a code string consisting of one or more code subsets with attribute data extracted from the cryptographic token key of the second-party digital asset and one or more code subsets with attribute data extracted from the cryptographic token key of the third-party digital asset. For example, one subset of the code of a descendant digital asset may share a unique alphanumeric sequence with a subset of the code of a second-party digital asset, while another subset of the code of a descendant digital asset may share a unique alphanumeric sequence with a subset of the code of a third-party digital asset. Generating descendant cryptographic assets may involve applying a random number generator to: designate one of the mated cryptographic assets as the parent, designate the other mated cryptographic asset as the mother, and determine which subsets of the code in the descendant will correspond to which subsets of the parent and which subsets of the mother.

[0020] For any of the disclosed systems, methods, digital assets, and footwear, a server-level computer can receive a digital transfer proposal (from a transferor or transferee) requesting the transfer of crypto-digital assets to a third party. The server-level computer can respond by determining a new unique owner ID code for the third party, linking the crypto-digital assets to that new unique owner ID code, and recording the transfer of the unique digital shoe ID code to the new unique owner ID code on a new transaction block of the distributed blockchain ledger. The digital transfer proposal can be transmitted in response to confirmation instructing a new verified transfer of footwear from a second party to a third party. Alternatively, the transfer of crypto-digital assets to a third party can be independent of the transfer of physical footwear. Optionally, the server-level computer can generate a smart contract that authenticates ownership of the crypto-digital assets and / or tracks their future transactions. The unique owner ID code can be linked to a cryptocurrency wallet registered in the distributed blockchain ledger.

[0021] The foregoing summary is not intended to represent every embodiment or aspect of this disclosure. Rather, it provides merely examples of some of the concepts and features set forth herein. The foregoing features and advantages, as well as other features and incidental advantages, of this disclosure will become apparent from the following detailed description of illustrative examples and representative modes for carrying out this disclosure when considered in conjunction with the accompanying drawings and appended claims. Furthermore, this disclosure expressly includes any and all combinations and sub-combinations of the elements and features presented above and below. Attached Figure Description

[0022] Figure 1 The illustration is an exterior view of a representative footwear product according to various aspects of this disclosure, which has collectible digital assets protected by cryptographic tokens provided through a blockchain ledger.

[0023] Figure 2 This is a schematic diagram of a representative decentralized computing system for mining, mixing, and exchanging encrypted digital assets, based on various aspects of this disclosure.

[0024] Figure 3 This is a schematic diagram illustrating the functional structure of a decentralized computing system for mining, mixing, and exchanging encrypted digital assets, based on various aspects of this disclosure.

[0025] Figure 4 This is a flowchart illustrating a representative workflow algorithm for generating collectible digital shoes protected by cryptographic tokens on a blockchain ledger. This workflow algorithm may correspond to memory storage instructions executed by control logic circuits, programmable electronic control units, or other computer-based devices or networks of devices according to aspects of the disclosed concept.

[0026] Figure 5 It is an illustration of a typical graphical user interface (GUI) for a personal computing device, which depicts a library of multiple encrypted digital assets.

[0027] Figure 6 It is an illustration of a typical graphical user interface (GUI) of a personal computing device, illustrating a collaborative or reproductive event between two encrypted digital assets.

[0028] Figure 7 It is a functional diagram illustrating how to acquire encrypted digital assets through linked retail products.

[0029] Figure 8 This is a functional illustration of obtaining encrypted digital assets through promotional gifts at the event.

[0030] Figure 9 It is an illustration of a representative graphical user interface (GUI) for personal computing devices, illustrating the use of genotypic and phenotypic characteristics of cryptographic digital assets in video games.

[0031] Figure 10 It is a functional illustration of a representative graphical user interface (GUI) of a personal computing device running on a decentralized computing system, according to various aspects of this disclosure, for providing virtual user interaction that alters the genotypic and phenotypic characteristics of cryptographic digital assets.

[0032] Figure 11 It is a functional illustration of multiple users participating in collaborative experiences (such as participating in digital collectible card games).

[0033] This disclosure can be modified and substituted in various ways, and some representative embodiments have been illustrated by way of example in the accompanying drawings and will be described in detail below. However, it should be understood that the novel aspects of this disclosure are not limited to the specific forms illustrated in the drawings listed above. Rather, this disclosure covers all modifications, equivalents, combinations, sub-combinations, arrangements, groupings, and substitutions that fall within the scope of this disclosure as covered by the appended claims. Detailed Implementation

[0034] This disclosure allows for numerous different forms of embodiments. Representative examples of this disclosure are shown in the accompanying drawings and will be described in detail herein. It should be understood that these representative examples are provided as illustrations of the disclosed principles and not as limitations on the broad aspects of this disclosure. In this sense, elements and limitations described in the abstract, technical field, background, summary, and detailed description sections but not expressly set forth in the claims should not be incorporated, alone or in combination, by implication, inference, or otherwise, into the claims.

[0035] For the purposes of this detailed description, unless explicitly waived: the singular includes the plural, and vice versa; the words “and” and “or” should be conjunctions and separators, respectively; the words “any” and “all” both mean “any and all”; and the words “including,” “contains,” “has,” “contains,” etc., each mean “including but not limited to.” Furthermore, approximate words such as “about,” “almost,” “basically,” “approximately,” etc., may be used herein in the sense of, for example, “at, near, or close to” or “within 0 to 5%” or “within acceptable manufacturing tolerances” or any logical combination thereof. Finally, directional adjectives and adverbs, such as front, back, medial, lateral, proximal, distal, vertical, horizontal, front, rear, left, right, etc., may refer to footwear articles worn on a user’s foot and, for example, be operatively oriented such that the ground-joint portion of the sole structure is in place on a flat surface.

[0036] Various aspects of this disclosure relate to computer-generated virtual collectibles, such as digital shoes (e.g., “CryptoKicks”), which in some cases are linked to real-world physical products (such as tangible shoes) and are protected by cryptographic tokens. In some embodiments, digital assets may not be linked to real-world physical products, but rather to 2D or 3D design files, renderings, or drawing packages from which physical products can be constructed. In this embodiment, a company can create multiple manufacturable designs with different shapes, outlines, colors, etc., and distribute them across one or more digital platforms, and can then monitor the popularity, value, demand, and / or virtual usage of different product designs and / or shapes. By doing so, the company can gain valuable insights into the real-time demand for the product, which can be helpful in prioritizing designs for future manufacturing.

[0037] In some embodiments, digital assets can be created for brand promotion purposes. In this embodiment, digital shoes can be created in a preset and / or controlled limited quantity and distributed as part of a promotion, event, moment, or competition. For example, spectators at a professional sports stadium opening match may be granted the right to acquire one unique digital asset from a limited number of unique digital assets, each unique digital asset being individually protected via its own cryptographic token.

[0038] As used herein, “crypto-digital asset” or simply “digital asset” can refer to any computer-generated virtual object, including digital footwear, apparel, headwear, avatars, pets, etc., that has a unique, non-fungible tokenized code (“token”) registered and verified on a blockchain platform or otherwise registered in an immutable database. Furthermore, all references to “CryptoKicks” and its variants in this disclosure should be understood as instances of virtual collectibles backed by unique non-fungible tokens or registry entries in an immutable database. It should not be limited to footwear. All such references should be understood to equally apply to apparel (e.g., “CryptoThreads”), headwear (e.g., “CryptoLids”), and sports equipment (e.g., “CryptoGear”) or other such objects.

[0039] In some embodiments, a virtual object may have multiple attributes (i.e., phenotypic traits) that are at least partially derived from an encrypted alphanumeric string that can be associated with a cryptographic token. In this sense, the alphanumeric string can be analogous to the genetic code of the virtual object. While phenotypic traits may depend on encoded genotypic information, in some embodiments they may also depend on any one or more of the following: the virtual environment (e.g., virtual check-in, context-specific criteria, etc.); time-related reproduction (e.g., users are restricted to reproducing virtual shoe offspring until they reach a preset maturity); virtual user interactions that may accelerate or slow down maturity or increase / decrease the likelihood of certain trait development; real-world user activities (e.g., a user's level of physical activity may increase one or more "desired" qualities; daily use of related goods may accelerate the maturation of virtual offspring, etc.); and cloning limits set by manufacturers, points of sale, owners, etc. (e.g., a preset maximum number of clones that can be generated from desired offspring used for actual real-world production).

[0040] In the context of footwear, each unique token can be directly linked to a single CryptoKick object, which can represent a virtual replica or digital art version of the sneaker. In one embodiment, the token may include a 64-bit alphanumeric code segmented into individual code segments. One or more of the code segments of the alphanumeric code can express data indicating attributes of the collectible digital shoe. For example, a series of code segments can provide digital shoe attributes such as style, material, family, popularity, color scheme, future attributes, brand, model, pattern scheme, image background, etc. Each subset of the code can typically be used as a genotype to generate a visual phenotypic expression for the user. In some embodiments, the initially created CryptoKick may include cryptographic token data representing attributes accompanying the physical shoe. During the creation of the CryptoKick, a smart contract can be generated to authenticate ownership and track future transactions of the CryptoKick. Digital shoe attributes may also be linked to a bill of materials.

[0041] In a representative example, a pair of certified physical shoes is created and assigned a unique Product Identifier (UPID). Upon purchase, the UPID is used to unlock a cryptocurrency (“CryptoKick”), which consists of a collectible digital shoe and a unique non-fungible token (NFT) running on a blockchain-based distributed computing platform.

[0042] Generally, consumers may first be asked to obtain a blockchain locker address (e.g., an Ethereum hardware wallet) before they can unlock or access CryptoKick. This blockchain locker can be used to store the private keys to NFTs belonging to CryptoKick and, optionally, can be linked to an individual user account registered with the original manufacturer of the physical shoe (e.g., a NIKEPLUS® account profile).

