System and method for supplying encrypted digital assets for blockchain-protected retail products

Abstract

To provide a computing system for provisioning cryptographic digital assets.SOLUTION: The computing system includes broadcasting a notification of a future transaction of a retail product and receiving requests for participation in the transaction over a distributed computing network. A selected number of users are added to a virtual line associated with the transaction of the retail product transaction, and a first user is selected from the virtual line to receive the retail product, and a second user is selected to receive a cryptographic digital asset containing a digital retail product and a unique digital asset code. The cryptographic digital asset is transferred to a digital wallet of the second user, and the unique digital asset code is recorded on a record block of a blockchain ledger.SELECTED DRAWING: Figure 12

Description

Technical Field

[0001] (Cross-Reference to Related Applications) This application claims the benefit and priority of U.S. Patent Application No. 15 / 931,764 filed on May 14, 2020.

[0002] The present disclosure generally relates to retail products such as footwear and apparel. More specifically, aspects of the present disclosure relate to a distributed computing system provided with control logic for creating and distributing encrypted digital assets for protecting retail products and their digital design files. Background Art

[0003] Manufacturers of high-quality retail products such as high-end footwear and apparel have long been plagued by the sale of counterfeit products, that is, imitations made for the purpose of deceiving purchasers into believing that they are buying genuine goods from the authentic manufacturer. A similar problem also exists in the digital field, where digital products are often subject to unauthorized reproduction and sale. Unauthorized production of goods and reproduction of counterfeit products impair the value and / or exclusivity of a brand, may adversely affect the profitability of an enterprise, and may impair users' subjective perception of a product as a "collectable".

[0004] Many anti-counterfeiting technologies have been developed to identify counterfeit goods and prevent their illegal sale. Unfortunately, in the digital realm, supply is often not constrained by subsequent parties who may freely (or illegally) duplicate entire digital objects, unless they are by the original developer. This often complicates the ability of brand owners to control the exclusivity of digital objects and thus influence their value. And the inability to control the exclusivity of digital objects means missing out on opportunities for free brand promotion by product enthusiasts and collectors seeking those objects (for example, as often happens with the release of limited-edition sneakers by "sneakerheads").

[0005] Free market participants and brand enthusiasts typically assign higher value to objects when supply is limited and / or when there is excessive demand for those objects. While these realities are evident in the physical world (especially for avid collectors), similar market realities exist in the digital realm as well. With the rise of first-person and third-person video games, including customizable skins, apparel, and gear, there is an opportunity to attract and influence users in the digital realm through collectible objects, which in turn allows users to engage more deeply with brands in the real world. Similarly, retailers have a need to more directly influence and / or control the nature and final supply of digital objects within this virtual market. [Overview of the project]

[0006] This specification presents cryptographic digital assets for retail products such as footwear and apparel, methods for provisioning and intermingling such cryptographic digital assets, and a distributed computing system with attendant control logic for generating, intermingling, and exchanging blockchain-protected digital shoes and apparel. More specifically, many of the features described rely on and the trust established by blockchain technology to enable companies to control the creation, distribution, representation, and use of tangible products and digital objects representing their brands. Unlike typical digital assets that can be freely copied without compromising content or quality, the use of discrete records of ownership by blockchain technology eliminates the ability to simply digitally copy digital objects. In doing so, companies have the ability to control or limit the overall supply of digital objects (or object traits) and, if desired, create controlled scarcity.

[0007] In some instances, this disclosure intends for digital objects to represent: physical objects offered for retail sale; 2D or 3D design renderings or design files suitable for future production of physical objects; virtual representations of objects not currently intended for physical creation / production; or other such objects. To further facilitate brand engagement and use of digital objects, the displayed visual representation of a digital object may be modified by use by the object's user, use by the user of the associated retail product or app, or other such measures of object / brand engagement. In addition, attributes of a digital object and / or its visual representation may influence how the object or a user-controlled character behaves within a video game context.

[0008] As an example, and not limited to, cryptographic digital assets protected by a blockchain ledger of transaction blocks are presented. These digital assets could, at least in part, function to connect real-world products, such as physical shoes, to virtual collectibles, such as digital shoes. When a consumer purchases real shoes (colloquially known as "kicks"), a digital representation of the shoes may be generated, linked to the consumer, and assigned a cryptographic token, where the digital shoes and cryptographic token together may represent "CryptoKick" (CK). The digital representation may include a computer-generated avatar of the shoes or an artist's interpretation of a limited edition of the shoes. Digital assets can be protected by a cryptographically protected block containing a transaction timestamp, transaction data, and a hash pointer, as a link to the relevant block in the decentralized blockchain (e.g., a genesis block or a prior transacted block). Using digital assets, buyers can securely buy and sell tangible shoe pairs, buy and sell digital shoes, store digital shoes in cryptocurrency wallets or other digital blockchain lockers, mix or "breed" digital shoes with other digital shoes to create "shoe offsprings," and have the newly bred shoe offspring custom-made as new tangible shoe pairs, in accordance with the rules of acceptable shoe manufacturability.

[0009] The purchase of a physical pair of shoes may enable or "unlock" the corresponding cryptographic digital asset and the digital shoes associated with that digital asset. For example, when an individual purchases a pair of physical shoes from a registered seller, the unique physical shoe identification (ID) code (e.g., a 10-bit numerical value) of the physical shoes may be linked to the purchaser's unique (e.g., a 42-bit alphanumeric) owner ID code. Simultaneously, an access prompt with a unique (e.g., a 64-bit numerical) key is issued to the cryptocurrency wallet account associated with the owner ID code, allowing the purchaser to search for the digital shoes with the cryptographic token; the key, token, and digital shoes are assigned to the owner ID code. For example, a first Ethereum Request for Comments (ERC)721 or ERC1155 token may be granted to authenticate and trade the physical shoes, and a second ERC721 / ERC1155 token may be granted to access, multiply, and trade the digital shoes. In at least some implementations, real-world environmental effects, such as the use of a particular type of physical shoe, can influence the digital representation of the shoe. Each cryptographic token can be assigned to both the physical shoe and the cryptographic digital asset; alternatively, a single cryptographic token can be assigned to both the physical shoe and the digital asset.

[0010] Digital assets, in at least some applications, may include genotype and / or phenotype information about digital shoes. This genotype / phenotype data may represent specific traits, attributes, colors, styles, backgrounds, etc., of the digital asset and may be tuned according to "breeding rules" that govern the mixing of a digital shoe with one or more other distinct digital shoes. Phenotypic features may depend on genotype information in conjunction with one or more of the following: virtual environments and incidental effects; time-dependent mixing limitations (e.g., the inability to raise offspring of virtual shoes until they reach a predetermined maturity); virtual user interactions that change maturity (e.g., speeding up or slowing down) or increase or decrease the likelihood of certain traits developing; real-world user interactions (e.g., running increases the number of good / desirable quality shoes, increases the maturation rate of virtual offspring, etc.); shoe cloning and the ability for owners to set the total number of clones that can be produced from desirable offspring for actual real-world production, etc., and vice versa. Additionally, some optional features may include: surrogacy features for breeding plans between two or more separate digital shoes; nanny / caregiver features provided by a third-party entity that does not own the digital shoes; behavioral and animated features designed to make the digital shoes appear more lifelike (e.g., personality that changes over time); the "breeding rights" of the digital shoes may be governed by one or more real-world manufacturing restrictions; ownership of each successive generation of the digital shoes may be linked to the original real-world shoes (e.g., whole or in part; by the percentage of genotype contribution, etc.) via an encryption key to the originally associated virtual product, etc.

[0011] Aspects of this disclosure relate to methods for supplying, mixing, and / or exchanging encrypted digital assets for footwear. One example presents a method for automating the generation of encrypted digital assets associated with footwear products. This typical method includes, in any order and in combination with any of the above or the following: receiving transaction confirmation indicating the valid transfer of genuine footwear from a first party to a second party via a server-class (middleware or backend) computer on a distributed computing network from a remote computing node (e.g., a point-of-sale (POS) terminal, personal computer, smartphone, etc.); determining a unique owner ID code associated with the second party (e.g., a cryptocurrency wallet or digital locker member ID) via a middleware server computer from an encrypted relational database; generating an encrypted digital asset associated with the footwear product, the encrypted digital asset including a digital shoe (e.g., a computer-generated avatar) and a digital shoe ID code (e.g., a key and an encrypted token); linking the encrypted digital asset to the unique owner ID code via a middleware server computer; and transmitting the unique digital shoe ID code and the unique owner ID code to a distributed blockchain ledger (e.g., Bitcoin, Aetherium, Litecoin, etc.) for recording in a transaction block via a middleware server computer.

[0012] Other aspects of this disclosure relate to a distributed computing system having associated blockchain control logic for mining, mixing, and exchanging blockchainable digital shoes. As an example, a distributed computing system for automating the generation of cryptographic digital assets associated with footwear products is presented. The distributed computing system includes a wireless communication device connecting to one or more remote computing nodes via a distributed computing network, and a cryptographic digital asset registry storing digital shoes associated with multiple cryptographic digital assets and unique digital shoe ID codes. Other peripheral hardware may include a network interface bus, resident and / or remote memory, a user location tracker, a UPC / UPID scanner, and the like.

[0013] Continuing the above example, the distributed computing system also includes server-class (middleware or backend) computers operablely connected to wireless communication devices and an encrypted digital asset registry. The middleware server computer is programmed to run firmware and software stored in memory to receive electronic transaction confirmations from remote computing nodes via the distributed computing network indicating a validated transfer of authenticated footwear from one party to the other. In response to receiving the transaction confirmation, the server-class computer retrieves the unique owner ID code of the destination party from an encrypted relational database and generates an encrypted digital asset associated with the footwear product. The encrypted digital asset includes a computer-generated digital shoe, provided through a unique tokenized code with a corresponding access key. The server-class computer then links the encrypted digital asset to the unique owner ID code in the encrypted digital asset registry and sends the unique digital shoe ID code and the unique owner ID code to the distributed blockchain ledger for recording in the transaction block.

[0014] Further aspects of this disclosure are directed towards methods of provisioning cryptographic digital assets associated with retail product transfers, such as random draws for purchasing limited-release athletic shoes via a dedicated mobile app (SNKRS®). This representative method includes, in any order and in any combination with any of the features and options disclosed above or below: broadcasting an electronic notification of a future transaction of a retail product via a server computer on a distributed computing network; receiving requests from multiple users' personal computing devices to participate in the future transaction via a server computer on a distributed computing network; adding a selected number of users to a virtual line associated with the future transaction of the retail product; determining, via the server computer, from the users added to the virtual line, a first user selected to receive the retail product and a second user selected to receive the digital retail product and the cryptographic digital assets, including a unique digital asset code; requesting the transfer of the cryptographic digital assets to the second user's digital wallet via the server computer; and sending the unique digital asset code to a distributed blockchain ledger to record the transfer of the cryptographic digital assets to the second user in a separate record block.

[0015] An additional aspect of this disclosure is directed to a computing system for supplying cryptographic digital assets associated with the transfer of retail products. The computing system includes a wireless communication unit connected to a distributed computing network, a data storage device that stores user data in virtual lines associated with future retail product transactions, and a server computer that communicates with the wireless communication unit and the data storage device. The server computer is programmed to broadcast electronic notifications of future retail product transactions and subsequently receive user requests to participate in the future transactions. A selected number of users are added to the virtual line associated with the future retail product transaction; from the users added to the virtual line, a first user is selected to receive the retail product, and a second user is selected to receive cryptographic digital assets, including the digital retail product and a unique digital asset code. The cryptographic digital assets are transferred to the second user's digital wallet, and the unique digital asset code is sent to a distributed blockchain ledger and recorded in a separate record block to confirm the transfer of the cryptographic digital assets.

[0016] Aspects of this disclosure are also directed to non-temporary computer-readable media (CRM) that store instructions executable by one or more processors in one or more computing devices of a distributed computing system. When executed, CRM instructions cause a computer device(s) to perform actions including: broadcasting an electronic notification of a future transaction of a retail product via a distributed computing network; receiving requests from multiple users' personal computing devices via a distributed computing network to participate in the future transaction; adding a selected number of users to a virtual line associated with the future transaction of a retail product; determining from the users added to the virtual line a first user selected to receive the retail product and a second user selected to receive a cryptographic digital asset containing the digital retail product and a unique digital asset code; requesting the transfer of the cryptographic digital asset to the second user's digital wallet; and sending the unique digital asset code to a distributed blockchain ledger to record the transfer of the cryptographic digital asset to the second user in a separate record block.

[0017] For any of the disclosed systems, methods, digital assets, and retail products, a unique digital shoe ID code may include an encrypted token key having a code string segmented into a set of code subsets. The first of these code subsets may include data indicating the attributes of the digital shoe. This attribute data may include the genotype and phenotype data of the digital shoe. The second of these code subsets may include data indicating the attributes of a real-world footwear product, such as colorway, materials, manufacturing, make, sustainability / environmental responsibility, and / or model data.

[0018] For any of the disclosed systems, methods, digital assets, and retail products, a server-class distributed system computer may respond to the receipt of a transaction confirmation by sending an electronic notification to a second party along with information for accessing the encrypted digital asset. The server-class computer may then receive a scanning confirmation from the second party's handheld personal computing device verifying that a Universal Product Code (UPC) and / or Unique Product Identification Number (UPIN) corresponding to the footwear manufacturer and model has been scanned. Linking the encrypted digital asset with a unique owner ID code may be performed in response to the receipt of the scanning confirmation. In at least some applications, the unique digital shoe ID code may include an encrypted token, and the digital notification sent to the second party may include a unique key having a hash address to the encrypted token.

[0019] With respect to any of the disclosed systems, methods, digital assets, and retail products, a server-class computer may receive a digital breeding request (from any participating party) that requests the mixing of an encrypted digital asset with a third-party encrypted digital asset. Upon receiving such a request, the server-class computer may respond by generating a descendant encrypted digital asset having a combination of one or more functions from the second-party encrypted digital asset and one or more functions from the third-party encrypted digital asset. For example, each encrypted digital asset may be assigned its own unique encrypted token key, which has a code string segmented into a set of code subsets. One or more of these code subsets may contain data indicating the attributes of the corresponding digital shoe.

[0020] For any of the disclosed systems, methods, digital assets, and retail products, the offspring cryptographic digital assets are provided via a separate cryptographic token key having a code string composed of one or more code subsets having attribute data extracted from the cryptographic token key of a second-party digital asset, and one or more code subsets having attribute data extracted from the cryptographic token key of a third-party digital asset. For example, one code subset of the offspring digital asset may share a distinct alphanumeric sequence with a code subset of the second-party digital asset, while another code subset of the offspring digital asset may share a distinct alphanumeric sequence with a code subset of the third-party digital asset. Generating the offspring cryptographic digital assets may include: designating one of the cryptographic digital assets to be mated as the sire, designating the other cryptographic digital assets as the dam, and applying a random number generator to determine which code subset of the offspring corresponds to which code subset of the sire and which code subset of the dam.

[0021] For any of the disclosed systems, methods, digital assets, and retail products, a server-class computer may receive a digital transfer proposal (from either the transferor or the transferee) requesting the transfer of the cryptographic digital asset to a third party. The server-class computer may respond by determining a new unique owner ID code for the third party, linking the cryptographic digital asset to this 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 in the distributed blockchain ledger. The digital transfer proposal may be sent in response to confirmation indicating a new inherited transfer of the footwear product from a second party to a third party. Alternatively, the transfer of the cryptographic digital asset to a third party may be independent of the transfer of the physical footwear. Optionally, the server-class computer may generate a smart contract to authenticate ownership of the cryptographic digital asset and / or track future transactions of the cryptographic digital asset. The unique owner ID code may be linked to a cryptocurrency wallet registered in the distributed blockchain ledger.

