Cryptographic Digital Asset Gating for Scarce Phygital Footwear

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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 control over digital object scarcity and limiting their ability to engage with consumers, particularly in the context of customizable digital items in video games.

Innovation Solution

Implementing cryptographic digital assets secured by blockchain technology, linking real-world products to virtual collectibles, and enabling features like breeding and trading, with attributes determined by genetic codes and environmental interactions, to control digital object supply and scarcity.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of manufacture

If digital products are made freely duplicable, then ease of production and distribution is improved, but brand exclusivity and value control deteriorate

Engineering Contradiction:
Improveease of digital reproductionVSAvoidbrand exclusivity control
Core Design Contradiction:
Ease of manufactureVSReliability

Solution Approach 1:

The patent segments the digital product into a physical component and a cryptographic digital twin component. The digital twin is tokenized as a non-fungible token (NFT) on a blockchain, creating a separable digital identity that can be independently controlled and tracked, thereby resolving the contradiction between easy digital reproduction and brand exclusivity control

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces a blockchain-based cryptographic system as an intermediary between the physical product and its digital representation. This intermediary layer enables verification of authenticity and ownership without requiring direct control over digital copying mechanisms, thus maintaining brand exclusivity while allowing free distribution

Inventive Principle:
Principle #24Intermediary (Mediator)

2Productivity

If digital object supply is unconstrained, then ease of distribution is improved, but ability to create scarcity and control value deteriorates

Engineering Contradiction:
Improvedistribution speedVSAvoidcontrolled scarcity
Core Design Contradiction:
ProductivityVSQuantity of substance

Solution Approach 1:

The patent implements dynamic supply control through smart contracts that can adjust distribution parameters in real-time. The system allows the brand to dynamically control the issuance of digital twins, enabling scarcity management while maintaining rapid distribution capabilities through automated blockchain transactions

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The patent incorporates feedback mechanisms through blockchain-based tracking and verification systems. The system continuously monitors digital twin transactions and can respond with controlled issuance or distribution restrictions, enabling real-time scarcity management while maintaining high distribution speed through automated feedback loops

Inventive Principle:
Principle #23Feedback

3Ease of operation

If digital products are easily copied, then user accessibility is improved, but brand engagement and promotion opportunity deteriorate

Engineering Contradiction:
Improveuser accessibilityVSAvoidbrand engagement capability
Core Design Contradiction:
Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent applies local quality by assigning unique cryptographic identifiers and metadata to each digital twin, creating distinct digital identities for each product instance. This enables differentiated engagement strategies for different digital twins while maintaining universal accessibility, as each user can access their own verified digital twin without affecting others

Inventive Principle:
Principle #3Local quality

Solution Approach 2:

The patent utilizes parameter changes by modifying the state and properties of digital twins through blockchain transactions. The system can change ownership, transfer rights, and update metadata of digital twins, enabling dynamic brand engagement and promotion opportunities while maintaining ease of user access through standardized interaction protocols

Inventive Principle:
Principle #35Parameter changes

Data Source

PatentUS20260039461A1System and method for providing phygital forge of cryptographic digital assets
Publication Date: 2026.02.05 NIKE INC
  • US20260039461A1 patent drawing
  • US20260039461A1 patent drawing
  • US20260039461A1 patent drawing

AI summary

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