[0043] It is conceivable that several methods could be employed to enable users to unlock CryptoKick. As a first instance, during the initial purchase or when directly associated with the product, scanning the shoe's UPC or UPID at a point-of-sale (POS) terminal automatically generates a unique encrypted token and a corresponding private key ("KickID"), which are then assigned to the user's blockchain locker (see [link to product details]). Figure 7 In a second instance, KickID is provided to the user via: a printed receipt or digital receipt, a visual or electronic tag (RFID or NFC) hidden in the physical shoe, a pop-up message or email sent to the individual user's account, a push notification or SMS sent to a smartphone, or some other record; the consumer uses KickID to link CryptoKick to their digital blockchain locker. Another instance may require the user to combine KickID partly via a physical code or UPID associated with the shoe (on the box, on the hangtag, under the label, on the insole, etc.) and partly via a transaction authentication code (i.e., to prevent the consumer from obtaining CryptoKick simply by trying on a pair of shoes). Yet another instance may require the user to "find" CryptoKick in a physical store using a photographic "snapshot" or augmented reality ("AR") function on a handheld personal computing device. In this approach, KickID can be provided via retail transactions; however, the user must individually locate the hidden CryptoKick within an AR environment concealed in the store or local area before the digital asset can be transferred to their locker (i.e., both the encryption key and the virtual object must be obtained separately before the transfer occurs). In this example, obtaining the encryption key enables the AR engine associated with the user's device to launch a game in which the CryptoKick / virtual object associated with the key is locally hidden and locatable by the user.

[0044] In some cases, CryptoKick may not initially be linked to a physical product, but can be given to users as part of a brand promotional campaign, event, moment, or experience. In one instance, such as... Figure 8In a general scenario, users at a sporting event might be asked to use the camera on their smartphone device to locate CryptoKick within the event area. In this embodiment, the GPS associated with the smartphone device can also limit optical recognition capabilities to a specific geofenced area. Once CryptoKick is located (e.g., virtually disguised in billboard advertising), the user can be prompted to scan a unique code, such as the barcode on their event ticket. This two-part action then transfers the token uniquely associated with that ticket to the user's locker. After the event, the promotional organizers can reclaim any unclaimed KickIDs for use in subsequent promotional events.

[0045] After acquiring CryptoKick, owners can buy, sell, mix, collect, or trade CryptoKick using, for example, physical currency, fiat currency, and / or digital currency. In some instances, entities may maintain digital online marketplaces that include CryptoKick inventory available for sale and / or marketplaces where transactions can be mediated between individuals.

[0046] In one embodiment, two CryptoKicks can be bred or hybridized (“Collab”) to create a descendant CryptoKick (“RVK” or “CollaboKick”). This CollaboKick will have a unique token and distinctive attributes compared to the parent CryptoKick. Collab can combine attribute data and / or genetic code from the two tokens of the parent to generate a new NFT or KickID, which in turn provides the CollaboKick. In some implementations, there may be a pre-set limit on the total number of Collab events within a given timeframe, for example, to help prevent over-production of CollaboKicks between the same two users. The creation of the CollaboKick's genetic code can be random, systematic, regulated, unregulated, or any combination thereof. For example, one or more subsets of the code can be based on controlled probabilities using Mendel's laws. For example, if the first attribute code (e.g., heat of formation) is expressed as two genes (e.g., HH, Hh, or hh), then if a CollaboKick has two "hh" (recessive trait) genes, it is considered to have "high heat." In other words, if the genotype data contained in the KickID of a CryptoKick parent contains Hh as its "heat gene," then the offspring CollaboKick will have a 25% probability of inheriting the high heat gene, for example, by using the Punnettsquare method.

[0047] The option to execute a Collab event may require one or both owners to comply with one or more preconditions. As an example, two owners of parent CryptoKicks might be required to meet at a designated location or be within a predetermined proximity to each other to create a CollaboKick. For instance, a user could use the “CryptoKick Collab” matching feature on a dedicated mobile application (“app”) to find another user to collab with. Using the app, both parties can set the time and location of the meeting, set the conditions for the Collab, submit a formal request to the management middleware compute node, and so on. Another example could include a Collab event hosted by a footwear manufacturer or a third-party sponsor, in which CryptoKick owners meet at a designated location and collab with each other within a specific time frame.

[0048] In some embodiments, owners may be provided with some indication of the genetic traits of their CryptoKick to facilitate more deliberate Collaboration events. In one instance, a user might expect a specific model of CryptoKick with a particular color. The user could then search for CryptoKicks with the genetic code for that color and attempt to Collaborate with them. To further understand the value of the traits, in some embodiments, users may be provided with an indication of the rarity or total circulating supply of each trait that constitutes their CryptoKick, and / or an indication of the rarity score of the overall exclusivity of their CryptoKick. In this way, if sold on a commercial market, a CryptoKick may carry an intrinsic value reflecting the combined rarity or exclusivity of its various traits.

[0049] A predefined set of blending rules can govern whether and how a Collab is executed. For example, certain constraints can be imposed to maintain a broad style guide in CollaboKick. In one embodiment, these style constraints may be the same constraints or guidelines a company uses when creating new versions, color schemes, or iterations of an existing product line. When a Collab is created, the genetic blending algorithm may be constrained so that any resulting Collab kick retains an appearance or outline that indicates one or more existing products. While in one embodiment these style guidelines or rules may be explicitly set by the company, in another embodiment they may be discovered and assembled, for example, using an image-based processing algorithm that can identify style attributes (e.g., color patterns, materials, cuts, and / or size patterns) from existing products.

[0050] In at least some implementations, CryptoKick can be programmed to act as a "living" digital pet, which the user feeds, cleans, plays with, and otherwise cares for to ensure the pet's happiness and health. Optionally, the owner can care for the CryptoKick pet themselves or have a third-party user care for it. As the CryptoKick pet evolves (from an infant digital pet to a toddler, then a preschooler, and so on until adulthood), one or more of CryptoKick's attributes will change automatically with age or unlock over time. Furthermore, as the CryptoKick pet "grows" through various life stages, it can unlock real-life shoe versions of the pet that the user can create. For example, if the CryptoKick pet has evolved into a toddler's royal blue athletic shoe, the user unlocks the option to purchase one or more special royal blue athletic shoes in toddler sizes.

[0051] In some implementations, a user's CryptoKick can be imported into one or more other digital platforms, for example, as a skin for a video game character that the user may develop and / or control. For instance, if a user is active in a basketball video game, CryptoKick can be imported into that game and worn by the user's player or team.

[0052] If CryptoKick were imported into a standalone video game, in some configurations, the different attributes of CryptoKick could alter the ability levels of a user character equipped with that asset. In one instance, a user character's attributes might be positively affected by the rarity or exclusivity of various attributes, or by a combination of rarity or exclusivity. For example, a rare CryptoKick might grant better jumping ability or lateral speed, a rare CryptoThread might grant better strength or speed, and a rare CryptoLid might grant better vision.

[0053] In some embodiments, CryptoKicks users can vote on the "best CollaboKick" in the marketplace, for example, on a weekly / monthly / quarterly / yearly basis. Such a voting scheme can be used to designate one or more CollaboKicks suitable for commercial production of physical products that resemble that digital asset. Alternatively, a CollaboKick that receives a preset threshold number of votes can automatically trigger a manufacturer to produce that CollaboKick in real-world production.

[0054] As CryptoKick and CollaboKick are transferred between users over time through selling, trading, buying, and Collab, the history of each transaction can be tracked in the blockchain ledger of transactions. If a CollaboKick or CryptoKick is created, previous users can be notified of its existence and can be given the option to purchase their own pair of real CollaboKick / CryptoKick.

[0055] As an additional extension, in one embodiment, CryptoKick may be backed by fungible tokens, where digital collectibles represent monetary value. In one implementation, certain attributes within the code assigned to the token can determine its value. For example, a style attribute indicating high-top sneakers could have a first value, a style attribute indicating yoga pants could have a second value, and a style attribute indicating running shirts could have a third value. In one embodiment, these values ​​could be allowed to float based on market forces or could be pegged to fiat currency.

[0056] Referring now to the accompanying drawings, in which the same reference numerals in several views denote the same features, Figure 1 The illustrated footwear article 10 is generally designated as 10 and, for the purposes of discussion, is described herein as an athletic shoe or "sneaker." The illustrated footwear article 10 (also referred to herein as "footwear" or "shoe" for brevity) is merely an exemplary application of the novel aspects and features of the invention that can be practiced. In one embodiment, the illustrated footwear article 10 may be or be similar to CryptoKick. Similarly, implementations of the present concept for digital shoes and crypto tokens for footwear should also be understood as representative implementations of the disclosed concepts. Therefore, it should be understood that aspects and features of this disclosure can be used for other types of footwear and can be incorporated into any logically related consumer product. As used herein, the terms "shoe" and "footwear" (including their various variant forms) are used interchangeably and synonymously refer to any suitable type of clothing worn on the human foot. Finally, the features presented in the figures are not necessarily to scale and are provided for illustrative purposes only. Therefore, the specific and relative dimensions shown in the figures should not be construed as limiting.

[0057] 10 representative footwear products Figure 1 The structure is generally described as a two-part construction, primarily consisting of a foot-receiving upper 12 mounted on top of the lower sole structure 14. Although in Figure 1Only a single shoe 10 for the user's left foot is shown, but a mirror-image, substantially identical corresponding shoe for the user's right foot can be provided. It will be appreciated that the shape, size, material composition, and manufacturing method of the shoe 10 can be changed individually or collectively to practically adapt to any conventional or unconventional footwear application.