[0022] For any of the disclosed systems, methods, digital assets, and retail products, a unique digital asset code may include a cryptographic token with a code string segmented into at least a private key and a public key. As a further option, a retail product transaction may include an impending transaction for multiple retail products; in this case, a first subset of users added to the virtual line are each selected to receive one of the retail products. Similarly, a cryptographic digital asset may include multiple cryptographic digital assets; in this case, a second subset of users added to the virtual line who were not selected to receive a retail product are each selected to receive one of the cryptographic digital assets.

[0023] For any disclosed system, method, digital asset, or retail product, the cryptographic digital asset includes multiple asset sets, each containing different types of cryptographic digital assets. In this case, the second subset of users includes multiple subset groups, each containing users selected to receive the corresponding type of cryptographic digital asset from that asset set. Optionally, the first asset set contains a distinct number of first-type cryptographic digital assets, and the second asset set contains a distinct number of second-type cryptographic digital assets. The second asset set may contain a fraction (e.g., 1-2%) of the number of assets included in the first asset set.

[0024] For any of the disclosed systems, methods, digital assets, and retail products, each transfer of cryptographic digital assets to a user's digital wallet may be accompanied by an electronic message to the user containing a hash address and unique key for the cryptographic token. As yet another option, electronic notifications of retail product transactions may be broadcast at random or pre-set times within a period unknown to the user receiving the request, during a previously announced period. A server computer may receive data from the user's personal computing device indicating that the user has completed a predefined activity; accordingly, the user is advanced to an improved position forward in the virtual line based on the received activity data. The number of users added to the virtual line may be generated by a random number generator (RNG). Furthermore, determining which users receive retail products and cryptographic digital assets involves selecting each user from a pre-set position in the virtual line (e.g., the first 100 users selected to receive retail products, the second 100 users selected to receive cryptographic digital assets).

[0025] For any of the disclosed systems, methods, digital assets and retail products, different encrypted digital assets can be generated for each retail product. For each user selected to receive a retail product, the system tracks a holding time between a transfer of the encrypted digital asset of the product to a first digital wallet of a first user and a subsequent transfer of the encrypted digital asset of the product to a third-party digital wallet of a third user. Thereafter, it is determined whether the holding time is less than a predefined minimum holding time for the encrypted digital asset; if so, a scalping notification is stored in cache memory and / or output to a manufacturer of the product. A smart contract may be generated to authenticate ownership of the encrypted digital asset associated with the retail product and track future transactions. The encrypted digital asset may include genotype data representing appearance characteristics of a digital retail product, such as a digital shoe or a digital apparel product. As a further option, each received request to participate in a future retail product transaction may include a quick reference (QR) code obtained by a user from, for example, a ticket for an event at a specified venue, a tangible object within the specified venue, or a product receipt generated within the specified venue.

[0026] The above summary is not intended to represent all embodiments and all aspects of the present disclosure. Rather, the foregoing summary merely provides examples of some of the concepts and features described herein. The above features and advantages, as well as other features and attendant advantages of the present disclosure, will be readily apparent from the following detailed description of illustrated examples and representative modes for carrying out the present disclosure, when taken in conjunction with the accompanying drawings and the appended claims. Furthermore, the present disclosure expressly includes any and all combinations and subcombinations of the features set forth above and below. BRIEF DESCRIPTION OF THE DRAWINGS

[0027] [Figure 1]FIG. 1 is a side perspective view of an exemplary footwear product having a collectible digital asset protected by cryptographic tokens secured by a blockchain ledger according to aspects of the present disclosure.

[0028] [Figure 2] FIG. 2 is a schematic diagram of an exemplary distributed computing system for generating, mixing, and exchanging encrypted digital assets in accordance with aspects of the present disclosure.

[0029] [Figure 3] FIG. 3 is a schematic diagram of a functional structure of a distributed computing system for protecting, mixing, and exchanging encrypted digital assets in accordance with aspects of the present disclosure.

[0030] [Figure 4] FIG. 4 is a flowchart illustrating an exemplary workflow algorithm for generating collectible digital shoes protected by cryptographic tokens on a blockchain ledger, which may correspond to instructions stored in memory executed by a control logic circuit, a programmable electronic control unit, or other computer-based device or network of devices according to aspects of the disclosed concepts.

[0031] [Figure 5] FIG. 5 is a diagram of an exemplary graphical user interface (GUI) of a personal computing device illustrating a library of encrypted digital assets.

[0032] [Figure 6] FIG. 6 is a diagram of an exemplary GUI of a personal computing device illustrating a collaboration or breeding event between two encrypted digital assets.

[0033] [Figure 7] FIG. 7 is a functional diagram of acquisition of encrypted digital assets via linked retail products.

[0034] [Figure 8]This is a functional diagram illustrating the acquisition of encrypted digital assets through promotional giveaways at events.

[0035] [Figure 9] This is a diagram of a typical GUI for a personal computing device illustrating the use of genotype and phenotypic characteristics for encrypted digital assets within a video game.

[0036] [Figure 10] This is a functional diagram of a typical GUI for a personal computing device operating on a distributed computing system to provide virtual user interactions that modify the genotype and phenotypic characteristics of encrypted digital assets in accordance with the aspects of this disclosure.

[0037] [Figure 11] This is a functional diagram of multiple users engaged in a collaborative experience, such as participating in a digital trading card game.

[0038] [Figure 12] This is a schematic diagram of another typical distributed computing system for supplying encrypted digital assets during retail product transactions according to the aspects of this disclosure.

[0039] [Figure 13] This flowchart shows a typical algorithm for supplying encrypted digital assets related to the transfer of retail products, which can correspond to memory-stored instructions executed by control logic circuits, programmable electronic control units, or other computer-based devices or networks of devices, according to the disclosed concepts.

[0040] This disclosure is accommodating various modifications and alternative forms, and several representative embodiments are shown in the drawings as examples and described in detail herein. However, it should be understood that novel aspects of this disclosure are not limited to the specific forms shown in the drawings listed above. Rather, this disclosure covers all modifications, equivalents, combinations, subcombinations, substitutions, groupings, and alternatives within the scope of this disclosure as encompassed in the appended claims. [Modes for carrying out the invention]

[0041] This disclosure is susceptible to many different forms of embodiment. Representative examples of this disclosure are shown in the drawings, and these representative examples are described in detail herein with the understanding that they are provided as illustrations of the disclosed principles, not as limitations on the broader aspects of the disclosure. To that extent, elements and limitations not expressly stated in the claims, but described in the sections of Abstract, Technical Field, Background, Overview, Brief Description of the Drawings and Detailed Description, should not be incorporated into the claims, either individually or collectively, by implication, inference, or otherwise.

[0042] For the purposes of this detailed description, unless otherwise specifically stated, singular forms include plural forms and vice versa. The words “and” and “or” shall be both conjunctive and disjunctive. The words “either” and “all” shall both mean “everything.” Words such as “include,” “have,” “have,” and “include” shall mean “include, but not limited to,” respectively. Furthermore, approximate words such as “about,” “almost,” “substantially,” and “approximately” may be used herein to mean, for example, “at, near, or almost at,” or “within 0-5% of,” or “within acceptable manufacturing tolerances,” or a logical combination thereof. Finally, directional adjectives and adverbs such as front, back, medial, lateral, proximal, distal, vertical, horizontal, front, back, left, right, etc. may be relating to the footwear product when worn on the user’s foot, and may be oriented to function in a ground-engaging portion of the sole structure located on a flat surface, for example.

[0043] Aspects of this disclosure are directed towards computer-generated digital / virtual collectibles, such as digital shoes (e.g., "CryptoKicks"), which in some examples may be secured and / or uniquely identified by cryptographic tokens and may be linked to and / or distributed with real-world physical products, such as tangible shoes. In other embodiments, instead of being linked to or distributed with real-world physical products, digital assets may be linked to or distributed with 2D or 3D design files, such as CAD models, graphical renderings, images, or graphic packages, from which physical products may be constructed or otherwise represented.

[0044] Various digital assets can be used by businesses, for example, to stay informed about consumer trends and preferences. For instance, a company might create several product-specific designs with different characteristics, silhouettes, colors, etc., then distribute them as digital assets across one or more digital platforms, and subsequently monitor the popularity, value, demand, and / or virtual usage of these different product designs and / or characteristics. Doing so provides valuable insights into real-time demand for products, which can be crucial in prioritizing designs for future manufacturing.

[0045] Digital assets or attribute modifiers may be created, for example, for brand promotional purposes. For instance, digital shoes may be created in preset and / or controlled limited quantities and distributed as part of a promotion, event, moment, or contest. Spectators of a professional sporting event (e.g., a home opener) may be granted the right to acquire one of a limited number of unique digital assets, each separately protected via its own cryptographic token.

[0046] As used herein, “Crypto Digital Asset” or simply “Digital Asset” may refer to any computer-generated virtual object, including digital footwear, apparel, headgear, avatars, pets, etc., having 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 variations of that term within this disclosure should be understood as examples of virtual collectibles backed by unique, non-fungible tokens or registry entries in an immutable database, not limited to footwear. All such references should be read as applying equally to apparel (e.g., “CryptoThreads”), headgear (e.g., “CryptoLids”), and sporting goods (e.g., “CryptoGear”) or other such objects.

[0047] 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 an encryption token. In this sense, the alphanumeric string may resemble the genetic code of the virtual object. (i.e., genotype information is the underlying code / code segment, and phenotypic traits are the expression of genotype information.) Phenotypic traits may depend on encoded genotype information, but they may optionally depend on one or more of the following: virtual environment (e.g., virtual check-in, situation-specific criteria, etc.); time-dependent breeding (e.g., the user is restricted from breeding the offspring of virtual shoes until they reach a set maturity); virtual user interaction (which may accelerate or slow maturation, or increase or decrease the likelihood of certain traits occurring); real-world user activity (e.g., the user's level of physical activity may increase one or more "desirable" qualities; daily use of the relevant product accelerates the maturation of virtual offspring, etc.); or cloning restrictions set by the manufacturer, point of sale (POS), owner, etc. (e.g., predetermining the maximum number of clones that can be produced from a desired offspring for actual real-world production).

[0048] In the context of footwear, each unique token may be directly linked to a single CryptoKick object that can be embodied as a virtual replica or digital art version of a sneaker. For example, a token may contain a 64-bit alphanumeric code that is divided into individual code segments. One, more, or all of the code segments of the alphanumeric code may represent data indicating the attributes of the collectible digital shoe. For example, a set of code segments may provide digital shoe attributes such as style, material, family, heat, color scheme, future attributes, manufacturer, model, pattern scheme, and image background. Each subset of the code can generally function as a genotype that produces a visual phenotypic expression in the user. The initially created CryptoKick may contain cryptographic token data representing attributes from a companion physical shoe. During the creation of the CryptoKick, a smart contract may be generated to authenticate ownership and track future transactions of the CryptoKick. The attributes of the digital shoe may also be linked to a bill of materials.

[0049] In a typical example, a pair of authenticated physical shoes is created and assigned a unique product identifier (UPID). When a consumer makes a purchase, the UPID can be used to unlock a "cryptographic digital asset"—CryptoKick—which consists of collectible digital shoes and unique non-fungible tokens (NFTs) that operate on a blockchain-based decentralized computing platform.

[0050] Generally, consumers may be required to first obtain a blockchain locker dress (e.g., an Ethereum hardware wallet) before they can unlock or acquire CryptoKick. This blockchain locker may be used to store the private key belonging to the CryptoKick NFT and may optionally be linked to a personal user account (e.g., a NIKEPLUS® account profile) registered with the original manufacturer of the physical shoes.

[0051] It is assumed that there are several ways in which a user may be able to unlock CryptoKick. As a first example, when the UPC or UPID of the shoes is scanned at the POS terminal during the initial purchase or is directly associated with the product, a unique cryptographic token and a corresponding private key are automatically generated and assigned to the user's blockchain locker (see Figure 7). As a second example, the KickID is provided to the user via a printed or digital receipt, a visual or electronic tag (RFID or NFC) hidden on the physical shoes, a pop-up message or email sent to the individual user account, a push notification or text message sent to a smartphone, or some other record; the consumer uses the KickID to link CryptoKick to their digital blockchain locker. As another example, the user may be required to assemble the KickID, partly via a physical code or UPID associated with the shoes (such as on the box, hang tag, under the label, on the insole, etc.) and partly via a transaction authentication code (i.e., to prevent the consumer from collecting CryptoKick when the consumer simply tries on shoes). Another example is that users could be asked to "hunt" CryptoKick within a physical store by using a photo "snap" or augmented reality ("AR") feature on a handheld personal computing device. In this method, the KickID may be provided through a verified transaction, but the user must separately find the hidden CryptoKick in AR hidden within 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 takes place). In this example, obtaining the encryption key could allow an AR engine associated with the user's device to start a game where the CryptoKick / virtual object associated with that key is hidden locally and can be found by the user.

[0052] In some examples, CryptoKick may not originally be linked to a physical product, but instead could be given to users as part of a brand's promotional campaign, event, moment, or experience. In one example, as generally shown in Figure 8, users at a sporting event may be prompted to use their smartphone device's digital camera to find CryptoKick within the event's confines. In this example, the GPS associated with the smartphone device may restrict optical recognition capabilities to a specific geofenced area. Once CryptoKick is located (e.g., effectively disguised as billboard advertising), users may be prompted to scan a unique code, such as a barcode on their event ticket. This two-part action may then transfer the token, uniquely provided for that ticket, to the user's locker.

[0053] Following this event, the promotion organizer may collect all unclaimed KickIDs for subsequent use in other promotional events. In further applications, users may unlock KickIDs upon receiving digital design files or images. For example, in an online promotion, specific users may be selected (in an ordered or random manner) to receive images, design files, or graphical renderings. A predetermined number of “winning images” may be displayed and / or transferred to the user’s computing device for later viewing, each associated with a different unique KickID which may be used to facilitate the transfer of CryptoKick to a private lock associated with the user. A “winning image” may represent, for example, a purchase or successful agreement to buy a specific physical or digital object. In other embodiments, a “winning image” may simply be a hidden or masked image within an online brand promotion page that requires user interaction to unmask.

[0054] After acquiring CryptoKick, the owner can buy, sell, mix, collect, or exchange CryptoKick using, for example, physical currency, fiat currency, and / or digital currency. In some examples, an entity may maintain a digital online marketplace containing an inventory of CryptoKick for sale, and / or a marketplace that can mediate transactions between individuals.

[0055] It may also be possible to breed or mash up two CryptoKicks ("Collab") to create a descendant CryptoKick ("RVK" or "CollaboKick"). This CollaboKick will have a unique token and distinct attributes compared to the parent CryptoKicks. Collab may combine attribute data and / or genetic code from the two tokens of its parents to generate a new NFT or KickID, which may then provide a CollaboKick. In some implementations, there may be a predetermined limit on the total number of Collab events within a given time limit to prevent, for example, the overproduction of CollaboKicks between the same two users. The creation of CollaboKick's genetic code can be random, systematic, regulated, unconstrained, or a combination of these. One or more code subsets may be based on probabilities controlled, for example, using Mendel's laws. For example, if the first attribute code (e.g., molding heat) is represented by two genes (e.g., HH, Hh, hh), then CollaboKick is considered "high heat" if it has two genes that are "hh" (a recessive trait). In other words, if the genotype data included in the KickID of both CryptoKick parents contains Hh as a "heat gene," then its offspring, CollaboKick, will have a 25% chance of inheriting a high heat gene, for example, using the Pannett square method.

