JP7667355B2 - SYSTEM AND METHOD FOR PROVIDING ENCRYPTED DIGITAL ASSETS FOR BLOCKCHAIN-SECURED RETAIL PRODUCTS - Google Patents

Description

CROSS-REFERENCE TO RELATED APPLICATIONS
This application claims the benefit of and priority to U.S. patent application Ser. No. 15/931,764, filed May 14, 2020.

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

Manufacturers of quality retail products, such as high-end footwear and apparel, have long been plagued by the sale of counterfeit products, i.e., imitation goods created with the intent of deceiving purchasers into believing they are purchasing authentic goods from a genuine manufacturer. Similar problems exist in the digital realm, where digital products are often subject to unauthorized reproduction and sale. Unauthorized production and counterfeit reproduction of goods can undermine the value and/or exclusivity of a brand, negatively impact a company's profitability, and can undermine users' subjective perception of the product as a "collectable."

Many anti-counterfeiting technologies have been developed to identify counterfeit products and prevent the unauthorized sale of such products. Unfortunately, within the digital realm, supply is often unconstrained by subsequent parties who may freely (or illegally) reproduce the entire digital object if not by the original developer. This often complicates the brand owner's ability to control the exclusivity of the digital object and therefore influence the value of that object. And the inability to control the exclusivity of a digital object undermines the opportunity for free brand promotion by product enthusiasts and collectors who seek out the object (e.g., as often occurs with the release of limited edition sneakers by "sneakerheads").

Free market participants and brand enthusiasts typically assign a higher value to an object when there is limited supply and/or excess demand for that object. While these realities are evident in the physical real world (especially for avid collectors), similar market realities exist in the digital realm. With the proliferation of first- and third-person video games that include customizable skins, apparel, and gear, an opportunity exists to engage and influence users in the digital realm through collectable objects, so that users can become more involved with brands in the real world. Similarly, there exists a need for retailers to more directly influence and/or control the nature and ultimate supply of digital objects within this virtual market.

Presented herein are encrypted digital assets for retail products such as footwear and apparel, methods for provisioning and intermingling such encrypted digital assets, and a distributed computing system with attendant control logic for generating, intermingling, and exchanging blockchain-secured digital shoes and apparel. More specifically, many of the currently described features rely on the trust established in and by blockchain technology to allow businesses to control the creation, distribution, expression, and use of tangible products and digital objects that represent their brand. Unlike typical digital assets that can be freely replicated without loss of content or quality, blockchain technology's use of a discrete record of ownership precludes the ability for simple digital duplication of digital objects. In doing so, businesses have the ability to control or limit the overall supply of digital objects (or object traits) and can create controlled scarcity if desired.

The present disclosure contemplates that, in some examples, a digital object may represent: a physical object offered for retail sale; a 2D or 3D design rendering or design file that may be suitable for future production of a physical object; a virtual representation of an object not currently intended for physical creation/production; or other such objects. To further drive brand engagement and usage of the digital object, the visual representation of the displayed digital object may be altered by a user's use of the object, a user's use of an associated retail product or app, or other such measures of object/brand engagement. Additionally, attributes of the digital object and/or its visual representation may affect how the object or a user-controlled character behaves within a video game context.

By way of example and not limitation, cryptographic digital assets are presented that are secured by a blockchain ledger of transaction blocks. These digital assets may function, at least in part, to connect a real-world product, such as a physical shoe, to a virtual collectible, such as a digital shoe. When a consumer purchases a real shoe (colloquially known as a "kick"), a digital representation of the shoe may be generated and linked to the consumer and assigned a cryptographic token, where the digital shoe and the cryptographic token may collectively represent a "CryptoKick" (CK). The digital representation may include a computer-generated avatar of the shoe or a limited edition artist's rendition of the shoe. The digital asset may be secured by a cryptographically secured block that includes a transaction timestamp, transaction data, and a hash pointer as a link to an associated block (e.g., a genesis block or a prior transacted block) in the distributed blockchain. Using digital assets, buyers can securely buy and sell tangible pairs of shoes, 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 offspring," and have the newly bred shoe offspring custom-made into new tangible pairs of shoes based on the rules of manufacturability of acceptable shoes.

The purchase of a real, tangible pair of shoes may enable or "unlock" a corresponding encrypted digital asset and the digital shoes associated with that digital asset. For example, when an individual purchases a pair of real-world shoes from a registered seller, the unique (e.g., 10-bit numeric) physical shoe identification (ID) code of the physical shoes may be linked to the purchaser's unique (e.g., 42-bit alphanumeric) owner ID code. At the same time, an access prompt with a unique (e.g., 64-bit numeric) key is issued to a cryptocurrency wallet account associated with the owner ID code so that the purchaser can retrieve the digital shoes with the encrypted 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 ERC 1155 token may be granted to authenticate and trade the physical shoes, and a second ERC 721/ERC 1155 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, may affect the digital representation of the shoe. Respective cryptographic tokens may be assigned to the physical shoe and the encrypted digital asset; alternatively, a single cryptographic token may be assigned to both the physical shoe and the digital asset.

The digital asset, at least in some applications, may include genotypic and/or phenotypic information about the digital shoe. This genotypic/phenotypic data may represent certain traits, attributes, colors, styles, backgrounds, etc. of the digital asset and may be adjusted according to "breeding rules" governing the mixing of the digital shoe with one or more other discrete digital shoes. Phenotypic characteristics may depend on the genotypic information along with one or more of the following: virtual environment and collateral effects; time-dependent mixing restrictions (e.g., virtual shoe offspring cannot be bred until they reach a pre-set maturity); virtual user interactions that change maturity (e.g., speed up or slow down) or increase or decrease the likelihood that certain traits will develop; user real-world interactions (e.g., running increases the number of good/desirable qualities, increases the maturation rate of virtual offspring, etc.); shoe cloning and allowing the owner to set the total number of clones that can be produced from a desired offspring for actual real-world production, etc., or vice versa. Additionally, some optional features may also include: surrogacy features for breeding plans between two or more separate digital shoes; parenting/nanny 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 life-like (e.g., personality that changes over time); the "breeding rights" of the digital shoes may be governed by one or more real-world manufacturing constraints; ownership of each successive generation of the digital shoes may be tied to the original real-world shoes (e.g., in whole or in part; by percentage of genotype contribution, etc.) via encryption keys to the originally associated virtual product, etc.

Aspects of the present disclosure are directed to methods for supplying, mixing, and/or exchanging encrypted digital assets for footwear. In one example, a method for automating the generation of encrypted digital assets associated with an article of footwear is presented. This exemplary method includes, in any order, in combination with any of the above or the following: receiving a transaction confirmation indicating a valid transfer of authentic 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, a personal computer, a smartphone, etc.); determining a unique owner ID code (e.g., a member ID of a cryptocurrency wallet or digital locker) associated with the second party via the middleware server computer from an encrypted relational database; generating encrypted digital assets associated with the footwear product, the encrypted digital assets including a digital shoe (e.g., a computer generated avatar) and a digital shoe ID code (e.g., a key and a cryptographic token); linking the encrypted digital assets to the unique owner ID code via the middleware server computer; and transmitting the unique digital shoe ID code and the unique owner ID code in a transaction block to a distributed blockchain ledger (e.g., Bitcoin, Aethereum, Litecoin, etc.) via the middleware server computer for recording.

Another aspect of the present disclosure relates to a distributed computing system with associated blockchain control logic for mining, mixing, and exchanging blockchain-enabled digital shoes. As an example, a distributed computing system for automating the generation of encrypted digital assets associated with footwear products is presented. The distributed computing system includes a wireless communication device that connects with one or more remote computing nodes via a distributed computing network, and an encrypted digital asset registry that stores digital shoes and unique digital shoe ID codes associated with multiple encrypted digital assets. Other peripheral hardware may include a network interface bus, resident and/or remote memory, a user location tracking device, a UPC/UPID scanner, etc.

Continuing with the above example, the distributed computing system also includes a server class (middleware or backend) computer operatively connected to the wireless communication device and the encrypted digital asset registry. The middleware server computer is programmed to execute firmware and software stored in memory to receive an electronic transaction confirmation indicating a validated transfer of the authenticated footwear from one party to another party over the distributed computing network from a remote computing node. In response to receiving the transaction confirmation, the server class computer retrieves a unique owner ID code of the transferee party from the 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 transmits the unique digital shoe ID code and the unique owner ID code in a transaction block to the distributed blockchain ledger for recording.

A further aspect of this disclosure is directed to a method of provisioning encrypted digital assets associated with retail product transfers, such as a randomized drawing for the purchase of limited release athletic shoes via a dedicated mobile (SNKRS®) app. The exemplary method includes the following, in any order and in any combination with any of the above or below disclosed features and options: broadcasting, via a server computer on the distributed computing network, an electronic notification of a future transaction of the retail product; receiving, via a server computer on the distributed computing network, requests to participate in the future transaction from the personal computing devices of a plurality of users; adding a selected number of users to a virtual line associated with the future transaction of the retail product; determining, from the users added to the virtual line, via the server computer, a first user selected to receive the retail product and a second user selected to receive an encrypted digital asset including the digital retail product and a unique digital asset code; requesting, via the server computer, a transfer of the encrypted digital asset to the second user's digital wallet; and transmitting the unique digital asset code to the distributed blockchain ledger to record the transfer of the encrypted digital asset to the second user in a separate record block.

An additional aspect of the present disclosure is directed to a computing system for providing encrypted digital assets associated with a transfer of a retail product. The computing system includes a wireless communication unit for connecting to a distributed computing network, a data storage device for storing user data in a virtual line associated with a future retail product transaction, and a server computer communicatively connected to the wireless communication device and the data storage device. The server computer is programmed to broadcast an electronic notification of a future transaction of the retail product and thereafter receive a user request to participate in the future transaction. 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 the encrypted digital assets including the digital retail product and a unique digital asset code. The encrypted digital assets are transferred to a digital wallet of the second user, and the unique digital asset code is transmitted to a distributed blockchain ledger and recorded in a separate record block to confirm the transfer of the encrypted digital assets.

Aspects of the present disclosure are also directed to a non-transitory computer readable medium (CRM) storing instructions executable by one or more processors of one or more computing devices of a distributed computing system. The CRM instructions, when executed, cause the computing device(s) to perform operations including: broadcasting an electronic notification of a future transaction of a retail product over a distributed computing network; receiving requests to participate in the future transaction from personal computing devices of a plurality of users over the distributed computing network; adding a selected number of users to a virtual line associated with the future transaction of the 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 an encrypted digital asset including the digital retail product and a unique digital asset code; requesting a transfer of the encrypted digital asset to a digital wallet of the second user; and transmitting the unique digital asset code to a distributed blockchain ledger to record the transfer of the encrypted digital asset to the second user in a separate record block.

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

For any of the disclosed systems, methods, digital assets, and retail products, a server-class distributed system computer may respond to receiving a transaction confirmation by sending an electronic notification to the second party 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 make and model of footwear has been scanned. Linking the encrypted digital asset with the unique owner ID code may be performed in response to receiving the scanning confirmation. In at least some applications, the unique digital shoe ID code may include a cryptographic token, and the digital notification sent to the second party may include a unique key having a hash address to the cryptographic token.

For 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) with a request to mix the encrypted digital asset with a third party encrypted digital asset. Upon receiving this request, the server class computer may responsively generate a progeny encrypted digital asset having a combination of one or more features from the second party encrypted digital asset and one or more features from the third party encrypted digital asset. For example, each encrypted digital asset may be assigned a respective unique cryptographic token key having a code string segmented into a series of code subsets. One or more of these code subsets may include data indicative of attributes of a corresponding digital shoe.

For any of the disclosed systems, methods, digital assets, and retail products, the progeny encrypted digital asset is provided via a separate encrypted token key having a code string comprised of one or more code subsets having attribute data extracted from the encrypted token key of the second party digital asset and one or more code subsets having attribute data extracted from the encrypted token key of the third party digital asset. For example, one code subset of the progeny digital asset may share a distinct alphanumeric sequence with the code subset of the second party digital asset, while another code subset of the progeny digital asset may share a distinct alphanumeric sequence with the code subset of the third party digital asset. Generating the progeny encrypted digital asset may include: designating one of the mating encrypted digital assets as a sire and designating the other encrypted digital asset as a dam, and applying a random number generator to determine which code subsets of the progeny correspond to which code subsets of the sire and which code subsets of the dam.

For any of the disclosed systems, methods, digital assets, and retail products, a server class computer may receive a digital transfer proposal (either from the transferor or transferee) requesting to transfer the encrypted digital assets to a third party. The server class computer may respond by determining a new unique owner ID code for the third party, link the encrypted digital assets with this new unique owner ID code, and record 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 a confirmation indicating a new inherited transfer of the footwear product from the second party to the third party. Alternatively, the transfer of the encrypted digital assets to the 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 encrypted digital assets and/or track future transactions of the encrypted digital assets. The unique owner ID code may be linked to a cryptocurrency wallet registered in the distributed blockchain ledger.