[0058] Continue to refer to Figure 1 The upper 12 is depicted as having a shell-like, closed toe and heel configuration for enclosing the foot. Figure 1 The upper 12 is typically defined by three adjacent segments: the toe cap 12A, the forefoot plate 12B, and the rear quarter 12C. The toe cap 12A is shown as the rounded forepoint of the upper 12, extending distally to the proximal metatarsal bone to cover and protect the user's toes. By comparison, the forefoot plate 12B is the arched middle segment of the upper 12, located behind the toe cap 12A and extending from the metatarsal bone to the cuboid bone. As shown, the forefoot plate 12B also provides a series of eyelets 16 and a tongue 18. Located behind the forefoot plate 12B is the rear quarter 12C, which extends from the transverse tarsal joint to the calcaneus and includes the rear portion of the upper 12. Although depicted in the figures as comprising three main segments, the upper 12 can be manufactured as a single piece or can be composed of any number of segments, including a toe cap, heel shield, ankle brace, lining, etc. For sandal and slipper applications, the upper 12 can be configured with an open toe or an open heel, or it can be replaced by a single strap or multiple interconnected straps.

[0059] The upper 12 of footwear 10 can be made of any one or a combination of various materials, such as fabric, engineered foam, polymer, natural and synthetic leather, etc. Once cut to a certain shape and size, the individual segments of the upper 12 can be sewn, glued, fastened, welded, or otherwise joined together to form an internal space for comfortably accommodating the foot. The individual material elements of the upper 12 can be selected and positioned relative to footwear 10 to impart desired properties such as durability, breathability, abrasion resistance, flexibility, appearance, and comfort. An ankle opening 15 in the rear quarter 12C of the upper 12 provides access to the interior of the shoe 10. Laces 20, straps, buckles, or other conventional mechanisms can be used to modify the circumference of the upper 12 to more securely hold the foot inside the shoe 10, and to facilitate entry and exit of the foot from the upper 12. The shoelaces 20 can pass through or be attached to a series of eyelets 16 in the upper 12; the tongue 18 can extend between the shoelaces 20 and the internal gap of the upper 12.

[0060] The sole structure 14 is rigidly attached to the upper 12, such that the sole structure 14 extends between the upper 12 and the support surface on which the user stands. The sole structure 14 can be manufactured as a sandwich structure having a top insole 22, a middle midsole 24, and a bottom outsole 26 or outsole surface. Alternative sole configurations can be manufactured with more or fewer than three layers. The insole 22 is shown partially located within the internal space of the footwear 10 and is operatively attached to the lower portion of the upper 12 such that the insole 22 abuts the sole surface of the foot. Below the insole 22 is the midsole 24, which incorporates one or more materials or embedded elements that enhance the comfort, performance, and / or ground reaction force attenuation characteristics of the footwear 10. These elements and materials may be individually or in any combination including polymeric foam materials such as polyurethane or ethylene vinyl acetate (EVA), filling materials, cushioning agents, air-filled bladders, plates, durable elements, or motion control components. The outsole 26 is located below the midsole 24, defining some or all of the bottom part of the footwear 10, the ground contact portion. The outsole 26 may be formed of natural or synthetic rubber material, providing a durable and abrasion-resistant surface for contact with the ground. In addition, the outsole 26 may have a specific profile and texture to enhance the adhesion friction (i.e., friction) properties between the footwear 10 and the underlying support surface.

[0061] Generally speaking, Figure 1 Each element, panel, section, and material of the footwear product 10 shown can be rendered or defined individually in the digital CryptoKick. Furthermore, as mentioned above, these attributes can be similarly reflected in the genetic code of the NFT.

[0062] Figure 2This is a schematic illustration of an exemplary decentralized computing system, generally indicated by 30, having accompanying blockchain control logic for mining, mixing, and exchanging blockchain-enabled digital collectibles. User 11 is communicatively coupled to a remote host system 34 and / or a cloud computing system 36 via a wireless communication network 38. While the illustration shows a single user 11 communicating with a single host system 34 and a single cloud computing system 36 via decentralized computing system 30, it is conceivable that any number of users can communicate with any number of remote computing nodes suitably equipped for wirelessly exchanging information and data. Wireless data exchange between user 11 and the remote computing nodes on decentralized computing system 30 can be direct (e.g., direct communication between host system 34 / cloud computing system 36 and user device 39, such as user's smartphone 40, smartwatch 42, or other suitable personal computing device) or indirect (e.g., all communication between user 11 and other computing nodes is routed through host system 34). Only optional components of decentralized computing system 10 and decentralized computing system 30 are shown and will be described in detail herein. However, the systems and devices discussed herein may include many additional and alternative features, as well as other available hardware and well-known peripheral components, such as those used to perform the various methods and functions disclosed herein. While the described systems rely on blockchain ledgers and processes to record ownership of digital assets, it should be understood that this technology can operate on public or private blockchains and can utilize one or more forms of cryptography, coding, proof-of-work challenges, or other concepts and technologies involved in available blockchain standards or suitable alternative immutable databases / ledgers.

[0063] Continue to refer to Figure 2The host system 34 can be implemented as a high-speed server computing device or mainframe computer capable of batch data processing, resource planning, and transaction processing. For example, the host system 34 can operate as middleware in a client-server interface, used to exchange and communicate with one or more "third-party" servers as necessary to complete a specific transaction. On the other hand, the cloud computing system 36 can operate as middleware for IoT (Internet of Things), WOT (World Wide Internet of Things), Adaptive Apparel and Footwear Internet (IoAAF), and / or M2M (Machine-to-Machine) services, connecting various heterogeneous electronic devices to a service-oriented architecture (SOA) via a data network. As an example, the cloud computing system 36 can be implemented as a middleware node to provide different functions for dynamically accessing heterogeneous devices, multiplexing data from each of these devices, and routing data through reconfigurable processing logic for processing and transmission to one or more target applications. The network 38 can be any available type of network, including a combination of public distributed computing networks (e.g., the Internet) and secure private networks (e.g., LANs, WANs, VPNs). It may also include wireless and wired transmission systems (e.g., satellite, cellular networks, terrestrial networks, etc.). Most (if not all) data transaction functions performed by user 11 can be performed via, for example, wireless networks (such as wireless local area networks (WLANs) or cellular data networks).

[0064] As a decentralized blockchain platform, computing system 30 operates as an open but encrypted peer-to-peer network where asset transaction records (called “blocks”) are linked in a distributed, immutable ledger (i.e., a “blockchain”) of interconnected blocks via cryptographic hash functions. Each block in the chain includes one or more digital asset transactions, accompanied by confirmation information indicating the validity of each transaction as evaluated by peer-to-peer verification devices. The encrypted, decentralized computing architecture allows for the authentication and certification of assets in transactions while preventing the duplication of cryptographically protected (“encrypted”) digital assets registered to the platform. Decentralized asset management can be achieved by encrypting proprietary asset files, breaking down the encrypted code into tiny, “meaningless” fragments, and sending these fragments to many different computing nodes on the decentralized computing network. Verified owners are provided with private keys that indicate the asset’s location within the network and how the files can be reassembled or “decrypted.” For use as a distributed ledger, a single blockchain is typically managed by a host administrator and distributed to multiple peers who collectively adhere to protocols for inter-node communication and block verification.

[0065] It should be understood that the disclosed systems and technologies offer numerous advantageous technical effects, including constructing and storing digital asset blockchains representing user-to-user transactions of virtual collectibles associated with real-world products. The construction and storage of digital asset blockchains enable networked computing devices to quickly and efficiently generate, verify, and trade digital asset data, thereby improving the performance of individual computing devices. A decentralized network of interconnected computing nodes can act as a “supercomputer” that can access many parallel processors, coordinating the assignment and reorganization of various computing blocks. In doing so, the network is computationally more efficient, faster, and cheaper than a centralized computing system or a single processing farm. Similarly, decentralized storage provides enormous storage capacity for each individual computing node, limited only by the number of peer devices and their cumulative available memory space.

[0066] Figure 3 Provided such as Figure 2 This is an example of the functional architecture of the decentralized computing system 30 shown. As generally illustrated, user 11 can operatively interface with user device 39 (i.e., interface device 39), which may include one or more of a smartphone 40, tablet computer, smartwatch 42, laptop computer, desktop computer, standalone video game console, smart footwear / clothing, or other similar internet-connected device. Interface device 39 can be operatively configured to communicate with one or more of an immutable public database (e.g., blockchain service / network 60 (referred to as "blockchain 60")), virtual object generator 62, online digital marketplace 64, and / or third-party integration service 66.

[0067] Typically, blockchain 60 may include at least one non-fungible token registered thereon, the at least one token including genomic information representing a digital asset. User 11 may own a locker / wallet linked to it via user device 39, the locker / wallet including a private encryption key that allows the user device to read encrypted data associated with the token. This key also allows user 11 to freely transfer ownership of the token.

[0068] In one embodiment, a virtual object generator 62 may be provided to create digital objects based on genomic information associated with a token. More specifically, the virtual object generator 62 may be responsible for expressing the genomic information as multiple phenotypic traits. The virtual object generator 62 may employ various styles and art rules to ensure that the resulting digital objects are unique yet identifiable based on predefined outlines, styles, artifacts, or roles. In some embodiments, the virtual object generator 62 may also operate based on other non-genomic factors, such as the age of the asset, user activity (tracked via user device), or usage via a third-party platform. In such embodiments, these non-genomic inputs may alter phenotypic expression and / or unlock new abilities, reproductive rights, and / or production rights. For example, in one configuration, the color of CryptoKick may depend on the genetically assigned color, as well as the age of the asset and / or the asset's use in the virtual world or via the use of a pair of physical shoes associated with it in the real world. The initial color, as well as age / experience-based changes, may result in a new color with its own relative rarity score / value.

