WO2019094828A1 - Digital crypto asset generation - Google Patents

Abstract

Computer-based systems and methods for generating and distributing crypto assets are provided. In one feature, each crypto asset is a digital crypto asset generated that finances the development and deployment of projects such as smart growth initiatives, software or services. In further embodiments, electronic wearable devices (100) are used to store distribute crypto assets. In a further embodiment, crypto assets are generated and distributed as part of an independent ecosystem to facilitate deployment of assets in the economy to reduce greenhouse gas emission and mitigate climate change. In this way, the generation and distribution of digital crypto assets impart physical changes in the environment by optimizing the use of resources and reducing the amount of carbon and greenhouse gas emitted and solve a physical problem in the atmosphere.

Description

DIGITAL CRYPTO ASSET GENERATION

BACKGROUND

Field

[0001] The field relates to digital crypto assets and computer-implemented applications relating to digital crypto assets.

Background Art

[0002] Mitigating climate change is one of the greatest physical problems facing humankind. The presence of greenhouse gases in the atmosphere is altering the climate in significant ways across various regions of Earth. Entire islands, coastlines and cities face sea level rise from climate change. Many areas face greater degrees of drought, species migration or extinction, disruptions in food supply, and increases in displaced people or climate refugees. Greenhouse gas emissions need to be reduced or eliminated on a large scale across the globe. Megatons of carbon dioxide, methane and other greenhouse gases need to be physically removed from the atmosphere or prevented from being physically added to the atmosphere. Moreover, the relative percentage of assets deployed in an economy toward extractive fossil-fuel pursuits needs to be transformed to favor renewable energy sources and applications that are sustainable. Additionally, municipalities, counties, states and nations need to plan for more efficient infrastructure and economic development to support a growing population while reducing greenhouse gas emissions and conserving resources with a goal of sustainability.

[0003] Different political and economic policies have been proposed at regional, national and international levels to mitigate climate change. Technological solutions have also been sought. For example, advances in the development and deployment of renewable energy like solar and wind have increased. These advancements, however, are occurring too slowly and greenhouse gas emissions continue to occur at too high a rate. Moreover, many technological advances, such as increased efficiency in solar cells, while beneficial, are isolated or implemented in piecemeal fashion. Compounding these problems is the fact that the economies of many countries, including the United States, are still based on fossil fuels, heavy industry and sprawling development. Moreover, countries issue government-backed currencies based on monetary and fiscal policies separate from any consideration of climate change mitigation. States, counties, municipalities, and corporate entities issue debt financing such as infrastructure and corporate bonds, and equity such as preferred stock and common stock to finance development and expansion projects.

[0004] Decentralized digital crypto assets, also called tokens, have recently been developed to provide an alternative to traditional government-backed currencies as well as public and private debt and equity securities. Such digital crypto assets use decentralized control instead of a centralized authority electronic monetary or banking system. Crypto assets provide a distributed ledger - also referred to as a blockchain - which acts as a transaction database and supports decentralized control, for example by tracking the transfer of the ownership of tokens for a cryptocurrency.

[0005] Blockchain platforms such as Ethereum are just now allowing limited transactions to occur using a digital cryptocurrency. See, M. Peck, Blockchains: How They Work and Why They 'll Change the World, IEEE Spectrum, pages 1-9, posted Sept. 28, 2017, downloaded Nov. 4, 2017. Ethereum and other blockchain platforms also allow smart contracts for the creation of crypto assets that can serve as securities. One form of crypto asset is the security token. An security is a smart contract, investment contract or crypto asset that is compliant with securities regulations. The inventors recognized, however, that conventional blockchain platforms and crypto assets are limited in that they generally operate to further an inefficient, unsustainable economy dependent on fossil fuels and heavy industry like other conventional currencies, securities or transactions. One application of blockchain technology that relates to solar energy has been proposed but appears to only facilitate limited transactions such as building a microgrid. See, M. Peck and D. Wagman, Blockchains Will Allow Rooftop Solar Energy Trading for Fun and Profit, IEEE Spectrum, pages 1-3, posted Oct. 1, 2017, downloaded Nov. 7, 2017. Moreover, conventional digital crypto assets, such as Bitcoin, have valuations based on scarcity like the extractive fossil-fuel economies in which they were generated, rather than a value based on the fundamental economic performance of assets, climate change mitigation or other social good. BRIEF SUMMARY

[0006] Embodiments of the present invention described herein involve computer- implemented systems and methods for generating and distributing crypto assets. In one embodiment, a computer-based crypto asset system generates and distributes generative crypto assets. According to a feature, each crypto asset is a digital investment contract on the blockchain based on a unit of economic or social value added to a network. For example, a crypto asset may be a unit of stock, debt, share of profit, share of revenue, share of energy generation capacity or unit of infrastructure ownership stored in computer readable memory and accessible in digital form by a unique address.

[0007] According to a further feature, crypto asset storage is given physical form.

Electronic wearable devices are used to store, distribute and exchange crypto assets. For example, an electronic wearable device can be a small, lightweight, portable electronic device that can be easily distributed to user. The user can wear the device on his or her clothing or body or on an accessory item.

[0008] In one example, an electronic wearable device can be a small disk about the shape and size of a coin. An electronic wearable device includes computer readable memory. The memory may store a respective crypto asset or an identifier that enables access to a respective crypto asset stored on locally on the wearable device or stored remotely at a remote device over a computer network.

[0009] In an embodiment, electronic wearable devices include near-field communication. For example, an electronic wearable device can communicate with point of sale terminals, mobile devices such as smart phones, kiosks, or other computing devices to initiate or carry out payments. In other examples, an electronic wearable device can include mobile application communications and can activate one or more embedded sensors. In still further examples, an electronic wearable device can include embedded solar recharging, an input button and one or more indicators for use without a mobile application.