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

For any of the disclosed systems, methods, digital assets, and retail products, the encrypted digital assets include multiple asset sets, each including a different type of encrypted digital asset. In this case, the second subset of users includes multiple subset groups, each with users selected to receive a corresponding type of encrypted digital asset from the asset set. Optionally, the first asset set includes a distinct number of encrypted digital assets of the first type, and the second asset set includes a distinct number of encrypted digital assets of the second type. The second asset set may include a portion (e.g., 1-2%) of the number of assets included in the first asset set.

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

For any of the disclosed systems, methods, digital assets, and retail products, a different encrypted digital asset may be generated for each retail product. For each user selected to receive a retail product, the system tracks the storage time between the transfer of the product's encrypted digital assets to a first digital wallet of the first user and the subsequent transfer of the product's encrypted digital assets to a third party digital wallet of a third user. It is then determined whether the storage time is below a predefined minimum holding time for that encrypted digital asset; if so, a scalping notice is stored in a cache memory and/or output to the manufacturer of the product. A smart contract may be generated to authenticate ownership of the encrypted digital assets associated with the retail product and track future transactions. The encrypted digital assets may include genotype data representing the appearance characteristics of a digital retail product, such as a digital shoe or 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 the user, for example, from a ticket to an event at a specified venue, a tangible object within a specified venue, or a merchandise receipt generated within a specified venue.

The above summary does not represent all embodiments and all aspects of the present disclosure. Rather, the foregoing summary merely provides an illustration 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 become 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. Moreover, the present disclosure expressly includes any and all combinations and subcombinations of the features set forth above and below.

FIG. 1 illustrates a side perspective view of an exemplary article of footwear having collectible digital assets secured by cryptographic tokens secured by a blockchain ledger in accordance with an aspect of the present disclosure.

FIG. 1 is a schematic diagram of an exemplary distributed computing system for creating, mixing, and exchanging encrypted digital assets according to an aspect of the present disclosure.

FIG. 1 is a schematic diagram of the functional structure of a distributed computing system for protecting, mixing, and exchanging encrypted digital assets according to an aspect of the present disclosure.

FIG. 1 is a flowchart illustrating an exemplary workflow algorithm for generating collectible digital shoes secured by cryptographic tokens on a blockchain ledger, which may correspond to instructions stored in a memory executed by a control logic circuit, a programmable electronic control unit, or other computer-based device or network of devices, in accordance with aspects of the disclosed concepts.

FIG. 1 is an exemplary graphical user interface (GUI) of a personal computing device showing a library of encrypted digital assets.

FIG. 1 is an exemplary GUI diagram of a personal computing device illustrating a collaboration or breeding event between two encrypted digital assets.

FIG. 1 is a functional diagram of the acquisition of encrypted digital assets via linked retail products.

FIG. 1 is a functional diagram of obtaining encrypted digital assets via promotional giveaways at an event.

FIG. 1 is an exemplary GUI for a personal computing device illustrating the use of genotypic and phenotypic traits of encrypted digital assets within a video game.

FIG. 1 is a functional diagram of an exemplary GUI for a personal computing device operating on a distributed computing system to provide virtual user interaction to modify genotypic and phenotypic characteristics of encrypted digital assets in accordance with an aspect of the present disclosure.

FIG. 1 is a functional diagram of multiple users engaging in a collaborative experience, such as participating in a digital collectable card game.

FIG. 2 is a schematic diagram of another representative distributed computing system for supplying encrypted digital assets during a retail product transaction in accordance with an aspect of the present disclosure.

FIG. 1 is a flowchart illustrating an exemplary algorithm for providing encrypted digital assets in connection with a transfer of a retail product, which may correspond to memory stored instructions executed by a control logic circuit, a programmable electronic control unit, or other computer-based device or network of devices, in accordance with an aspect of the disclosed concepts.

The present disclosure is susceptible to various modifications and alternative forms, and several representative embodiments are shown by way of example in the drawings and described in detail herein. However, it should be understood that the novel aspects of the present disclosure are not limited to the specific forms shown in the drawings listed above. Rather, the present disclosure is intended to cover all modifications, equivalents, combinations, subcombinations, permutations, groupings, and substitutions within the scope of the present disclosure as encompassed by the appended claims.

The present disclosure is susceptible to embodiment in many different forms. Representative examples of the present disclosure are shown in the drawings and are described in detail herein, with the understanding that these representative examples are provided as illustrations of the disclosed principles, not as limitations of the broad aspects of the disclosure. To the extent that any element or limitation described in the Abstract, Technical Field, Background, Summary, Brief Description of the Drawings, and Detailed Description sections, but not expressly recited in the claims, should not be incorporated into the claims, either singly or collectively, by implication, inference, or otherwise.

For purposes of this detailed description, singular includes plural and vice versa, unless specifically disclaimed. The words "and" and "or" are intended to be both conjunctive and disjunctive. The words "any" and "all" are intended to mean "any and all". The words "include", "have", "have", "includes", and the like mean "including, but not limited to", respectively. Additionally, approximation words such as "about", "approximately", "substantially", "approximately", and the like may be used herein to mean, for example, "at, near, or approximately", or "within 0-5% of", or "within acceptable manufacturing tolerances", or logical combinations thereof. Finally, directional adjectives and adverbs such as front, rear, medial, lateral, proximal, distal, vertical, horizontal, front, rear, left, right, and the like, may be relative to the article of footwear when worn on a user's foot, and may be operatively oriented, for example, at a ground-engaging portion of the sole structure that is positioned on a flat surface.

Aspects of the present disclosure are directed to 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 graphics packages, from which physical products may be built or otherwise represented.

Various digital assets can be used by businesses, for example, to keep on top of consumer trends and preferences. For example, a business can create several product-enabled designs with different features, silhouettes, colors, etc., and then distribute them as digital assets across one or more digital platforms, and then monitor the popularity, value, demand, and/or virtual usage of the different product designs and/or features. In doing so, valuable understanding of real-time demand for products can be gained, which can help in prioritizing designs for future production.

Digital assets or attribute modifiers may be created for brand promotional purposes, for example. For example, digital shoes may be created in preset and/or controlled limited quantities and distributed as part of a promotion, event, moment, or contest. Spectators at a professional sporting event (e.g., the home opener) may be entitled to acquire one of a limited amount of unique digital assets, each separately secured via a unique cryptographic token.

As used herein, "crypto digital assets" or simply "digital assets" may refer to any computer-generated virtual object, including digital footwear, apparel, headgear, avatars, pets, etc., that has a unique, non-fungible tokenized code ("token") that is registered and verified on a blockchain platform or otherwise registered in an immutable database. Additionally, all references to "CryptoKicks" and variations of that term within this disclosure should be understood to be examples of virtual collectibles backed by a unique, non-fungible token or registry entry in an immutable database, and should not be limited to footwear alone. All such references should be read to apply equally to apparel (e.g., "CryptoThreads"), headgear (e.g., "CryptoLids"), and sporting goods (e.g., "CryptoGear") or other such objects.

A virtual object may have multiple attributes (i.e., phenotypic characteristics) that are derived at least in part from an encrypted alphanumeric string that may be associated with a cryptographic token. In this sense, the alphanumeric string may be similar to the genetic code of the virtual object (i.e., the genotypic information is the underlying code/code segment and the phenotypic traits are the expression of the genotypic information). Phenotypic traits may depend on the encoded genotypic information, but they may also optionally depend on any one or more of: the virtual environment (e.g., virtual check-ins, situation-specific criteria, etc.); time-dependent breeding (e.g., a user is limited to breeding the virtual shoe's offspring until it reaches a set maturity); virtual user interaction (which may accelerate or slow down maturation, or increase or decrease the likelihood of occurrence of a particular trait); real-world user activity (e.g., a user's level of physical activity may increase one or more "desirable" qualities; daily use of a related product may accelerate the maturation of virtual offspring, etc.); cloning restrictions set by a manufacturer, point of sale, owner, etc. (e.g., predetermine the maximum number of clones that can be produced from a desired offspring for actual real-world production).

In the context of footwear, each unique token may be directly linked to a single CryptoKick object, which may be embodied as a virtual replica or digital art version of a sneaker. In one example, the token may include a 64-bit alphanumeric code that is divided into individual code segments. One or more or all of the code segments of the alphanumeric code may represent data indicative of collectible digital shoe attributes. For example, a series of code segments may provide digital shoe attributes such as style, material, family, heat, color scheme, future attributes, manufacturer, model, pattern scheme, image background, etc. Each subset of the code may generally function as a genotype that produces a visual phenotype expression to the user. The first created CryptoKick may include encrypted 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 can also be linked to a bill of materials.

In a typical example, an authenticated pair of physical shoes is created and assigned a unique product identifier (UPID). Once purchased by a consumer, the UPID can be used to unlock a "crypto-digital asset" -- a CryptoKick -- that consists of a collectible digital shoe and a unique non-fungible token (NFT) that runs on a blockchain-based distributed computing platform.

Generally, before a consumer can unlock or acquire a CryptoKick, they may first be required to obtain a blockchain locker address (e.g., an Ethereum hardware wallet). This blockchain locker may be used to store private keys belonging to the CryptoKick's 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 shoe.

It is envisioned that there are several ways in which a user may be enabled to unlock a CryptoKick. As a first example, upon scanning the UPC or UPID of the shoes at a POS terminal during an initial purchase or directly associated with the product, a unique cryptographic token and corresponding private key are automatically generated and assigned to the user's blockchain locker (see FIG. 7). In 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 in the physical shoes, a pop-up message or email sent to a personal user account, a push notification or text message sent to a smartphone, or some other record; the consumer uses the KickID to link the CryptoKick to their digital blockchain locker. Another example may require the user to assemble a KickID, in part, via a physical code or UPID associated with the shoes (on the box, hang tag, under the label, on the insole, etc.) and in part, via a transaction authentication code (i.e., to prevent the consumer from collecting the CryptoKick when they simply try on the shoes). Another example may require the user to "hunt" the CryptoKick in a brick-and-mortar store by using a photo "snap" or augmented reality ("AR") function on a handheld personal computing device. In this method, the KickID may be provided via a verified transaction, but the user must separately find the hidden CryptoKick in the AR hidden in the store or local area before the digital asset can be transferred to their locker (i.e., both the encryption key and the virtual object must be obtained separately before the transfer can occur). In this example, obtaining the encryption key may enable the AR engine associated with the user device to initiate a game in which the CryptoKick/virtual object associated with that key is hidden locally and can be found by the user.

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

After this event, the promotion organizer may collect all unclaimed KickIDs for subsequent use in other promotional events. In still other applications, the user may unlock the KickID upon receiving a digital design file or image. For example, in an online promotion, a particular user may be selected (in an ordered or random manner) to receive an image, design file, or graphical rendering. A predetermined number of "winning images" may be displayed and/or transferred to the user's computing device for later display, where each is associated with a different unique KickID that may be used to facilitate the transfer of a CryptoKick to a private lock associated with the user. A "winning image" may represent, for example, a purchase or successful agreement to purchase a particular physical or digital object. In other embodiments, the "winning image" may simply be a hidden or masked image in an online brand promotion page that requires user interaction to unmask.

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

It may also be possible to breed or mash up two CryptoKicks ("CollaboKicks") to create an offspring CryptoKick ("RVK" or "CollaboKick"). This CollaboKick has a unique token and distinct attributes compared to the parent CryptoKicks. A Collab may combine attribute data and/or genetic code from the two parent tokens to generate a new NFT or KickID, which may provide a CollaboKick. In some implementations, there may be a pre-established limit on the total number of CollaboKick events within a given time limit, for example to prevent overproduction of CollaboKicks between the same two users. The creation of CollaboKick genetic codes may be random, systematic, regulated, unconstrained, or a combination thereof. The code subset or subsets may be based on probability controlled, for example, using Mendelian law. For example, if the first attribute code (e.g., molding heat) is represented by two genes (e.g., HH, Hh, hh), CollaboKick will be considered "high heat" if it has both genes that are "hh" (a recessive trait). In other words, if the genotype data contained in KickIDs of CryptoKick's parents have Hh as the "heat gene," the offspring CollaboKick has a 25% chance of receiving the high heat gene, for example, using the Punnett Square method.

The option to conduct a Collab event may require one or both owners to comply with one or more prerequisites. As an example, two owners of a parent CryptoKick may be required to meet at a designated location or within a predefined proximity of each other to create a CollabKick. For example, a user may use the "CryptoKick Collab" matching feature on a dedicated mobile software application ("app") to find other users to collab with. Using the app, both parties may set a time and place to meet and submit a formal request to a middleware computing node that sets and manages the terms of the Collab. Another example may include a footwear manufacturer or third party sponsor hosting a Collab event where CryptoKick owners meet at a designated location to collab with each other within a specific time frame.