[0069] Virtual object generator 62 and / or blockchain 60 can also be integrated with hosted digital marketplaces 64, forums, social platforms, etc. Figure 5 (As shown in the diagram, displayed on smartphone 40) Communication. A digital marketplace 64 can represent multiple virtual objects 80 in a manner that allows for the organized trading or sale / purchase of virtual objects between parties. At the end of a sale, the digital marketplace 64 can update the blockchain 60 with new ownership information and facilitate the transfer of new or existing keys to the new asset holder. In some embodiments, the marketplace 64 can also enable various social engagement features, such as voting or commenting on the represented virtual objects. Similarly, in some cases, the marketplace 64 can be configured to assess and score the rarity of a particular virtual object based on the sum of the attributes expressed by the object. Such a rarity score can then enable the marketplace (and / or users participating in the marketplace) to better evaluate the value of the object.

[0070] In one configuration, the computing system 30 may further include a third-party integration service 66 that enables virtual objects to be used in different contexts or in different ways. The third-party integration service 66 may operate as an API on an app provided on a user device, or as a dedicated cloud-based service. In some embodiments, the third-party integration service 66 may make virtual objects (e.g., expressed by a virtual object generator 62) and / or genomic information available for external use. Examples of such use may include skins for third-party video game characters, objects that can be used by third-party video game characters (see...). Figure 9This includes digital artwork display, physical print production, and manufacturing. In one embodiment, genomic information and / or rarity scores can be provided, and the traits or abilities of the user's video game character played on user device 39 can be altered (see [link to documentation]). Figure 10 ).

[0071] like Figure 3 As further shown, in one configuration, the enterprise host system 68 can communicate with the blockchain 60 for the purpose of providing / creating new digital assets. Additionally, the host system 68 can provide one or more rules to the virtual object generator 62 to constrain the manner and style of the visual / artistic representation of genomic information from the blockchain 60.

[0072] Now for reference Figure 4 The flowchart, according to various aspects of this disclosure, broadly describes at 100 points an improved method or control strategy for generating collectible digital assets protected by cryptographic tokens on a blockchain ledger. Figure 4 Some or all of the operations illustrated in the diagram and described in further detail below may represent algorithms corresponding to processor-executable instructions, which may be stored, for example, in main memory, secondary memory, or remote memory, and executed, for example, by a resident or remote controller, central processing unit (CPU), control logic circuitry, or other module or device or operating network, to perform any or all of the functions described above or below associated with the disclosed concepts. It should be understood that the execution order of the illustrated operation blocks may be changed, additional blocks may be added, and some of the described blocks may be modified, combined, or eliminated.

[0073] Method 100 begins at terminal block 101 and has processor-executable instructions for a programmable controller or control module or similar suitable processor to call an initialization program for a protocol, thereby generating an initialization program for a consumer product (such as...). Figure 1 and Figure 2 Cryptocurrency assets such as sneakers 10 Figure 2 The computer-generated digital shoe 44 and the encrypted token key 46). This routine can be invoked and executed in real-time, continuously, systematically, sporadically, and / or at regular intervals. Figure 4 In a representative implementation of the method, the initialization procedure at block 101 can start automatically each time a pair of genuine shoes 10 is manufactured, each time user 11 purchases a pair of real-world shoes 10, or each time user 11 unlocks access key 46. Alternatively, the initialization procedure can be manually activated by an employee or manufacturer at the POS terminal.

[0074] Using portable electronic devices 39, such as Figure 2Using a smartphone 40 or smartwatch 42, user 11 can launch a dedicated mobile software application (“app”) or web-based app, such as NIKE+®, which collaborates with a server-level (back-end or middleware) computer (e.g., remote host system 34) to communicate with various peer devices on decentralized computing system 30. During a communication session with host system 34, for example, user 11 can use the corresponding features provided by the app to purchase a pair of shoes 10. User 11 enters personal information and payment method to complete the transaction. After verified payment, host system 34 receives a transaction confirmation, for example, from an online store transaction module or an approved third-party electronic payment system, indicating that the transfer of proof of ownership of shoes 10 to user 11 has been completed. As mentioned above, the transfer of proof of ownership of shoes 10 can be achieved by any available means, including in physical stores, through online auction websites, aftermarket consumer-to-consumer transactions / sales, etc.

[0075] Method 100 proceeds to decision block 103 to determine whether user 11 has already obtained a cryptocurrency wallet or other similar suitable digital blockchain lock, which, for example, is operable to upload and maintain location and retrieval information of digital assets encrypted and stored in a decentralized manner. Cryptocurrency wallets typically store public and private key pairs but not the cryptocurrency itself; the cryptocurrency is stored and maintained decentralizedly in a publicly available blockchain ledger. Using the stored keys, the owner can digitally sign transactions and write them to the blockchain ledger. Smart contracts defined by the platform associated with the lock can facilitate the transfer of stored assets and create its verifiable audit trail. If user 11 has not yet obtained a digital blockchain lock (block 103 = No), method 100 proceeds to predefined process block 105 to set up the blockchain lock. By way of a non-restrictive example, user 11 may be prompted to access any of a variety of publicly available websites, or user 11 may be automatically routed to any of a variety of publicly available websites that provide hardware wallets for cold storage of cryptocurrencies and digital assets, such as ERC20-compliant Ethereum wallets provided by MyEtherWallet.

[0076] Once the system confirms that user 11 has a suitable digital blockchain locker, method 100 can automatically link it, or prompt user 11 to link the digital blockchain locker to their personal user account (e.g., a NIKEPLUS® account profile), as shown below. Figure 4 The process is described at block 107. This may require the remote host system 34 to retrieve, from an encrypted relational database (e.g., provided via cloud computing system 36) a unique owner ID code associated with the purchaser (e.g., user 11). Figure 2CryptoKick owner ID 48). At this time, the unique physical shoe ID code associated with the purchased footwear 10 ( Figure 2 The CryptoKick physical ID (50) can be linked to a user's personal account.

[0077] After determining that user 11 has acquired the digital blockchain locker (block 103 = Yes), or after linking the user's blockchain locker to their personal user account (block 107), method 100 proceeds to input / output block 109 to enable or "unlock" the crypto-digital assets associated with the footwear 10 traded at process block 101. As described above, after purchasing footwear 10, collectible CryptoKicks can be retrieved using the CryptoKick physical ID or a generally recognized UPID product code, which typically consists of collectible digital shoes 44 and a unique NFT identified by an encrypted token key 46. Salespeople at the POS terminal or user 11 using their smartphone 40 can scan the UPID or UPC in the shoe 10 or the box where the shoe 10 is stored. Alternatively, user 11 can be prompted to "treasure hunt" using the digital camera on their smartphone to scan various UPIDs throughout the physical store until a UPID linked to a KickID is scanned. Enabling encrypted digital assets can be done automatically, randomly, systematically, reward-based, or in any logically appropriate way.

[0078] After receiving confirmation at input / output block 109 that the encrypted digital asset has been authorized, method 100 generates the encrypted digital asset for the footwear product in the transaction. This may include generating a unique encrypted asset code with an address, token, and a public and private key pair, as shown at predefined process block 111. Host system 34 may transfer the token, along with the public key and owner ID, to a distributed blockchain ledger to record and peer-verify the transfer of the encrypted digital asset to user 11 on the transaction block. Method 100 continues to process block 113 to link the encrypted digital asset with the unique owner ID code. This control logic may include executable instructions for assigning the encrypted asset code to user 11 and storing the public and private keys in the user's digital blockchain locker.

[0079] Continue to refer to Figure 4 Method 100 proceeds to process block 115 to generate a virtual representation or "digital art" of the encrypted digital asset. Continue Figure 2For example, the virtual representation of a footwear item could include a computer-generated avatar of shoe 10 or a limited-edition artist reproduction of shoe 10. It is also conceivable that one or more attributes of the virtual representation of the cryptographic digital asset could be created, in whole or in part, by user 11. Machine learning functions can be performed at predefined process block 117 to generate image features via a neural network. After the digital art is completed, the image can be uploaded to cloud computing system 36 at block 119. Furthermore, optional process block 121 can send digital notifications, such as emails or push notifications, to the user's smartphone 40, smartwatch 42, or other personal computing devices, containing all relevant information for accessing, transferring, and mixing the cryptographic digital asset. Remote host system 34 can operate as a web server hosting a web-based graphical user interface (GUI) operable to transform data stored in cryptographic keys into a visual image displayed to user 11 at optional process block 123. Manipulation and use of the digital asset can also be achieved through the user's digital blockchain vault. This could include publishing the cryptographic digital asset on an online crypto collectibles marketplace for sale or propagation, as provided in optional process block 125.

[0080] Cryptocurrency assets (such as) Figure 2 Potential and current owners of CryptoKick can buy and sell digital assets through one or more blockchain ledgers running on a decentralized computing system 30. By way of example, and not limitation, a user can purchase a pair of popular new sneakers from a verified vendor who can provide a certified provenance traceability record for the sneakers. During the sneakers' journey, the user may receive an email notification with detailed instructions to unlock CryptoKick once the goods arrive. After receiving the shoebox containing the purchased sneakers, the user scans the box UPC using the barcode scanning feature in the sneakers app running on the user's smartphone. In the sneakers app, a new profile page is responsively enabled; the sneakers app opens this new profile page. For at least some applications, the new profile page is linked to, exported to, or initially enabled in the user's personal (NIKEPLUS®) account profile. Private and public blockchain platform keys are generated, genotype and phenotypic data are created, this data is embedded in a segment of alphanumeric code of the public key, and a virtual representation of CryptoKick is produced. CryptoKick's blockchain data, tokens, and other information have been assigned to new addresses for users; a new profile page lists the CryptoKick accounts that users have already acquired.