[0010] In a further embodiment, crypto assets are generated and distributed as part of an independent ecosystem to finance the deployment of assets in the economy to develop real estate and infrastructure projects, reduce greenhouse gas emission, earn income from investments and mitigate climate change. In this way, the generation and distribution of digital crypto assets impart physical changes in the environment by developing real estate, implementing infrastructure, reducing the amount of carbon and greenhouse gas emitted and solve a physical problem in the landscape and atmosphere.

[0011] Further embodiments, features, and advantages of the invention, as well as the structure and operation of the various embodiments of the invention are described in detail below with reference to accompanying drawings.

BRIEF DESCRIPTION OF THE FIGURES

[0012] Embodiments of the invention are described with reference to the accompanying drawings. In the drawings, like reference numbers may indicate identical or functionally similar elements. The drawing in which an element first appears is generally indicated by the left-most digit in the corresponding reference number.

[0013] FIG. 1A and IB show examples of electronic wearable devices according to an embodiment of the present invention.

[0014] FIG. 2 is a diagram illustrating operation of an example crypto asset generation and distribution process used in an independent ecosystem according to an embodiment of the present invention.

[0015] FIG. 3 is a diagram illustrating an example crypto asset generation and distribution process used in an independent ecosystem according to an embodiment of the present invention.

[0016] FIGs. 4A and 4B are flowcharts illustrating an example crypto asset generation and distribution process used in a further embodiment of the present invention.

DETAILED DESCRIPTION OF EMBODIMENTS OF THE INVENTION

[0017] Embodiments of the present invention provide computer-implemented systems and methods for generating and distributing digital crypto assets (also referred to herein as crypto assets or tokens). In one embodiment, a computer-based crypto asset system generates and distributes crypto assets. In an embodiment, crypto assets are issued for the purpose of financing the development of a project in a manner compliant with securities regulations. According to a feature, each crypto asset is an investment contract based on a unit of value added to a network. Crypto assets may be purchased through the payment of cryptocurrencies or fiat currencies. The funds collected through the sale of crypto assets are then used to finance the deployment of infrastructure, the development of real estate or the growth of a company. For example, a crypto asset may represent a unit of profit sharing in an enterprise owned by the purchaser, stored in computer readable memory and accessible in digital form by a unique computer-readable address. According to a further feature, electronic wearable devices are used to distribute, store and transfer crypto assets to and between users in physical form.

[0018] In an embodiment, a token manager implemented on a networked computer system generates and distributes crypto assets. The token manager generates and distributes crypto assets according to various criteria, rules, and/or metrics as described herein. A distributed database stores a distributed ledger to support transactions using the crypto assets as described herein. In one example, the distributed ledger can be implemented as a blockchain.

[0019] The inventors further recognized that crypto assets can be used to create an independent ecosystem to promote smart growth that mitigates climate change. In this way, an independent ecosystem is provided which is independent of a conventional fossil fuel economy. Through the purchase, use and exchange of crypto assets, the independent ecosystem provides incentives and rewards that promote smart growth, climate change mitigation and adoption of renewable energy on a large scale. Value of digital tokens in a new ecosystem, as described herein, is a function of the success of the projects financed by the sale of the crypto assets, and is based on the adoption of smart growth policies, efficient infrastructure, water conservation, pollution reduction, solar, climate change mitigation or other social good.

[0020] In a further feature, digital crypto assets generated and distributed as described herein may be used in computer-implemented applications for smart growth including energy generation, management and efficiency, real estate development and planning, economic development and financing.

[0021] While the present invention is described herein with reference to illustrative embodiments for particular applications, it should be understood that the invention is not limited thereto. Those skilled in the art with access to the teachings provided herein will recognize additional modifications, applications, and embodiments within the scope thereof and additional fields in which the invention would be of significant utility. Generative Crypto Assets

[0022] In one embodiment, a crypto asset is an investment contract sold to raise funds for the development of a mixed-use, transit-oriented real estate project powered by solar energy. In this way, through the generation, sale and distribution of crypto assets smart growth development can be financed. As the energy, economic and environmental benefits of the smart growth development project are realized through the sale, rental or lease of water, energy, housing and commercial real estate, a share of profits or revenue can be distributed periodically to holders of the crypto assets. As such, smart growth and project development can support a stable, reliable, high-yield crypto asset or security token in the global economy. Unlike cryptocurrencies, valuation of a security token according to embodiments herein is not based solely on scarcity, or supply and demand, of a digital token, but instead has a basis tied to economic performance of the project financed by the sale of the security token.

[0023] The value of a crypto asset can vary depending upon type of project financed, the contractual rights embodied in the crypto assets and other factors. For example, the issuer of a crypto asset might embody in the crypto asset a particular percentage of the cash-flow generated by the project. If the cash-flow is strong and a relatively small amount of tokens are in circulation, because the project did not need a large amount of capital for development, then the value of the crypto assets are likely to be high. The owner of a token can hold the token and keep the periodic distributions sent by the issuer to the token holder, or the owner of the token can sell the token, in which case the purchaser of the token will receive the future periodic distributions over the blockchain.

[0024] In one embodiment, a value of a crypto asset is based on the prices paid for the asset on one or more exchanges. The index of prices on each exchange is then used to establish a current value for the crypto asset. By quantifying the value of the asset in terms of the contractual rights to the economic benefits of the project and relating it to the value on the exchange, a buyer or seller can determine if the crypto asset is under or over valued. Machine learning can also be applied to recommend buying or selling crypto assets. This example of what is used to set the value of a crypto asset is not intended to be necessarily limiting and other measures of value can be used. These can include for example the net present value, money multiplier or other metrics. [0025] Also, this example of a crypto asset is illustrative and not intended to limit the present invention. Other types of projects can be capitalized through the issuance of crypto assets.

[0026] According to a feature, generative crypto assets can be traded in an exchange using blockchain technology. In an embodiment, crypto assets can be traded in an exchange which is compliant with Alternative Trading System (ATS) token exchanges or any other ERC-20 compliant exchange. In another embodiment, crypto assets can be traded in a multilateral trading facility (MTF).