Owners may be provided with some indication of the genetic characteristics of their CryptoKicks to facilitate more deliberate collab events. In one example, a user may desire a particular model of CryptoKicks in a certain exclusive color. The user may then search for CryptoKicks with the genetic code of that color and attempt to collab with them. To better understand the value of traits, for example, users may be provided with a rarity score that provides an indication of the rarity or total circulating supply of each trait that makes up their CryptoKick and/or an indication of the overall exclusivity of their CryptoKick. In this way, when offered for sale on the commercial market, a CryptoKick may have an intrinsic value that reflects the combined rarity or exclusivity of its various traits.

A predefined set of blending rules may govern whether and how collaborations may 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, the genetic blending algorithm may be constrained so that the resulting Collab kick maintains a similarity or silhouette indicative of an existing product or more. In one example, these style guidelines or rules may be explicitly set by the company, but in another embodiment, they may be discovered and assembled using, for example, image-based processing algorithms that may recognize style attributes (e.g., color patterns, materials, cuts, and/or dimensional patterns) from existing products.

In at least some implementations, CryptoKick may be programmed to function as a "living" digital pet that the user feeds, cleans, entertains, and otherwise cares for to ensure the pet is happy and healthy. Optionally, the owner may care for the CryptoKick pet themselves or have a third-party user care for the CryptoKick pet. As the CryptoKick pet evolves - growing from a baby digital pet to a toddler, then a preschooler, and so on, until it becomes an adult - one or more attributes of the CryptoKick may automatically change with age or be unlocked over time. Additionally, as the CryptoKick pet "grows" through various life stages, it may unlock versions of real-life shoes that the user could have created. For example, if the CryptoKick pet evolved into a toddler's royal blue trainer, the user unlocked the option to purchase one or more special royal blue trainers in toddler sizes.

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

When CryptoKick is imported into another video game, in some configurations, different attributes of CryptoKick may result in changes to the ability levels of a user's character equipped with the asset. In one example, the attributes of a user's character may be positively affected by the rarity or exclusivity of various attributes, or by the rarity or exclusivity of an overall combination of assets. For example, a rare CryptoKick may bestow better jumping ability or lateral speed, a rare CryptoThread may bestow better strength or speed, and a rare CryptoLid may bestow better vision.

CryptoKicks users may determine the "best CollaboKick" on the market, for example, on a W/M/Q/Y basis. Such a voting scheme may be used to designate one or more CollaboKicks as suitable for commercial production of a physical product with a similarity to the digital asset. As a further option, a CollaboKick that receives a pre-set threshold number of "votes" may automatically trigger a manufacturer to actually create the CollaboKick.

As CryptoKicks and CollaboKicks are transferred between users over time for selling, trading, buying, and collabs, the history of each transaction can be tracked within a blockchain ledger of transactions. When a CollaboKick or CryptoKick is created, previous users are notified of the existence of such a real-life pair and may be given the option to purchase a CollabKick/CryptoKick real-life pair.

As a further extension, in one example, CryptoKicks may be backed by fungible tokens, where digital collectibles represent monetary value. In some implementations, certain attributes within the code assigned to the token may determine the value. For example, a style attribute indicating high-top sneakers may have a first value, a style attribute indicating yoga pants may have a second value, and a style attribute indicating a running shirt may have a third value. In one example, these values may be allowed to fluctuate depending on market forces or may be tied to fiat currency.

Turning now to the drawings, with like reference numbers referencing like features throughout the several views, FIG. 1 shows a representative footwear product generally designated 10 and depicted for purposes of illustration as an athletic shoe or "sneaker". The illustrated footwear product 10, also referred to herein simply as "footwear" or "shoes", is merely an exemplary application in which the novel aspects and features of the present disclosure may be implemented. In one example, the illustrated footwear product 10 may be or may be similar to a CryptoKick. Similarly, implementations of the present concepts for digital shoes and footwear cryptographic tokens should also be understood as representative implementations of the disclosed concepts. Thus, it will be understood that aspects and features of the present disclosure may be utilized in other types of footwear and may be incorporated into logically related consumer products. As used herein, the terms "shoes" and "footwear" (including variations thereof) may be used interchangeably and synonymously to refer to any suitable type of garment worn on the human foot. Finally, the features illustrated 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 construed as limiting.

A representative footwear article 10 is generally shown in FIG. 1 as a bipartite construction consisting primarily of a foot-receiving upper 12 attached atop an underlying sole structure 14. Although only a single shoe 10 for a user's left foot is shown in FIG. 1, a mirrored, substantially identical counterpart for a user's right foot may be provided. As will be recognized, the shape, size, material composition, and manufacturing method of shoe 10 may be varied, either individually or collectively, to practically suit conventional or non-conventional footwear applications.

Continuing to refer to FIG. 1, the upper 12 is shown to have a shell-like, closed toe and closed heel structure for accommodating the human foot. The upper 12 of FIG. 1 is generally defined by three adjacent sections: a toe box 12A, a vamp 12B, and a rear quarter 12C. The toe box 12A is shown as a rounded forward tip of the upper 12 that extends from the distal phalanges to the proximal phalanges to cover and protect the user's toes. In contrast, the vamp 12B is an arched central portion of the upper 12 that is located posterior to the toe box 12A and extends 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. Located behind the vamp 12B is the rear quarter 12C, which extends from the transverse ankle joint to the calcaneus and comprises the rear portion of the upper 12. Although depicted in the drawings as including three main segments, the upper 12 may be manufactured as a single piece construction or may be composed 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 in an open-toed or open-heel configuration, or may be replaced with a single strap or multiple interconnecting straps.

The upper 12 portion of the footwear 10 may be manufactured from one or a combination of a variety of materials, such as textiles, industrial foams, polymers, natural and synthetic leathers, etc. Once cut to shape and size, the individual segments of the upper 12 may be sewn, glued, fastened, welded, or otherwise joined together to form an interior cavity for comfortably receiving the foot. The individual material elements of the upper 12 may be selected and positioned relative to the footwear 10 to impart desired characteristics, 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 interior of the shoe 10. The circumference of the upper 12 may be modified to more securely hold the foot inside the shoe 10 and to facilitate entry and removal of the foot from the upper 12 using laces 20, straps, buckles, or other conventional mechanisms. The laces 20 may be threaded through a series of eyelets 16 in or attached to the upper 12; a tongue 18 may extend between the laces 20 and an interior cavity of the upper 12.

The sole structure 14 is secured to the upper 12 such that the sole structure 14 extends between the upper 12 and a support surface on which the user stands. The sole structure 14 may be manufactured as a sandwich structure having an uppermost insole 22, an intermediate midsole 24, and a lowermost outsole 26 or outsole surface. Alternative sole configurations may be manufactured with more or less than three layers. The insole 22 is shown partially disposed within the interior cavity of the footwear 10 and operatively attached to a lower portion of the upper 12 such that the insole 22 abuts the plantar surface. Under the insole 22 is a midsole 24 that incorporates one or more materials or embedded elements that enhance the comfort, performance, and/or ground reaction force attenuation characteristics of the footwear 10. These elements and materials, individually or in any combination, may include 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 disposed below the midsole 24 and defines some or all of the lowermost ground-engaging portion of the footwear 10. The outsole 26 may be formed from a natural or synthetic rubber material that provides a durable, wear-resistant surface for contacting the ground. Additionally, the outsole 26 may be contoured and textured to enhance traction (i.e., friction) characteristics between the footwear 10 and the underlying supporting surface.

As a general matter, each element, panel, section, and material of the footwear article 10 shown in FIG. 1 may be separately depicted or defined in the digital CryptoKick. Furthermore, these attributes may also be reflected within the genetic code of the NFT, as described above.

2 is a schematic diagram of an exemplary distributed computing system, generally shown as 30, with associated blockchain control logic for mining, mixing, and exchanging blockchain-enabled digital collectibles. A user 11 is communicatively coupled to a remote host system 34 and/or a cloud computing system 36 via a wireless communication network 38. Although a single user 11 is described communicating with a single host system 34 and a single cloud computing system 36 via the distributed computing system 30, it is envisioned that any number of users may communicate with any number of remote computing nodes suitably equipped to wirelessly exchange information and data. Wireless data exchange between the user 11 and the remote computing nodes on the distributed computing system 30 may occur directly, for example, 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, for example, with all communications between the user 11 and other computing nodes routed through the host system 34.

Only selected components of the distributed computing system 10 and the distributed computing system 30 are shown and described in detail herein. Nevertheless, the systems and devices described herein may include numerous additional and alternative features, as well as other available hardware and well-known peripheral components, for performing, for example, 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, encoding, proof of work challenges, or other concepts and techniques contained in available blockchain standards or suitable alternative immutable databases/ledgers.

Continuing to refer to FIG. 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 in a client-server interface to perform the 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 Internet of Things (IoT), Web of Things (WoT), Internet of Adaptive Apparel and Footwear (IoAAF), and/or Machine-to-machine (M2M) services, connecting various heterogeneous electronic devices with a service-oriented architecture (SOA) through a data network. As an example, the cloud computing system 36 may be implemented as a middleware node to dynamically onboard heterogeneous devices, multiplex data from each of these devices, and provide different functions for routing the data through reconfigurable processing logic for processing and transmission to one or more destination applications. Network 38 may 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, data transaction functions performed by user 11 may be performed over wireless networks, such as, for example, wireless local area networks (WLANs) or cellular data networks.

As a distributed blockchain platform, the 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 in a distributed, immutable ledger of interconnected blocks, or "blockchain." Each block in the chain contains one or more digital asset transactions accompanied by corroboration information that represents the validity of each transaction as assessed by peer verification devices. The encrypted, distributed computing architecture allows for identity verification and authentication of traded assets while preventing duplication of cryptographically protected ("encrypted") digital assets registered on the platform. Decentralized asset management may work by encrypting proprietary asset files, splitting the encrypted code into small "nonsense" pieces, and sending these pieces to many different computing nodes on the distributed computing network. Verified owners are provided with private keys that indicate where their assets are in the network and how to reconstruct or "decrypt" the files. For use as a distributed ledger, individual blockchains are typically managed by a host administrator and distributed to multiple peers that collectively follow a protocol for inter-node communication and block validation.

It should be appreciated that the disclosed systems and techniques provide many advantageous technical effects, including the creation and storage of a blockchain of digital assets that represent transactions between users of virtual collectibles. Additionally, blockchain technology enables the creation of unique and fully transferable digital assets that retain their value through their general ability to not be losslessly copied (unlike traditional insecure digital files).

Figure 3 provides an example of a functional structure of a distributed computing system 30 as shown in Figure 2. As generally shown, a user 11 may operably interface with a user device 39 (i.e., an interface device 39), which may include one or more of 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 device. The interface device 39 may be operably configured to communicate with one or more of 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 a third-party integration service 66.

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

In one example, a virtual object generator 62 may be provided to generate digital objects based on genomic information associated with the token. More specifically, the virtual object generator 62 may be responsible for expressing the genomic information into multiple phenotypic traits. The virtual object generator 62 may employ multiple stylistic and artistic rules so that the resulting digital objects are unique, yet recognizable according to a predefined silhouette, style, object, or character. The virtual object generator 62 may optionally operate based on other non-genomic factors, such as the age of the asset, user activity (tracked via the user device), or use via a third-party platform. In such an embodiment, these non-genomic inputs may change the phenotypic expression and/or unlock new abilities, breeding rights, and/or production rights. For example, in one configuration, the color of the CryptoKick may depend on the genetically assigned color along with the age of the asset and/or the use of the asset in the virtual world or via a linked physical pair of shoes in the real world. The initial color, along with age/experience based modifications, may result in a new color with its own relative rarity score/value.

The virtual object generator 62 and/or the blockchain 60 may further communicate with a hosted digital marketplace 64, forum, social platform, etc. (as generally shown in FIG. 5, displayed on the smartphone 40). The digital marketplace 64 may represent multiple virtual objects 80 in a manner that allows for an organized exchange or buying and selling of virtual objects between parties. At the close of a sale, the digital marketplace 64 may update the blockchain 60 with new ownership information and facilitate the transfer of existing keys to the new asset holder. 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 evaluate and score the rarity of a particular virtual object based on the sum of the represented characteristics of that object. Such a rarity score may allow the marketplace (and/or users participating in the marketplace) to better evaluate the value of the object.

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 app provided on the user's device or as a dedicated cloud-based service. The third-party integration service 66 may optionally make the virtual object (e.g., as represented by the virtual object generator 62) and/or the genomic information available for external use. Examples of such uses may include skins for third-party video game characters, objects that can be used by third-party video game characters (see FIG. 9), digital artwork display, physical print generation, manufacturing production, and the like. In one example, the genomic information and/or rarity score may be made available to modify the characteristics or capabilities of the user's video game character in a video game played on the user's device 39 (see FIG. 10).

As further shown in FIG. 3, in one configuration, an enterprise host system 68 may communicate with the blockchain 60 for purposes of providing and/or initially creating new digital assets. Additionally, the host system 68 may provide one or more rules to the virtual object generator 62 to constrain the manner and style in which genomic information from the blockchain 60 is represented in visual/artistic form.