[0081] A user may wish to lease, license, or assign his / her new CryptoKick to any one or more potential buyers. In one instance, a seller (also referred to herein as the “transferor” or “first party”) proposes a sale, and a buyer (also referred herein as the “transferee” or “second party”) agrees to purchase the CryptoKick for a predetermined amount (e.g., three (3) ETH). The buyer may be intent on making such a purchase because the available CryptoKick has one or more attributes that the buyer wishes to add to their collection (e.g., artist, subject type, color scheme, etc.). The seller can initiate the sale process by marking a specific CryptoKick as “for sale” in the sneaker app via the corresponding softkey “auction” button. Sally can set a minimum bid and / or a buy-it-now price and provide options for auction time windows such as hours, days, weeks, etc. The sneaker app can present a sharing mode to the seller, who can share the auction via the usual social media or present a quick response (QR) code for potential buyers to scan. The buyer can then scan the QR code using their smartphone's digital camera via the scanning feature in the sneaker app and transfer the required funds (e.g., 3 ETH) to the auction website. The seller's sneaker app notifies them of payment; prompting the seller to agree to the sales terms and complete the transaction. CryptoKick then transfers the funds from the first party to the second party's address.

[0082] Owners of encrypted digital assets may wish to mix or "breed" their digital assets with other digital assets to create asset "offspring," such as... Figure 6 The diagram illustrates this schematically. A first digital asset owner and a second digital asset owner may wish to collaborate and crossbreed their digital assets 82 and 84 to create a new crypto-digital asset. If the first owner's digital asset possesses attributes desired by the second owner, he / she can be designated as the "primary artist." In this case, the second owner can initiate a smart contract with the first owner to collaborate. One or both parties can fund the contract using physical or digital currency, for example, to pay transfer fees, a "collab fee" set by the breeding host site, and an optional mating fee for mating services for the second owner. Once both parties agree and sign the breeding contract, one or both parties can be prompted to select one or more traits from their "parent" digital assets to transfer to the resulting "offspring" digital assets. Alternatively, the breeding host site can employ a breeding algorithm to construct a new digital asset from two or more pre-existing digital assets.

[0083] The "CollabScience" algorithm can be used to determine which participating cryptographic assets will be designated as the parent, which will be designated as the mother, and which subsets of code from each parent asset will be used to construct the cryptographic token keys for the resulting digital assets. For example, the token keys for two parent digital assets, DA1 and DA2, can be shown as follows: DA1: 4352635657387611432650689898388672080892866850020829309339781214 DA2: 1997670191981520482540801616208235668515393854245661572126051434 The CollabScience algorithm can generate random numbers using a random number generator (RNG) or other suitable methods, for example, between 0 and 65535. In this example, the random number could be 21123. Once generated, the CollabScience algorithm can convert the resulting number 21123 into binary code: 0101001010000011. Simultaneously, if the first digit in the binary code is zero (0), the first parent digital asset DA1 is designated as the parent, corresponding to all zeros in the string; if the first parent digital asset DA1 is designated as the parent, the second parent digital asset DA2 is automatically designated as the mother, corresponding to all ones in the string.

[0084] Continuing with the example above, the CollabScience algorithm divides the parent token key into multi-digit code subsets or "blocks"; in this example, each parent token key is decomposed into sixteen (16) 4-digit code subsets: Segment DA1: ['4352', '6356', '5738', '7611', '4326', '5068', '9898', '3886', '7208', '0892', '8668', '5002', '0829', '3093', '3978', '1214'] Segment DA2: +['1997', '6701', '9198', '1520', '4825', '4080', '1616', '2082', '3566', '8515', '3938', '5424', '5661', '5721', '2605', '1434'] The CollabScience algorithm then constructs new token IDs for the resulting "descendant" digital assets based on the numbers in the random number, where the sixteen blocks of the child token key are sequentially assigned either one or zero based on the binary code of the random number generated above. In this example, the first digit in the binary code version of the random number is zero; the first parent digital asset DA1 is the designated parent, corresponding to zero; therefore, the first block in the child token key will be copied from the first block of the parent and is thus set to 4352. Next, the second digit in the binary code version of the random number is one; the second parent digital asset DA2 is the designated mother, corresponding to one; therefore, the second block in the child token key will be copied from the second block of the mother and is thus set to 6701, and so on, until all sixteen blocks of the child token key are filled with the corresponding blocks from the parent token key. Therefore, the resulting new array for the child digital asset DA3 will look like this: Segmented DA3: + ['4352', '6701', '5738', '1520', '4326', '5068', '1616', '3886', '3566', '0892', '8668', '5002', '0829', '3093', '2605', '1434'] The CollabScience algorithm generates a new token key ID from this array: 4352670157381520432650681616388635660892866850020829309326051434 Then, the CollabScience algorithm processes the encrypted digital assets, generates a virtual representation of the new assets, and assigns the assets to the buyer's digital blockchain locker.

[0085] It is conceivable that other techniques could be used to determine the attributes of offspring digital assets. For example, a ponnet grid could be implemented to represent dominant and recessive traits (“genes”) from two parental digital assets and to create the probability of trait expression in offspring digital assets. A ponnet grid is a graphical mechanism for calculating the mathematical probability of an offspring asset inheriting a specific trait from two parental assets. The resulting array is provided by arranging the genotypes of one parent at the top of the table and the genotypes of the other parent on one side to discover all potential genotype combinations that might occur in the offspring given the genotypes of the other parent. Figure 2As shown, the genotypic and phenotypic information contained in the encrypted token key 46 includes the following for the digital shoe: reproductive attributes (“collab”), material information, brand data (“family”), manufacturing requirements (“popularity”), color combinations (“color scheme”), future attributes, model data, and image background information.

[0086] Epigenetic factors can lead to heritable phenotypic changes that do not involve alterations to the underlying DNA sequence. In some cases, genotypic changes in encrypted token keys may be caused by real-world and / or virtual interactions, resulting in alterations to the phenotypic characteristics of crypto assets. Genes representing high popularity and rare popularity can change from Hhrr to HHRR due to the following epigenetic factors: using real-world shoes may increase the likelihood of gene mutations or passing on “good quality” variants of genes to offspring; real-world exercise, such as running or sports, may increase good gene mutations or increase the maturation speed of offspring assets; entering stores or other real-world standards may lead to positive gene mutations, passing on “good traits” to offspring and accelerating maturation; time-related reproduction, which prevents two crypto assets from interbreeding before both assets reach their minimum age, otherwise reproduction may fail or increase the probability of passing on “inferior” genes to offspring; unique breeding times may lead to gene mutations; frequent interactions with other assets or other apps (e.g., trading, selling, buying, and collaborating) may lead to positive gene mutations, passing on “good traits” to offspring or accelerating maturation.

[0087] As mentioned above, Figure 7 The illustration schematically depicts a method for acquiring digital collectibles that can be linked to or coordinated with the sale of physical products. That is, as... Figure 7 As shown, user 11 brings the device (i.e., smartphone device 40) close to physical product 200, which includes an identifier (UPID), such as a QR code, barcode, digital image, RFID tag, NFC tag, Bluetooth ID, registry entry in an embedded processor, or some other machine-readable code. This code can then be identified by phone 40 optically, via radio frequency communication, or via wired data communication. After identifying / distinguishing the UPID, phone 40 can initiate the transfer and / or original provision of digital assets 202 linked to the product 200 to user locker 204 communicating with blockchain service / network 60. As an extension of this concept, the transfer of digital assets 202 can also be protected using, for example, a PIN, encryption key, access code, etc., which can be provided on the receipt after the user purchases product 200.

[0088] In one embodiment, if user 11 acquires CryptoKick when purchasing a pair of sneakers and then subsequently returns the sneakers, the smart contract associated with CryptoKick can undo the acquisition and automatically return the tokens and full rights to CryptoKick to the company / retailer. If the buyer sold / traded CryptoKick to a bona fide purchaser (BFP) before returning the shoes, this secondary transaction could be similarly undoed / reversed. In some embodiments, with the reversal of this secondary transaction, the BFP may be offered the option to reacquire CryptoKick from the company / retailer at a predetermined price (e.g., the current price of the asset, at a discount below the current price, at a fixed price set before market release, or in a nominal amount). In another embodiment, a CryptoKick BFP may have a first right to refuse to acquire / purchase the returned physical product. This can be important in the case of sneakers that are, by definition, scarce and limited-edition.

[0089] Figure 8 The illustration schematically depicts a method such as acquiring digital collectibles during promotional giveaways. As shown, user 11 can use the AR function of smartphone 40 to locate virtual objects 210, such as CryptoKick, within arena 212. In this example, CryptoKick may be "hidden" within scoreboard 214 but can be freely identified using an app connected to the phone's camera interface. When the camera recognizes a specific ambient optical pattern (i.e., the scoreboard within the arena) and the phone is within a specific area (i.e., via GPS sensing, beacons, geofencing technology, Wi-Fi connection, etc.), the app can visualize the virtual object on the display. Once located, user 11 can be prompted to scan a unique code, such as a barcode on a ticket, a unique code provided on a program that can be placed on the user's seat before the match, or a unique code on a physical item (e.g., a noise generator, glow stick, towel). Once the code is scanned or entered, phone 40 can initiate the transfer of digital assets 202 to the user's locker 204, which communicates with the blockchain service / network 60.