[0027] In one example, a crypto asset is a token deployed to an Ethereum blockchain.

Software, a so-called smart contract, resides on computers that run the blockchain. This blockchain underlying the smart contract provides the attributes and services that make the operation of such contracts safe and secure:

[0028] · The operation of the contract is distributed to prevent a bad actor from exploiting a centralized repository.

[0029] · The data on the contract - who owns the crypto assets, how many are owned, what their payouts and values are, etc. - are transparent and managed by consensus algorithms that prevent any participant from cheating.

[0030] · The data associated with the activity of the crypto assets - trades, payouts, etc. - are immutable. Once a crypto asset is sold or traded, for example, no one can claim that it hasn't been.

[0031] · The provenance of any token or data item concerning a token is fully traceable throughout its lifetime.

[0032] · Interactions on the block chain are highly secure, making use of cutting-edge cryptographic technologies.

[0033] In an example, a crypto asset itself can be created with attributes that are essential to its operations. Among these is tradability and payment management. Tradability is needed so that the tokens can be bought, sold, and traded on the open market. Payment management is needed to track the payments made to (and disbursements taken by) the holders of the tokens. In this example, a crypto asset can be one of the first dividend-bearing tradeable tokens released on an Ethereum blockchain.

[0034] Interactions between requirements like tradability and payment management need to be carefully managed. To understand this, it helps to understand that a token, at its most basic level, is merely a number in an electronic ledger. And because numbers are the same— there is no difference between one 5 and another 5— the crypto assets themselves in isolation are all the same. If a holder transfers or trades a token to another person, one account is decremented and another is incremented. It doesn't matter who transferred the tokens or which tokens were transferred: the new recipient's balance will be incremented equivalently. In an example, this is because some markets on which crypto assets may be traded have no way of distinguishing one token from another. Because of this, there is no way of attaching the details of a token's history - what payments and withdrawals have been made - to a crypto asset itself.

[0035] In an embodiment, a smart contract contains the data needed to track a history of a crypto asset. This allows holders to access their payments, even after they trade their tokens. The smart contract becomes its own mini-account ledger, in addition to being a tradeable token.

[0036] Consider further examples of a crypto asset transfer and third-party transfer in embodiments of the present invention. A crypto asset can be transferred by a token's owner when the owner of the token executes a smart contract's transfer function. This subtracts the tokens from the current owner's balance and transfers them to the new owner's balance. When this happens a Transfer event is emitted on a blockchain. Due to immutability and transparency of the blockchain, once this transfer it made, it is permanent and non-reputable.

[0037] The transfer is a straightforward process, but it is peer-to-peer and doesn't make arrangements for things like payments to be made as part of the transaction. Transfers, including transfers on markets, may be performed by a third-party. A third-party transfer allows a third party, such as an exchange or market, to mediate an exchange of tokens between parties.

[0038] Embodiments of crypto assets and further applications are described with respect to electronic wearable devices and then an independent computer- implemented ecosystem.

Electronic Wearable Devices for Physically Storing and Distributing Crypto assets

[0039] While the possibility of changing the world for the better through a crypto asset that finances smart development is exciting, the user experience of actually dealing with cryptocurrency can be further enhanced. The inventors for the first time take crypto assets a step further, giving crypto asset holders a way to physically interact with their surroundings, mediated by the value and utility of their holdings.

[0040] FIGs. 1A and IB show examples of one or more electronic wearable devices

100 for crypto assets according to an embodiment of the present invention. In one example, not intended to be limiting, electronic wearable device 100 can have a housing in the shape of a small disk about the shape and size of a coin as shown in an image in FIG. 1 A. A loop 102 (optional) may be attached to housing 100 to allow the device 100 to physically coupled to a wearer's clothing or other object. The shape shown in one illustrative example and not intended to be limiting as other shapes may be used.

[0041] As shown in FIG, IB, device 100 may include in its housing electronic circuitry such as controller 105, memory 110 and communication interface 120. Memory 11 may be a computer readable memory that stores a respective crypto asset. As used herein in this context, "stores a respective crypto asset" can be storing an identifier associated with a crypto asset, storing a crypto asset itself, or any other way to associate or allow computer-readable access to a crypto asset or use on a blockchain. For example, in one embodiment the identifier references an account address on a public blockchain that has the tokens associated with it.

[0042] In examples, the crypto asset itself can be stored locally on the wearable device 100 or on a remote location or remote device. Alternatively or in addition to, the computer readable memory in the electronic wearable device 100 can store an identifier that enables access to a respective crypto asset stored on locally on the wearable device or stored remotely at a remote device over a computer network. In an embodiment, the computer readable memory in electronic wearable device 100 stores an identifier that references an account address on a public blockchain that has the token associated with it.

[0043] Electronic wearable devices 100 can be made inexpensively and can expedite physical distribution of crypto assets more widely and easily to large numbers of users. For example, electronic wearable device 100 can be a small, lightweight, portable electronic device that can be easily distributed to user. Electronic wearable devices 100 can be sold or given away as part of a marketing campaign. The user can wear device 100 on his or her clothing or body or as an accessory such as on necklace or as ring. In another example, the user can wear the device on an accessory, such as, on a tote bag, purse, or backpack. [0044] In further embodiments, communication interface 120 in electronic wearable devices 100 can include a transmitter and/or receiver for near-field (NFC) communication. For example, electronic wearable device 100 can communicate with point of sale terminals, mobile devices such as smart phones, kiosks, or other computing devices to initiate or carry out payments. In other examples, an electronic wearable device 100 can include mobile application communications and can activate one or more embedded sensors. In still further examples, an electronic wearable device 100 can include embedded solar recharging, an input button and one or more indicators for use without a mobile application.

[0045] Three example configurations for wearable devices 100 may be used depending upon a particular desired application:

[0046] 1. A first configuration is a light, NFC-only wearable device for payments, mobile app communications and activating embedded sensors.