Now referring to the flowchart of FIG. 4, an improved method or control strategy for generating collectible digital assets secured by cryptographic tokens on a blockchain ledger is generally described at 100 in accordance with an aspect of the present disclosure. Some or all of the operations illustrated in FIG. 4 and described in more detail below may represent algorithms corresponding to processor-executable instructions that may be stored, for example, in a main or secondary memory or a remote memory and executed, for example, by a resident or remote controller, a central processing unit (CPU), a control logic circuit, or other module or device or network of devices to perform any or all of the functions described above or below related to the disclosed concepts. It should be recognized that the order of execution of the illustrated operational blocks may be changed, additional blocks may be added, and some of the described blocks may be modified, combined, or removed.

The method 100 begins with processor executable instructions for a programmable controller or control module or similar suitable processor to invoke an initialization procedure for a protocol for generating encrypted digital assets, such as the computer-generated digital shoes 44 and cryptographic token key 46 of FIG. 2, for a consumer product, such as the sneakers 10 of FIGS. 1 and 2, in a terminal block 101. This routine can be invoked and executed in real time, continuously, systematically, sporadically, and/or at regular intervals. As a representative implementation of the method shown in FIG. 4, the initialization procedure in block 101 can be started automatically each time a pair of real footwear 10 is manufactured, each time a user 11 purchases a real-world pair of footwear 10, or each time a user 11 unlocks an access key 46. Alternatively, the initialization procedure can be manually initiated by an employee of the POS terminal or by the manufacturer.

Utilizing a portable electronic device 39, such as a smartphone 40 or smartwatch 42 of FIG. 2, user 11 may launch a dedicated mobile software application ("app") or a web-based applet, such as NIKE+®, that cooperates with a server-class (back-end or middleware) computer (e.g., a remote host system 34) to communicate with various peer devices on the distributed computing system 30. During a communication session with the host system 34, for example, user 11 may purchase a pair of footwear 10 using corresponding features provided by the app. User 11 enters personal information and a payment method to complete the transaction. Upon completion of a verified payment, host system 34 receives a transaction confirmation, for example from an online store transaction module or an approved third-party electronic payment system, indicating that a verified transfer of footwear 10 to user 11 has been completed. As discussed above, the effective transfer of footwear 10 may occur via any available means, including at a brick-and-mortar store, through an online auction website, aftermarket consumer-to-consumer trade/sale, etc.

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

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

Once the user 11 has determined that they have acquired a digital blockchain locker (block 103=YES) or after linking the user's blockchain locker to their personal user account (block 107), the method 100 continues with input/output block 109 to activate or "unlock" the encrypted digital assets associated with the footwear 10 traded in process block 101. As described above, after purchasing the footwear 10, the CryptoKick Physical ID or universally recognized UPID product code may be used to retrieve a collectible CryptoKick, which generally consists of a 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 may scan the UPID or UPC of the shoe 10 or the box containing the shoe 10. Alternatively, the user 11 may be prompted to go on a "treasure hunt" using the digital camera on their smartphone to scan various UPIDs throughout the brick-and-mortar store until they scan one that is linked to a KickID. Activating the encrypted digital assets may be automatic, random, systematic, prize-based, or in any logically appropriate manner.

After receiving confirmation that the encrypted digital asset is authorized at 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 at predetermined process block 111. Host system 34 may transmit the token, along with the public key and owner ID, to the distributed blockchain ledger to record and peer verify the transfer of the encrypted digital asset to user 11 in a transaction block. Method 100 continues at process block 113 to link the encrypted digital asset with the unique owner ID code. The control logic may include executable instructions for assigning the encrypted asset code to user 11 and storing the public and private keys in the user's digital blockchain locker.

Continuing with reference to FIG. 4, the method 100 proceeds to block 115 to generate a virtual representation or "digital art" of the encrypted digital asset. Continuing with the footwear example of FIG. 2, the virtual representation may include a computer-generated avatar of the shoe 10 or a limited edition artist rendition of the shoe 10. It is also envisioned that one or more attributes of the virtual representation of the encrypted digital asset may be created, in whole or in part, via the user 11. Machine learning functions may be performed at 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 at block 119. Additionally, 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 with all relevant information for accessing, transferring, and mixing the encrypted digital asset. The remote host system 34 may operate as a web server hosting a web-based graphical user interface (GUI) operable to convert the data stored in the cryptographic keys into visual images displayed to the user 11 in optional process block 123. Manipulation and use of the digital assets may also occur via the user's digital blockchain locker. This may include posting the encrypted digital assets online to a crypto collectibles marketplace for sale or breeding, as provided in optional process block 125.

Prospective and current owners of encrypted digital assets, such as the CryptoKick of FIG. 2, may buy and sell digital assets through one or more blockchain ledgers running on the distributed computing system 30. By way of example, and not by way of limitation, a user may purchase a new pair of highly popular sneakers from a verified vendor who may provide authenticated provenance records for the sneakers. While the sneakers are in transit, the user may receive an email notification with detailed instructions for unlocking the CryptoKick once the shipment arrives. After receiving the shoe box containing the purchased sneakers, the user scans the box's UPC with a barcode scanning function of a sneaker app running on a smartphone. In the sneaker app, a new profile page is enabled in response, and the sneaker app opens the new profile page. In at least some applications, the new profile page is linked to, exported, or initially enabled in the user's personal (NIKEPLUS®) account profile. Private and public blockchain platform keys are generated, genotype and phenotype data is generated, and this data is embedded into a segment of the public key's alphanumeric code to generate a virtual representation of the CryptoKick. The CryptoKick's blockchain data, tokens, etc. are assigned to the user's new address. A new profile page lists the CryptoKicks the user has acquired.

A user may wish to lease, license, or transfer their new CryptoKick to one or more prospective buyers. In one example, a seller (also referred to herein as the "transferor" or "first party") offers to sell and a buyer (also referred to herein as the "transferee" or "second party") agrees to purchase the CryptoKick for an agreed upon amount (e.g., 3 ETH). An available CryptoKick may be of interest to a buyer because it has one or more attributes (e.g., artist, body type, color scheme, etc.) that the buyer is looking to add to their collection. A seller may initiate the selling process by marking a particular CryptoKick in the Sneakers app as "For Sale" via the "Auction" button on the corresponding softkey. The seller may set a minimum bid and/or buy-now price and provide an auction time frame of a selected number of hours, days, weeks, etc. The Sneaker App may present the seller with a share modal that allows them to share the auction via regular social media or present a quick response (QR) code for potential buyers to scan. The buyer may 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 Sneaker App of the seller notifies the seller of the payment and the seller is prompted to agree to the terms of the sale and complete the transaction. The CryptoKicks are then transferred from the first party to the second party address.

An owner of a cryptographic digital asset may wish to mix or "breed" his/her digital asset with other digital assets to create asset "offspring", as shown diagrammatically in FIG. 6. A first digital asset owner and a second digital asset owner may wish to collaborate and crossbreed their digital assets 82, 84 to create a new cryptographic digital asset. The first owner is set as the "primary artist" if his/her digital asset has 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 with physical or digital currency, for example, to pay a "collaboration fee" set by the breeding host site for the transfer, and an optional siring fee for the second owner's siring service. Once both parties agree and sign a breeding agreement, one or both parties may be prompted to select one or more traits from their "parent" digital asset and transfer them to the resulting "offspring" digital asset. Alternatively, a breeding host site may use a breeding algorithm to construct a new digital asset from two or more existing digital assets.

A "CollabScience" algorithm may be used to determine which contributing encrypted digital assets are designated as sires, which contributing encrypted digital assets are designated as dams, and which code subsets from each parent asset are used to construct the resulting digital asset's cryptographic token keys. For example, the token keys for two parent digital assets, DA1 and DA2, may appear as follows:
DA1: 4352635657387611432650689898388672080892866850020829309339781214
DA2:
1997670191981520482540801616208235668515393854245661572126051434
The CollabScience algorithm may generate a random number, e.g., 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 may convert the resulting number 21123 into a binary code: 0101001010000011. Concomitantly, if the first digit of the binary code is a zero (0), then the first parent digital asset DA1 is designated as the sire, corresponding 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 dam, corresponding to all ones in the string.

Following the above example, 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 sixteen 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']
The CollabScience algorithm then 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 assigned a 1 or a zero sequentially based on the binary code of the random number generated above. From this example, the first digit of the binary-coded version of the random number is a zero; the first parent digital asset DA1 is the designated sire, which corresponds to zero. As a result, the first chunk of the child token key is copied from the first chunk of the sire and set to 4352. Next, the second number of the binary-coded version of the random number is a 1, and the second parent digital asset DA2 is the designated dam, which corresponds to 1. As a result, the second chunk of the child token key is copied from the second chunk of the dam, and is therefore 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 the 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
CollabScience algorithms then process the encrypted digital asset, generate a virtual representation of the new asset, and assign the asset to the buyer's digital blockchain locker.

It is envisioned that other techniques may be used to determine the attributes of the offspring digital asset. For example, a Punnett Square may be implemented to represent dominant and recessive traits ("genes") from two parent digital assets and generate the probability of trait expression in the offspring digital asset. A 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 array is provided to find all potential combinations of genotypes that may occur in a child given the parent genotypes by placing one parent's genotype at the top of the table and the other parent's genotype at one side. As seen in FIG. 2, the genotype and phenotype information contained in the encrypted token key 46 includes the following attributes of the digital shoe: breeding attributes ("collab"), material information, manufacturer data ("family"), manufacturing requirements ("heat"), color combinations ("color scheme"), future attributes, model data, and image background information.

Epigenetic factors can cause heritable phenotypic changes without changes in the underlying DNA sequence. In some cases, genotypic changes in the encrypted token key can be caused by real-world and/or virtual interactions, leading to changes in the phenotypic characteristics of the cryptographic digital assets. Genes representing high and rare heat can be changed from Hhrr to HHRR by epigenetic factors such as: real-world use of shoes can increase the chances of passing on genetic mutations or "good" mutations to offspring; real-world workouts such as running or sports can increase good genetic mutations or increase the rate of maturation of offspring assets; checking in to a store or other real-world benchmark can result in positive genetic mutations, passing on "good traits" to offspring, speeding up maturation; time-dependent breeding that prevents two cryptographic digital assets from crossing before both assets reach a minimum age. Otherwise, breeding may fail or increase the probability of passing on "bad" genes to offspring; unique breeding times may cause genetic mutations; frequent interactions with other assets and other apps (e.g., trading, buying and selling, and collaboration) may lead to positive genetic mutations, passing on "good traits" to offspring, or speeding up maturation.

It may be desirable to modify (e.g., mutate or edit) the underlying genotypic information or phenotypic expression of an encrypted digital asset with obtained encrypted digital attributes ("attribute packs"). An encrypted digital attribute may include a subset of genotypic and/or phenotypic characteristics that are less than a complete expression of the encrypted digital asset. In the context of shoes, a CryptoKick attribute pack may include genotypic and/or phenotypic information associated with one or more discrete features of a digital shoe, but with less than a full CryptoKick feature. Exemplary attributes may include style, such as heel counter, laces, toe bumper, logos, color schemes, etc. When an encrypted digital attribute is mixed with an encrypted digital asset, one or more of the genotypic code segments or phenotypic expressions may be directly replaced with those of the asset, or may be bred to create progeny attributes that include a probabilistic combination of existing attributes and attributes expressed in the attribute pack. As a result, the mutated/edited digital assets (and/or asset ID codes) can then be recorded in the distributed blockchain ledger.

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

CryptoKick attribute packs may be offered in a manner similar to full-scale CryptoKick, but in one example, instead of being offered with a complete footwear product or apparel, they may be offered with the sale of customization products or services (i.e., components or modification kits intended to modify footwear products or apparel, but not the complete footwear product or apparel itself). Examples may include custom laces, temporary appliques (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, the sale or application of dye kits or pigments, deposition layering, coloration layering, application of optical effects - structural color, static color, or pearl color modification; laser etching services, acid dye wash services; additive manufacturing - 3D printing, dimensional painting, etc.).

To better control the distribution of the encrypted digital attribute packs, each pack may be recorded on a distributed blockchain ledger upon creation, thus providing each attribute pack with a separate existence. Each encrypted digital attribute pack may include a smart contract that, for example, terminates the attribute pack's existence or its ability to be subsequently mixed with a different digital asset. As such, an attribute pack may be a single-use capability to edit or mutate the underlying digital asset. Additionally, in at least some applications, aspects of the smart contract may time-limit the ability to be mixed with the underlying digital asset.