[0056] The option to run a Collab event may require one or both owners to adhere to one or more prerequisites. For example, two owners of parent CryptoKicks may be required to meet at a designated location or be within a certain proximity to each other in order to create a CollabKick. For instance, a user might use the "CryptoKick Collab" matching feature on a dedicated mobile software application ("app") to find other users to Collab (collab with). Using this app, both parties may set a time and place to meet, set the conditions for the Collab, and submit a formal request to a middleware computing node that manages the process. Another example could involve a footwear manufacturer or third-party sponsor hosting a Collab event where CryptoKick owners meet at a designated location to Collab within a specific time frame.

[0057] Owners may provide some indicator of the genetic characteristics of their CryptoKicks to facilitate more careful Collab events. For example, a user might desire a specific model of CryptoKicks in a particular exclusive color. The user could then search for CryptoKicks with the genetic code for that color and attempt to Collab them. To deepen the understanding of trait value, for example, a user may be provided with a rarity score that provides an indicator of the rarity or total circulating supply of each trait constituting those CryptoKicks and / or an indicator of the overall exclusivity of those CryptoKicks. In this way, when offered for sale on the commercial market, CryptoKicks may have an intrinsic value that reflects the combined rarity or exclusivity of their various traits.

[0058] A set of predefined mixing rules may govern whether and how a collaboration can be performed. For example, certain constraints may be imposed so that broad style guidelines are maintained in CollaboKick. In one example, these style constraints may be the same constraints or guidelines that a company may use when creating a new version, color scheme, or iteration of an existing product line. When a Collab is created, a genetic mixing algorithm may be constrained so that the resulting Collab kick maintains similarities or silhouettes that represent an existing product or a more recent product. In one example, these style guidelines or rules may be explicitly set by a company, but in another embodiment, they may be discovered and assembled using, for example, an image-based processing algorithm that can recognize style attributes (e.g., color patterns, materials, cuts, and / or dimensional patterns) from an existing product.

[0059] In at least some implementations, CryptoKick can be programmed to function as a “living” digital pet, requiring users to feed, clean, entertain, and otherwise care for it to ensure the pet is happy and healthy. Optionally, owners can care for their CryptoKick pet themselves or have a third-party user care for it. As the CryptoKick pet evolves—growing from a baby digital pet to an infant, and then to an adult, such as a preschooler—one or more of the CryptoKick's attributes may automatically change with age or unlock over time. Furthermore, as the CryptoKick pet “grows” through various life stages, it may unlock versions of real-life shoes that the user could create. For example, if the CryptoKick pet evolves into a royal blue sneaker for an infant, the user unlocks the option to purchase one or more special royal blue sneakers in infant sizes.

[0060] In some implementations, a user's CryptoKick can be imported into one or more other digital platforms to serve as a skin on a video game character, for example, which may be developed and / or controlled by the user. For instance, if a user is active in a basketball video game, their CryptoKick can be imported into that game and worn by the user's player or team.

[0061] When CryptoKick is imported into another video game, in some configurations, the different attributes of CryptoKick can affect the ability level of the user's character equipped with the asset. For example, the user character's attributes may be positively influenced by the rarity or exclusivity of various attributes, or by the rarity or exclusivity of the overall combination of assets. For instance, a rare CryptoKick may grant better jumping ability or lateral speed, a rare CryptoThread may grant better strength or speed, and a rare CryptoLid may grant better eyesight.

[0062] CryptoKicks users can determine the "best CollaboKick" in the market, for example, on a W / M / Q / Y basis. Such a voting scheme can be used to designate one or more CollaboKicks as suitable for the commercial production of physical products with similar digital assets. As a further option, a CollaboKick that can receive a pre-set threshold number of "votes" could automatically trigger manufacturers to actually create the CollaboKick.

[0063] CryptoKicks and CollaboKicks are transferred between users over time for sale, trading, purchase, and collab, so each transaction history can be tracked within the blockchain ledger of the transaction. When CollaboKick or CryptoKick is created, the existence of such real life is notified to previous users, and they may be given the option to purchase a real life pair of CollaboKick / CryptoKick.

[0064] As a further extension, in one example, CryptoKicks could be backed by fungible tokens, where digital collectibles represent monetary value. In one implementation, specific attributes within the code assigned to a token could determine its value. For example, a style attribute representing high-top sneakers might have a first value, a style attribute representing yoga pants might have a second value, and a style attribute representing a running shirt might have a third value. In one example, these values ​​could be allowed to fluctuate according to market forces, or they could be tied to fiat currency.

[0065] Next, referring to the drawings, similar reference numbers are shown throughout several figures to refer to similar features, and Figure 1 shows a representative footwear product, generally indicated by 10, and depicted for illustrative purposes as athletic shoes or “sneakers.” The illustrated footwear product 10, also referred to herein concisely as “footwear” or “shoes,” is merely an illustrative application of the novel embodiments and features of this disclosure that may be implemented. For example, the illustrated footwear product 10 may be or similar to CryptoKick. Similarly, implementations of the concept for digital shoes and cryptographic tokens for footwear should also be understood as representative implementations of the disclosed concept. Thus, it will be understood that embodiments and features of this disclosure may be used for other types of footwear and may be incorporated into logically relevant consumer products. Where used herein, the terms “shoes” and “footwear” (including their variations) may be used interchangeably and synonymously to refer to any appropriate type of clothing worn on the human foot. Finally, the features shown in the drawings are not necessarily to scale and are provided purely for educational purposes. Therefore, the specific and relative dimensions shown in the drawings should not be interpreted as limiting.

[0066] A typical footwear product 10 is generally shown in Figure 1 as a bipartite construction, primarily consisting of a foot-supporting upper 12 attached to the top of a sole structure 14 below. Although only a single shoe 10 for the user's left foot is shown in Figure 1, a mirrored, substantially identical counterpart for the user's right foot may be provided. As recognized, the shape, size, material composition, and manufacturing method of the shoe 10 can be modified individually or collectively to practically suit ordinary or unconventional footwear applications.

[0067] Continuing to refer to Figure 1, the upper 12 is shown to have a shell-like, closed toe and closed heel structure for accommodating a human foot. The upper 12 in Figure 1 is generally defined by three adjacent sections: the toe box 12A, the vamp 12B, and the rear quarter 12C. The toe box 12A is shown as the rounded anterior tip of the upper 12, extending from the distal phalanges to the proximal phalanges to cover and protect the user's toes. In contrast, the vamp 12B is located behind the toe box 12A and is the arched central portion of the upper 12, extending from the metatarsals to the cuboid. As shown, the vamp 12B also provides a throat and shoe tongue 18 with a series of lace eyelets 16. Behind the toe cap 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 drawing as including three main segments, the upper 12 may be manufactured as a single-piece structure or may consist of any number of segments, including a toe cap, heel cap, ankle cuff, internal liner, etc. For sandal and slipper applications, the upper 12 may be configured with an open toe or open heel, or may be replaced by a single strap or multiple interconnecting straps.

[0068] The upper portion 12 of the footwear 10 may be manufactured from one or a combination of various materials such as textiles, industrial foams, polymers, and natural and synthetic leathers. Once cut to shape and size, the individual segments of the upper 12 may be sewn, glued, fixed, welded, or otherwise joined to each other to form an internal cavity for comfortably receiving the foot. The individual material elements of the upper 12 may be selected and arranged for the footwear 10 to impart desired properties such as durability, air permeability, abrasion resistance, flexibility, appearance, and comfort. An ankle opening 15 in the rear quarter 12C of the upper 12 provides access to the inside of the shoe 10. The length around the upper 12 can be modified using shoelaces 20, straps, buckles, or other conventional mechanisms to more securely hold the foot inside the shoe 10 and to facilitate the entry and exit of the foot from the upper 12. The shoelace 20 can be threaded through a series of eyelets 16 located within or attached to the upper 12; the tongue 18 can extend between the lace 20 and an internal cavity in the upper 12.

[0069] The sole structure 14 is firmly attached to the upper 12 so that it extends between the upper 12 and the support surface on which the user stands. The sole structure 14 may be manufactured as a sandwich structure having an upper insole 22, a middle midsole 24, and a lower outsole 26 or outsole surface. Alternative sole configurations may be manufactured with more or fewer layers than three. The insole 22 is shown partially positioned within the internal cavity of the footwear 10 and is operably attached to the lower portion of the upper 12 so that the insole 22 contacts the surface of the sole of the foot. Beneath the insole 22 is the midsole 24, which incorporates one or more materials or embedded elements to enhance the comfort, performance, and / or ground reaction force damping characteristics of the footwear 10. These elements and materials may include, individually or in any combination, polymer foam materials such as polyurethane or ethylene vinyl acetate (EVA), filler materials, moderators, air-filled bladders, plates, lasting elements, or motion control members. The outsole 26 is positioned beneath the midsole 24 and defines part or all of the lowest ground-engaging portion of the footwear 10. The outsole 26 may be formed from a natural or synthetic rubber material that provides a durable and abrasion-resistant surface for contact with the ground. In addition, the outsole 26 may be contoured and textured to enhance the traction (i.e., friction) properties between the footwear 10 and the supporting surface beneath it.

[0070] As a general issue, each element, panel, section, and material of the footwear product 10 shown in Figure 1 may be drawn or defined separately in the digital CryptoKick. Furthermore, these attributes may also be reflected in the genetic code of the NFT, as described above.

[0071] Figure 2 is a schematic diagram of an exemplary distributed computing system, generally shown as 30, having associated blockchain control logic for mining, mixing, and trading blockchainable digital collectibles. User 11 is communicatively connected to a remote host system 34 and / or cloud computing system 36 via a wireless communication network 38. While a single user 11 communicating with a single host system 34 and a single cloud computing system 36 via the distributed computing system 30 is described, it is assumed that any number of users may communicate with any number of remote computing nodes appropriately equipped for wireless information and data exchange. Wireless data exchange between user 11 and remote computing nodes on the distributed computing system 30 may occur, for example, directly via direct communication between the host system 34 / cloud computing system 36 and a user device 39 (e.g., the user's smartphone 40, smartwatch 42, or other suitable personal computing device), or indirectly through all communication between user 11 and other computing nodes routed through the host system 34.

[0072] Only selected components of the distributed computing 10 and distributed computing system 30 are shown and described in detail here. Nevertheless, the systems and devices described herein may include, for example, numerous additional and alternative features, as well as other available hardware and well-known peripheral components, for performing 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 the technology may operate on public or private chains and may utilize one or more forms of cryptography, coding, proof-of-work challenges, or other concepts and technologies contained in available blockchain standards or appropriate alternative immutable databases / ledgers.

[0073] Continuing to refer to Figure 2, the host system 34 may be implemented as a high-speed server computer or mainframe computing device capable of handling bulk data processing, resource planning, and transaction processing. For example, the host system 34 may operate as middleware within a client-server interface for necessary data exchange and communication with one or more “third-party” servers to complete a particular transaction. On the other hand, the cloud computing system 36 may operate as middleware for IoT (Internet of Things), WoT (Web 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 may be implemented as a middleware node to provide different capabilities for dynamically onboarding heterogeneous devices, multiplexing data from each of these devices, and routing the data through reconfigurable processing logic for processing and transmission to one or more destination applications. 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., local area networks, wide area networks, virtual private networks). It may also include wireless and wired transmission systems (e.g., satellite, cellular networks, terrestrial networks, etc.). Most, if not all, of the data transaction functions performed by User 11 may be performed via wireless networks, such as wireless local area networks (WLANs) or cellular data networks.

[0074] As a decentralized blockchain platform, computing system 30 operates as an open but encrypted peer-to-peer network in which asset transaction records, known as “blocks,” are linked via cryptographic hash functions within a distributed, immutable ledger of interconnected blocks, i.e., the “blockchain.” Each block in the chain contains one or more digital asset transactions accompanied by corroboration information representing the validity of each transaction as evaluated by peer verification devices. The encrypted, distributed computing architecture enables the identification and authentication of traded assets while preventing the duplication of encrypted ("encrypted") digital assets registered on the platform. Decentralized asset management can work by encrypting a proprietary asset file, splitting the encrypted code into small “nonsense” fragments, and sending these fragments to a number of different computing nodes on the distributed computing network. The verified owner is provided with a private key that indicates where the asset is located within the network and how to reconstruct or “decrypt” the file. To be used as a distributed ledger, individual blockchains are typically managed by a host administrator and distributed to multiple peers that collectively follow protocols for inter-node communication and block verification.

[0075] It should be understood that the disclosed systems and technologies offer many advantageous technological benefits, including the construction and storage of digital asset blockchains representing transactions between users of virtual collectibles. Furthermore, blockchain technology enables the creation of unique, fully transferable digital assets that maintain their value through their general ability to not be made into lossless copies (unlike traditional, insecure digital files).

[0076] Figure 3 provides an example of the functional structure of a distributed computing system 30 as shown in Figure 2. As is commonly shown, a user 11 may interface with a user device 39 (i.e., an interface device 39), which may include one or more of the following: a smartphone 40, a tablet computer, a smartwatch 42, a laptop computer, a desktop computer, a standalone video game console, smart footwear / apparel, or other similar internet-enabled devices. The interface device 39 may be configured to communicate with one or more of the following: an immutable public database (e.g., a blockchain service / network 60 - (referred to as "blockchain 60")), a virtual object generator 62, an online digital marketplace 64, and / or third-party integrated services 66.

[0077] Generally, a blockchain 60 may include at least one non-fungible token registered therein, which contains genomic information representing a digital asset. Through a user device 39, a user 11 may own, or be linked to, a locker / wallet containing a private encryption key that enables the user device to read encrypted data associated with the tokens. This key further enables the user 11 to freely transfer ownership of the tokens.

[0078] In one example, a virtual object generator 62 may be provided to generate a digital object based on genomic information associated with a token. More specifically, the virtual object generator 62 may be responsible for representing the genomic information in multiple phenotypic characteristics. The virtual object generator 62 may employ multiple styles and artistic rules so that the resulting digital object is unique but recognizable according to a predetermined silhouette, style, item, or character. The virtual object generator 62 may optionally operate based on other non-genomic factors, such as the asset's age, user activity (tracked via a user device), or use via a third-party platform. In such embodiments, these non-genomic inputs may alter phenotypic expression and / or unlock new abilities, breeding rights, and / or production rights. For example, in one configuration, the color of CryptoKick may depend on a genetically assigned color, along with the asset's age and / or use of the asset in the virtual world or via a linked physical shoe pair in the real world. The initial color may, along with age / experience-based changes, result in new colors with their own relative rarity score / value.

[0079] The virtual object generator 62 and / or blockchain 60 may further communicate with hosted digital marketplaces 64, forums, social platforms, etc. (displayed on a smartphone 40, generally as shown in Figure 5). The digital marketplace 64 may represent multiple virtual objects 80 in a manner that enables organized exchange or sale of virtual objects between parties. Upon completion of a sale, the digital marketplace 64 may update the blockchain 60 with new ownership information and facilitate the transfer of existing keys to new asset holders. The marketplace 64 may further enable various social engagement features, such as voting or commenting on the represented virtual objects. Similarly, in some examples, the marketplace 64 may be configured to assess and score the scarcity of a particular virtual object based on the sum of the represented properties of that object. Such a scarcity score would enable the marketplace (and / or users participating in the marketplace) to better assess the value of the object.