[0047] 2. A second configuration includes the NFC features of the first configuration and adds Bluetooth™ communication for local discovery of apps, sensors and controls.

[0048] 3. A third configuration has the features of the previous two configurations, plus embedded solar recharging, an input button and indicator LED lights.

[0049] These wearable devices 100 can work with point-of-sale payment and ticketing systems, door locks, thermostats, lights, sound systems, and video displays, as well as with other sensors and controls that use Thread, Zigbee, Z-Wave, and/or other standards. In this example, a wearable device 100 can unlock energy from solar and storage and all the sensors and controls connected to a network.

[0050] The wearable devices 100 by being easy to carry in physical form and use in many applications further supports the growth and spread of the generative crypto assets in an economy. In other non-limiting examples, wearable devices 100 can also be used in an independent ecosystem, smart cities, and other applications as described below.

[0051] In another embodiment, a mobile computing device can also be used as a token storage device, using the NFC, Bluetooth and related functions, obviating the need for a separate token device such as device 100. For example, the mobile computing device can be a smart phone, tablet device, laptop, smart appliance or embedded device. Independent Ecosystem

[0052] In further embodiments of the present invention, an independent ecosystem is provided to finance the development of smart growth initiatives that improve the local economy, conserve resources and mitigate climate change by physically changing the atmosphere. This ecosystem leverages the power of blockchain technology to bring about positive environmental, social and economic change. In one aspect, crypto assets are generated and distributed such that the purchase of the crypto assets by the public can be used to finance the deployment of water, sewer and road infrastructure, solar power capacity, public transportation, electric vehicle charging and embedded monitors and controls for devices that conserve resources and mitigate climate change.

[0053] As shown in Fig. 2, a process 200 can be carried out in an independent ecosystem driven by crypto assets (steps 210-204). A crypto asset can be sold to finance renewable energy capacity, infrastructure, real estate development, embedded systems and controls, software, corporate growth and other projects. In process 200, the sale of crypto assets is compliant with the rules governing the sale of securities such as exemptions from the registration of the token. In this example, there are four primary roles, as follows:

[0054] · Token holders (or simply holders) purchase crypto assets to share in the ownership of contractual rights to assets such as stocks, bonds and investment contracts, earning a revenue stream from periodic distributions and gaining value for their tokens. Holders will share in revenue stream, profits or equity ownership, and receive periodic distributions as revenue is collected from the beneficiaries of the project. In one feature, a Security Token Offering (STO) gives users an opportunity to purchase unique crypto assets that have the potential to generate profit, and also comply with securities regulations.

[0055] For example, in step 210 of process 200 crypto assets are issued to token holders. In one example, crypto assets can be issued in an STO or though other token sales or offerings. As more capital is needed for project acquisition or development, additional crypto assets can be issued.

[0056] In step 220, funds or proceeds from crypto asset purchases in step 210 can be put to work to develop and deploy assets in support of creating a sustainable economy and mitigating climate change, such as, building energy efficient structures, installing solar panels to generate energy, batteries for energy storage, microgrids for energy distribution and energy efficiency systems for smart dwellings or smart cities. In one example, the funds from the STO are used for general working capital, acquisition of property, development of infrastructure and marketing to buyers and tenants.

[0057] In step 230, a portion of the profits (e.g., 20%) can be retained by the issuer.

[0058] In step 240, the remaining portion of the profits (e.g., 80%) can be issued to token holders as periodic distributions 200.

[0059] In this way, digital crypto assets are used to help support the development and deployment of physical assets. This may further a variety of projects or applications, such as, finance renewable energy capacity, infrastructure, real estate development, embedded systems and controls, software, smart cities, corporate growth and other projects. These projects may include efforts to create a sustainable economy and mitigating climate change, such as, building energy efficient structures, installing solar panels to generate energy, batteries for energy storage, microgrids for energy distribution and energy efficiency systems for smart dwellings or smart cities. Incentives are built in to encourage further digital crypto asset issuance and trade.

[0060] In one embodiment, each participant in process 200 (also called an example of the Indeco™ economy or platform) through smart contracts on an Ethereum blockchain or other type of blockchain. This provides reliable transactions in a scalable networked environment, eliminating the waste associated with manual contracting, procurement, invoicing and related administrative tasks. Through extensive event logging, analysis and machine learning, quality of deliverables and satisfaction of participants can be constantly monitored and improved. Further examples of computer-implemented smart contracts that can be used are described below.

[0061] In one example, a flow of funds in payments and collections between holders of smart contracts will be in ether, with invoices and payments between holders listed in ether, the local fiat currency and crypto assets. Smart contracts or crypto assets can be segmented and organized between currencies, or cryptocurrencies, which are used as a unit of exchange, utilities, or utility tokens, have functions that provide access to resources, goods, services, assets or rewards on the network, and securities, or security tokens, which are assets expected to gain in value or provide monetary distributions. A crypto asset platform can calculate the applicable exchange rate between cryptocurrencies, utility tokens security tokens and fiat currencies based on the volume-weighted average daily price across exchanges and indexes in the 24-hour period (e.g., Eastern Time) before an invoice is issued, a transaction consumated or payment is made. To limit volatility, tokens can be traded with stable coins on the platform, and a responsibly party can bear a short-term cryptocurrency and fiat currency fluctuation risk, and collect or payout the amounts committed in a smart- contract invoice at the applicable exchange rate and facilitate the exchange to a fiat currency if desired by the holder.

[0062] In one embodiment, aspects of process 200 are implemented on one or more computing devices. For example, a computer-implemented token manager or other controller can manage the issuance of crypto assets. In an example, a token manager can be implemented in software, hardware, firmware or any combination thereof on one or more computing devices.