As mentioned above, FIG. 7 shows a schematic of a method of acquiring a digital collectible or attribute pack that may be linked or coordinated with the sale of a physical product. That is, as shown in FIG. 7, a user 11 brings a device (i.e., a smartphone device 40) into the vicinity of a physical product 200 that contains an identifier (UPID) such as a QR code, a bar code, a digital image, an RFID tag, an NFC tag, a BLUETOOTH id, a registry entry in an embedded processor, or any other machine-readable code. This code can then be recognized by the phone 40 either optically, via radio frequency communication, by magnetic properties, or via wired data communication. Following identification/recognition of the UPID, the phone 40 can initiate the transfer and/or original provisioning of the digital assets 202 linked to that product 200 to the user's locker 204 in communication with the blockchain service/network 60. In an extension of this concept, the transfer of digital assets 202 can be further secured using, for example, a PIN, encryption key, access code, etc., which may be provided on a receipt following purchase of product 200 by the user.

In one example, if user 11 acquires a CryptoKick by purchasing a pair of sneakers and then returns the sneakers, the smart contract associated with the CryptoKick may undo the acquisition and automatically return full rights to the tokens and the CryptoKick to the company/retailer. If the purchaser sells/exchanges the CryptoKick to a bona fide purchaser (BFP) before returning the shoes, this secondary transaction may be undo/reversed as well. With the reversal of this secondary transaction, the BFP may be presented with the option to reacquire the CryptoKick from the company/retailer at a predefined price (e.g., the current price of the asset, a discounted price relative to the current price, a fixed price set prior to market release, or a nominal amount). In another embodiment, the CryptoKick's BFP may have the first right of refusal to acquire/purchase the returned physical product. This may be important in the case of limited release sneakers that are, by definition, rare.

FIG. 8 illustrates a schematic of a method for acquiring a digital collectible or attribute pack, such as during a promotional giveaway. As illustrated, the user 11 may use the AR capabilities of the 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 may be freely recognizable using an app on the phone that interfaces with the camera on the phone. The app may instantiate the virtual object on the display when the camera recognizes a particular environmental optical pattern (i.e., the scoreboard within the arena) and the phone is geolocated within a particular area (i.e., via GPS sensing, beacons, geofencing technology, WiFi connectivity, etc.). Once located, the user 11 may be prompted to scan a unique code, such as a barcode on a ticket, a unique code provided on a program or physical item (e.g., noisemaker, light stick, towel) that may be placed on the user's seat prior to the game. This code may be associated and/or linked to an assigned, registered, or pre-provisioned crypto asset and KickID. Once this code is scanned or entered, the phone 40 may initiate the transfer of the digital asset 202 to the user's locker 204 in communication 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 forwarded to the locker associated with the user's ID.

In yet more general brand promotion cases, the need to locate a virtual object may not be strictly required to receive a CryptoKick or attribute pack. Alternatively, a server, such as a middleware server, may receive an indication that a user device is in a particular 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 predefined geofenced area around the venue, and the indication may represent whether the device is inside or outside the venue. Alternatively, this indication may result from the device's proximity to one or more 802.11 or Bluetooth beacons located at the venue, or optical recognition via an on-device camera of certain visual characteristics of the venue.

The server may then prompt the user, via the user device, to scan a unique identifier that should be easily obtainable by a person attending the event. Exemplary 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 an indication of the user's unique ID and the unique scanned code. The server and/or user device may initiate the transfer of the digital assets 202 to the user's locker 204 in communication with the blockchain service/network 60. Other conditions, such as the discovery of an AR object at the venue or the occurrence of a particular event, may add additional conditional layers that must be met before the server executes the transfer. Optionally, the user device may record the device's presence by location and/or time, and CryptoKick claims may be available for a predetermined period of time after the event.

The ability to acquire a CryptoKick may further be triggered by an aspect of the game/event, rather than by finding an AR object or by the presence of the event alone. Examples of such triggering events may include, for example, a shutout (hockey/baseball), a no-hitter (baseball), a 50+ point individual performance (basketball), a triple double (basketball), a hat trick (soccer/hockey), a scoreless quarter/period/half (basketball, hockey, soccer), and extra time/overtime. In such an embodiment, the occurrence of the event may trigger an alert to the user's device 39, which prompts the user to scan the ticket to facilitate the transfer. In one example, to eliminate a secondary market for ticket stubs, an app on the user's device that facilitates notifications may require that the scan only occur within a predefined geofence and/or time of the game/event. In a further extension, the marketplace (discussed above) may further allow the user 39 to sell pending rights to the CryptoKick in the future if the triggering event occurs. This is similar to a user writing and selling a tradable option on a CryptoKick that expires worthless or results in the option purchaser obtaining the CryptoKick.

It should be understood that in any of the above-mentioned CryptoKick acquisition methods, the attribute pack may be obtained by similar means/techniques. For example, in one example, a user's presence at a sporting event may allow the user to receive an attribute pack including one of the team's colors. This attribute pack may be mixed with an existing CryptoKick to change or edit the existing color scheme attributes to the team color scheme. Optionally, by transmitting a unique scanned code, an application or browser on the user's device may be directed to a virtual storefront where the color scheme attribute packs of each instruction may be made available and the user may be prompted to select one for acquisition. Similar virtual storefront techniques may be useful for the selection and transfer of CryptoKicks as well.

9 and 10 show a schematic of 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 execute a digital application 224 that requires user input to control a virtual character 226 within an environment 228. The character 226 may include or be defined by a number of attributes 230 that may affect how the character 226 behaves, responds, or performs within an environment 230 and/or how the character 226 interacts with other characters 232 controlled by the application 224 or other users within the network environment.

In one context, the character 226 may be an athlete and the environment 228 may be a sports environment. FIG. 9 shows a character 226 as a soccer player and an environment 228 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 (among others). In one embodiment, the character 226 may be outfitted/skinned with digital collectibles (e.g., apparel products 234) that may be uniquely backed by tokens on the blockchain 60. In one example, the digital collectibles may have been acquired in any one of the ways described herein. In one configuration, the application 224 may access the genetic code of the digital assets on the blockchain 60 via an API or other software interface 236 (i.e., an embodiment of the third-party interface 66 described above) and/or may access the phenotypic expression of the 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 influenced by the genetic code or phenotypic expression of the object 234. While FIG. 9 illustrates the object as an apparel product, it may also be a footwear product, an object that a character may use, sporting equipment, etc.

Further, based on the concept of CryptoKick as property, in one example, a user or business may rent or lease the use of a digital collectible within a video game for a certain period of time. In one example, the lease may be constrained so that only one instance of a particular user's asset exists in any particular context. For example, a user may own full rights to an exclusive 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.

Another option may include programming the encrypted digital asset as a virtual "pet" that the user cares for and helps grow from baby to adult. FIG. 10, for example, shows a user's avatar 226 virtually walking pet CryptoKicks 240 within an environment 228 representing a virtual world, interacting with an avatar of another user 232. As discussed above, such virtual interactions may affect the evolution, value, maturation rate, visual appearance, marketability, etc. of the pet CryptoKick. Attributes of the digital asset may change with age or be unlocked over time. The user may directly care for the virtual pet or may provide it to a third party (e.g., through a transaction with payment of ETH or other means). The virtual pet may go through various life stages and simultaneously unlock various real-life sneaker versions that the user can purchase in a store.

9, much like the virtual pets of FIG. 10, gameplay, use of digital assets, or improvements in the character's level, experience, or achievements may operably change/modify one or more genotypic and/or phenotypic attributes of the digital asset/CryptoKick. Similarly, gameplay, use of digital assets, or improvements in the character's level, experience, or achievements may operably change the impact the digital asset has on the character's abilities or gameplay. For example, in one example, achieving a new level, winning a tournament, achieving a global ranking above a certain threshold, or other similar achievement may change the attributes of CryptoKick to have a unique or limited availability appearance, color scheme, skin, etc. Similarly, such achievements may act as multipliers of the effect the digital asset has on the character.

With reference to FIG. 11, a set of digital assets may take the form of or be used in a digital collectable card game (DCCG). In such a game, each user may have a collection of digital assets, each with a different set, balance, or weighting of attributes/attribute scores, and/or different features, abilities, or powers. Users may optionally take turns playing individual cards or groups of cards to win according to rules established by the game.

While trading card games are generally well known in and of themselves, the use of digital assets as described herein may provide a unique extension of these games. Moreover, these games may serve as additional uses and incentives for collecting digital assets. By uniquely securing each digital asset in an immutable database such as the blockchain 60, each player's collection of cards and the strategies required to use those cards may also be unique.

In such an embodiment, the game server 300 may communicate with multiple different user devices 39. As mentioned above, the user devices 39 may be smartphones 40, smart watches 42, tablet computers, laptop computers, web-enabled devices, or other such devices capable of network communication with the server 300. Each user device 39 may be linked to a separate digital locker 204 that may enable users 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 a phenotype). In one example, the virtual object generator 62 may communicate with the user devices 39 and/or the game server 300 to create representations of virtual objects from genotype information associated with tokens on the blockchain 60. The game server 300 may manage the rules of the game, including maintaining multiple user counts, instructing a first user via the user's device 39 when to play, and modifying attributes of a second user's account based on receipt of digital asset data from the first user. The received digital asset data may correspond to a digital asset that the first user played via the first user's device.

In one example, the game server 300 may not have a stored understanding of a user's collection of digital assets until the digital asset data is received. Thus, in this embodiment, the asset collection for a user may be maintained solely by the user's device. In another embodiment, the user's collection of assets may be registered in the user's 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.

While FIG. 11 is intended to illustrate multiple users engaged in a DCCG, in an alternative configuration, the diagram may represent a meeting where multiple users come to a common location for the purpose of propagating their CryptoKick. Such events may be coordinated by a central server linked to user accounts in a local area. Alternatively, users may have the ability to sponsor events and/or broadcast their own location for others to connect with, and/or create user-initiated meetings or invitations.

In at least some applications, attributes of the cryptographic digital asset can be directly linked to corresponding attributes of the real-world shoes for production purposes. Optionally, digital asset attributes can be linked to a bill of materials for cost calculations and as a control mechanism. The resulting offspring can be limited to having phenotypic characteristics that can be produced in the real world based on manufacturing capabilities, materials, and other factors. As CryptoKicks and CollaboKicks change hands through sales, exchanges, purchases, collaborations, the resulting transaction history is tracked in the blockchain. When a currently non-existent CollaboKick or CryptoKick is created in real life, the previous owner/user can be notified of such real-life presence and be given the option to purchase the sneakers.

12, an example of a distributed computing system is shown, generally designated 400 and depicted here for illustrative purposes as a client-server oriented distributed computing architecture for provisioning encrypted digital assets during the transaction of a retail product. Although different in appearance, the representative computing system 400 of FIG. 12 may include any of the options and features described above with respect to the system architectures and retail products shown in FIGS. 1-11 and vice versa. In accordance with the architecture of FIG. 12, the distributed computing system 400 enables users to reserve and procure various products, services, events, etc. that have limited availability. For example, using different social networking services, digital signs, dedicated mobile apps, text messages, push notifications, etc., the system 400 announces the availability to secure limited release retail products, event tickets, etc. Users may respond to these announcements via social networking services, text messages, or apps with requests to be added to a virtual line or waiting bin. Merchandise reservations, which can secure limited release retail products, event tickets, and more, can be issued to users who are randomly selected from a waiting bin or based on their position in a virtual line.

According to a non-limiting implementation of the architecture depicted in FIG. 12, athletic shoe manufacturers may occasionally produce and release limited or exclusive edition shoes. NIKE® Corp., for example, may announce a limited quantity footwear release (e.g., 1000 pairs of basketball shoes in each of sizes 8-14) through the SNKRS® subsite and app. This limited shoe release is accompanied by limited availability of a corresponding product pre-order available on a given date and/or time. On the release date/time, users access their individual user accounts through the SNKRS® subsite and app and, if deemed eligible, are placed in a holding bin or virtual line. The SNKRS® site then selects "winners" from among the users who are eligible to secure the limited release sneakers. Winners may be selected by random drawing, random win/loss generator, or 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 to be eligible for a limited-time pre-launch event.

During this phase, users are prompted to engage in physical activities (e.g., a team relay) or virtual activities (e.g., an alternative reality (AR) scavenger hunt) that may improve their position on the virtual line or increase their chances of winning "The Draw." If users perform pre-approved physical or virtual activities during a specified time window before The Draw, they may be rewarded by increasing their chances of winning The Draw and/or by earning activity/membership point multipliers. For example, during a pre-set release period for the next generation Air Jordan® 3 White Cement sneaker, users may be rewarded with a double multiplier (2x) of Nike Coins™ for playing basketball at least four times a week until The Draw. This feature encourages users to make basketball a daily habit as they wait for the release of limited release sneakers.