[0080] In one configuration, the computing system 30 may further include a third-party integration service 66 that enables the use of virtual objects in different contexts or manners. The third-party integration service 66 may operate as an API on an application provided on the user's device, or as a dedicated cloud-based service. The third-party integration service 66 may optionally make virtual objects (e.g., represented 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 9), digital artwork displays, physical print generation, manufacturing production, etc. In one example, genomic information and / or rarity scores may be made available to modify the characteristics or abilities of the user's video game character in a video game played on the user's device 39 (see Figure 10).

[0081] Furthermore, as shown in Figure 3, in one configuration, the enterprise host system 68 may communicate with the blockchain 60 for the purpose of providing and / or initially generating new digital assets. In addition, the host system 68 may provide one or more rules to the virtual object generator 62 to constrain the way and style in which the genomic information from the blockchain 60 is represented in visual / artistic form.

[0082] Next, referring to the flowchart in Figure 4, an improved method or control strategy for generating collectible digital assets protected by cryptographic tokens on a blockchain ledger is generally described in accordance with the aspects of this disclosure. Some or all of the operations shown in Figure 4 and described in more detail below may represent algorithms corresponding to processor-executable instructions, stored, for example, in main or auxiliary memory or remote memory, and executed, for example, by a resident controller or remote controller, a central processing unit (CPU), control logic circuits, or other modules or devices or networks of devices, which can perform any or all of the functions described above or below relating to the disclosed concepts. It should be noted 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 deleted.

[0083] Method 100 is initiated in terminal block 101 by a processor-executable instruction for a programmable controller or control module or a suitable processor to invoke an initialization procedure for a protocol for generating encrypted digital assets, such as the computer-generated digital shoes 44 and encrypted token key 46 in Figure 2, for consumer products such as the sneakers 10 in Figures 1 and 2. This routine may be invoked and executed in real time, continuously, systematically, sporadically, and / or at regular intervals. As a typical implementation of the method shown in Figure 4, the initialization procedure in block 101 may be initiated automatically each time a pair of real shoes 10 is manufactured, each time a user 11 purchases a pair of real shoes 10, or each time a user 11 unlocks the access key 46. Alternatively, the initialization procedure may be initiated manually by an employee at the POS terminal or by the manufacturer.

[0084] Using a portable electronic device 39 such as a smartphone 40 or smartwatch 42 in Figure 2, user 11 may launch a dedicated mobile software application ("App") or a web-based applet such as NIKE+® that works with a server-class (backend or middleware) computer (e.g., remote host system 34) to communicate with various peer devices on a distributed computing system 30. During a communication session with the host system 34, user 11 may, for example, purchase a pair of footwear 10 using corresponding features provided by the App. User 11 enters personal information and payment method to complete the transaction. Once the verified payment is complete, the host system 34 receives a transaction confirmation from, for example, an online store transaction module or an approved third-party electronic payment system, indicating that the verified transfer of footwear 10 to user 11 has been completed. As described above, the valid transfer of footwear 10 may be carried out through any available means, including in physical stores, through online auction websites, aftermarket consumer-to-consumer trade / sale, etc.

[0085] Method 100 continues with a decision block 103 to determine whether user 11 has obtained a cryptocurrency wallet or other similar suitable digital blockchain locker capable of uploading and maintaining location and locator information for digital assets stored in an encrypted and distributed manner. A cryptocurrency wallet typically stores public and private key pairs, but not the cryptocurrency itself. The cryptocurrency is stored in a distributed and public blockchain ledger. The stored keys allow the owner to digitally sign transactions and write them to the blockchain ledger. A smart contract directed by the platform associated with the locker can facilitate the transfer of stored assets and create a verifiable audit trail. If user 11 has not yet obtained a digital blockchain locker (block 103=NO), Method 100 continues with a predetermined process block 105 for setting up the blockchain locker. As a non-limiting example, user 11 may be prompted to visit, or automatically routed to, one of several publicly available websites that offer hardware wallets for the cold storage of cryptocurrencies and digital assets, such as ERC20-compatible Ethereum wallets provided by MyEtherWallet™.

[0086] Once the system confirms that user 11 has a suitable digital blockchain locker, method 100 may automatically link the digital blockchain locker to a personal user account (e.g., a NIKEPLUS® account profile) or prompt user 11 to link it, as shown in process block 107 of Figure 4. This may require the remote host system 34 to retrieve a unique owner ID code (e.g., CryptoKick Owner ID 48 in Figure 2) associated with the purchaser (e.g., user 11) from an encrypted relational database (e.g., provided through a cloud computing system 36). At this point, a unique physical shoe ID code (CryptoKick Physical ID 50 in Figure 2) associated with the purchased footwear 10 may be linked to the user's personal account.

[0087] Once it is determined that user 11 has acquired a digital blockchain locker (block 103 = YES), or after linking the user's blockchain locker to their individual user account (block 107), method 100 continues with input / output blocks 109 to activate or "unlock" the cryptographic digital asset associated with the footwear 10 traded in process block 101. As described above, after purchasing footwear 10, a collectible CryptoKick can be found using the CryptoKick Physical ID or universally recognized UPID product code, which consists of a generally collectible digital shoe 44 and a unique NFT identified by an encrypted token key 46. A salesperson at a POS terminal or user 11 using a smartphone 40 can scan the UPID or UPC of the shoe 10 or the box containing the shoe 10. Alternatively, user 11 may be prompted to "treasure hunt" using the smartphone's digital camera to scan various UPIDs throughout the physical store until they scan one linked to a KickID. Enabling encrypted digital assets can be done automatically, randomly, systematically, reward-based, or by a logically appropriate method.

[0088] After receiving confirmation that the encrypted digital asset has been authorized in input / output block 109, method 100 generates an encrypted digital asset for the processed footwear product. This may include generating a unique encrypted asset code having an address, a token, and a public and private key pair, as shown in a predetermined process block 111. The host system 34 may send the token, along with the public key and owner ID, to the distributed blockchain ledger to record the transfer of the encrypted digital asset to user 11 in a transaction block and peer-verify. Method 100 then proceeds to process block 113 to link the encrypted digital asset with a unique owner ID code. This control logic may include executable instructions to assign the encrypted asset code to user 11 and to store the public and private keys in the user's digital blockchain locker.

[0089] Continuing with Figure 4, Method 100 proceeds to block 115 to generate a virtual representation or “digital art” of the encrypted digital asset. Following the footwear example in Figure 2, the virtual representation may include a computer-generated avatar of the shoes 10 or a limited edition artist's interpretation of the shoes 10. It is also assumed that one or more attributes of the virtual representation of the encrypted digital asset may be created, in whole or in part, by the user 11. Machine learning functions may be executed in a predetermined process block 117 to generate image features via a neural network. Once the digital art is complete, the image may be uploaded to the cloud computing system 36 in block 119. Furthermore, an optional process block 121 may issue a digital notification, such as an email or push notification, to the user’s smartphone 40, smartwatch 42, or other personal computing device, along with all relevant information for accessing, transferring, and mixing the encrypted digital asset. The remote host system 34 may, in an optional process block 123, operate as a web server hosting a web-based graphical user interface (GUI) capable of converting data stored in an encryption key into a visual image displayed to user 11. The manipulation and use of digital assets may also be performed via the user's digital blockchain locker, which may include posting encrypted digital assets online to a crypto collectibles marketplace for sale or breeding, as specified in an optional process block 125.

[0090] Future and current owners of cryptographic digital assets, such as CryptoKick in Figure 2, may buy and sell the digital assets through one or more blockchain ledgers operating on a distributed computing system 30. As an example, but not limited to, a user may purchase a new pair of highly popular sneakers from a verified vendor that can provide authenticated proofance records for the sneakers. While the sneakers are in transit, the user may receive an email notification with detailed instructions to unlock CryptoKick once the shipment arrives. After receiving the shoebox containing the purchased sneakers, the user scans the UPC on the box using the barcode scanning function of a sneaker app running on their smartphone. In the sneaker app, a new profile page is activated in response, and the sneaker app opens the new profile page. In at least some applications, the new profile page is linked to, exported from, or initially activated in the user's personal (NIKEPLUS®) account profile. Private and public blockchain platform keys are generated, genotype and phenotype data are created, and this data is embedded in the alphanumeric code segment of the public key to generate a virtual representation of CryptoKick. CryptoKick blockchain data, tokens, etc., are assigned to the user's new address. The new profile page lists the CryptoKick acquired by the user.

[0091] A user may wish to lease, license, or transfer their new CryptoKick to one or more future buyers. In one example, a seller (also referred herein as the “Transferor” or “First Party”) offers to sell, and a buyer (also referred herein as the “Transferee” or “Second Party”) agrees to purchase the CryptoKick for an agreed amount (e.g., 3 ETH). The buyer may be interested in purchasing an available CryptoKick because it possesses one or more attributes (e.g., artist, body type, color scheme, etc.) that the buyer is looking to add to their collection. The seller may initiate the sales process by marking a particular CryptoKick as “For Sale” via the “Auction” button on the sneaker app with the corresponding soft key. The seller may set a minimum bid price and / or a buy now price and offer an auction timeframe such as a number of hours, days, or weeks of their choice. The sneaker app may present sellers with a share modal that allows them to share the auction via regular social media or to present a quick response (QR) code for scanning potential buyers. Buyers can then use their smartphone's digital camera to operate the sneaker app's scanning function to scan the QR code and send the required funds (e.g., 3 ETH) to the auction site. The seller's sneaker app notifies the seller of the payment, and the seller is prompted to agree to the terms of the sale and complete the transaction. CryptoKick is then transferred from the first party to the second party's address.

[0092] Owners of encrypted digital assets may wish to mix or "breed" their digital assets with other digital assets to create asset "offspring," as schematically shown in Figure 6. The first and second digital asset owners may wish to collaborate and crossbreed their digital assets 82 and 84 to create a new encrypted digital asset. The first owner is designated as the "primary artist" if their digital asset possesses the attributes desired by the second owner. In this case, the second owner may initiate a smart contract with the first owner to collaborate. One or both parties may fund the contract in physical or digital currency to pay, for example, a "collaboration fee" set by the breeding host site for transfer (transfer) and an optional siring fee for the second owner's siring service. Once both parties agree to and sign a breeding agreement, one or both parties may be prompted to select one or more traits from their “parent” digital assets and transfer them to the resulting “offspring” digital assets. Alternatively, a breeding host site may use a breeding algorithm to construct a new digital asset from two or more existing digital assets.

[0093] The "CollabScience" algorithm can be used to determine which contributing cryptographic digital asset will be designated as the sire, which will be designated as the dam, and which code subset from each parent asset will be used to construct the cryptographic token key for the resulting digital asset. For example, the token keys for the two parent digital assets, DA1 and DA2, may appear as follows: DA1: 4352635657387611432650689898388672080892866850020829309339781214 DA2: 1997670191981520482540801616208235668515393854245661572126051434 The CollabScience algorithm can generate random numbers, for example, between 0 and 65535, using a random number generator (RNG) or other applicable means. Following this example, the random number may be 21123. Once generated, the CollabScience algorithm can convert the resulting number 21123 into the binary code: 0101001010000011. Consequently, if the first digit of the binary code is zero (0), the first parent digital asset DA1 is designated as the sire and corresponds to all zeros in the string; the first parent digital asset DA1 is designated as the sire and the second parent digital asset DA2 is automatically designated as the female parent and corresponds to all ones in the string.

[0094] Following the example above, the CollabScience algorithm segments the parent token key into multi-digit code subsets or "chunks." In this example, each parent token key is divided into 16 four-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'] Next, the CollabScience algorithm constructs a new token ID for the resulting “offspring” digital asset based on the digits in the random number, and the 16 chunks of the child token key are sequentially assigned 1 or 0 based on the binary code of the random number generated above. From this example, the first digit in the binary code version of the random number is 0; the first parent digital asset DA1 is the specified sire, which corresponds to 0. As a result, the first chunk of the child token key is copied from the sire's first chunk and set to 4352. Next, the second digit in the binary code version of the random number is 1; the second parent digital asset DA2 is the specified dam, which corresponds to 1. As a result, the second chunk of the child token key is copied from the dam's second chunk and thus set to 6701, and so on, until all 16 chunks of the child token key are filled with the corresponding chunks from the parent token key. Thus, the resulting new array for child digital asset DA3 looks like this: Segment 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 the array as follows: 4352670157381520432650681616388635660892866850020829309326051434 Next, the CollabScience algorithm processes the encrypted digital assets, generates a virtual representation of the new assets, and assigns those assets to the buyer's digital blockchain locker.

[0095] Other technologies may be used to determine the attributes of the offspring digital assets. For example, the Punnett Square could be implemented to represent dominant and recessive traits ("genes") from two parent digital assets and to generate the probability of trait expression in the offspring digital assets. The Punnett Square is a graphical mechanism used to calculate the mathematical probability of a child asset inheriting a particular trait from two parent assets. The resulting sequence is provided to find all potential combinations of genotypes that can occur in a child given parent genotypes by placing the genotype of one parent at the top of the table and the genotype of the other parent on one side. As seen in Figure 2, the genotype and phenotype information contained in the encrypted token key 46 includes the digital shoes': breeding attribute ("collab"), material information, manufacturer data ("family"), manufacturing requirements ("thermal"), color combination ("color scheme"), future attribute, model data, and image background information.

[0096] Epigenetic factors can cause hereditary phenotypic changes without altering the underlying DNA sequence. In some cases, changes in the genotype of an encrypted token key may be triggered by real-world and / or virtual interactions, leading to changes in the phenotypic properties of the encrypted digital asset. Genes representing high and low heat may change from Hhrr to HHRR due to epigenetic factors such as: using shoes in the real world may increase the likelihood of passing on gene mutations or "good" mutations to offspring; real-world workouts such as running or sports may increase good gene mutations or increase the rate of maturation of offspring assets; checking in at stores or other real-world standards may result in positive gene mutations, passing on "good traits" to offspring, and speeding up maturation; and time-dependent breeding where two cryptographic digital assets prevent crossbreeding before both assets reach a minimum age. Otherwise, breeding may fail or increase the probability of passing "bad" genes to offspring; unique breeding periods may cause genetic mutations; frequent interaction with other assets or other apps (e.g., trading, buying and selling, and collaborating) may lead to positive genetic mutations, passing "good traits" to offspring, or accelerating maturation.

[0097] It may be desirable to modify (e.g., mutate or edit) the underlying genotype information or phenotypic expression of an encrypted digital asset using acquired encrypted digital attributes ("attribute packs"). Encrypted digital attributes may include a subset of genotypes and / or phenotypic characteristics that do not constitute a complete representation of the encrypted digital asset. In the context of shoes, a CryptoKick attribute pack may include genotypes and / or phenotypic information associated with one or more distinct features of the digital shoe, although these features are fewer than those of a complete CryptoKick. Exemplary attributes may include styles such as heel counter, laces, toe bumper, logo, and color scheme. When encrypted digital attributes are mixed with an encrypted digital asset, one or more genotype code segments or phenotypic expressions may be directly replaced with those of the asset, or they may be bred to create offspring attributes that include probabilistic combinations of existing attributes and attributes represented within the attribute pack. As a result, the mutated / edited digital assets (and / or asset ID codes) may then be recorded in the distributed blockchain ledger.

[0098] The ability to edit and / or mutate individual attributes of a user's digital assets helps to enhance user engagement and enable a wider range of options for brand promotion. More specifically, encrypted digital attribute packs can be released to mutate / modify assets, such as to include the colors of a particular sports team, or to include unique features or attributes from similar encrypted digital assets of key influencers. By analogy, this ability for targeted mutation / gene editing could be similar to CRISPR technology in the world of biotechnology. In some implementations, if breeding rules govern the impact of attribute packs on digital assets, there can be probabilistic and / or uncertain consequences regarding how newly introduced attributes are represented in the resulting encrypted digital asset. For example, if an attribute pack includes a team-specific color scheme, breeding / mixing could result in different representations when mixed with different source assets (or even different representations when applied to two identical source assets).