[0090] In some embodiments, the ability to acquire CryptoKick can be initiated by one side of a game / event, rather than by locating an AR object. Examples of such triggering events can include, for example, a shutout (ice hockey / baseball), a no-hitter (baseball), a 50+ run performance (basketball), a triple-double (basketball), a hat trick (football / ice hockey), zero quarters / innings / halftimes (basketball, ice hockey, football), and overtime / extra games. In such embodiments, the occurrence of an event may trigger an alert on user device 39 that prompts the user to scan their ticket to facilitate transfer. In one embodiment, to eliminate a secondary market for ticket stubs, an app on the user device that facilitates notifications may require scanning to take place within a predetermined geofence or during the game / event period. In another extension, the market (as described above) may also allow user 39 to proactively sell unclaimed rights to CryptoKick upon the occurrence of a triggering event. This would be similar to a user writing and selling a tradable option to CryptoKick that either expires worthless or results in the option buyer acquiring CryptoKick. Similar future rights / options could be traded forward-lookingly for CryptoKick's descendants.

[0091] Figures 9 to 10 A video game interface 220, including a display 222, is schematically illustrated. The video game interface 220 and / or display 222 may be integrated with a user device 39 (e.g., a smartphone 40 or tablet), or may be a standalone game console coupled to the display 222. The device 39 may typically be configured to execute a digital application 224 that requires user input to control a virtual character 226 within an environment 228. The character 226 may include or be defined by multiple attributes 230 that can influence the behavior, responses, or performance of the character 226 within the environment 230, and / or how the character 226 interacts with other characters 232 that can be controlled by the application 224 or other users in a networked environment.

[0092] In one context, role 226 can be an athlete, and environment 228 can be a sports environment. Figure 9This character 226 is illustrated as a football player, and the environment 228 is illustrated as a football field within a stadium. The character's attributes 230 may include, for example, speed, ball control, passing, defense, kicking power, balance, and stamina (etc.). In one embodiment, the character 226 may be equipped / skinned using digital collectibles (e.g., clothing items 234) that can be uniquely backed by tokens on blockchain 60. In embodiments, the digital collectibles may have been acquired in any of the ways described herein. In one configuration, application 224 may access the genetic code of digital assets on blockchain 60 via an API or other software interface 236 (i.e., embodiments of the third-party interface 66 described above), and / or may access the object's phenotypic expression via an integrated software decoder or by accessing a networked virtual object generator 62 of the type described above. In one configuration, one or more attributes of attribute 230 may be positively or negatively affected by the genetic code or phenotypic expression of object 234. Although Figure 9 The object can be depicted as clothing, but it can also be footwear, an object that a character can use, a piece of sports equipment, etc.

[0093] Based on the concept of CryptoKick as property, in one embodiment, a user or company can rent or lease the right to use a digital collectible within a video game for a period of time. In one embodiment, the lease may be restricted so that only one instance of a particular user's asset exists in any given context. For example, a user may have full rights to an exclusive CryptoKick. This user could simultaneously rent out CryptoKick for: 1 week in basketball game A, 2 weeks in football game B, and 3 weeks in first-person shooter game C.

[0094] Another option could be to program encrypted digital assets as virtual "pets," which users care for and help grow from infancy to adulthood. For example, Figure 10 The illustration depicts a user's avatar 226 taking a virtual walk with his pet CryptoKicks 240 and interacting with another user's avatar 232 within an environment 228 representing the virtual world. As mentioned above, such virtual interactions can affect the CryptoKick's evolution, value, maturation rate, visual appearance, marketability, etc. The attributes of the digital asset can change with age or unlock over time. Users can directly care for their virtual pets or outsource it to a third party (e.g., through ETH payments or other transactions). The virtual pet may go through various life stages and simultaneously unlock different real-life sneaker versions of itself, which users can then purchase in a store.

[0095] refer to Figure 11In some embodiments, digital assets may take the form of a digital collectible card game (DCCG), or may be used in a digital collectible card game. In such a game, each user can own a collection of digital assets, each asset having a different set, balance, or weight of attributes / attribute scores, and / or different characteristics, abilities, or powers. In some embodiments, users may take turns playing single cards or sets of cards to try to win according to the rules set by the game.

[0096] While card collecting games are generally well-known, the use of digital assets, as described below, can provide unique extensions to these games. Furthermore, these games can serve as additional uses and motivations for collecting digital assets. By uniquely securing each digital asset to an immutable database (such as Blockchain 60), each player's card collection and the strategies required to use those cards can also be unique.

[0097] In such an embodiment, the game server 300 can communicate with multiple different user devices 39. As above, user devices 39 can be smartphones 40, smartwatches 42, tablets, laptops, web-enabled devices, or other such devices capable of networking and communicating with server 300. Each user device 39 can be linked to a separate digital locker 204, which allows users to access their securely stored digital assets from blockchain 60. Each asset can be represented as a separate digital card on the user device and can have its own unique set of attributes (i.e., a portion of its phenotype). In one embodiment, a virtual object generator 62 can communicate with user devices 39 and / or game server 300 to create expressions of virtual objects from genotypic information associated with tokens on blockchain 60. Game server 300 can manage game rules, including maintaining multiple user accounts, instructing a first user via user device 39 when it is time to play a card, and modifying attributes of a second user account based on digital asset data received from the first user. The received digital asset data can correspond to digital assets played by the first user via the first user device.

[0098] In one embodiment, the game server 300 may not have any stored knowledge of the user's digital asset collection before receiving the digital asset data. Therefore, in this embodiment, the user's asset collection may be maintained solely by the user's device. In an alternative embodiment, the user's asset collection may be registered to a user account maintained by the game server 300. In this configuration, the digital asset data may simply be an indication of which card in the user's account was played.

[0099] Although Figure 11The intended illustration is that of multiple users participating in a DCCG, but in an alternative configuration, the illustration could represent a gathering of multiple users coming to a common location to breed their CryptoKick. Such an event could be coordinated by a central server linked to user accounts in a local region. Alternatively, users could have the ability to sponsor events and / or broadcast their own locations for others to connect to and / or create user-initiated gatherings or invitations.

[0100] In some embodiments, the attributes of the cryptographic digital asset can be directly correlated with corresponding attributes of a real-world shoe used for production purposes. Optionally, the digital asset attributes can be linked to a bill of materials for cost calculation and as a control mechanism. The resulting offspring can be restricted to possessing phenotypic characteristics that can be created in the real world based on manufacturing capabilities, materials, and other factors. As CryptoKick and CollaboKick change owners due to sale, trade, purchase, and collaboration, the resulting transaction history is tracked in the blockchain. Once a CollaboKick or CryptoKick that does not currently exist is created in real life, the previous owner / user can be notified of this real-world existence and may be given the option to purchase the shoe.

[0101] Digital Asset Physical Ownership Rights (DAPPR)

[0102] As described above, this technology also considers systems and methods that enable holders of certain crypto-digital assets to produce a limited number of physical / real-world representations of products represented by their specific crypto-digital assets. For example, a user acquiring a CryptoKick (i.e., a crypto-digital asset originally created and / or minted by a footwear manufacturer, or a crypto-digital asset representing the propagation or evolution of one or more CryptoKick products created and / or minted by a footwear manufacturer or an authorized third party) can choose to contract with a footwear manufacturer to produce physical shoes based on that specific CryptoKick (e.g., where the physical shoes have one or more unique key shoe attributes or design features of CryptoKick, such as shoe model or color scheme or material, or alternatively, are as closely aligned as possible with the digital version of CryptoKick). In this way, CryptoKick can open the possibility of unlocking orders from the footwear manufacturer to order shoes with specific characteristics of CryptoKick or as identical as possible to CryptoKick. To avoid ambiguity, the term "manufacturer" can refer to a shoe design company that collaborates with an authorized third-party shoe manufacturing company to actually produce shoes for authorized distribution under the shoe design company's brand and approval.

[0103] In one embodiment, the manufacturer may implement a host system 34 that incorporates an Enterprise Resource Planning (ERP) function operable to manage digital-to-physical production. A rules engine may communicate with this ERP function and may include programming logic that manages the terms for producing physical products and the costs at which they can be produced. In one embodiment, the rules engine may be an electronic function digitally implemented by the host system 34. However, in other embodiments, some or all of the programming logic in the rules engine may be implemented as self-executing smart contracts that automatically make certain manufacturing rights available or accessible when certain predefined criteria are met. Such smart contracts may be recorded on a distributed blockchain ledger rather than residing directly on the host system 34. In some cases, the smart contract may also be incorporated into the smart contract code upon which CryptoKick is based. Typically, the rules engine and associated logic may be configured to impose one or more constraints on a user's ability to request physical products and / or apply pricing or production quantity limits to orders.

[0104] When a user purchases or otherwise legally acquires a cryptocurrency (e.g., CryptoKick) that digitally represents a product (such as footwear, apparel, equipment, or accessories) on a blockchain or other distributed ledger, the rules engine may grant the holder of that asset the ability to produce a predetermined number of physical units that match the appearance of the cryptocurrency (or possess one or more of the characteristics of the cryptocurrency). As mentioned above, in some cases, the rules engine may restrict a user's ability to make this request until one or more predefined conditions are met. Such conditions may include CryptoKick reaching a predefined age, engaging in a minimum level of digital interaction with CryptoKick in a digital environment / game, or CryptoKick reaching a predefined evolutionary stage.

[0105] As an example of this digital-to-physical capability, suppose a specialty retailer (i.e., the "user," which can be an individual or entity) purchases a CryptoKick on an NFT marketplace, where the CryptoKick digital asset represents a unique sneaker design. The user then fulfills any / all necessary prerequisites (if any), and the programming logic of a smart contract or rules engine authorizes or otherwise enables the retailer to request the production of a certain number of physical shoes (e.g., 500 pairs) based on that rare CryptoKick. Following this authorization, host system 34 can provide the user with a portal (e.g., an internet webpage, web application, application programming interface (API), etc.) through which the user can execute orders for the production and delivery of the physical shoes via the manufacturer's ERP system and associated supply chain.