[0063] Such computing devices can include a device having at least one processor and memory. For example, a computing device can be a workstation, mobile device (e.g., a mobile phone, personal digital assistant, tablet or laptop), computer, server, computer cluster, server farm, game console, set-top box, kiosk, embedded system or other device having at least one processor and memory. A computing device can also be coupled to one or more networks. Networks can include, but not limited to, wired or wireless networks, local area networks, medium-area networks, or wide-area networks like the Internet. Embodiments of the present invention may be software executed by a processor, firmware, hardware or any combination thereof in a computing device.

[0064] In a further feature, a digital crypto asset generation and distribution process is implemented on a blockchain across multiple computing devices over a computer network. FIG. 3 is a diagram illustrating an independent ecosystem 300 using a blockchain with an example crypto asset generation and distribution process according to an embodiment of the present invention. Multiple computing devices 305 are coupled over one or more computer networks to support blockchain transactions and mining as described herein. Digital wallets may be used to handle transfers or receipt of crypto assets. Different participants in the ecosystem can use different computing devices at the same or different locations as shown. Participants as described herein may include issuers, token holders, and investors. Multiple computing devices 305 may be coupled through wired or wireless connections to the one or more computer networks. Applications and/or browsers may be used at the multiple computing devices 305 to access and carry out the operations and functions described herein.

[0065] FIGs. 4A and 4B are flowcharts illustrating an example crypto asset generation and distribution process 400 used in a further embodiment of the present invention (steps 402-426). For brevity, process 400 is described with respect to the ecosystem 300.

[0066] As shown in FIG. 4A, step 402, an issuer of crypto assets identifies a project.

A project may a development of solar capacity, real estate, civic infrastructure, software platforms, smart systems, or controls or other assets requiring deployment into the physical sphere. The issuer then makes available digital crypto assets that may be acquired by an investor to support the project. For example, a computing device of issuer 310 may generate the digital crypto asset.

[0067] In step 404, an investor transfers cryptocurrency or digital crypto asset with an address on the blockchain from the investor's wallet 350 to the address of crypto asset issuer 310.

[0068] In step 406, the issuer broadcasts the transaction requests over a communications protocol to the nodes on the blockchain. A broadcast protocol 307 may be used over a network of nodes on the blockchain.

[0069] In step 408, nodes compete to generate an authoritative crypto asset by solving a cryptographic puzzle 315. The first node to solve the puzzle is rewarded by the issuer who automatically transfers cryptocurrency to the node that first solved the cryptographic (step 410).

[0070] The transaction is then recorded through a consensus protocol by every participating node 320 as a new block attached to a ledger of a blockchain (step 412).

[0071] The issuer no longer holds the crypto asset as the crypto asset is now in the possession of the investor. The investor's wallet receives the issued crypto asset 330. The ownership of the crypto asset by the investor is now validated by every node participating in the blockchain, as each have recorded the transaction in an immutable, decentralized ledger (step 414).

[0072] As the project performs, such as by generating energy which purchased, attracting tenants to real property, distributing water or other utility services, having users for smart systems and controls, additional money or value is earned. [0073] As shown in FIG. 4B, periodic distributions of cryptocurrencies are delivered to the blockchain address of the crypto asset holder 340 based on the contractual rights to the cash-flow, revenue, profits, interest, equity value or dividends (step 416).

[0074] In step 418, nodes 320 again compete to record the distribution of cryptocurrency transaction by solving cryptographic puzzles, with the winning node receiving a reward.

[0075] In step 420, the ownership of the distributed cryptocurrency is added as a block to the blockchain through a consensus protocol so that the record of the transaction is immutable and distributed in a decentralized ledger.

[0076] In step 422, the investor (also referred to as the token holder) of the crypto asset can keep the value in their wallet as a cryptocurrency, spend the cryptocurrency for goods and services on the network, exchange the cryptocurrency for fiat currency or use the cryptocurrency to purchase additional crypto assets from the original issuer or another issuer.

[0077] In step 424, the investor or token holder can sell or trade the crypto asset over the blockchain to another investor by broadcasting the transaction request to all of the nodes. The transfer may occur from token's holder wallet 350. Each node then competes to record the transaction as a new block in the immutable, decentralized ledger. The new state of ownership may be recorded through the consensus protocol as a new block in the decentralized immutable ledger.

[0078] In step 426, control proceeds to deliver periodic distributions according to the contractual rights embodied in the crypto asset. These periodic distributions may be made to the blockchain address of the new holder who purchased the crypto asset from the previous investor in step 424 or to the blockchain address of the current holder who kept the crypto asset in step 422.

[0079] Further Examples of Smart Contracts

As described earlier, each user with a role can participate in process 200 (also called an example of the Indeco™ economy or platform) through smart contracts on a blockchain. Further examples of such smart contracts in different applications not intended to be limiting are described below: Supplier Smart Contract

[0080] Suppliers on a platform, such as one carrying out process 200, can propose assets for deployment in homes, businesses and communities through an intake process on the platform. The platform will quantify the value of the assets in terms of energy generation or efficiency, economic benefits, positive environmental or social attributes and quality of life improvements.

[0081] In some cases, a proposed asset might have outsized economic benefits, and negative environmental impact, or on the contrary, be costly in economic terms and have substantial environmental, social or quality of life benefits.

[0082] In each case, the purpose of the platform is to transparently present the assets so they can be selected by Customers based their quantifiable attributes in the context of the Customer's home, business or community.

[0083] Community Solar provides an example of an asset and the Suppliers involved.

Community Solar is a program where the electricity generated by the solar energy system is shared by more than one remote subscriber through virtual net metering. The program is available in 16 states, with the most economically advantageous being DC, MA, MD, MN & NY. Community Solar suppliers include installers, equipment manufacturers and distributors, electricians and property owners who lease rooftops or fields to host the systems. Ownership in the Community Solar assets will be shared by the Holders, who will receive dividends from the Customer subscription stream.

[0084] The Partners can be independent representatives who work with community members, including property owners, real estate developers, schools, churches and businesses, to encourage smart growth and the adoption of energy generation, storage and efficiency solutions. Partners can also be businesses, such as realtors, insurance agents or retailers.