[0099] CryptoKick attribute packs may be offered in a similar manner to full-fledged CryptoKick, but in one example, instead of being offered with a complete footwear or apparel product, they may be offered with the sale of a customized product or service (i.e., a component or modification kit intended to modify a footwear or apparel product, but not the complete footwear or apparel product itself). Examples may include custom laces, temporary appliqués (e.g., logos or panels attached via hook-and-loop fasteners, snaps or non-permanent adhesives), the sale of kits for customization, and / or services for customization (e.g., dyeing services, sublimation, sale or application of dye kits or pigments, deposition layering, coloration layering, application of optical effects - structural color, static color or pearlescent modification; laser etching services, acid dye cleaning services; additive manufacturing - 3D printing, 3D painting, etc.).

[0100] To better control the distribution of encrypted digital attribute packs, each pack may be recorded in a distributed blockchain ledger at the time of creation, thus providing each attribute pack with a separate existence. Each encrypted digital attribute pack may include a smart contract that terminates, for example, the existence of the attribute pack or its ability to be subsequently mixed with different digital assets. In this way, an attribute pack may have a single-use capability to edit or mutate the underlying digital asset. Furthermore, in at least some applications, the form of the smart contract may time-limited the ability to be mixed with the underlying digital asset.

[0101] As described above, Figure 7 schematically illustrates how to acquire digital collectibles or attribute packs that may be linked to or coordinated with the sale of a physical product. Specifically, as shown in Figure 7, user 11 brings a device (i.e., a smartphone device 40) near a physical product 200 containing an identifier (UPID) such as a QR code, barcode, digital image, RFID tag, NFC tag, BLUETOOTH® ID, embedded processor registry entry, or some other machine-readable code. This code can then be recognized by the phone 40 either optically, via radio frequency communication, magnetic properties, or via wired data communication. Following the identification / recognition of the UPID, the phone 40 may initiate the transfer and / or original provisioning of the digital assets 202 linked to that product 200 to the user's locker 204, which is communicating with a blockchain service / network 60. In extending this concept, the transfer of digital assets 202 can be made even more secure, for example, by using a PIN, encryption key, access code, etc., which may be provided on the receipt after the user purchases product 200.

[0102] In one example, if user 11 purchases a pair of sneakers and acquires CryptoKick, and then returns the sneakers, the smart contract associated with the CryptoKick may cancel the acquisition and automatically return the token and all rights to the CryptoKick to the company / retailer. If the purchaser sells / exchanges the CryptoKick to a good-faith purchaser (BFP) before returning the shoes, this secondary transaction may also be reversed. Along with the reversal of this secondary transaction, the BFP may be offered the option to reacquire the CryptoKick from the company / retailer at a predetermined price (e.g., the current price of the asset, a discounted price from the current price, a fixed price set before market release, or a nominal amount). In another embodiment, the BFP of the CryptoKick may have the initial right to refuse to acquire / purchase the returned physical product. This may be important in the case of limited-release sneakers that are, by definition, scarce.

[0103] Figure 8 schematically illustrates how a digital collectible or attribute pack can be obtained, such as during a promotional giveaway. As shown in the figure, user 11 can use the AR capabilities of their smartphone 40 to locate a virtual object 210, such as CryptoKick, within the arena 212. In this example, CryptoKick may be "hidden" within the scoreboard 214, but can be freely recognized using an app on the phone that interfaces with the phone's camera. This app can illustrate the virtual object on the display when the camera recognizes a specific environmental optical pattern (i.e., the scoreboard in the arena) and the phone is geolocated within a specific area (i.e., via GPS sensing, beacons, geofencing technology, WiFi connectivity, etc.). Once located, user 11 may be prompted to scan a unique code, such as a barcode on a ticket, or a unique code provided on a program or physical item (e.g., a noise maker, light stick, towel) that may be placed on the user's seat before the game. This code may be associated with and / or linked to assigned, registered, or pre-provided crypto assets and KickIDs. Once this code is scanned or entered, the phone 40 may initiate the transfer of digital assets 202 to the user's locker 204, communicating with the blockchain service / network 60. For example, the phone 40 may communicate the code to a server, where the associated KickID may be retrieved and then transferred to the locker associated with the user's ID.

[0104] Furthermore, in more general brand promotion cases, the need to locate virtual objects may not be strictly required to receive CryptoKick or attribute packs. Alternatively, a server, such as a middleware server, may receive an indication that a user device is in a specific venue during a particular event. This indication may be derived from GPS-based location coordinates determined from a GPS receiver on the user device. More specifically, the determined GPS coordinates may be compared to a predetermined geofenced area around the venue, and the indication may show whether the device is inside or outside the venue. Alternatively, this indication may arise from the device being in proximity to one or more 802.11 or Bluetooth beacons placed in the venue, or from optical recognition via the device's camera of specific visual characteristics of the venue.

[0105] Next, the server may prompt the user via their device to scan a unique identifier that should be easily obtainable by anyone attending the event. Illustrative unique identifiers may include ticket barcodes, codes on physical objects, codes on the user's seat, codes printed on merchandise receipts, etc. Once this code is scanned or entered, the server may receive a display of the user's unique ID and the unique scanned code. The server and / or user device may initiate the transfer of digital assets 202 to the user's locker 204, which communicates with the blockchain service / network 60. Other conditions, such as the discovery of AR objects at the venue or the occurrence of a specific event, may add additional conditional layers that the server must satisfy before performing the transfer. Optionally, the user device may record the device's presence by location and / or time, and the CryptoKick claim may be available for a predetermined period after the event.

[0106] The ability to acquire CryptoKick may be initiated not by finding an AR object or by the event existing alone, but also by an aspect of the game / event. Examples of such trigger events may include, for example, a shutout (hockey / baseball), a no-hitter (baseball), an individual performance of 50 points or more (basketball), a triple-double (basketball), a hat-trick (soccer / hockey), a scoreless quarter / period / half (basketball, hockey, soccer), and overtime / extension. In such embodiments, the occurrence of an event may trigger an alert on the user's device 39, prompting the user to scan the ticket to facilitate transfer. In one example, to eliminate a secondary market for ticket stubs, an app on the user's device facilitating notifications may require that the scan only occur within a predetermined geofence and / or time frame of the game / event. In further extension, the market (as described above) may further allow the user 39 to sell any pending rights to CryptoKick in the future if a triggering event occurs. This is similar to a user writing and selling tradable options on CryptoKick that either expire and become worthless, or result in the option buyer acquiring CryptoKick.

[0107] In any of the above-mentioned methods for obtaining CryptoKicks, it should be understood that attribute packs can be obtained by similar means / technologies. For example, in one instance, a user's presence at a sporting event may allow the user to receive an attribute pack containing one of the team's color schemes. This attribute pack can be mixed with existing CryptoKicks to change or edit existing color scheme attributes to the team color scheme. Optionally, by sending a unique scanned code, an application or browser on the user's device may be made available for each teaching and transferred to a virtual storefront where the user is prompted to select one for acquisition. Similar virtual storefront technologies may also be useful for selecting and transferring CryptoKicks.

[0108] Figures 9 and 10 schematically illustrate a video game interface 220 including a display 222. The video game interface 220 and / or the 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 with the display 222. The device 39 may generally be configured to run 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, several attributes 230 that can influence how the character 226 behaves, responds, or performs within the environment 230, and / or how the character 226 interacts with other characters 232 controlled by other users in the application 224 or network environment.

[0109] In one context, character 226 could be an athlete, and environment 228 could be a sports environment. Figure 9 shows character 226, such as a soccer player, and environment 228, such as a soccer field in a stadium. The character's attributes 230 may include, for example, speed, ball control, passing, defense, kicking power, balance, and stamina (in particular). In one embodiment, character 226 could be an outfit / skin with a digital collectible (e.g., apparel product 234) that can be uniquely backed by a token on blockchain 60. In one example, the digital collectible may be acquired by any one of the methods described herein. In one configuration, application 224 may access the genetic code of a digital asset on blockchain 60 via an API or other software interface 236 (i.e., an embodiment of the third-party interface 66 described above), and / or access the phenotypic expression of an object via an integrated software decoder or by accessing a network virtual object generator 62 of the type described above. In one configuration, one or more of the attributes 230 may be positively or negatively affected by the genetic code or phenotypic expression of object 234. Figure 9 illustrates the object as an apparel product, but it could similarly be footwear, an object usable by a character, sports equipment, etc.

[0110] Furthermore, based on the concept of CryptoKick as property, for example, a user or company may rent or lease the use of digital collectibles within a video game for a certain period. For example, a lease may be restricted so that only one instance of a particular user's asset exists in any given context. For instance, a user may own exclusive, full rights to CryptoKick. That user may simultaneously lease CryptoKick for one week in basketball game A, two weeks in soccer game B, and three weeks in first-person shooter game C.

[0111] Another option could involve programming the cryptographic digital asset as a virtual "pet" that the user cares for and helps grow from a baby to an adult. Figure 10 shows, for example, a user's avatar 226 virtually strolling around with a pet CryptoKicks 240 within an environment 228 representing a virtual world, and interacting with the avatar of another user 232. As mentioned above, such virtual interactions can influence the evolution, value, maturation rate, visual appearance, marketability, etc., of the pet CryptoKick. The attributes of the digital asset may change with age or be unlocked over time. The user can care for the virtual pet directly or supply 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 various real-life sneaker versions that the user can purchase in stores.

[0112] Referring again to Figure 9, very similar to the virtual pet in Figure 10, gameplay, use of digital assets, or improvements in character level, experience, or achievements can manipulate / modify one or more genotypes and / or phenotypic attributes of the digital asset / CryptoKick. Similarly, gameplay, use of digital assets, or improvements in character level, experience, or achievements can manipulate the impact that the digital asset has on the character's abilities or gameplay. For example, achieving a new level, winning a tournament, exceeding a certain threshold in the global rankings, or other similar achievements can change the attributes of the CryptoKick to have a unique or limited availability appearance, color scheme, skin, etc. Similarly, such achievements can act as multipliers to the effect that the digital asset has on the character.

[0113] Referring to Figure 11, a set of digital assets may take the form of a digital collectable card game (DCCG) or may be used in a digital collectable card game. In such a game, each user may have a collection of digital assets with different sets, balances, or weightings of attributes / attribute scores, and / or different features, abilities, or powers. Users may optionally play individual cards or groups of cards in turn to win according to the rules set by the game.

[0114] While trading card games are generally well-known, the use of digital assets as described herein can offer a unique extension to these games. Furthermore, these games can serve as an additional use and motivation for collecting digital assets. By uniquely protecting each digital asset in an immutable database such as Blockchain60, each player's card collection and the strategies required to use those cards can also become unique.

[0115] In such embodiments, the game server 300 may communicate with a plurality of different user devices 39. As described above, the user devices 39 may be a smartphone 40, a smartwatch 42, a tablet computer, a laptop computer, a web-enabled device, or other such device capable of network communication with the server 300. Each user device 39 may be linked to a separate digital locker 204 that may allow the user to access their securely stored digital assets from the blockchain 60. Each asset may be represented as a separate digital card on the user's device and may have its own set of attributes (i.e., part of its phenotype). In one example, a virtual object generator 62 may communicate with the user devices 39 and / or the game server 300 to create a representation of a virtual object from genotyping information associated with tokens on the blockchain 60. The game server 300 may manage the rules of the game, including maintaining a plurality of user counts, instructing a first user on playtime via the user's device 39, and modifying the attributes of a second user's account based on the receipt of digital asset data from the first user. The received digital asset data may correspond to digital assets played by the first user via the first user's device.

[0116] In one example, the game server 300 may not have a stored understanding of a user's digital asset collection until digital asset data is received. Therefore, in this embodiment, the user's asset collection may be maintained solely by the user's device. In another embodiment, the user's asset collection may be registered in a user account maintained by the game server 300. In this configuration, the digital asset data may simply indicate which cards in the user's account have been played.

[0117] Figure 11 is intended to illustrate multiple users engaged in DCCG, but in an alternative configuration, the figure could represent a meeting where multiple users come to a common location for the purpose of breeding their CryptoKicks. Such events may be coordinated by a central server linked to a user count within a local area. Alternatively, users may have the ability to sponsor events and / or broadcast their own location for others to connect and / or create user-initiated meetings or invitations.

[0118] In at least some applications, the attributes of a cryptographic digital asset can be directly linked to the corresponding attributes of real-world shoes for production purposes. Optionally, the digital asset attributes can be linked to a material specification for cost calculation and as a control mechanism. The resulting offspring may be limited to having phenotypic features that can be produced in the real world based on manufacturing capabilities, materials, and other factors. When CryptoKicks and CollaboKicks change ownership through sale, exchange, purchase, and collaboration, the resulting transaction history is tracked within the blockchain. If a CollaboKick or CryptoKick that does not currently exist is created in the real world, the previous owner / user may be notified of such real-world existence and given the option to purchase the sneakers.

[0119] Referring now to Figure 12, generally shown as 400, an example of a distributed computing system is presented, depicted for illustrative purposes as a client-server oriented distributed computing architecture for provisioning encrypted digital assets during retail product transactions. While the appearance may differ, the representative computing system 400 in Figure 12 may include any of the options and features described above with respect to the system architectures and retail products shown in Figures 1-11, and vice versa. According to the architecture in Figure 12, the distributed computing system 400 enables users to reserve and procure various products, services, events, etc., with limited availability. For example, using different social networking services, electronic billboards, dedicated mobile apps, text messages, push notifications, etc., the system 400 announces the availability of limited-release retail products, event tickets, etc. Users can respond to these announcements via social networking services, text messages, or apps, along with requests to add them to a virtual line or waiting bin. Product reservations, which can secure limited-release retail products, event tickets, and other items, may be issued to users based on their random selection from a waiting bin or their respective positions within a virtual line.

[0120] According to a non-exclusive implementation of the architecture shown in Figure 12, athletic shoe manufacturers may occasionally produce and release limited or exclusive editions of shoes. For example, NIKE® Corp. may announce a limited-quantity release of footwear (e.g., 1000 pairs of basketball shoes in each size from 8 to 14) through the SNKRS® subsite and app. This limited shoe release is accompanied by limited availability of corresponding product reservations available on a given date and / or time. On the release date / time, users access their individual user accounts via the SNKRS® subsite and app and, if deemed eligible, are placed in a hold bin or virtual line. The SNKRS® site then selects a “winner” from among the users who is entitled to secure the limited-release sneakers. Winners may be selected by random draw, random win / loss generator, or by position on the virtual line. In at least some implementations, future SNKRS launch experiences may require users to locate, scan, and submit a quick response (QR) code in order to be eligible for limited-time pre-release events.

[0121] At this stage, users are encouraged to engage in physical activities (e.g., team relays) or virtual activities (e.g., augmented reality (AR) scavenger hunts) that may improve their position on the virtual line or increase their chances of winning "The DRAW." If a user performs a pre-approved physical or virtual activity during a designated time window before The DRAW, they can be rewarded by increasing their chances of winning The DRAW and / or by earning an activity / membership points multiplier. For example, a user may be awarded a 2x multiplier of Nike Coins® during the pre-set release period for the next-generation Air Jordan® 3 White Cement sneakers for playing basketball at least four times a week leading up to The DRAW. This feature encourages users to make basketball a daily habit while waiting for the release of limited-edition sneakers.