After the launch, if the user is not selected in The Draw to secure one of the limited release sneakers, they are offered the opportunity to secure one of several limited release CryptoKicks. As indicated above, these CryptoKicks may be similar or identical in appearance, some with distinctive appearances, some rarer than others, and more valuable than others. After not winning The Draw for a physical product, the user may be given the option to opt-in to a secondary raffle. In this consolation raffle, the user may exchange activity points or membership points to increase their chances of receiving/unlocking one of the limited release CryptoKicks. In at least some implementations, this post-launch event may be fashioned as a “gashapon” style raffle where the available assets are generally of high quality, some relatively rare, and the user does not know in advance what exactly they will win. As a further option, the cost of entry may include activity points or membership points (i.e., some type of points that a user receives depending on preferred activities - e.g., shoe purchases, miles run or workouts completed, check-ins, app engagement, or other general activity scores). Additionally, the post-launch event may be part of an event-based shoe launch, e.g., during an e-sports tournament, a K-pop concert, etc. Additional information regarding tracking a user's physical activity and awarding virtual points or currency for such activity may be found, for example, in U.S. Patent Nos. 9,289,683, 9,940,682, and 9,415,266, all of which are incorporated herein by reference in their entirety for all purposes.

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

Another available function provided through the distributed computing system 400 is the ability to monitor and minimize aftermarket “scalping” resale of high-demand products, services, events, etc. The 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 dozens or hundreds of software agent robots (bots) on a website or app to increase the chances of securing multiple pairs of footwear. The entity quickly turns around and resells the limited release footwear for 2-10x the retail price. To combat these activities, each shoe is assigned a respective blockchain-backed digital asset that allows the system 400 to track and analyze the chain of title/ownership of each tangible shoe. With this knowledge, the system 400 can profile each user account based on, for example, purchasing habits, average ownership time, reselling habits, lottery participation, and other relevant data. This knowledge allows the manufacturer/retailer to better allocate access to future shoes and pre-sale allocations, such as by influencing the odds of winning future drawings or limiting access to future drawings.

Continuing to refer to FIG. 12, one or more users 414A, 414B, 414C, . . . 414n on the distributed computing system 400 operate personal computing devices, such as computer tablets, desktop computers, handheld smartphones, etc., to communicate with a host retail product reservation platform 410 via a wireless communication network 416. The product reservation platform 410 may occasionally broadcast a message over the network 416 announcing the availability of a reservation request for a limited release retail product. A back-end server class computer or similar suitable computing device of the product reservation platform 410 may randomly or pseudo-randomly select the broadcast date and/or time. Alternatively, the date/time of the product release event may be manually selected by an event planner or other individual. The broadcast date and time may be made available to everyone or to only a select few. Optionally, the broadcast time may be withheld from selected recipients. After reviewing the broadcast message, the user may respond with a reservation request. The product reservation platform 410 may process the received reservation requests on a first-come, first-served basis (FCFS) and may send reservation messages to users who have successfully reserved a retail product.

The product reservation platform 410 may perform various functions related to product release events. For example, the platform 400 may create and schedule broadcast messages through social networking services 412, to digital signage 418, and over cellular networks 420, as well as capture and implement event details. The platform 400 may also track reservation confirmations, reservation rejections, fulfilled reservations, reservations left incomplete, and provide holistic 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 purchases and delivery/pickup points. The product reservation platform 410 may also include integration with customer data management systems to support target segmentation of announcement messages. Loyalty programs may be implemented, such as users pre-registering for product launches, identifying preferred product attributes and interests, and accumulating loyalty points and rewards.

The network 416 of FIG. 12 may take any of the optional configurations and functions described above with respect to the wireless communication network 38 of FIG. 2. For example, the network 416 may employ available wireless and wired transmission systems, such as public or private satellite systems, cellular networks, terrestrial networks, and the like. Most, if not all, data transaction functions performed by the user 14 may be performed over a wireless network, such as, for example, a wireless local area network (WLAN) or a cellular data network. In some implementations, the 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 aspects, the user's personal computing device includes a web browser or dedicated standalone application software, or a combination of both. A web browser typically allows a user to retrieve or request web pages (e.g., from the server farm 52) via a web page request. Upon creation of the encrypted digital asset, the platform 410 may record the transfer of the encrypted digital asset, such as a unique non-fungible token (NFT), in a transaction block and transmit the token along with a matching public key and owner ID to the distributed blockchain ledger 422 for peer verification.

Referring now to the flow chart of FIG. 13, an improved method or control strategy for provisioning encrypted digital assets associated with the transfer of retail products is generally described at 500. Some or all of the operations illustrated in FIG. 13 and described in further detail below may represent discrete control algorithms or subroutines interoperable with method 100 of FIG. 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 associated with the disclosed concepts. The order of execution of the illustrated operations may be changed, additional operations may be added, and some of the described operations may be modified, combined, or eliminated.

Method 500 begins with processor executable instructions in terminal block 501 for invoking an initialization procedure of a protocol to initiate a limited release product launch event. Terminal block 501 of FIG. 13 may include any of the features and options described above with respect to terminal block 101 of FIG. 4. In data display block 503, the system server computer broadcasts an electronic notification of an impending retail product deal, such as limited release footwear, exclusive release apparel, special releases of luxury watches and designer fashions, etc. As previously mentioned, the notification may be broadcast during a pre-announced period of time, at random or pre-set times within the period, which may or may not be known to the user receiving the broadcast message. Additional information regarding promoting and managing product offerings of limited release products may be found, for example, in U.S. Patent Application Publication No. 2013/0290134 A1, which is incorporated herein by reference in its entirety for all purposes.

After broadcasting the announcement, the 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. In accordance with the exemplary architecture of FIG. 12, the product reservation platform 410 may open a dedicated web engine portal or temporarily enable a callable unit in a mobile app, where the system 400 receives participation requests over the network 416 from the personal computing devices of multiple users 414A, 414B, 414C...414n. Each received request may include a unique QR code obtained by the user prior to sending the request. The unique QR code may be obtained from a ticket for an event at the specified venue, a tangible object within the specified venue, or a merchandise receipt generated within the specified venue.

In preparation block 507, a selected number of users are added to a virtual line associated with a future transaction of a retail product. The platform 410 may use any logically appropriate service discipline to determine which users are added and how to add them to the virtual line. This virtual line may be generated in real time or may be obtained in a fillable format from a database file as part of preparation block 507. In selecting which users are added to the line, the product reservation platform 410 may accept, aggregate, and process data recording one or more of the users completing a predefined activity or series of activities. As a reward for completing a predefined activity, the platform 410 may automatically advance the user to a new, better position ahead of the virtual line based on the received data. Additional information regarding the creation and management of virtual lines for product offerings may be found, for example, in U.S. Patent Application Publication No. 2015/0205894 A1, which is incorporated herein by reference in its entirety for all purposes.

13 proceeds from preparation block 507 to processing block 509 to determine which of the users added to the virtual line will be selected to receive a retail product. A product release event may include a single retail product that one participant can acquire/purchase, or alternatively, multiple retail products that multiple participants can acquire/purchase. At this point, a (first) user or a (first) subset of users is selected from the virtual line. Each selected user receives one of the retail products 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 a FCFS basis, but the user(s) selected to participate in the retail transaction may be selected from a preset position(s) in the virtual line. The virtual line may also be formatted as a lottery box where winners are selected on a random basis.

Before, simultaneously, or after completing process block 509, method 500 executes process block 511 to determine which users in the virtual line are selected to receive the encrypted digital asset. Similar to the availability of a limited release retail product described in the previous step, one (second) user may be selected to receive a single encrypted digital asset. Alternatively, a limited (second) set of users may be selected to each receive one of a series of encrypted digital assets. In at least some implementations, it is desirable that the users selected to receive the encrypted digital asset are selected only from users who were not selected to receive one of the retail products. The encrypted digital asset provided in block 511 may take any of the blockchain-secured digital assets described herein. For example, the encrypted digital asset may include a unique digital asset code and, optionally, a digital version of the 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, a public key, and other information related to the asset (e.g., transaction data, hash pointer, etc.).

A post-launch event may offer to give or purchase 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) asset set that includes a primary (first) type of encrypted digital asset, and/or assets in a subordinate (second) asset set that includes a secondary (second) type of encrypted digital asset. As a result, process block 511 may include selecting a primary (first) group/subset of users to receive the primary (first) type of encrypted digital asset and a subordinate (second) group/subset of users to receive the secondary (second) type of encrypted digital asset. To increase the desirability of one type of asset over another, the assets included in the primary (first) asset set may be significantly fewer than the assets in the subordinate (second) asset set (e.g., the primary set includes 1/100 or 1/1000 of the number of assets available in the subordinate set).

After selecting the user(s) to receive the encrypted digital assets as part of the post-launch event, method 500 proceeds to data storage block 513 and transmits the respective encrypted 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 to complete the purchase of the digital assets. Concurrent with this transfer, an electronic message is sent to each user to notify them of the transfer and provide a unique key with a hashed address to access the encrypted token. From data storage block 513, method 500 of FIG. 13 proceeds to data input/output block 515 and transmits the unique digital asset code, owner ID, transaction data, etc. to the distributed blockchain ledger to record the transfer of the encrypted digital assets to the users in a separate record block.

It may be desirable to monitor subsequent transfers of limited release products and/or digital assets in order to accumulate corresponding user data and derive inferred consumer usage information therefrom. As an example, method 500 may generate a separate encrypted digital asset to protect each retail product traded. For each selected (first) user, method 500 may track the time of custody between the initial transfer of the encrypted digital asset of the retail product to that user's personal digital wallet and the transfer of the encrypted digital asset of the retail product to another user's third party digital wallet. Method 500 may then determine whether the selected (first) user's time of custody is below a predefined "acceptable" minimum holding time of the encrypted digital asset. If not, method 500 may automatically output a scalping notification to the manufacturer/retailer informing them that the selected (first) user's personal account may need to be limited or temporarily or permanently suspended. As yet another option, a smart contract may be generated to authenticate ownership of the encrypted digital asset and track future transactions.

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

Furthermore, aspects of the disclosure may be implemented in a variety of computer system and computer network configurations, including multiprocessor systems, microprocessor-based or programmable consumer electronics devices, minicomputers, mainframe computers, and the like. In addition, aspects of the disclosure may be implemented in distributed computing environments where tasks are performed by resident and remote processing devices that are linked through a communications network. In a distributed computing environment, program modules may be located in both local and remote computer storage media, including memory storage devices. Thus, aspects of the disclosure may be implemented in connection with a variety of hardware, software, or combinations thereof, in a computer system or other processing system.

As described in this disclosure, the system may utilize public or private blockchain infrastructure, distributed ledgers, append-only databases, and the like. In one example, the cryptographically secured digital assets described herein may be first stored/secured on a private blockchain residing on an 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 any one entity's assets may be maintained by that entity. Such a model may provide for sharing of network and infrastructure costs/resources while allowing each entity to maintain its own asset independence. To further 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).

Any of the methods described herein may include machine-readable instructions for execution by (a) a processor, (b) a controller, and/or (c) any other suitable processing device. Any algorithm, software, control logic, protocol, or method disclosed herein may be embodied as software stored on a tangible medium, such as, for example, a flash memory, solid-state memory, CD-ROM, hard disk drive, digital versatile disk (DVD), or other memory device. Alternatively, the entire algorithm, control logic, protocol, or method, and/or portions thereof, may be executed by a device other than a controller, and/or may be embodied in firmware or dedicated hardware in any available manner (e.g., implemented by an application specific integrated circuit (ASIC), a programmable logic device (PLD), a field programmable logic device (FPLD), discrete logic, etc.). Additionally, although certain algorithms are described with reference to the flowcharts shown herein, many other methods for implementing the exemplary machine-readable instructions may alternatively be used.

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

Clause 1: A method of brand promotion using encrypted digital assets, the method comprising: provisioning a plurality of non-fungible tokens, each of which is registered in an immutable database or blockchain and each of which corresponds to a unique digital asset; associating each of the non-fungible tokens with a unique machine-readable identification code; providing each machine-readable identification code to a different respective individual of a plurality of individuals; and providing software code to a user device associated with at least one of the plurality of individuals, the user device including a camera, a display, and location recognition circuitry, the software code being configured to: cause the user device to detect a virtual image within a virtual environment, and upon discovery of the virtual image, prompt the user via the display to scan the machine-readable identification code; recognize the machine-readable identification code, and cause the token associated with the machine-readable identification code to be transferred to a digital locker associated with the individual or the user device.

Clause 2: The method of clause 1, wherein the token includes genotypic information corresponding to one or more phenotypic expressions of the virtual object.

Clause 3: A method according to any of clauses 1 or 2, wherein the software code causes the user device to detect a virtual image within a real-world environment via augmented reality.

Clause 4: The method of 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 circuitry; to display the optical image on the display; and to superimpose the displayed optical image with a virtual image at a predetermined position within the displayed environment.

Clause 5: The method of any one of clauses 1 to 4, wherein the unique digital asset comprises a virtual object including a plurality of attributes, each attribute being determinable, at least in part, according to a portion of a code associated with a token of the unique digital asset.

Clause 6: The method of clause 5, wherein at least one of the plurality of attributes is affected in its representation by use of a virtual object.

Clause 7: The method of any one of clauses 1 to 6, wherein the location awareness circuit is a GPS receiver.