[0085] States, counties and municipalities can also serve as Partners, encouraging their residents and citizens to participate in clean energy and energy efficiency programs. Non-profits can participate by promoting programs to members, and companies can do the same with employees.

[0086] Partners can receive marketing support and training to properly represent the

Suppliers and assets in the communities they serve. The Customer Smart Contract

[0087] Customers benefit from the energy generated, stored and saved in the ecosystem, and they also receive benefits from the controls that respond to their needs. The customer's smart contract is a convenient way to pay for ongoing monthly expenses and provides access to a wide range of goods and services at below market rates.

[0088] The Customer smart contract serves to protect the customer with service level guarantees, workmanship and equipment warranties, support, ratings and other important forms of protection.

Further Discussion and Examples

[0089] It is helpful to give additional context and description of the uniqueness of this independent ecosystem based on crypto assets generated and distributed as described herein. This discussion here in illustrative and not intended to limit the present invention.

SCARCITY AS VALUE IN AN EXTRACTIVE ECONOMY

[0090] The current economy, even for our whole civilization, is based on flawed, obsolete industrial-age economic models. Interestingly, those models are coded into conventional cryptocurrencies.

[0091] The metaphor systems and symbolic logic for many tokens include "mining" coins and "proof of work," as if the blockchain has simply replaced carbon-based life- forms with silicon-based functions wearing virtual headlamps while chipping away at rock with picks and hammers, hitting the chuck wagon at lunch and punching the clock at the end of the day.

[0092] The reason for this is simple. Humans often equate value with scarcity, wealth with power and entitlement with control. Many were raised in a zero-sum world with a win-lose mindset and have come to believe that the laws that govern the distribution of resources are as ineluctable as those that govern physics. Furthermore, the supply and demand nature of most economic systems ensure that most participants can't even see it any other way.

[0093] Extraction economies rarely thrive for long. Just look at parts of West

Virginia, Oklahoma, Nigeria and Venezuela as recent examples. So why design a cryptocurrency where the primary value mechanism is scarcity? Because it was something people have been conditioned to do by generations of Western Civilization, which creates wealth by controlling raw materials, production, distribution, and consumption in supply chains with manufacturers, investors, lenders, brokers and bankers each playing a role and extracting their share of the value.

[0094] Conventional transactions are governed by contracts based on local, state, national or international laws. These laws cover employment, investments, trade, loans, leases, development and every other aspect of commerce. The transactions are recorded and audited by accountants according to generally accepted principles. For example, a person knows how much money she holds because of her bank statements and account ledgers that list her holdings. Some holdings are liquid, some less so. All of this value is based on a shared belief system and acceptance of national governments, boundaries, laws, customs and norms.

[0095] Extractive cryptocurrencies like bitcoin initially solved a small, yet important, set of problems within this structure. They recorded the ownership of a token representing value and any transfer of ownership anonymously yet securely. Tokens on the blockchain are decentralized, trustless and immutable.

[0096] The inventors recognized a problem with extractive crypto assets is that people, at some point, could simply move to a different standard of value. There is no fundamental "why" behind extractive crypto assets beyond supply and demand. To many observers, tokens seem as foolish as tulips, diamonds or gold. Speculators might see that as fine, as long as they rise in value. Various black markets may see them as vital, and wealthy individuals in unstable economies facing hyperinflation, at risk of political upheaval or threatened with demonetization see them as a relatively safe place to store value, compared to the national fiat currency.

[0097] However, the world, as an ecosystem, is collapsing from the continued exploitation of extraction and industrial economies. An extractive cryptocurrency does nothing to solve problems associated with current civilization beyond giving safe harbor to some elements of that civilization from seizure of assets or currency devaluation. In many cases, these aren't the parts of society that contribute the most value.

[0098] In artificially developing scarcity in an almost limitless digital world, crypto assets become extremely energy intensive. The scarcity economy of extractive crypto assets is a form of compulsive repetition in our collective psyche, despoiling nature and subjugating populations to mine virtual gems and precious metals, useless containers of perceived value that is often called "wealth." Some blockchains - such as the Ethereum network - have limitations in proof-of-work systems. Conventional proof-of-work systems impose an artificial scarcity.

[0099] Embodiments of the present invention solve this problem by issuing a crypto assets that finance smart growth, including energy efficiency, energy generation, conservation and pollution reduction, atop the energy-intensive network, decoupling the token's value from arbitrary resource consumption and putting it firmly into the realm of conservation and value creation.

[00100] In our entire economic system of companies, banks, assets, liabilities, commodities, exchanges, stocks and bonds, value is extracted at every opportunity by speculators, while fees are paid to lawyers, accountants, brokers, exchanges, escrow agents, bankers, trustees, analysts and a myriad of peripheral service providers.

[00101] In this extraction economy, all this "wealth creation" is simply a form of waste. The various intermediaries do provide some value, but it's not actually wealth creation because the corporations, investors and middlemen who benefit the most do so by reducing the wealth of other market participants, such as suppliers, workers and customers. Costs and wages go down and prices rise as wealth is extracted, making the industrial age a zero-sum scheme. It is wealth extraction.

CRYPTO ASSETS FOR A BETTER HUMAN EXPERIENCE

[00102] A blockchain with crypto assets according to embodiments of the present invention should change all this. Without accountants, lawyers, bankers and brokers, smart contracts can prove ownership and establish partnerships at a highly granular asset level. Stocks, bonds and commodities are unnecessary when every participant on the network is to varying degrees an investor, provider and consumer in the value chain. Wealth can be accumulated steadily and sustainably through investment and work, and capital can be preserved as liquid assets without the distorting force that financial speculation exerts on cost, price and value. Waste in the financial systems that tax the industrial economy can be virtually eliminated, replaced by an economy of abundance that upcycles goods and services in a virtuous network.