[0122] After launch, if a user is not selected in The Draw to secure one of the limited-release sneakers, they will be offered the opportunity to secure one of several limited-release CryptoKicks. As shown above, these CryptoKicks may look similar or identical, some may have a distinctive appearance, and others may be rarer and more valuable than others. After failing to win The Draw for a physical product, users may be given the option to opt in to a secondary raffle. In this consolation raffle, users may exchange activity points or membership points for an increased chance of receiving / unlocking one of the limited-release CryptoKicks. In at least some implementations, this post-launch event may take the form of a "gachapon" style raffle where the available assets are of generally high quality, some of which are relatively rare, and users do not know in advance exactly what they will win. As a further option, the cost of entry may include activity points or membership points (i.e., some kind of points that the user receives depending on preferred activities—e.g., shoe purchases, running miles or completed workouts, check-ins, app engagement, or other general activity scores). Furthermore, post-launch events may be part of an event-based shoe launch, such as during an esports tournament or a KPOP concert. Additional information regarding tracking users' physical activities and awarding virtual points or virtual currency for such activities is described, for example, in U.S. Patents 9,289,683, 9,940,682, and 9,415,266, all of which, for all purposes, are incorporated herein by reference in their entirety.

[0123] If a user wins The Draw for the option to purchase / acquire limited-release footwear, they may be given the option not to purchase / own the physical footwear. Instead, if they choose to decline the physical footwear, they may be given the option to automatically acquire a limited-release CK or an additional multiplier (e.g., 4x) on Nike Coins®, thereby increasing their chances of acquiring a limited-release CryptoKick. Similarly, if they win a limited-release CryptoKick, they may be offered the option to decline a limited-release CK and instead acquire an even larger multiplier (e.g., 8x) for a future draw for an even more limited CK. Instead of taking Nike Coins® to purchase CK or other virtual goods, users may continue to decline draws to further increase their chances of winning in future draws, or they may use all available Nike Coins® for an ultra-limited Nike® "gacha" style experience.

[0124] Another available feature offered through the distributed computing system 400 is the ability to monitor and minimize "scalping" resale in the aftermarket for high-demand products, services, and events. Resale of limited, exclusive, or special-release footwear is estimated to be a multi-billion dollar industry in 2019. One method used to circumvent standardized protocols for the random distribution of such footwear is for an entity to release tens or hundreds of software agent robots (bots) on a website or app, increasing its chances of securing multiple pairs of footwear. That entity then quickly turns around and resells the limited-release footwear for two to ten times the retail price. To counter these activities, each shoe is assigned a digital asset backed by its respective blockchain, enabling System 400 to track and analyze the title / ownership chain of each tangible shoe. With this knowledge, System 400 can profile each user account based, for example, on purchasing habits, average ownership time, resale habits, raffle participation, and other relevant data. This knowledge will enable manufacturers / retailers to better allocate access to future shoes and pre-sales, such as influencing the probability of winning a future raffle or limiting access to future raffles.

[0125] Continuing to refer to Figure 12, one or more users 414A, 414B, 414C...414n on the distributed computing system 400 communicate with the host retail product reservation platform 410 via a wireless communication network 416 using personal computing devices such as computer tablets, desktop computers, and handheld smartphones. The product reservation platform 410 may occasionally broadcast messages via the network 416 informing users that reservation requests for limited-release retail products are available. A computer in the backend server class of the product reservation platform 410 or a similar appropriate computing device may randomly or pseudo-randomly select the day and / or time of the broadcast. Alternatively, the day / time of the product release event may be manually selected by an event planner or other individual. The date and time of the broadcast may be made available to everyone or to only some people. Optionally, the time of the broadcast may be kept confidential for selected recipients. After acknowledging the broadcast message, users may respond with a reservation request. The product reservation platform 410 can process received reservation requests on a first-come, first-served basis (FCFS) and can send reservation messages to users who have successfully reserved retail products.

[0126] The product reservation platform 410 may perform various functions related to a product release event. For example, platform 400 may not only capture and implement event details but also create and schedule broadcast messages via social networking service 412, digital billboards 418, and cellular network 420. Platform 400 may also track reservation confirmations, reservation rejections, fulfilled reservations, and reservations that remain incomplete, and may also provide an overall analysis of such data. The product reservation platform 410 may also include logic to prevent abuse, such as: setting quantity limits (e.g., one product per person); issuing encrypted reservation codes; and capturing / storing information for users to verify points of purchase and delivery / pickup. The product reservation platform 410 may also feature integration with a customer data management system that supports targeted segmentation of announcement messages. A loyalty program may be implemented, such as allowing users to pre-register for product launches, identify preferred product attributes and interests, and accumulate loyalty points and rewards.

[0127] Network 416 in Figure 12 can take any of the optional configurations and functions described above with respect to the wireless communication network 38 in Figure 2. For example, network 416 may employ available wireless and wired transmission systems such as public or private satellite systems, cellular networks, and terrestrial networks. Most, if not all, of the data transaction functions performed by user 14 can be performed over wireless networks such as, for example, a wireless local area network (WLAN) or a cellular data network. In some implementations, system 400 may be a web-based system in which users or clients 414A, 414B, 414C...414n use internet-based websites and / or web-based applications to access the transaction functions disclosed herein. In various embodiments, the user's personal computing device includes a web browser or dedicated standalone application software, or a combination of both. The web browser typically allows the user to search for or request web pages (e.g., from server farm 52) by web page request. When an encrypted digital asset is created, platform 410 may record the transfer of the encrypted digital asset, such as a unique non-fungible token (NFT), in a transaction block and send the token to the distributed blockchain ledger 422 along with a matching public key and owner ID for peer verification.

[0128] Referring here to the flowchart in Figure 13, an improved method or control strategy for provisioning encrypted digital assets related to the transfer of retail products is generally described in 500. Some or all of the operations shown in Figure 13 and described in more detail below may represent discrete control algorithms or subroutines interoperable with Method 100 in Figure 4 or any of the other techniques and algorithms described above. The illustrated operations may correspond to processor-executable instructions, stored, for example, in a cache or random-access memory, and executed, for example, by one or more of a controller, central processing unit, control logic circuit, module, device, or network of devices, to perform any or all of the functions described herein relating to the disclosed concepts. The execution order of the illustrated operations may be changed, additional operations may be added, and some of the operations described may be modified, combined, or deleted.

[0129] Method 500 begins in terminal block 501 with a processor-executable instruction to invoke a protocol initialization procedure and initiate a limited-release product launch event. Terminal block 501 in Figure 13 may include any of the functions and options described above with respect to terminal block 101 in Figure 4. In data display block 503, the system server computer broadcasts an electronic notification informing that a retail product deal is imminent, such as limited-release footwear, exclusive-release apparel, or a special release of luxury watches or designer fashion. As previously stated, this notification may be broadcast during a pre-announced period at random or pre-set times within that period, and may or may not be known to the user receiving the broadcast message. Additional information regarding the promotion and management of limited-release product offerings can be found, for example, in U.S. Patent Application Publication 2013 / 0290134A1, which is incorporated herein by reference in its entirety for all purposes.

[0130] After broadcasting the announcement, method 500 proceeds to data input / output block 505 to begin capturing and processing user requests to participate in upcoming transactions of limited-release retail products. According to the typical architecture in Figure 12, the product reservation platform 410 may open a dedicated web engine portal, or it may temporarily enable a callable unit within a mobile app, where system 400 receives participation requests from personal computing devices of a number of users 414A, 414B, 414C...414n via network 416. Each received request may include a unique QR code obtained by the user before submitting the request. The unique QR code may be obtained from an event ticket at a designated venue, a tangible item within a designated venue, or a product receipt generated within a designated venue.

[0131] In preparation block 507, a selected number of users are added to a virtual line associated with future transactions of retail products. Platform 410 may use any logically appropriate service discipline to determine which users are added and how they are added to the virtual line. This virtual line may be generated in real time or obtained in a fillable format from a database file as part of preparation block 507. When selecting which users are added to the line, product reservation platform 410 may receive, aggregate, and process data recording one or more users who have completed a predefined activity or set of activities. As a reward for completing a predefined activity, platform 410 may, based on the received data, automatically advance users to a new and better position further down the virtual line. Additional information relating to the creation and management of virtual lines for product offerings is, for example, described in U.S. Patent Application Publication 2015 / 0205894A1, which is incorporated herein by reference in its entirety for all purposes.

[0132] Method 500 in Figure 13 proceeds from preparation block 507 to processing block 509, determining which of the users added to the virtual line will be selected to receive the retail product. The product release event may include a single retail product that one participant can win / purchase, or alternatively, multiple retail products that multiple participants can win / purchase. At this point, one (first) user or a (first) subset of users is selected from the virtual line. Each selected user receives either a retail product or a reservation to purchase one of the retail products. The number of users added to the virtual line may be selected using a random number generator (RNG), and users may be added to the line on an FCFS basis, but the user(s) selected to participate in the retail transaction may be selected from a preset position(s) within the virtual line. The virtual line may also be formatted as a lottery box where the winner is selected on a random basis.

[0133] Before, simultaneously with, or after the completion of process block 509, method 500 executes process block 511 to determine which users in the virtual line are selected to receive the cryptographic digital assets. Similar to the availability of limited-release retail products described in the previous step, one (second) user may be selected to receive a single cryptographic digital asset. Alternatively, a limited set of (second) users may each be selected to receive one of a set of cryptographic digital assets. In at least some implementations, it is desirable that the users selected to receive the cryptographic digital assets are selected only from users who were not selected to receive one of the retail products. The cryptographic digital assets offered in block 511 can take any of the blockchain-protected digital assets described herein. For example, a cryptographic digital asset may include a unique digital asset code and, optionally, a digital version of a retail product—the same or different from the product made available at the release event. The digital asset code may include a cryptographic token with a code string segmented into a private key, public key, and other information related to the asset (e.g., transaction data, hash pointer, etc.).

[0134] Post-launch events may offer or offer the purchase of a single type of digital asset or multiple discrete types of digital assets. For example, a user may submit a request for the ability to acquire or the right to purchase assets in a primary (first) set of assets, which includes primary (first) type cryptographic digital assets, and / or assets in a secondary (second) set of assets, which includes secondary (second) type cryptographic digital assets. As a result, process block 511 may include selecting a primary (first) group / subset of users who will receive primary (first) type cryptographic digital assets and a secondary (second) group / subset of users who will receive secondary (second) type cryptographic digital assets. To increase the desirability of one type of asset over another, the assets included in the primary (first) set of assets may be significantly fewer than the assets in the secondary (second) set of assets (for example, the primary set may include 1 / 100th or 1 / 1000th the number of assets available in the secondary set).

[0135] After selecting the user(s) to receive the cryptographic digital assets as part of a post-launch event, method 500 proceeds to data storage block 513 and sends the respective cryptographic digital assets to the personal digital wallet of each selected (second) user. This transfer may require the user to first submit proof of purchase or payment information in order to complete the purchase of the digital assets. Simultaneously with this transfer, an electronic message is sent to each user notifying them of the transfer and providing a unique key with a hashed address for accessing the cryptographic token. Method 500 in Figure 13 proceeds from data storage block 513 to data input / output block 515 and sends the unique digital asset code, owner ID, transaction data, etc., to the distributed blockchain ledger to record the transfer of the cryptographic digital assets to the users in a separate record block.

[0136] It may be desirable to monitor the subsequent transfers of limited-release products and / or digital assets in order to accumulate corresponding user data and derive estimated consumer usage information from it. For example, Method 500 may generate a separate cryptographic digital asset to protect each retail product being traded. For each selected (first) user, Method 500 may track the time of custody between the initial transfer of the retail product's cryptographic digital asset to that user's personal digital wallet and the transfer of the retail product's cryptographic digital asset to another user's third-party digital wallet. Method 500 may then determine whether the selected (first) user's custody time falls below a predefined "acceptable" minimum retention time for the cryptographic digital asset. If not, Method 500 may automatically output a scalping notification to the manufacturer / retailer informing them that it may be necessary to restrict, or temporarily or permanently suspend, the selected (first) user's personal account. As yet another option, a smart contract may be generated to authenticate ownership of the cryptographic digital asset and to track future transactions.

[0137] Aspects of the present disclosure may be implemented, for example, through a computer executable program of instructions, such as a program module, which is generally referred to as a software application or application program, executed by one of the controllers or variations of the controller described herein. In non-limiting examples, the software may include routines, programs, objects, components, and data structures that perform specific tasks or implement specific data types. The software may form an interface that enables the computer to respond according to an input source. The software may also work with other code segments to initiate various tasks in response to data received in relation to a source of received data. The software may be stored on any of various memory media, such as CD-ROMs, magnetic disks, and semiconductor memory (e.g., various types of RAM or ROM).

[0138] Furthermore, embodiments of this disclosure can be implemented in various computer systems and computer network configurations, including multiprocessor systems, microprocessor-based or programmable consumer electronics, minicomputers, and mainframe computers. In addition, embodiments of this disclosure can be implemented in a distributed computing environment in which tasks are performed by resident and remote processing devices linked via a communication network. In a distributed computing environment, program modules can reside on both local and remote computer storage media, including memory storage devices. Thus, embodiments of this disclosure can be implemented in computer systems or other processing systems in relation to various hardware, software, or combinations thereof.

[0139] As described in this disclosure, the system may utilize public or private blockchain infrastructure, distributed ledgers, and dedicated databases. For example, the cryptographically protected digital assets described herein may first be stored / protected on a private blockchain residing on infrastructure maintained by a single entity or a consortium of entities. Each entity may agree on a common format or data structure for the infrastructure, but the assets of any one entity may be maintained by that entity. Such a model may provide a sharing of network and infrastructure costs / resources while allowing each entity to maintain its own asset independence. Furthermore, to gain public trust, assets created on this private or semi-private blockchain may be transferable to a public chain at the user's discretion (potentially subject to one or more transfer conditions).

[0140] Any method 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 flash memory, solid memory, CD-ROM, hard disk drive, digital versatile disk (DVD), or other memory device. Alternatively, an entire algorithm, control logic, protocol, or method, and / or a portion thereof, may be executed by a device other than a controller and / or embodied in firmware or dedicated hardware in an available manner (e.g., implemented by application-specific integrated circuits (ASICs), programmable logic units (PLDs), field-programmable logic units (FPLDs), discrete logic, etc.). Furthermore, while certain algorithms are described with reference to the flowcharts shown herein, many other methods for implementing exemplary machine-readable instructions may be used alternatively.

[0141] While aspects of this disclosure have been described in detail with reference to illustrated embodiments, those skilled in the art will recognize that many modifications can be made without departing from the scope of this disclosure. This disclosure is not limited to the exact structures and compositions disclosed herein, and all modifications, changes, and variations evident from the foregoing description are within the scope of this disclosure as defined by the appended claims. Furthermore, this concept explicitly includes any and all combinations and subcombinations of the preceding elements and features. Additional features may be reflected in the following clauses:

[0142] Clause 1: A method of brand promotion using encrypted digital assets, the method comprising: provisioning a plurality of nonfungible tokens, each nonfungible token being registered in an immutable database or blockchain, each corresponding to a unique digital asset; associating each nonfungible token with a unique machine-readable identifier code; providing each machine-readable identifier code to each different individual of a plurality of individuals; and providing software code to a user device associated with at least one of the plurality of individuals, wherein the user device comprises a camera, a display, and a location recognition circuit, and the software code is configured to: cause the user device to detect a virtual image in a virtual environment, prompt the user via the display to scan a machine-readable identifier code upon detection of the virtual image; recognize the machine-readable identifier code, and transfer the token associated with the machine-readable identifier code to a digital locker associated with the individual or user device.