Clause 8: A method of brand promotion using encrypted digital assets, the method comprising:
The method includes the steps of: providing a plurality of non-fungible tokens, each of the non-fungible tokens being registered in an immutable database or blockchain, each corresponding to a different respective physical retail product selected from a plurality of physical retail products; associating each of the non-fungible 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 the retail purchaser to transfer the non-fungible token 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.

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

Clause 10: The method of claim 8 or 9, further comprising providing software code to a user device; the user device including a camera, a display, and location recognition circuitry, the software code being configured to: cause the user device to find a virtual image within a real-world environment, and upon finding the virtual image, prompt the user via the display to scan a machine-readable identification code; and recognize the machine-readable identification code.

Clause 11: The method of clause 10, wherein the software code causes the user device to recognize the machine-readable identification code via at least one of optical recognition via a camera, RFID, NFC, or BLUETOOTH (registered trademark) communication.

Clause 12: The method of any one of clauses 8 to 11, wherein the step of providing a machine-readable identification code associated with the first physical retail product to a retail purchaser of the first physical retail product includes at least one of: including the machine-readable identification code on a tag, label, or sticker attached to the first retail product; printing the machine-readable identification code on a box, container, or packaging material that contains the first physical retail product; printing the machine-readable identification code on a receipt provided to the retail purchaser; printing a first portion of the machine-readable identification code on the box, container, or packaging material that contains the first physical retail product, and printing a second portion of the machine-readable identification code on a receipt provided to the retail purchaser.

Clause 13: The method of clause 12, wherein the software code causes the user device to detect a virtual image within a real-world environment via augmented reality.

Clause 14: The method according to clause 12 or 13, 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; to display the optical image on the display; and to superimpose the displayed optical image with the virtual image at a predetermined position within the displayed environment.

Clause 15: The method of any one of clauses 8 to 14, wherein the token includes genotypic information corresponding to one or more phenotypic expressions of the virtual object.

Clause 16: The method of any of clauses 8-15, wherein the unique digital asset comprises a virtual object including a plurality of attributes, each attribute being determinable, at least in part, according to a portion of a code associated with a token of the unique digital asset.

Clause 17: The method of clause 16, wherein at least one of the plurality of attributes is affected in its representation by use of a virtual object.

Clause 18: A method comprising providing a virtual object to a user, the virtual object including a plurality of attributes, each attribute of the plurality of attributes being derived, at least in part, from code associated with a non-fungible token registered in an immutable database or on a blockchain.

Clause 19: The method of clause 18, wherein the step of providing the virtual object to the user includes a step of transferring a non-fungible token to an account associated with the user.

Clause 20: The method of clause 19, further comprising receiving a value from the user in consideration of transferring the non-fungible token to an account associated with the user.

Clause 21: The method of any one of clauses 18 to 20, wherein the step of providing the virtual object to the user includes the step of making the virtual object available to the user within the video game.

Clause 22: The method of clause 21, wherein the video game includes an avatar, character, or athlete in a virtual environment, the avatar, character, or athlete being controlled by user input received via a user device.

Clause 23: The method of clause 22, wherein the virtual object is a footwear product or an apparel product.

Clause 24: The method of any of clauses 22 or 23, wherein the avatar, character, or athlete includes a plurality of character attributes, each having a respective attribute score that influences the avatar, character, or athlete's behavior, performance, or ability within the environment; and integration of a virtual object with the avatar, character, or athlete operably modifies at least one attribute score.

Clause 25: The method of clause 21, wherein the video game is a digital trading card game and the virtual objects are represented as digital trading cards.

Clause 26: The method of any one of clauses 21 to 25, further comprising providing to a remote server an indication of use of the virtual object in the video game, the indication of use of the virtual object operative to modify at least one of a plurality of attributes of the virtual object.

Clause 27: A computerized system for implementing the method described in any one of clauses 1 to 16.

Clause 28: A method for automating the generation of encrypted digital assets associated with articles of footwear, each of the articles of footwear including 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 including: receiving a transaction confirmation indicating a valid transfer of the articles of footwear from a first party to a second party via a middleware server computer through a distributed computing network from a remote computing node; determining a unique owner ID code associated with the second party via the middleware server computer from an encrypted relational database; generating encrypted digital assets associated with the articles of footwear, the encrypted digital assets including a digital shoe and a unique digital shoe ID code; linking the encrypted digital assets with the unique owner ID code via the middleware server computer; and transmitting the unique digital shoe ID code and the unique owner ID code to a distributed blockchain ledger via the middleware server computer to record the transfer of the encrypted digital assets to the second party in a transaction block.

Clause 29: The method of clause 28, wherein the unique digital shoe ID code includes an encrypted token key having a code string segmented into a series of code subsets, a first plurality of code subsets including data indicative of attributes of the digital shoe.

Clause 30: The method of clause 29, wherein the first plurality of code subsets includes genotype and phenotype data for the digital shoe.

Clause 31: The method of clause 29 or 30, wherein the second plurality of code subsets includes data indicative of attributes of the footwear article.

Clause 32: The method of clause 31, wherein the second plurality of code subsets includes color, material, production, manufacturer, and/or model data for the footwear article.

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

Clause 34: The method of any one of clauses 28 to 33, further comprising the step of sending a notification to the second party in response to receiving the transaction confirmation, together with a unique key having a hash address to the encrypted token.

Clause 35: The method of any one of clauses 28 to 34, further comprising: receiving a digital breeding solicitation with a request to mix the encrypted digital asset with a third-party encrypted digital asset; and generating a progeny 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.

Clause 36: The method of clause 35, wherein the unique digital shoe ID code includes a first encrypted token key having a first code string segmented into a series of first code subsets, a first of the first code subsets including data indicative of an attribute of the digital shoe; the third-party encrypted digital asset includes a second encrypted token key having a second code string segmented into a series of second code subsets, a first of the second code subsets including data indicative of an attribute of the third-party digital shoe; the descendant encrypted digital asset includes a third encrypted token key having a third code string segmented into a series of third code subsets, a first of the third code subsets including data from the first of the first code subsets, and a second of the third code subsets including data from the first of the second code subsets.

Clause 37: The method of clause 36, wherein a first one of the first and third code subsets both share a first distinct alphanumeric sequence, and a first one of the second code subset and a second one of the third code subset share a second distinct alphanumeric sequence.

Clause 38: The method of any of clauses 36 or 37, wherein the step of generating an offspring encrypted digital asset includes the steps of: designating one of the encrypted digital asset or the third-party encrypted digital asset as a sire; designating the other of the encrypted digital asset or the third-party encrypted digital asset as a dam; and applying a random number generator to determine which of the third code subsets correspond to which of the first code subsets and which of the third code subsets correspond to which of the second code subsets.

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

Clause 40: The method of clause 39, further comprising receiving a new transaction confirmation indicating a new valid transfer of the footwear product from the second party to the third party.

Clause 41: The method of any one of clauses 28 to 40, further comprising the step of generating, via the middleware server computer, a smart contract operable to authenticate ownership and track future transactions of the encrypted digital asset.

Clause 42: The method of any one of clauses 28 to 41, wherein the unique owner ID code is linked to a cryptocurrency wallet registered in the distributed blockchain ledger.

Clause 43: The method of any one of clauses 28-42, wherein the transaction verification includes a Universal Product Code (UPC) and/or a Unique Product Identification Number (UPIN) corresponding to the make and model of the footwear product.

Clause 44: A distributed computing system for automating the generation of encrypted digital assets associated with articles of footwear, each of the articles of footwear including 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 distributed computing system including: a wireless communication device configured to connect to a remote computing node via a distributed computing network; an encrypted digital asset registry storing unique digital shoe ID codes associated with the digital shoes and a plurality of encrypted digital assets; and a middleware server computer operably connected to the wireless communication device and the encrypted digital asset registry, the middleware server computer: and a middleware server computer programmed to: receive, via the blockchain, an electronic transaction confirmation indicating a valid transfer of the footwear product from the first party to the second party; obtain, from the encrypted relational database, a unique owner identification (ID) code associated with the second party; generate an encrypted digital asset associated with the footwear product, the encrypted digital asset including the digital shoe and the unique digital shoe ID code; link the encrypted digital asset to the unique owner ID code in an encrypted digital asset registry; and transmit the unique digital shoe ID code and the unique owner ID code to the distributed blockchain ledger to record the transfer to the second party in a transaction block of the encrypted digital asset.

Clause 45: The distributed computing system of clause 44, wherein the unique digital shoe ID code includes an encrypted token key having a code string segmented into a series of code subsets, a first plurality of code subsets including data indicative of attributes of the digital shoe.

Clause 46: The distributed computing system of clause 45, wherein the second plurality of code subsets includes data indicative of attributes of the footwear product.

Clause 47: The distributed computing system of clause 44 or 45, wherein the middleware server computer is further programmed to: in response to receiving the transaction confirmation, send a digital notification to the second party with information for accessing the encrypted digital assets; receive a scan 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 make and model of the footwear product has been scanned; and linking the encrypted digital assets with the unique owner ID code is responsive to receiving the scan confirmation.

Clause 48: The distributed computing system of any one of clauses 44 to 47, wherein the middleware server computer is further programmed to send a digital notification to the second party together with a unique key having a hash address to the cryptographic token in response to receiving the transaction confirmation.

Clause 49: The distributed computing system of any one of clauses 44-48, wherein the middleware server computer is further programmed to: receive a digital breeding bid from a second party with a request to mix the encrypted digital asset with a third-party encrypted digital asset; and generate an offspring 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.

Clause 50: The distributed computing system of clause 49, wherein the unique digital shoe ID code includes a first encrypted token key having a first code string segmented into a series of first code subsets, a first of the first code subsets including data indicative of attributes of the digital shoe; the third party encrypted digital asset includes a second encrypted token key having a second code string segmented into a series of second code subsets, a first of the second code subsets including data indicative of attributes of the third party digital shoe; the descendant encrypted digital asset includes a third encrypted token key having a third code string segmented into a series of third code subsets, a first of the third code subsets including data from the first of the first code subsets, and a second of the third code subsets including data from the first of the second code subsets.

Clause 51: The distributed computing system of clause 50, wherein generating an offspring encrypted digital asset includes applying a random number generator to: designate one of the encrypted digital asset or the third-party encrypted digital asset as a sire; designate another of the encrypted digital asset or the third-party encrypted digital asset as a dam; and 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.

Clause 52: The distributed computing system of any one of clauses 44 to 51, wherein the middleware server computer is further programmed to: receive a digital transfer proposal with a request to transfer the encrypted digital asset to a third party; determine a new unique owner ID code to be associated with the third party; link the encrypted digital asset with 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 the distributed blockchain ledger.

Clause 53: A method for event-based distribution of encrypted digital assets, the method comprising: receiving, from a computing device associated with a user, an indication that the computing device is located at a predetermined venue within a predetermined time frame; receiving, from the computing device, a unique owner identification (ID) code associated with the user; receiving, from the computing device, a unique code acquired by the user; determining a unique digital asset ID code corresponding to the received unique code, the unique digital asset ID code representing the encrypted digital asset; and transmitting a cryptographic block to a distributed blockchain ledger to record a transfer of the encrypted digital asset to the user, the cryptographic block including both the unique digital asset ID code and the unique owner ID code.

Clause 54: The method of clause 53, wherein the encrypted digital assets include genotype data representing a digital shoe or apparel product.

Clause 55: The method of clause 53, wherein the encrypted digital assets include genotype data that represents attributes of the digital shoe or apparel product, but does not represent the entire digital shoe or apparel product.

Clause 56: The method of clause 55, further comprising the step of amending an existing digital asset having genotype data representing the digital shoe or apparel product with genotype data representing attributes of the digital shoe or apparel product.

Clause 57: The method of any one of clauses 53 to 56, wherein the indication that the computing device is located at a given venue includes an indication of whether the GPS coordinates of the computing device are within a predefined geofence or closed geographic boundary.

Clause 58: The method of any one of clauses 53 to 57, wherein the indication that the computing device is located at a given venue includes an indication of whether the computing device is in proximity to an 802.11 or BLUETOOTH beacon.

Clause 59: The method of any one of clauses 53 to 58, wherein the indication that the computing device is located at a given venue includes an image, or a representation thereof, captured by the computing device from which one or more visual attributes of the venue may be identified.

Clause 60: The method of any one of clauses 53 to 59, wherein the received unique code comprises a code obtained from a ticket to an event at the venue.

Clause 61: The method of any one of clauses 53 to 59, wherein the received unique code comprises a code scanned from a tangible object within the venue or from a merchandise receipt generated within the venue.

Clause 62: The method of any one of clauses 53 to 61, further comprising receiving an indication that the conditional event has occurred within a predefined time frame, and wherein the transmission of the cryptographic block to the distributed blockchain ledger occurs only after receiving the indication that the conditional event has occurred.