[0106] In some implementations, to prevent compromise of brand integrity and exclusivity, the rules engine and / or host system 34 may set a predetermined maximum number of physical artifacts that a user is permitted to order based on a single cryptographic asset. In determining this maximum authorized quantity, the rules engine and / or host system 34 may evaluate one or more factors specific to the cryptographic asset (digital asset factors) and / or one or more factors specific to the user (user factors). Digital asset factors that can manage production restrictions may include factors such as: the rarity of the cryptographic asset or certain attributes possessed by that cryptographic asset (e.g., the rarity of a particular CryptoKick within the overall CryptoKick collection, or the rarity or demand of specific attributes found in the collection, such as the color scheme of a particular CryptoKick), and / or the rarity, market demand, or exclusivity of the entire collection. Considering these digital asset factors allows manufacturers to retain a degree of real-world exclusivity for physical products created from similar exclusive or popular digital assets.

[0107] User factors that can manage production allocation can include criteria such as: a user's pre-existing membership / loyalty level with the manufacturer, a user's previous partnership or distribution agreement with the manufacturer, the user's past sales rate or total volume from previous digital-to-physical distribution, or the user's level of customer engagement and audience reach (e.g., the total number of social media followers). In this way, manufacturers can retain some control over who distributes their products and the channels / scope through which they distribute them. For example, a reputable individual or business with prior successful product distribution experience and a nationwide customer base ("User") can be permitted to produce more physical products (e.g., 10,000 pairs) by unlocking CryptoKick's physical production permissions, while an individual or business without a prior relationship with the shoe brand might only be allowed to produce / distribute 10 pairs. Finally, other constraints can take the form of rate limits on the number of physical product units that can be produced for a particular user and / or digital asset within a given time period.

[0108] Upon receiving a production request, the manufacturer can retrieve images, subsets of code, and any associated digital design files associated with the cryptographic digital asset from the blockchain and / or from a digitally connected file repository. Using these digital images, code subsets, and / or digital design files, the manufacturer can determine the exact product specifications, materials, and other properties required to match (or closely resemble) the appearance of the entire digital asset (or the specific characteristics of the physical product being manufactured).

[0109] Once manufactured, physical products can be shipped directly from the manufacturing facility to the digital asset holder / user who has placed the purchase order, or via a third-party logistics provider, distribution center, or both. Users can specify alternative shipping destinations, including direct delivery to consumers who may have already purchased or acquired physical production rights from the digital asset holder / user (e.g., through the holder / user's front-end website business or physical retail operations). Thus, in some embodiments, digital asset holders can pre-order physical products at an agreed-upon wholesale price or own the physical products without additional retail markups. In this case, the holder can then market and sell the exclusive physical products through their own distribution channels, such as physical retail stores or e-commerce storefronts.

[0110] By possessing encrypted digital assets, users can be granted exclusive resale rights by the manufacturer's rules engine to products associated with their specific digital assets within a limited timeframe or market. This allows digital asset holders to leverage the exclusivity and verifiable scarcity of items derived from their digital assets. In some embodiments, each physical unit produced can be authenticated as matching that specific digital asset using encrypted (or other means) signatures embossed on the product itself, on an associated label, or incorporated into a near-field communication (NFC) or radio frequency identification (RFID) tag embedded in the product.

[0111] In some embodiments, manufacturers can provide APIs or WebApps that holders can integrate into their websites or e-commerce storefronts, rather than requiring digital asset holders to place the entire order via a single purchase order. This allows holders' customers to place direct orders with the manufacturer linked to the holder's exclusive digital assets. This alleviates inventory burdens for digital asset holders, limits over-allocation, and enables manufacturers to understand demand in real time. Additionally, where digital asset holders leverage their digital assets to create circulation ordering systems for physical products, they can create various dynamic pricing configurations for ordering physical products to optimize pricing or demand through price, rewards, gamification, or other means.

[0112] While the digital asset holder's customers will make purchases through the holder's independent website, API or WebApp users can feed customer shipping and payment details directly to the manufacturer's ERP and / or order fulfillment system via the API or WebApp. The manufacturer can then retrieve the order information for that specific digital asset-related product unit and process fulfillment directly to the customer (or through their partnerships with third-party logistics (3PL) companies, distribution centers, or equivalent entities). This process allows the digital asset holder to sell exclusive physical products entirely through their existing website, brand, and marketing assets, while the manufacturer handles product fulfillment logistics through integrated API / WebApp calls, clearly indicating to the end consumer that they are purchasing authentic goods from the brand / manufacturer.

[0113] In some embodiments, a dedicated digital marketplace may also be implemented to facilitate secondary market trading of physical products derived from digital assets (or even pre-ordered physical products derived from digital assets that have not yet been manufactured and shipped). Individual digital asset holders who have ordered / manufactured physical versions can be granted customized storefronts on the platform where they can sell physical products exclusively associated with their owned digital assets. In such embodiments, digital asset holders can manage the pricing of products in their marketplace storefronts. In some embodiments, as previously described, the digital marketplace may implement dynamic pricing logic that changes prices based on supply, demand, and time to market. For example, if there is high demand for a particular product, the marketplace may automatically adjust prices upwards or encourage digital asset holders to raise product prices based on high demand and limited remaining supply.

[0114] From a consumer's perspective, this secondary market model provides a centralized hub for purchasing scarce physical goods that are cryptographically linked to specific digital assets. In some embodiments, the marketplace platform owner can implement various policies surrounding secondary transfers, chain-of-custody tracking, and ensure that the connection back to the original digital asset is maintained through subsequent sales. For example, an NFC tag on the physical product can be linked to a digital asset or "descendant" sub-digital assets created from the original "source" digital asset associated with the ordered / manufactured physical product.

[0115] In some embodiments, aggregated sales data from physical products can be analyzed to determine which specific digital asset traits and attributes are most favored by authorized resellers in physical production. These insights can be used to optimize future digital asset designs and / or for future physical product design, manufacturing, and distribution. For example, if data indicates that products exhibiting certain materials, colors, or other traits are most popular as physical versions, manufacturers can adjust their product creation strategies to make these attributes more prevalent in future generations of physical products or digital assets. Conversely, traits found less popular for physical products are likely to appear less frequently in future digital assets or physical products. This customer-driven (bottom-up) product demand and sales strategy will provide an adaptive, (user-generated) data-driven approach to inform future manufacturer-led (top-down) digital and physical product design based on traits most favorable to user and authorized reseller responses. In this way, the described systems and methods enable dynamic product creation, product demand, and product pricing, all combined with the advantages of digital direct-to-consumer market transformation.

[0116] To facilitate secondary sales and increase demand for digital-to-physical products, manufacturers can publish showrooms or catalogues of approved partners with exclusive production rights to specific digital assets, while also indicating the remaining inventory of available physical products ordered from those digital assets. In one embodiment, this catalogue could include an internet-hosted digital marketplace where consumers can browse authorized resellers who have acquired the rights to produce scarce physical products associated with rare, valuable digital assets. Subject to any stated restrictions on physical production rights (such as time limits or the availability window for ordering physical products), consumers and resellers can decide to hold full production rights during the current window while awaiting dynamic market conditions, and resell the rights during the closed production period while awaiting the next open window for ordering / production.

[0117] In some embodiments, the rules engine and / or host system 34 can programmatically incorporate a tiered pricing model, where increased sales volume is rewarded with lower unit costs. For example, an authorized reseller allocated a larger production volume is eligible for discounted wholesale pricing once the number of units sold within a given time period exceeds a defined threshold. Higher distribution tiers can unlock further incremental discounts, which can encourage even greater sales volume. Other programmatic incentives for preferred users may include: priority access to limited material supplies in the event of raw material shortages, additional marketing assets and social content, extended product warranty terms, and priority allocation of inventory during periods of shortage. These benefits tied to authorized reseller tiers can help drive interest in becoming an approved digital asset-linked physical product partner while rewarding better-performing retailers.

[0118] It is also possible to implement digital lineage tracking of physical products via blockchain or similar distributed ledger technologies to permanently record the lineage of each unit, including associated digital asset metadata, ownership chains, manufacturing and distribution details, and other lifecycle event data. This enhances the authentication and provenance of units originating from exceptionally rare digital assets, while providing transparency between the physical product, the associated digital asset, and the end user who purchases goods with verifiable scarcity and exclusivity.

[0119] In light of the foregoing, a computer-implemented method is described in detail below for enabling holders of cryptographic digital assets to produce a limited number of physical representations of the digital assets. In many cases, cryptographic digital assets represent footwear or apparel in a graphical manner, such as via associated two-dimensional or three-dimensional images. The method includes receiving data from a computer system indicating that a user has acquired a cryptographic digital asset representing (or associated with) the footwear or apparel. This receipt of ownership / holder data can occur through a computer system querying a distributed blockchain ledger or database to determine the digital wallet ID or associated user ID holding the digital asset. In some cases, this query can occur automatically after a request for the physical production of the digital asset.

[0120] Upon receiving ownership data, the system can grant the user authorization to produce a maximum predetermined number of physical units of footwear or apparel represented by encrypted digital assets. The computer system (i.e., the product manufacturer's computer system) can then receive and / or verify the validity of a purchase order from the user for the specified number (maximum predetermined number / quantity) of physical units, based on the authorization. The system can then fulfill the purchase order, for example, through an established ERP and / or manufacturing order system, to provide the specified number of physical units to the user.

[0121] In some embodiments, the method may further include linking physical units to a cryptographic digital asset by storing, printing, or embedding an identifier on each physical unit, wherein the identifier uniquely references the cryptographic digital asset. Additionally, fulfilling a purchase order may include retrieving digital data or design documents associated with a cryptographic digital asset acquired by a user from a computer system. This digital data or design documents may be referenced by the cryptographic digital asset via records on a distributed blockchain ledger and may be stored in a centralized or distributed manner, and in some cases may be recorded separately on the blockchain. These documents may be used by the product manufacturer to produce products in specified quantities. Once produced, fulfillment may include shipping the produced physical units of footwear or apparel to the user or the user's customer.