[0143] Clause 2: The method described in Clause 1, wherein a token includes genotype information corresponding to the phenotypic expression of one or more virtual objects.

[0144] Clause 3: Software code causing a user device to detect virtual images in a real-world environment via augmented reality, as described in either Clause 1 or 2.

[0145] Clause 4: The method according to any one of Clauses 1 to 3, wherein the software code causes the user device to recognize the environment according to the optical image sensed by the camera and the position determined by the position recognition circuit; displays the optical image on a display; and superimposes the displayed optical image with a virtual image at a predetermined position in the displayed environment.

[0146] Clause 5: A unique digital asset includes a virtual object having multiple attributes, each attribute being at least partially determinable according to a portion of the code associated with the token of the unique digital asset, as described in any one of Clauses 1-4.

[0147] Clause 6: The method described in Clause 5, wherein at least one of several attributes is affected in its representation by the use of a virtual object.

[0148] Clause 7: The position recognition circuit is a GPS receiver, as described in any one of Clauses 1-6.

[0149] Article 8: A method of brand promotion using encrypted digital assets, the method being: A method comprising the steps of: supplying a plurality of nonfungible tokens, each of which is registered in an immutable database or blockchain, each corresponding to a different physical retail product selected from a plurality of physical retail products; associating each of the nonfungible tokens with a unique machine-readable identification code; providing the machine-readable identification code associated with the first physical retail product to a retail purchaser of the first physical retail product; and receiving a request from a user device associated with a retail purchaser to transfer the nonfungible tokens associated with the first physical retail product to a digital locker associated with the retail purchaser or user device, wherein the request includes a code contained in or derived from the machine-readable identification code associated with the first physical retail product.

[0150] Clause 9: The method of Clause 8, further comprising the step of initiating a request to an immutable database or blockchain in order to transfer the non-fungible token associated with the first physical retail product to a digital locker associated with the retail purchaser.

[0151] The method according to paragraph 8 or 9, further comprising the step of providing software code to a user device; the user device includes a camera, a display, and a location-recognizing circuit, and the software code is configured to: cause the user device to discover a virtual image in a real-world environment, prompt the user via the display to scan a machine-readable identification code when the virtual image is discovered, and recognize the machine-readable identification code.

[0152] Clause 11: The method of Clause 10, wherein the software code causes a user device to recognize a machine-readable identification code via at least one of optical recognition via a camera, RFID, NFC, or Bluetooth® communication.

[0153] Clause 12: The step of providing a machine-readable identification code associated with a first physical retail product to a retail purchaser of the first physical retail product is the method of any one of Clauses 8 to 11, which includes at least one of: including a machine-readable identification code on a tag, label, or seal attached to the first retail product; printing a machine-readable identification code on a box, container, or packaging material containing the first physical retail product; printing a machine-readable identification code on a receipt provided to the retail purchaser; printing a first portion of a machine-readable identification code on a box, container, or packaging material containing the first physical retail product, and printing a second portion of a machine-readable identification code on a receipt provided to the retail purchaser.

[0154] Clause 13: The method described in Clause 12, wherein software code causes a user device to detect virtual images in a real-world environment via augmented reality.

[0155] Clause 14: The software code causes the user device to recognize the environment according to the optical image sensed by the camera and the position determined by the position recognition circuit; displays the optical image on the display; and superimposes the displayed optical image with a virtual image at a predetermined position in the displayed environment, as described in Clause 12 or 13.

[0156] Clause 15: A token is a token containing genotype information corresponding to the phenotypic expression of one or more virtual objects, as described in any one of Clauses 8 to 14.

[0157] Clause 16: A unique digital asset includes a virtual object having multiple attributes, each attribute being at least partially determinable according to a portion of the code associated with the token of the unique digital asset, as described in any of Clauses 8-15.

[0158] Clause 17: The method described in Clause 16, wherein at least one of several attributes is affected in its representation by the use of a virtual object.

[0159] Clause 18: A method comprising the step of providing a virtual object to a user, wherein the virtual object comprises a plurality of attributes, and each of the plurality of attributes is derived, at least in part, from code associated with a non-fungible token registered in an immutable database or blockchain.

[0160] Clause 19: The method described in Clause 18, which includes the step of providing a virtual object to a user, including the step of transferring a non-fungible token to an account associated with the user.

[0161] Clause 20: The method of Clause 19, further including the step of receiving a value from the user, with consideration to transferring the non-fungible token to an account associated with the user.

[0162] Clause 21: The method according to any one of Clauses 18-20, wherein the step of providing a virtual object to the user includes the step of making the virtual object available to the user within a video game.

[0163] Clause 22: The method described in Clause 21, where a video game includes avatars, characters, or athletic athletes in a virtual environment, and the avatars, characters, or athletes are controlled by user input received via a user device.

[0164] Clause 23: The method described in Clause 22, wherein the virtual object is a footwear product or an apparel product.

[0165] Clause 24: An avatar, character, or athlete includes multiple character attributes, each having its own attribute score that affects the behavior, performance, or abilities of the avatar, character, or athlete in the environment; integration of a virtual object with an avatar, character, or athlete is the method of either Clause 22 or 23, which modifies at least one attribute score in a manipulative way.

[0166] Clause 25: The method described in Clause 21, where a video game is a digital trading card game and virtual objects are represented as digital trading cards.

[0167] Clause 26: The method according to any one of Clauses 21-25, further comprising the step of providing a remote server with a display of the use of a virtual object in a video game, wherein the display of the use of the virtual object acts to modify at least one of several attributes of the virtual object.

[0168] Clause 27: A computerized system for implementing any of the methods described in Clauses 1 through 16.

[0169] Clause 28: A method for automating the generation of an encrypted digital asset associated with a footwear product, each of which the footwear product includes an upper for attachment to a user's foot and a sole structure attached to the upper for supporting the user's foot thereon, the method comprising: receiving a transaction confirmation from a remote computing node via a distributed computing network through a middleware server computer indicating a valid transfer of a footwear product from a first party to a second party; determining a unique owner ID code associated with the second party from an encrypted relational database via a middleware server computer; generating an encrypted digital asset associated with the footwear product, the encrypted digital asset including a digital shoe and a unique digital shoe ID code; linking the encrypted digital asset with the unique owner ID code via a middleware server computer; and transmitting the unique digital shoe ID code and the unique owner ID code to a distributed blockchain ledger via a middleware server computer to record the transfer of the encrypted digital asset to the second party in a transaction block.

[0170] Clause 29: The method according to Clause 28, wherein a unique digital shoe ID code includes an encrypted token key having a code string segmented into a set of code subsets, the first set of code subsets including data indicating the attributes of the digital shoe.

[0171] Clause 30: The first set of code subsets includes genotype and phenotype data of digital shoes, as described in Clause 29.

[0172] Clause 31: The method according to Clause 29 or 30, wherein a second set of code subsets includes data indicating the attributes of a footwear product.

[0173] Clause 32: A second set of code subsets, including color scheme, materials, manufacturing, manufacturer, and / or model data for footwear products, as described in Clause 31.

[0174] Clause 33: The method of any one of Clauses 28-32, in response to receiving a transaction confirmation, comprising: sending a notification to a second party with information for accessing the encrypted digital asset; receiving a scan confirmation verifying that a Universal Product Code (UPC) and / or Unique Product Identification Number (UPIN) corresponding to the manufacturer and model of the footwear product has been scanned from the second party's handheld personal computing device via a middleware server computer; and further including linking the encrypted digital asset with a unique owner ID code.

[0175] Clause 34: The method according to any one of Clauses 28-33, further comprising the step of sending a notification to the second party along with a unique key having a hash address to the cryptographic token in response to receiving a transaction confirmation.

[0176] Clause 35: The method according to any one of Clauses 28 to 34, further comprising: receiving a digital breeding solicitation that requests to mix an encrypted digital asset with a third-party encrypted digital asset; and generating a descendant encrypted digital asset having a combination of one or more features from the encrypted digital asset and one or more features from the third-party encrypted digital asset.

[0177] Clause 36: The method according to Clause 35, wherein a unique digital shoe ID code includes a first cryptographic token key having a first code string segmented into a set of first code subsets, the first of the first code subsets including data indicating the attributes of the digital shoe; a third-party cryptographic digital asset includes a second cryptographic token key having a second code string segmented into a set of second code subsets, the first of the second code subsets including data indicating the attributes of the third-party digital shoe; and a descendant cryptographic digital asset includes a third cryptographic token key having a third code string segmented into a set of third code subsets, the first of the third code subsets including data from the first of the first code subsets, and the second of the third code subsets including data from the first of the second code subsets.

[0178] Clause 37: The method as described in Clause 36, wherein the first of the first and third code subsets both share a first distinct alphanumeric sequence, and the first of the second code subset and the second of the third code subset share a second distinct alphanumeric sequence.

[0179] Clause 38: The method according to either Clause 36 or 37, wherein the step of generating offspring cryptographic digital assets includes: designating one of the cryptographic digital assets or third-party cryptographic digital assets as the sire; designating the other of the cryptographic digital assets or third-party cryptographic digital assets as the mother; and applying a random number generator to determine which of the third code subsets corresponds to which of the first code subsets and which of the third code subsets corresponds to which of the second code subsets.

[0180] Clause 39: The method of any one of Clauses 28-38, further comprising: receiving a digital transfer proposal with a request to transfer an encrypted digital asset to a third party; determining a new unique owner ID code to be associated with the third party; linking the encrypted digital asset with the new unique owner ID code; and sending the unique digital shoe ID code and the new unique owner ID code to a distributed blockchain ledger for recording in a new transaction block.

[0181] Clause 40: The method as described in Clause 39, further comprising the step of receiving a new transaction confirmation indicating a new valid transfer of footwear products from a second party to a third party.

[0182] Clause 41: The method of any one of Clauses 28-40, further comprising the step of generating a smart contract that can operate via a middleware server computer to authenticate ownership and track future transactions of the encrypted digital asset.

[0183] Clause 42: A unique owner ID code is linked to a cryptocurrency wallet registered on a decentralized blockchain ledger, as described in any one of Clauses 28-41.

[0184] Clause 43: Transaction verification is performed in any one of Clauses 28-42, including a generic product code (UPC) and / or a unique product identification number (UPIN) corresponding to the manufacturer and model of the footwear product.

[0185] Clause 44: A distributed computing system for automating the generation of encrypted digital assets associated with footwear products, each of which footwear products includes an upper for attachment to a user's foot and a sole structure attached to the upper for supporting the user's foot thereon, wherein the distributed computing system includes: a wireless communication device configured to connect to remote computing nodes via a distributed computing network; an encrypted digital asset registry for storing unique digital shoe ID codes associated with digital shoes and multiple encrypted digital assets; and a middleware server computer operably connected to the wireless communication device and the encrypted digital asset registry, wherein the middleware server computer is operably connected to the distributed computing nodes from the remote computing nodes. The system includes a middleware server computer programmed to: receive electronic transaction confirmations indicating the valid transfer of footwear products from a first party to a second party via a linking network; retrieve a unique owner identification (ID) code associated with the second party from an encrypted relational database; generate an encrypted digital asset associated with the footwear product, the encrypted digital asset including a digital shoe and a unique digital shoe ID code; link the encrypted digital asset to a unique owner ID code in an encrypted digital asset registry; and send the unique digital shoe ID code and the unique owner ID code to a distributed blockchain ledger to record the transfer to the second party in a transaction block of the encrypted digital asset.

[0186] Clause 45: A distributed computing system as described in Clause 44, in which a unique digital shoe ID code includes an encrypted token key having a code string segmented into a set of code subsets, the first set of code subsets including data indicating the attributes of the digital shoe.

[0187] Clause 46: The second set of code subsets includes data indicating the attributes of footwear products, as described in Clause 45, for the distributed computing system.

[0188] Clause 47: The middleware server computer is programmed to: send a digital notification to a second party with information for accessing the encrypted digital asset in response to receiving a transaction confirmation; receive a scan confirmation from the second party's handheld personal computing device verifying that a generic product code (UPC) and / or unique product identification number (UPIN) corresponding to the manufacturer and model of the footwear product has been scanned; and link the encrypted digital asset with a unique owner ID code in response to receiving a scan confirmation, as described in the distributed computing system of Clause 44 or 45.

[0189] Clause 48: A middleware server computer is further programmed to send a digital notification to a second party along with a unique key having a hash address to an encrypted token, in response to receiving a transaction confirmation, as part of the distributed computing system described in any one of Clauses 44-47.

[0190] Clause 49: A middleware server computer is programmed to: receive digital breeding bids from a second party with a request to mix an encrypted digital asset with a third-party encrypted digital asset; and generate a descendant encrypted digital asset having a combination of one or more features from the encrypted digital asset and one or more features from the third-party encrypted digital asset; as part of any distributed computing system described in any one of Clauses 44-48.

[0191] Clause 50: A distributed computing system as described in Clause 49, wherein a unique digital shoe ID code comprises a first cryptographic token key having a first code string segmented into a set of first code subsets, the first of the first code subsets comprising data indicating the attributes of the digital shoe; a third-party cryptographic digital asset comprises a second cryptographic token key having a second code string segmented into a set of second code subsets, the first of the second code subsets comprising data indicating the attributes of the third-party digital shoe; and a descendant cryptographic digital asset comprises a third cryptographic token key having a third code string segmented into a set of third code subsets, the first of the third code subsets comprising data from the first of the first code subsets, and the second of the third code subsets comprising data from the first of the second code subsets.

[0192] Clause 51: Producing offspring cryptographic digital assets is a distributed computing system as described in Clause 50, comprising: designating one of the cryptographic digital assets or third-party cryptographic digital assets as the sire; designating the other of the cryptographic digital assets or third-party cryptographic digital assets as the mother; and applying a random number generator to determine which of the third code subsets corresponds to the first code subset and which of the third code subsets corresponds to the second code subset.

[0193] Clause 52: A middleware server computer is programmed to: receive a digital transfer proposal with a request to transfer an encrypted digital asset to a third party; determine a new unique owner ID code associated with the third party; link the encrypted digital asset to the new unique owner ID code; and record the unique digital shoe ID code and the unique owner ID code in a new transaction block using a distributed blockchain ledger, as described in any one of Clauses 44-51 of the distributed computing system.

[0194] Clause 53: An event-based distribution method for cryptographic digital assets, the method comprising: receiving an indication from a computing device associated with a user that the computing device is located at a predetermined venue within a predetermined time frame; receiving a unique owner identification (ID) code associated with the user from the computing device; receiving a unique code obtained by the user from the computing device; determining a unique digital asset ID code corresponding to the received unique code, wherein the unique digital asset ID code represents the cryptographic digital asset; and sending a crypto block to a distributed blockchain ledger to record the transfer of the cryptographic digital asset to the user, wherein the crypto block includes both the unique digital asset ID code and the unique owner ID code.

[0195] Clause 54: Encrypted digital assets include genotypic data representing digital shoes or apparel products, as described in Clause 53.

[0196] Clause 55: The method described in Clause 53, which includes genotype data that represents attributes of digital shoes or apparel products but does not represent the digital shoes or apparel products as a whole.

[0197] Clause 56: The method of Clause 55, further comprising the step of modifying an existing digital asset having genotype data representing digital shoes or apparel products using genotype data representing attributes of digital shoes or apparel products.

[0198] Clause 57: The method of any one of Clauses 53 to 56, including instructions that a computing device is located at a designated venue, including instructions that the GPS coordinates of the computing device are within a predetermined geofence or closed geographical boundary.

[0199] Clause 58: Instructions for the location of a computing device at a designated venue include instructions in any one of Clauses 53 to 57, including instructions for whether the computing device is in proximity to an 802.11 or Bluetooth beacon.