[00103] In order to design a crypto asset for a better human experience, the inventors established a security token specification and platform that better aligns the interests of issuers and investors. This basis of value contrasts with the perceived value systems we've lived with from gold through fiat currencies to bitcoin. The unit of measure the inventors now provide is the contractual rights to a pro-rata share of the benefits associated with the digital assets, such as an income stream from profits generated. The unit of measure is further based on a clean, renewable and sustainable economic development.

[00104] Unlike means of exchange that are based on perceived value, the attributes of a security token are readily quantifiable and universal. The value can be characterized along three axes:

[00105] 1. Energy. How much electricity is consumed or generated over time by the project financed through the sale of crypto assets.

[00106] 2. Economy. The profits distributed to holders of the tokens.

[00107] 3. Environment. The reduction in greenhouse gas emissions, the conservation of resources such as water and the reduction of pollution.

[00108] Moreover, in an example, to ensure the robustness and potential of these unique crypto assets, three principles can be followed:

[00109] 1. Transparency: A clear means of determining the metrics for the current value and anticipated future value.

[00110] 2. Growth: Crypto assets are designed to gain in value while holders also earn dividends at a high rate of return.

[00111] 3. Joy: Indecoins transform communities around the world into clean, safe, fun, productive, active and social spaces.

[00112] For example, each crypto asset issued will finance the development of a project. Over time, these projects will generate profitable returns while creating real value for people - heating their homes, cooking their food, etc. In one example, these crypto assets are an engine that drives an independent economy. Funds invested in the purchase of tokens are invested into projects that benefit communities and also return value to the token holder in the form of periodic distributions.

[00113] In one embodiment, initial token sales will be invested in the development of solar energy, battery storage and energy efficiency projects with a high internal rate of return. In another, token sales will finance software project, food distribution or small businesses such as coffee shops.

[00114] A crypto asset blockchain can be supported by a big data analytics and machine learning platform that will intake, assess, underwrite and develop or acquire projects and assets that increase the value of the issued tokens and make periodic monetary distributions to the holders, while also improving quality of life in the communities served. [00115] The value of a security token when compared to cryptocurrency is clear. The following chart compares typical extractive cryptocurrencies with a generative security tokens:

[00116]

Extractive Cryptocurrencies Generative Security Tokens

(bitcoin, etc.)

Game Scarcity Abundance

Theory

Supply Limited artificially Limited by capacity, assets

Demand Safe stored asset value Fundamental asset & social value

Liquidity Based on perceived value Based on quantifiable value

Energy Intensive Productive

Innovation Lots of "me too" Important new role in portfolio for

quality

Confidence Counter cyclical to confidence Complementary to confidence

Securities Exempt from securities Compliant with securities regulations regulations

[00117] The environmental, economic and social challenges facing our planet only multiply by the day. Without forward-thinking solutions that address critical issues, we could be facing at a dire future.

[00118] In this way, an advantage of an embodiment of the present invention is to take a bold step forward, leveraging the exciting powers of cryptocurrency and the blockchain to empower communities around the world to leverage the Earth-saving potential of smart growth and development. With these crypto assets, it's possible that real and positive change can be brought about. A better world, right here on Earth can be achieved by investing in security tokens with high-yield potential that fuels the expansion of a clean economy.

Cryptocurrency for a Smart Planet

[00119] Crypto assets as described in example herein can be a high-yield investment vehicle and an engine for the expansion of the clean economy, including multi-use, transit-oriented real estate development, solar energy, battery storage and smart controls and sensors for energy efficiency.

[00120] A network and process supports multiple roles with distinct, interoperable

ERC20-compliant smart contracts, or tokens. Developers issue the tokens and develop the projects with the proceeds. Partners work with community members to adopt energy generation, storage and efficiency solutions. Suppliers integrate these assets into the built environment. Customers pay for the energy and related services, and benefit from the solutions provided. Investors share in the ownership of the generation, storage and efficiency assets, earning a revenue stream from subscription payments and gaining value for their tokens as the smart energy ecosystem matures. All of these roles are supported by a robust online platform, mobile apps and wearable token storage units with Near Field Communication (NFC) capabilities.

[00121] The crypto assets can be also used in a smart growth application. A solar- powered smart development crypto asset can provide shared ownership in the assets that make a smart planet hum. These assets include real estate, infrastructure, solar panels to generate energy, batteries for energy storage, microgrids for effective energy distribution and systems to manage smart dwellings. Big data and machine learning operate backstage, orchestrating sensors, displays, lighting and controls for energy efficiency, demand response, comfort, entertainment, resilience, health and safety.

[00122] A number of benefits and advantages can be provided by crypto assets. In embodiments, a crypto asset is unique among securities for its stability, liquidity, yield and positive social and environmental benefits.

Smart Contracts for Smart Growth

[00123] The built environment is due for an upgrade. Our cities, town and neighborhoods haven't evolved much since the Captains of Industry gained vast fortunes owning the transportation, steel, energy and finance concerns that developed the world we inhabit today. We still live solidly in the Industrial Age, extracting and burning fossil fuels, wasting energy and materials, polluting our environment and warming our climate. [00124] The early advances of the internet are mostly cosmetic, with websites, apps, marketplaces and platforms bringing us new information resources and increasing availability of goods and services, but still on the same wasteful, costly infrastructure.

[00125] For humanity to thrive, we need to accelerate the transition to smart, resilient communities with solar power, battery storage and embedded controls and sensors. The funds raised through the issuance of tokens supports the deployment of energy generation, management and efficiency capabilities around the globe.

[00126] Like the mobile phone revolution that brought communications to areas without landlines, the use of crypto assets will bring affordable solar energy and storage to places that currently have no electricity at all, obviating the need for centralized coal or natural gas power plants. In developed economies, the use of crypto assets can finance the deployment of advanced embedded sensors and controls, known as the Internet of Things (IoT), for entertainment, safety, savings and comfort, without any upfront costs, while reducing the cost of monthly energy bills.

