Cryptographic Digital Asset Provisioning for Scarcity Control
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Solution Overview
Problem
The unauthorized reproduction and sale of digital products erode brand value and exclusivity, complicating a brand owner's ability to control the supply and influence the value of digital objects, particularly in the context of customizable digital items in video games and digital representations of physical products.
Innovation Solution
A system and method utilizing cryptographic digital assets, such as CryptoKicks, linked to physical products via blockchain technology, enabling controlled scarcity and user interaction, allowing for secure trading, breeding, and altering digital representations based on real-world and virtual interactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If digital products are made freely duplicable, then ease of manufacture and distribution is improved, but brand value and exclusivity deteriorate
Solution Approach 1:
The patent divides the digital product into a physical component and a digital component. The physical product contains a physical identifier that can be scanned, while the digital component is a unique cryptographic token stored on a blockchain. This segmentation allows the physical product to be manufactured and distributed freely while the digital component maintains exclusivity through its unique blockchain identity, preventing unauthorized reproduction of the digital asset.
Solution Approach 2:
The patent uses cryptographic copying principles where a physical product can be scanned and linked to a unique cryptographic token on the blockchain. The digital asset is copied as a unique identifier rather than the actual digital content, allowing unlimited copies of the physical product while maintaining digital exclusivity through the blockchain's unique token system.
2Ease of operation
If supply of digital objects is unlimited, then ease of operation and accessibility is improved, but value and scarcity control deteriorate
Solution Approach 1:
The patent introduces a blockchain as an intermediary system between the physical product and the digital asset. The blockchain acts as a mediator that records the unique cryptographic token associated with each physical product, enabling controlled scarcity. Users can access and trade digital assets freely through the blockchain network, but the supply remains controlled because each digital asset is tied to a specific physical product with a unique identifier.
3Reliability
If digital assets are decentralized, then reliability and security are improved, but control over supply and value deteriorates
Solution Approach 1:
The patent implements self-service through the blockchain's automatic verification and recording mechanisms. The blockchain automatically verifies the uniqueness of each digital asset, records transactions, and maintains the supply control without requiring complex centralized control systems. The cryptographic tokens self-verify their authenticity through the blockchain's consensus mechanism, providing security while simplifying the control architecture.
Data Source
AI summary
A method of provisioning or distributing a cryptographic digital asset and supervising a secondary transfer of the digital asset includes receiving a transaction confirmation indicative of a completed transaction of a product from a first party to a second party; determining or receiving a unique owner identification (ID) code or wallet address of the second party; recording or transmitting a request to record ownership of the cryptographic digital asset to the unique owner identification (ID) code or wallet address of the second party; receiving a request to transfer the cryptographic digital asset to a second unique owner identification (ID) code or second wallet address; and recording or transmitting a request to record ownership of the cryptographic digital asset to the second unique owner identification (ID) code or second wallet address.