[0200] Clause 59: The method according to any one of Clauses 53 to 58, wherein the instruction that a computing device is located in a given venue includes an image or representation thereof obtained by the computing device from which one or more visual attributes of the venue can be identified.

[0201] Clause 60: The unique code received is obtained in any one of the manner described in Clauses 53-59, including codes obtained from tickets to events at venues.

[0202] Clause 61: A unique code received is a code scanned from a tangible object within the venue or from a merchandise receipt generated within the venue, as described in any one of Clauses 53-59.

[0203] Clause 62: The method according to any one of Clauses 53-61, further comprising the step of receiving a directive that a conditional event has occurred within a given time frame, wherein the transmission of a cryptographic block to the distributed blockchain ledger occurs only after the directive that a conditional event has occurred has been received.

[0204] Clause 63: The step of determining a unique digital asset ID code includes: directing an application or internet browser running on a computing device to a virtual storefront display containing multiple different displayed encrypted digital assets; and receiving instructions for the selection of one of the multiple different displayed encrypted digital assets, wherein the determined unique digital asset ID code corresponds to both the received unique code and the selected one of the multiple different displayed encrypted digital assets, as described in any one of Clauses 53 to 62.

[0205] Clause 64: The method of any one of Clauses 53 to 63, further comprising: receiving a digital transfer proposal with a request to transfer an encrypted digital asset to an acquiring party; determining the unique owner ID code of the acquiring party; linking the encrypted digital asset to the unique owner ID code of the acquiring party; and sending the unique digital asset ID code and the unique owner ID code of the acquiring party to a distributed blockchain ledger for recording in a new transaction block.

[0206] Clause 65: The method according to any one of Clauses 53 to 64, wherein a unique digital asset ID code includes an encrypted token key having a code string segmented into a set of code subsets, the first set of code subsets including genotypic data corresponding to one or more phenotypic expressions of the digital asset.

[0207] Clause 66: A digital asset is a computer-generated digital shoe, as described in Clause 65.

[0208] Clause 67: The method described in Clause 66, wherein multiple attributes of a computer-generated digital shoe include at least one of the following: color scheme, material, manufacturing, manufacturer, and / or model data.

[0209] Clause 68: The method of Clause 65, further comprising exporting at least one of the digital asset ID codes or at least one of the multiple attributes of the digital asset to a digital video game application such that the digital asset is represented within the digital application and modifies one or more aspects of the gameplay of the digital video game application.

[0210] Clause 70: A method for supplying cryptographic digital assets associated with the transfer of a retail product, the method comprising: broadcasting an electronic notification of a future transaction of a retail product via a server computer on a distributed computing network; receiving requests from multiple users' personal computing devices via a server computer on a distributed computing network to participate in the future transaction; adding a selected number of users to a virtual line associated with the future transaction of the retail product; determining, via a server computer, from the users added to the virtual line, a first user selected to receive the retail product and a second user selected to receive cryptographic digital assets including the digital retail product and a unique digital asset code; requesting the transfer of the cryptographic digital assets to the second user's digital wallet via a server computer; and sending the unique digital asset code to a distributed blockchain ledger to record the transfer of the cryptographic digital assets to the second user in a separate record block.

[0211] Clause 71: A unique digital asset code is a cryptographic token having a code string segmented into a private key and a public key, as described in Clause 70.

[0212] Clause 72: The method described in Clause 70 or 71, wherein future transactions of retail products include imminent transactions of multiple retail products, and the first user is added to a virtual line, each including a first subset of users who have been selected to receive each of the respective retail products of the retail products.

[0213] Clause 73: The method of any one of Clauses 70-72, wherein the encrypted digital asset includes multiple encrypted digital assets, and the second user includes a second subset of users who are added to the virtual line and are not selected to receive retail products, each of whom is selected to receive each of the encrypted digital assets of the encrypted digital asset.

[0214] Clause 74: Multiple cryptographic digital assets: The method according to Clause 73, comprising a first set of assets having a first type of cryptographic digital asset and a second set of assets having a second type of cryptographic digital asset different from the first type of cryptographic digital asset.

[0215] Clause 75: The method of Clause 73 or 74, wherein the second subset of the user includes: a first subset group selected to receive a first type of cryptographic digital asset from the first asset set, and a second subset group selected to receive a second type of cryptographic digital asset from the second asset set.

[0216] Clause 76: The method described in Clause 75, wherein the first asset set comprises a first number of first type cryptographic digital assets, and the second asset set comprises a second number of second type cryptographic digital assets, where the second number is greater than the first number.

[0217] Clause 77: The method of any one of Clauses 70-76, further comprising the step of sending an electronic message to the second user containing a unique key having a hashed address for a cryptographic token in response to the transfer of an encrypted digital asset to the second user's digital wallet.

[0218] Clause 78: Electronic notices are broadcast randomly or at pre-set times during a period that has been announced in advance and is unknown to the user who received the request, as described in any one of Clauses 70-77.

[0219] Clause 79: The method according to any one of Clauses 70-78, further comprising: receiving data from one of the personal computing devices of one of the users via a server computer indicating that one of the users has completed a predefined activity; and, based on the received data, advancing one of the users to a new position forward in a virtual line.

[0220] Clause 80: The method according to any one of Clauses 70 to 79, wherein a selected number of users added to a virtual line are output via a random number generator (RNG), the step of determining a first user includes the step of selecting a first user from a first pre-set position on the virtual line, and the step of determining a second user includes the step of selecting a second user from a second pre-set position on the virtual line.

[0221] Clause 81: The method according to any one of Clauses 70 to 80, further comprising: generating a second cryptographic digital asset associated with a retail product; tracking the storage time between the transfer of the second cryptographic digital asset to the first user's first digital wallet and the subsequent transfer of the second cryptographic digital asset to the third user's third digital wallet for the first user; determining whether the storage time is below a predefined minimum retention period for the cryptographic digital asset; and issuing a scalping notification in response to the determination that the storage time is below a predefined minimum retention period.

[0222] Clause 82: The method according to Clause 81, further comprising the step of generating a smart contract that can operate via a server computer to authenticate ownership of the second encrypted digital asset and to track future transactions of the second encrypted digital asset.

[0223] Clause 83: The method described in any one of Clauses 70-82, wherein an encrypted digital asset includes genotypic data representing the visual characteristics of a digital retail product, and a digital retail product includes digital shoes or digital apparel products.

[0224] Clause 84: Each received request to participate in a future transaction shall be in the manner of any one of Clauses 70-83, including a unique quick reference (QR) code obtained by the user from a ticket to an event at a designated venue, a tangible item at a designated venue, or a merchandise receipt generated at a designated venue.

[0225] Clause 85: A computing system for supplying encrypted digital assets associated with the transfer of retail products, the computing system comprising: a wireless communication device configured to connect to a distributed computing network; a data storage device configured to store user data in a virtual line associated with future transactions of retail products; and a server computer operably connected to the wireless communication device and the data storage device, the server computer being programmed to: broadcast electronic notifications of future transactions of retail products through the distributed computing network; receive requests from multiple users' personal computing devices through the distributed computing network to participate in future transactions; add a selected number of users to a virtual line associated with future transactions of retail products; determine from the users added to the virtual line a first user selected to receive the retail product and a second user selected to receive the encrypted digital assets, including the digital retail product and a unique digital asset code; request the transfer of the encrypted digital assets to the second user's digital wallet; and transmit the unique digital asset code to a distributed blockchain ledger to record the transfer of the encrypted digital assets to the second user in a separate record block.

[0226] Clause 86: A non-temporary computer-readable medium storing instructions executable by the processor of a server computer of a distributed computing system, wherein the instructions cause the server computer to perform actions including: broadcasting electronic notifications of future transactions of retail products through a distributed computing network; receiving requests from multiple users' personal computing devices through a distributed computing network to participate in future transactions; adding a selected number of users to a virtual line associated with future transactions of retail products; determining from the users added to the virtual line which users are selected to receive the retail products and which users are selected to receive the digital retail products and the cryptographic digital assets, including a unique digital asset code; requesting the transfer of the cryptographic digital assets to the second user's digital wallet; and sending the unique digital asset code to a distributed blockchain ledger to record the transfer of the cryptographic digital assets to the second user in a separate record block.

[0227] Clause 87: A computing system as described in Clause 85, or a non-temporary computer-readable medium as described in Clause 86, having one or more or all of the features described in Clauses 71-84.

Claims

1. A computing system for supplying encrypted digital assets, wherein the computing system is: A communication device configured to connect to a distributed computing network; A data storage device configured to store user data for use in virtual lines or bins associated with future transactions of the aforementioned encrypted digital assets; A server computer operably connected to the aforementioned communication device and the aforementioned data storage device, wherein the server computer is: Broadcast electronic notifications of future transactions of the encrypted digital assets through the distributed computing network; The distributed computing network receives requests from multiple users' personal computing devices to participate in the future transaction; Add a selected number of users to the virtual line or bin associated with the future transaction of the encrypted digital asset; To a selected number of users added to the virtual line or bin, a prompt is sent to complete a predefined activity associated with increasing the likelihood of being selected to participate in the future transaction; Through the distributed computing network, receive confirmation of the completion of the predefined activity by a user from a selected number of users; In response to receiving confirmation of completion, increase the likelihood that the user will be selected to participate in the future transaction; From the virtual line or bin, select a subset of users each designated to receive one of the encrypted digital assets, each of which includes a digital object and a unique digital asset code; Request the transfer of each selected subset of the aforementioned cryptographic digital assets to the respective digital wallet of each of the users; Send each of the unique digital asset codes to a distributed blockchain ledger to record the transfer of the cryptographic digital asset from the selected subset of users to the corresponding one; A server computer programmed to have; Computing system.

2. Each of the aforementioned unique digital asset codes includes a cryptographic token having a unique code string segmented into a private key and a public key. The computing system according to claim 1.

3. Each of the aforementioned digital objects includes a digital image of a physical retail product, a virtual representation of the physical retail product, a unique design rendering of the physical retail product, or a unique design file of the physical retail product. The computing system according to claim 1 or 2.

4. The digital objects of the encrypted digital asset are different from each other. The computing system according to any one of claims 1 to 3.

5. The encrypted digital assets include: a first set of encrypted digital assets having a first type of encrypted digital asset, and a second set of encrypted digital assets having a second type of encrypted digital asset different from the first type of encrypted digital asset, The computing system according to any one of claims 1 to 4.

6. The selected subset of users includes: a subset of first users designated to receive the first type of encrypted digital asset from the first set of encrypted digital assets, and a subset of second users designated to receive the second type of encrypted digital asset from the second set of encrypted digital assets. The computing system according to claim 5.

7. The aforementioned server computer further: Confirm the transfer of the cryptographic digital assets to the respective digital wallets of the corresponding individual users of the selected subset of users; To each of the users in the subset of the second user, send an electronic message containing a unique key having a unique hashed address for a unique cryptographic token; It is programmed to do so. The computing system according to claim 6.

8. The electronic notification is broadcast at random times within the previously announced period, and at times unknown to the user who received the request. The computing system according to any one of claims 1 to 7.

9. Receiving confirmation of completion of the predefined activity includes receiving activity data from the user's personal computing device via the distributed computing network through the server computer indicating that the user has completed the predefined activity. The computing system according to any one of claims 1 to 8.

10. Increasing the likelihood that the user will be selected to participate in the future transaction includes advancing the user to a new virtual position ahead of the virtual line based on the received activity data. The computing system according to claim 9.

11. Increasing the likelihood that the user will be selected to participate in the future transaction includes providing the user with activity points that can be used to purchase an entry to receive one of the cryptographic digital assets. The computing system according to claim 9.

12. The aforementioned predefined activities include virtual activities performed by the user in an augmented reality (AR) environment or physical activities performed by the user in a real-world environment. The computing system according to claim 9.

13. The prompt for completing the predefined activity includes a specified time window prior to the future transaction, and the predefined activity must be completed during the time window. The computing system according to claim 9.

14. The server computer is further programmed to generate smart contracts that can authenticate ownership of the encrypted digital assets and track future transactions of the encrypted digital assets. The computing system according to any one of claims 1 to 13.

15. The aforementioned predefined activity includes obtaining a unique quick reference (QR) code from an event ticket at a designated venue, a tangible object within the designated venue, or a product receipt generated within the designated venue. The computing system according to any one of claims 1 to 14.

16. A method for supplying encrypted digital assets, the method being: A server computer broadcasts electronic notifications of future transactions of the encrypted digital assets via a distributed computing network; The server computer receives requests from multiple users' personal computing devices via the distributed computing network to participate in the future transaction; The server computer adds a selected number of users to the virtual line or bin associated with the future transaction of the encrypted digital asset; The server computer, via the distributed computing network, sends prompts to a selected number of users added to the virtual line or bin to complete predefined activities associated with increasing the likelihood of being selected to participate in the future transaction; The server computer receives confirmation from a user among a selected number of users that the predefined activity has been completed via the distributed computing network; In response to receiving confirmation of the completion of the predefined activity, the server computer increases the likelihood that the user will be selected to participate in the future transaction; The server computer selects a subset of users, each designated to receive one of the encrypted digital assets from the users added to the virtual line or bin, wherein each of the encrypted digital assets includes a digital object and a unique digital asset code; The server computer requests the transfer of each selected subset of the encrypted digital assets of the users to the respective digital wallets of each of the users; and The server computer transmits each of the unique digital asset codes to a distributed blockchain ledger in order to record the transfer of the encrypted digital assets of the selected subset of users to the corresponding one; method.

17. The aforementioned unique digital asset code includes each cryptographic token having a unique code string segmented into a private key and a public key. The method according to claim 16.

18. Each of the aforementioned digital objects includes a digital image of a physical retail product, a virtual representation of the physical retail product, a unique design rendering of the physical retail product, or a unique design file of the physical retail product. The method according to claim 16 or 17.

19. The encrypted digital assets include: a first set of encrypted digital assets having a first type of encrypted digital asset, and a second set of encrypted digital assets having a second type of encrypted digital asset different from the first type of encrypted digital asset, The method according to any one of claims 16 to 18.

20. The selected subset of users includes: a subset of first users designated to receive the first type of encrypted digital asset from the first set of encrypted digital assets, and a subset of second users designated to receive the second type of encrypted digital asset from the second set of encrypted digital assets. The method according to claim 19.

21. Receiving confirmation of the completion of the predefined activity includes the server computer receiving activity data from the user's personal computing device via the distributed computing network indicating that the user has completed the predefined activity. The method according to any one of claims 16 to 20.

22. Increasing the likelihood that the user will be selected to participate in the future transaction includes the server computer advancing the user to a new virtual position ahead of the virtual line based on the activity data received. The method according to claim 21.

23. Increasing the likelihood that the user will be selected to participate in the future transaction includes the server computer providing the user with activity points that can be used to purchase an entry to receive one of the cryptographic digital assets. The method according to claim 21.

24. The aforementioned predefined activities include virtual activities performed by the user in an augmented reality (AR) environment or physical activities performed by the user in a real-world environment. The method according to claim 21.

25. The prompt for completing the predefined activity includes a specified time window prior to the future transaction, and the predefined activity must be completed during the time window. The method according to claim 21.

26. The server computer is further programmed to generate smart contracts that can authenticate ownership of the encrypted digital assets and track future transactions of the encrypted digital assets. The method according to any one of claims 16 to 25.

27. The aforementioned predefined activity includes obtaining a unique quick reference (QR) code from an event ticket at a designated venue, a tangible object within the designated venue, or a product receipt generated within the designated venue. The method according to any one of claims 16 to 26.

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