[00127] The use of crypto assets can also drive economic development by compensating localizers and suppliers based in communities.

A Generative Cryptocurrency to Serve a Smart City Market

[00128] Change happens slowly, then very, very fast. When the model T came of age in 1916, horses were dominant. By 1920, cars had taken over. In a study for AT&T in the early 1980s, McKinsey predicted a total market of 900,000 cell phones by 2000. Instead, that year saw 900,000 phones activated every 3 days.

[00129] The transition from fossil fuels, centralized energy generation, manual building controls, fragmented identity management and scattered information in websites and apps to an integrated, embedded system of responsive sensors and controls is on the verge of a similar tipping point. The use of crypto assets in examples here can address the significant challenges of finance, management, ownership of assets, distribution and access to the benefits of a smart planet with smart contracts on the blockchain. This can serve a smart growth market including different market sectors such as smart buildings, smart healthcare, smart mobility, smart infrastructure, smart governance, smart education, smart security and smart energy.

[00130] Embodiments have been described with respect to generative crypto assets.

The present invention is not so limited however and a person skilled in the art would recognize given this description that other generative tokens can be used based on values tied to one or more types of economic development, real estate development, project development, software development, manufacturing, services, renewable energy sources (e.g., solar, wind, tidal, hydroelectric, or biomass), climate change mitigation measures, sustainability measures, or combinations thereof.

[00131] Exemplary computer-implemented systems and methods or any part(s) or function(s) thereof may be implemented using hardware, software, firmware, tangible computer readable or computer usable storage media having instructions stored thereon, or a combination thereof and may be implemented in one or more computer systems or other processing systems.

[00132] The present invention has been described above with the aid of functional building blocks illustrating the implementation of specified functions and relationships thereof. The boundaries of these functional building blocks have been arbitrarily defined herein for the convenience of the description. Alternate boundaries can be defined so long as the specified functions and relationships thereof are appropriately performed.

[00133] The foregoing description of the specific embodiments will so fully reveal the general nature of the invention that others can, by applying knowledge within the skill of the art, readily modify and/or adapt for various applications such specific embodiments, without undue experimentation, without departing from the general concept of the present invention. Therefore, such adaptations and modifications are intended to be within the meaning and range of equivalents of the disclosed embodiments, based on the teaching and guidance presented herein. It is to be understood that the phraseology or terminology herein is for the purpose of description and not of limitation, such that the terminology or phraseology of the present specification is to be interpreted by the skilled artisan in light of the teachings and guidance.

[00134] The breadth and scope of the present invention should not be limited by any of the above-described exemplary embodiments, but should be defined only in accordance with the following claims and their equivalents.

Claims

What Is Claimed Is:

1. A digital crypto asset issued for the purpose of financing the development of a project in a manner compliant with securities regulations.

2. A computer-implemented method comprising:

(a) generating a digital crypto asset compliant with securities regulations; and

(b) distributing the digital crypto asset on a blockchain to one or more holders.

3. The computer-implemented method of claim 1 further comprising: making periodic monetary distributions to the holders of the digital crypto assets based on contractual rights associated with the digital crypto asset.

4. A platform for crypto asset issuers to provide information on crypto assets so that holders can evaluate the assets.

5. The method of claim 2, further comprising performing a transaction with a user involving transfer of the digital crypto asset.

6. An electronic wearable device for a digital crypto asset comprising:

(a) a housing;

(b) computer-readable memory within the housing, wherein the memory stores a respective digital crypto asset or stores an identifier that identifies a respective digital crypto asset stored locally on the wearable device or at a remote device over a network; and

(c) a transmitter for transmitting data according to a near-field communication protocol.

7. The electronic wearable device of claim 6, further comprising a loop coupled to the housing, wherein the loop is configured to be physically coupled to a wearer's clothing or other object.

8. The electronic wearable device of claim 6, wherein the housing has a shape and size similar to a coin.

9. A computer-implemented method for generating digital crypto assets to drive sustainable growth comprising:

issuing crypto assets to token holders to support a project relating to sustainable growth; and

delivering periodic distributions of cryptocurrencies to blockchain addresses associated with the token holders.

10. The method of claim 9, wherein the issuing occurs in response to receipt of funds or proceeds from purchases of the crypto assets to support the project relating to sustainable sustainable growth.

11. The method of claim 9, wherein the issuing issues crypto assets in a manner compliant with securities regulation.

12. The method of claim 9, wherein a project includes an effort to create a sustainable economy or mitigate climate change.

13. A non-transitory computer-readable storage device having instructions stored thereon that, when executed by at least one processor, causes the at least one processor to perform operations for generating digital crypto assets to drive sustainable growth, wherein the operations comprise:

issuing crypto assets to token holders to support a project relating to sustainable growth; and

delivering periodic distributions of cryptocurrencies to blockchain addresses associated with the token holders.

14. The device of claim 13, wherein the issuing occurs in response to receipt of funds or proceeds from purchases of the crypto assets to support the project relating to sustainable sustainable growth.

15. The device of claim 13, wherein the issuing issues crypto assets in a manner compliant with securities regulation.

16. The device of claim 13, wherein a project includes an effort to create a sustainable economy or mitigate climate change.

17. A computer-implemented method for enabling a project to be supported through digital crypto assets, the method operating on a computer network having a blockchain that stores a ledger of transactions and nodes for mining, comprising:

identifying a project;

issuing one or more digital crypto assets that may be acquired from an issuer by an investor to support the project;

transferring a cryptocurrency with an address on the blockchain from the investor's wallet to an address of a crypto asset issuer to purchase an issued digital crypto asset;

broadcasting the transaction in requests over a communications protocol to the nodes on the blockchain;

rewarding the first node to solve a cryptographic puzzle;

recording the transaction through a consensus protocol by the nodes as a new block attached to the ledger of the blockchain; and

delivering periodic distributions of cryptocurrencies to the blockchain address of the investor holding an issued crypto asset.