[0122] In some embodiments, the method may include assigning tiered manufacturing licenses to different users based on distribution criteria by a computer system. In these cases, users meeting higher sales volume criteria may be granted higher production quantities. Furthermore, the system may grant owners / holders exclusive resale rights to physical units of footwear or apparel products for sale within a limited timeframe or market.

[0123] In some embodiments, receiving a purchase order from a user for a specified number of physical units of footwear or apparel products may involve a computer system receiving an order for one or more physical units of the footwear or apparel products through an e-commerce storefront operated by the user. This e-commerce storefront may be a website that includes a web application (WebApp) or application programming interface (API) provided by the manufacturer and directly receives orders from the user's customers. In this case, fulfilling the purchase order may involve shipping the ordered physical units to the user's customers.

[0124] The process of determining the predetermined number of units a user is permitted to manufacture may involve analyzing one or more digital asset factors and / or one or more user factors to make the determination. One or more digital asset factors may include at least one of the following: the rarity of the attributes possessed by the cryptocurrency; or market demand for the cryptocurrency set to which the cryptocurrency belongs. One or more user factors may include at least one of the following: the user's tier in a membership or loyalty program; a prior partnership or distribution agreement between the user and the manufacturer of the physical units; the user's previous sales velocity or total sales volume in previous digital-to-physical distribution; or the user's level of customer engagement or audience reach.

[0125] In some embodiments, physical ownership of a digital asset can be applied to an evolving digital asset or a selectively lockable digital asset (as described in US 2023 / 0342767, which is incorporated herein by reference in its entirety). For example, in one embodiment, a DAPPR can be attributed when a digital asset reaches a certain evolutionary stage. In another embodiment, a DAPPR can be attributed when selectively locking the evolutionary stage of an evolving digital asset.

[0126] In some embodiments, aspects of this disclosure may be implemented by computer-executable instructions, such as program modules, which are generally referred to as software applications or applications executed by any of the controllers or variations thereof described herein. In non-limiting instances, the software may include routines, programs, objects, components, and data structures that perform specific tasks or implement specific data types. The software may form interfaces to allow a computer to respond to input sources. The software may also cooperate with other code segments to initiate various tasks in response to received data, which is received along with the source of the received data. The software may be stored on any of a variety of memory media, such as CD-ROMs, magnetic disks, bubble memory, and semiconductor memories (e.g., various types of RAM or ROM).

[0127] Furthermore, aspects of this disclosure can be practiced using various computer systems and computer network configurations, including multiprocessor systems, microprocessor-based or programmable consumer electronics devices, minicomputers, mainframes, etc. Additionally, aspects of this disclosure can be practiced in distributed computing environments, where tasks are performed by resident and remote processing devices linked via communication networks. In distributed computing environments, program modules can reside on both local and remote computer storage media, including memory storage devices. Therefore, aspects of this disclosure can be implemented using various hardware, software, or combinations thereof in computer systems or other processing systems.

[0128] Any of the methods described herein may include machine-readable instructions for execution by: (a) a processor, (b) a controller, and / or (c) any other suitable processing device. Any algorithm, software, control logic, protocol, or method disclosed herein may be embodied as software stored on a tangible medium, such as, for example, flash memory, CD-ROM, floppy disk, hard disk drive, digital multifunction disc (DVD), or other storage device. The entire algorithm, control logic, protocol, or method and / or portions thereof may alternatively be executed by a device other than a controller and / or embodied in firmware or dedicated hardware (e.g., implemented by application-specific integrated circuits (ASICs), programmable logic devices (PLDs), field-programmable logic devices (FPLDs), discrete logic, etc.). Furthermore, although specific algorithms are described with reference to the flowcharts depicted herein, many other methods for implementing the example machine-readable instructions may be used alternatively.

[0129] Various aspects of this disclosure have been described in detail with reference to the illustrated embodiments; however, those skilled in the art will recognize that many modifications can be made thereto without departing from the scope of this disclosure. This disclosure is not limited to the precise construction and composition disclosed herein; and any and all modifications, alterations, and variations apparent in the foregoing description are within the scope of this disclosure as defined by the appended claims. Furthermore, the concept of this disclosure expressly includes any and all combinations and sub-combinations of the foregoing elements and features.

Claims

1. A computer-implemented method for enabling a holder of a cryptographic digital asset digitally representing footwear or apparel to produce a limited number of physical representations of the digitally represented footwear or apparel, the method comprising: The computer system receives data indicating that the user has acquired encrypted digital assets representing footwear or clothing products; In response to receiving the data, the user is granted authorization to produce a maximum predetermined number of physical units of the footwear or apparel represented by the encrypted digital asset; The computer system receives, via an electronic order portal, a purchase order from the user for the specified quantity and, at most, the predetermined number, of the physical units, in accordance with the authorization. as well as The computer system fulfills the purchase order to provide the user with the specified number of physical units.

2. The computer-implemented method of claim 1 further comprises linking the physical units to the cryptographic digital asset by storing, printing or embedding an identifier on each physical unit in the physical unit, wherein the identifier uniquely refers to the cryptographic digital asset.

3. The method of claim 1, wherein fulfilling the purchase order comprises: The computer system extracts digital data or design documents associated with the encrypted digital assets acquired by the user; The manufacturing system produces the specified number of physical units in response to the extracted data or design documents; as well as The physical units of the produced footwear or apparel are transported to the user or the user's customer.

4. The method according to claim 1, further comprising: The computer system assigns tiered manufacturing authorizations to different users based on distribution criteria, with users who meet higher sales volume criteria being granted higher production quantities.

5. The method according to claim 1, further comprising: The computer system grants the user an exclusive resale right to sell the physical unit of the footwear or apparel within a limited time period or market.

6. The method of claim 1, wherein receiving a purchase order from the user for the production of a specified number of physical units of the footwear or apparel includes: The computer system receives orders for one or more physical units of the footwear or apparel products through the user-operated e-commerce storefront. The e-commerce storefront mentioned above is a website that includes a web application or application programming interface (API) that receives orders from the user's customers; and Fulfilling the purchase order to provide the specified number of physical units to the user includes: transporting the ordered physical units to the user's customer.

7. The method according to claim 1, further comprising: The computer system enables secondary market transactions of the physical units obtained from the encrypted digital assets by establishing internet-based storefronts for the users on a digital marketplace platform.

8. The method according to claim 1, further comprising: The computer system analyzes one or more digital asset factors and / or one or more user factors to determine the predetermined number.

9. The method of claim 8, wherein the one or more digital asset factors include at least one of the following: The rarity of the attributes possessed by the encrypted digital assets; or The market demand for the collection of crypto assets to which the aforementioned crypto asset belongs; and The one or more user factors mentioned above include at least one of the following: The user's level in the membership or loyalty program; There is a prior partnership or distribution agreement between the user and the manufacturer of the physical unit; The user's previous sales velocity or total sales volume in previous digital-to-physical distribution; or The user's level of customer engagement or audience reach.

10. The method according to claim 1, further comprising: The computer system analyzes aggregated data, which indicates the attributes of the cryptographic digital assets that are most frequently authorized for physical replication; as well as The computer system adjusts the generation algorithm in response to analysis, the generation algorithm being used to create future cryptographic digital assets or physical products to increase the popularity of the most popular traits.

11. A method for producing physical products based on cryptographic digital assets, the method comprising: The host system receives an instruction that the encrypted digital asset is owned by the user; The rules engine, which communicates with the host system, evaluates whether the encrypted digital assets owned by the user meet predefined standards for physical production. After the predefined criteria are met, the user is authorized to request the production of a predetermined number of physical units that match the appearance of the encrypted digital asset. The host system receives the user's request to produce the physical unit; as well as Based on the received request, a manufacturing process is initiated to produce the physical unit in order to match the appearance of the encrypted digital asset.

12. The method of claim 11, wherein the predefined criteria include one or more of the following: The age of the encrypted digital asset exceeds a predefined age; The level of digital interaction with the encrypted digital assets within the digital environment exceeds a threshold level for digital interaction; or The evolutionary stage of the encrypted digital asset has reached a predefined evolutionary stage.

13. The method of claim 11, further comprising: The rules engine determines the maximum number of physical units that a user is allowed to order based on digital asset factors and user factors. as well as The user's requests are limited based on a determined maximum number.

14. The method of claim 13, wherein the digital asset factor includes one or more of the following: The scarcity of the encrypted digital assets; The attributes possessed by the encrypted digital assets; or Market demand for the aforementioned encrypted digital assets.

15. The method of claim 13, wherein the user factors include one or more of the following: The user's membership or loyalty level with the manufacturer; The user's past sales speed or sales volume; The user's customer engagement level; or The user's audience scope.

16. The method of claim 11, further comprising: Provide the user with a portal for executing orders for the production and delivery of the physical unit; After receiving the order via the portal, retrieve the data or digital design file associated with the encrypted digital asset; as well as Product specifications, materials, and other attributes are determined based on the retrieved data or digital design documents.

17. The method of claim 11, further comprising: The manufactured physical units are transported directly from the manufacturing facility to the user.

18. The method of claim 11, further comprising: Based on the encrypted digital assets, the user is granted the exclusive right to resell the physical units produced within a predefined period or market.

19. The method of claim 11, further comprising: Identifiers are stored, printed, or embedded in the produced physical units, wherein the identifiers uniquely refer to the cryptographic digital assets.

20. The method of claim 11, further comprising: Provide the user with an application programming interface (API) or web application (WebApp) that enables the user's customers to place direct orders with manufacturers that link to the user's exclusive encrypted digital assets, wherein the customer's shipping and payment details are directly fed into the manufacturer's system for product fulfillment.

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