Clause 63: The method of any one of clauses 53-62, wherein the step of determining the unique digital asset ID code includes: directing an application or an internet browser operating on the computing device to a virtual storefront display including a plurality of different displayed encrypted digital assets; and receiving an indication of a selection of one of the plurality of 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 plurality of different displayed encrypted digital assets.

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

Clause 65: The method of any one of clauses 53-64, wherein the unique digital asset ID code includes a cryptographic token key having a code string segmented into a series of code subsets, a first plurality of code subsets including genotypic data corresponding to one or more phenotypic expressions of the digital asset.

Clause 66: The method of clause 65, wherein the digital asset is a computer-generated digital shoe.

Clause 67: The method of clause 66, wherein the plurality of attributes of the computer-generated digital shoe includes at least one of color scheme, material, manufacture, manufacturer, and/or model data.

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 attributes of the digital asset to the digital video game application such that the digital asset is rendered within the digital application and modifies one or more aspects of gameplay of the digital video game application.

Clause 70: A method for providing encrypted digital assets associated with a transfer of a retail product, the method including: broadcasting, via a server computer on a distributed computing network, an electronic notification of a future transaction of the retail product; receiving, via a server computer on the distributed computing network, requests from personal computing devices of a plurality of users 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, from the users added to the virtual line, via the server computer, a first user selected to receive the retail product and a second user selected to receive the encrypted digital asset including the digital retail product and a unique digital asset code; requesting, via the server computer, the transfer of the encrypted digital asset to a digital wallet of the second user; and transmitting the unique digital asset code to a distributed blockchain ledger to record the transfer of the encrypted digital asset to the second user in a separate record block.

Clause 71: The method of clause 70, wherein the unique digital asset code includes a cryptographic token having a code string segmented into a private key and a public key.

Clause 72: The method of clause 70 or 71, wherein the future transactions of the retail products include impending transactions of a plurality of retail products, and the first users are added to the virtual line, each including a first subset of users who have been selected to receive a respective one of the retail products.

Clause 73: The method of any one of clauses 70-72, wherein the encrypted digital assets include a plurality of encrypted digital assets, and the second users are added to the virtual line and include a second subset of users who are not selected to receive the retail product, each of whom is selected to receive a respective encrypted digital asset of the encrypted digital assets.

Clause 74: The method of clause 73, wherein the plurality of encrypted digital assets includes: a first asset set having a first type of encrypted digital assets; and a second asset set having a second type of encrypted digital assets different from the first type of encrypted digital assets.

Clause 75: The method of clause 73 or 74, wherein the second subset of users includes: a first subset group selected to receive a first type of encrypted digital asset from the first asset set, and a second subset group selected to receive a second type of encrypted digital asset from the second asset set.

Clause 76: The method of clause 75, wherein the first asset set includes a first number of encrypted digital assets of a first type and the second asset set includes a second number of encrypted digital assets of a second type, the second number being greater than the first number.

Clause 77: The method of any one of clauses 70 to 76, further comprising the step of sending an electronic message to the second user in response to the transfer of the encrypted digital assets to the second user's digital wallet, the electronic message including a unique key with a hashed address for the encrypted token.

Clause 78: The method of any one of clauses 70 to 77, wherein the electronic notification is broadcast at a random or pre-set time during a pre-announced period and within a period unknown to the user from whom the request is received.

Clause 79: The method of any one of clauses 70 to 78, further comprising the steps of: receiving, via the server computer, data from one of the personal computing devices of one of the users indicating that one of the users has completed a predefined activity; and advancing the one of the users to a new position ahead of the virtual line based on the received data.

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

Clause 81: The method of any one of clauses 70-80, further comprising: generating a second encrypted digital asset associated with the retail product; tracking, for a first user, a time of storage between a transfer of the second encrypted digital asset to a first digital wallet of the first user and a subsequent transfer of the second encrypted digital asset to a third digital wallet of a third user; determining whether the time of storage is below a predefined minimum holding time of the encrypted digital asset; and outputting a scalping notification in response to a determination that the time of storage is below the predefined minimum holding time.

Clause 82: The method of clause 81, further comprising generating, via the server computer, a smart contract operable to authenticate ownership of the second encrypted digital asset and track future transactions of the second encrypted digital asset.

Clause 83: The method of any one of clauses 70 to 82, wherein the encrypted digital assets include genotype data representative of appearance characteristics of a digital retail product, the digital retail product including a digital shoe or digital apparel product.

Clause 84: The method of any one of clauses 70-83, wherein each received request to participate in a future transaction includes a unique quick reference (QR) code obtained by the user from a ticket for an event at the specified venue, a tangible object within the specified venue, or a merchandise receipt generated within the specified venue.

Clause 85: A computing system for providing encrypted digital assets associated with a transfer of a retail product, 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 a future transaction of the retail product; 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 the retail product through the distributed computing network; receive requests to participate in future transactions through the distributed computing network from personal computing devices of a plurality of users; add a selected number of users to the virtual line associated with the future transaction of the retail product; 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 asset including the digital retail product and the unique digital asset code; request a transfer of the encrypted digital asset to the second user's digital wallet; and transmit the unique digital asset code to the distributed blockchain ledger to record the transfer of the encrypted digital asset to the second user in a separate record block.

Clause 86: A non-transitory computer-readable medium storing instructions executable by a processor of a server computer of a distributed computing system, the instructions causing the server computer to perform operations including: broadcasting an electronic notification of a future transaction of a retail product over a distributed computing network; receiving requests to participate in the future transaction over the distributed computing network from personal computing devices of a plurality of users; adding a selected number of users to a virtual line associated with the future transaction of the 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 an encrypted digital asset including the digital retail product and a unique digital asset code; requesting a transfer of the encrypted digital asset to a digital wallet of the second user; and transmitting the unique digital asset code to a distributed blockchain ledger to record the transfer of the encrypted digital asset to the second user in a separate record block.

Clause 87: A computing system as described in clause 85 or a non-transitory computer-readable medium as described in clause 86, having any one or more or all of the features described in clauses 71 to 84.

Claims (25)

1. A computing system for supplying encrypted digital assets, the computing system comprising:
a communication device configured to connect to the distributed computing network;
a data storage device configured to store user data for use in a virtual line or bin associated with a future transaction of a physical retail product;
A server computer operably connected to the communication device and the data storage device, the server computer comprising:
broadcasting, over the distributed computing network, electronic notifications of the future transactions of the physical retail products;
receiving requests from personal computing devices of a plurality of users over the distributed computing network to participate in the future transaction;
adding a selected number of the users to the virtual line or bin associated with the future transaction of the physical retail product;
selecting a first subset of users from the users added to the virtual line or bin, each of the users designated to receive a respective one of the physical retail products;
selecting a second subset of users from the users who were added to the virtual line or bin and who were not selected by the first subset of users, each of the second subset of users designated to receive a respective one of the encrypted digital assets, each of the encrypted digital assets including a digital object and a unique digital asset code;
Requesting a transfer of each of the encrypted digital assets of the second subset of users to a respective digital wallet of a corresponding one of the users;
submitting each of the unique digital asset codes to a distributed blockchain ledger for recording in a separate record block the transfer of the encrypted digital asset to the corresponding one of the users of the second subset of users;
a server computer programmed to
Computing system. each of the unique digital asset codes includes a respective cryptographic token having a unique code string segmented into a private key and a public key;
The computing system of claim 1 . each of the digital objects includes a virtual representation of one of the physical retail products, a unique design rendering of a physical object, and/or a unique design file of an object;
A computing system according to claim 1 or 2. the digital objects of the encrypted digital asset are distinct from one another;
A computing system according to any one of claims 1 to 3. The encrypted digital assets include: a first asset set having a first type of encrypted digital assets; and a second asset set having a second type of encrypted digital assets different from the first type of encrypted digital assets;
A computing system according to any preceding claim. The second subset of users includes: a first subset group designated to receive the first type of encrypted digital assets from the first asset set; and a second subset group designated to receive the second type of encrypted digital assets from the second asset set.
The computing system of claim 5 . the first asset set includes a first number of encrypted digital assets of the first type, and the second asset set includes a second number of encrypted digital assets of the second type, different from the first number;
The computing system of claim 6. The server computer further comprises:
verifying a transfer of each of the encrypted digital assets to the respective digital wallet of the corresponding one of the users of the second subset of users;
sending, to each of the users of the second subset of users, an electronic message including a unique key with a unique hashed address for the unique encrypted token;
It is programmed to
A computing system according to any preceding claim. the electronic notification is broadcast during a pre-announced period and at a random or pre-set time within the pre-announced period unknown to the user from whom the request was received;
A computing system according to any preceding claim. The server computer further comprises:
receiving activity data from one of the personal computing devices of one of the users indicating that the one of the users has completed a predefined activity;
advancing the one of the users to a new position ahead of the virtual line or bin based on the received activity data;
It is programmed to
A computing system according to any preceding claim. The selected number of users added to the virtual line or bin is output via a random number generator.
A computing system according to any preceding claim. The server computer further comprises:
associating a second encrypted digital asset with the physical retail product for each first user of the subset of first users;
tracking, for the first user, a time of storage between a transfer of the second encrypted digital asset to a first digital wallet of the first user and a subsequent transfer of the second encrypted digital asset to a third party digital wallet of a third user;
determining whether the time of storage is below a predefined minimum retention time of the second encrypted digital asset;
outputting a scalping notification in response to determining that the time of storage is below the predefined minimum retention time;
It is programmed to
A computing system according to any preceding claim. The server computer is further programmed to generate a smart contract operable to authenticate ownership of the second encrypted digital asset and to track future transactions of the second encrypted digital asset.
The computing system of claim 12. Each of the encrypted digital assets includes respective genotype data representative of appearance characteristics of the digital object, the digital object including a digital shoe or a digital apparel product;
A computing system according to any preceding claim. each of the received requests to participate in the future transaction includes a ticket to an event at a specified venue, a tangible object within the specified venue, or a unique quick reference code obtained by the user from a merchandise receipt generated within the specified venue;
A computing system according to any preceding claim. 1. A computing system for supplying encrypted digital assets, the computing system comprising:
A communication device configured to connect to the distributed computing network;
a data storage device configured to store user data for use in a virtual line or bin associated with a future transaction of a physical retail product;
A server computer operably connected to the communication device and the data storage device, the server computer comprising:
broadcasting, over the distributed computing network, electronic notifications of the future transactions of the physical retail products;
receiving requests from personal computing devices of a plurality of users over the distributed computing network to participate in the future transaction;
adding a selected number of the users to the virtual line or bin associated with the future transaction of the physical retail product;
selecting, from the users added to the virtual line or bin, a first user to receive the physical retail product and a second user to receive a first encrypted digital asset including a digital object and a unique digital asset code;
Requesting a transfer of the first encrypted digital asset to a second digital wallet of the second user;
Requesting a transfer of a second encrypted digital asset associated with the physical retail product to a first digital wallet of the first user;
tracking a time of storage between the transfer of the second encrypted digital asset to the first digital wallet of the first user and a subsequent transfer of the second encrypted digital asset to a third party digital wallet of a third user;
determining whether the time of said storage is below a predefined minimum retention time;
outputting a scalping notification in response to determining that the time of storage is below the predefined minimum retention time;
a server computer programmed to
Computing system. the unique digital asset code includes a cryptographic token having a unique code string segmented into a private key and a public key;
17. The computing system of claim 16. the digital object comprises a virtual representation of the physical retail product, a unique design rendering of a physical object, and/or a unique design file of an object;
18. A computing system according to claim 16 or 17. The server computer further comprises:
confirming the transfer of the first encrypted digital asset to the second digital wallet of the second user and the transfer of the second encrypted digital asset to the first digital wallet of the first user;
sending each of the first user and the second user an electronic message including a unique key with a unique hashed address for a unique encrypted token;
It is programmed to
A computing system according to any one of claims 16 to 18. the electronic notification is broadcast during a pre-announced period and at a random or pre-set time within the pre-announced period unknown to the user from whom the request was received;
A computing system according to any one of claims 16 to 19. The server computer further comprises:
receiving activity data from one of the personal computing devices of one of the users indicating that the one of the users has completed a predefined activity;
advancing the one of the users to a new position ahead of the virtual line or bin based on the received activity data;
It is programmed to
A computing system according to any one of claims 16 to 20. The selected number of users added to the virtual line or bin is output via a random number generator.
22. A computing system according to any one of claims 16 to 21. The server computer is further programmed to generate a smart contract operable to authenticate ownership of the second encrypted digital asset and to track future transactions of the second encrypted digital asset.
23. A computing system according to any one of claims 16 to 22. The first encrypted digital asset includes genotype data representative of appearance characteristics of the digital object, the digital object including a digital shoe or a digital apparel product;
24. A computing system according to any one of claims 16 to 23. each of the received requests to participate in the future transaction includes a ticket to an event at a specified venue, a tangible object within the specified venue, or a unique quick reference code obtained by the user from a merchandise receipt generated within the specified venue;
25. A computing system according to any one of claims 16 to 24.

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