WO2023114171A2

WO2023114171A2 - A system and method for using a nonfungible token to optimize a product life cycle

Info

Publication number: WO2023114171A2
Application number: PCT/US2022/052633
Authority: WO
Inventors: Chris CHRISTMAS
Original assignee: Christmas Gerard Holdings, Llc
Priority date: 2021-12-14
Filing date: 2022-12-13
Publication date: 2023-06-22
Also published as: WO2023114171A3

Abstract

A system for tracking a physical product at a plurality of stages in a lifecycle of the physical product having a first encrypted cyberlabel affixed to a first network connected component. The first network connected component associating the first encrypted cyberlabel and a first non fungible token associated with a block chain. A second encrypted cyberlabel affixed to a second network connected component of the physical product. The second network connected component associating the second encrypted cyberlabel and a second non fungible token associated with the block chain. A network connected final product encrypted cyberlabel affixed to a final product, the final product having the first network connected product and the second network component. The network connected final product associating the final product encrypted cyberlabel and a final product non fungible token, the final product non fungible token being associated with the block chain.

Description

A SYSTEM AND METHOD FOR USING A NONFUNGIBLE TOKEN TO OPTIMIZE A PRODUCT FIFE CYCEE

CROSS REFERENCE TO RELATED APPLICATION

[0001] This application claims priority to US Provisional Application No. 63/388,732 filed July 13, 2022; US Provisional Application No. 63/312,952 filed February 23, 2022; and US Provisional Application No. 63/289,232 filed December 14, 2021, the contents of which are herein incorporated as if fully set forth herein.

BACKGROUND OF THE INVENTION

[0002] The present invention is directed to a structure and method for utilizing block chain technology and more particularly for using encrypted information in the form of a cyberlabel linked to a non-fungible token (“NFT”) to track product quality control, manage life cycle events relative to the product and track changes in product value over the product lifetime.

[0003] Block chain, although relatively new, is known for its use with documenting a history of an item or transaction. Block chain verifies the transaction and history ownership of bitcoin. It is known to be used to verify the authenticity of documents such as a deed for land. However, even with the advent of block chain there is no simple way for an owner of a product to confirm the status of a product; where it is in the manufacturing or commercial process. Furthermore there is no incentive to utilize the more reliable block chain technology for tracking the status of the good as compared to computerized “paper” records.

[0004] Additionally, undertaking a new product launch includes inherent risk. Furthermore, it requires capital. In the prior art, the risk was borne by the manufacturer/creator of the good. The launch of a durable good product, in particular, requires capital. Because of the risk involved a manufacturer would turn to a bank for a loan, or issue equity ownership in the enterprise; both put the entire entity or a significant portion of its assets, not just the durable good up as collateral for the cash infusion. [0005] Accordingly, a structure and methodology making use of the unique Cyberlabel linked to NFTs, and the use of block chain based tokens (fungible or not) or to raise capital while only putting the token or underlying good at risk, to overcome the shortcomings of the prior art is provided.

SUMMARY OF THE INVENTION

[0006] A system for tracking a product includes a first supplier. The first supplier provides a first component product and a first block chain associated with the first component product accessed through an encrypted cyberlabel; and a first non fungible token operatively linked with the first supplied component and the first block chain. A second supplier provides a second component product; a second block chain associated with the second component product accessed through a second encrypted cyberlabel; a second non fungible token operatively linked with the second component. A manufacturer creates the product from at least the first supplied component product and the second component product; and creates a third block chain operatively linked to the product, the third block chain including the first block chain and the second block chain, and a third non fungible token associated with the third block chain.

[0007] The system includes a tracker for recording each sale of the product and information associated with the sale. The tracker creates an updated NFT as a function of at least the third block chain, the third nonfungible token and the information associated with the sale. The system may also include a unique source providing a unique product, the non fungible token exhibiting the unique product.

[0008] In one embodiment, the system creates the non fungible token which exhibits the unique product, furthermore, the tracker receives funds from the sale of the product, and distributes the funds among at least one of the manufacturer, the unique source and a seller.

[0009] In another embodiment, a second class of block chain based token, fungible or not, is issued by the manufacturer ahead of the creation of the durable good. The second class of block chain is associated with a smart contract linked to the token and the durable good. The smart contract has at least one clause in which payment is made to the owner of the second class of token, upon each purchase of the product.

[0010] In yet another embodiment of the invention, a manufacturer issues their own block chain based fungible tokens as branded crypto currency. A manufactured article such as a team jersey, includes a cyber label thereon associated with a post-production NFT from the manufacturer. In accordance with a smart contract associated with the NFT, the product is purchased with manufacturer branded cryptocurrency.

[0011] As part of this embodiment to promote crypto coin liquidity a third party may be required to exchange one form of cryptocurrency for another. In accordance with the invention a trustee or bank acts a crypto-exchange by exchanging branded cryptocurrency as a function of the value of the underlying intellectual property.

BRIEF DESCRIPTION OF THE DRAWINGS

[0012] The present disclosure will be better understood by reading the written description with reference to the accompanying drawing figures in which like reference numerals denote similar structure and refer to like elements throughout in which:

[0013] Fig. l is a plan view of a watch constructed in accordance with the invention;

[0014] Fig. 1 a is a representation of a non fungible token created in accordance with the invention;

[0015] Fig. 2 is a block diagram of a system operating in accordance with the invention;;

[0016] Fig. 3 is a flowchart of the manufacturing process in accordance with the invention;

[0017] Fig. 4 is a flowchart of the creating a watermark in accordance with the invention and associating the watermark with the NFT during the manufacturing process in accordance with the invention; [0018] Fig. 5 is a flowchart for associating an NFT with the lifecycle of production accordance with the invention;

[0019] Fig. 6 is a flowchart of the method for tracking of the lifecycle of the product utilizing the NFT;

[0020] Fig. 7 is a flowchart of the method for producing and utilizing a second class of token associated with the durable good;

[0021] Fig. 8 is an exploded view of a product manufactured in accordance with the invention;

[0022] Fig. 9 is an operational diagram of an environment for creating and using an NFT in accordance with another embodiment of the invention; and

[0023] FIG. 10 is a flow chart of the use of an NFT in accordance with another embodiment of the invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0024] Reference is first made to FIG. 1 in which a watch 100, as known in the art includes a casing 102, a face 104 supported in the casing and an hour hand 106, a minute hand 108 and a second hand 110 operatively mounted on the face 104. As known in the art a movement (not shown) is mounted within the casing 102 and is operatively coupled to each of the hour hand 106, the minute hand 108 and the second hand 110 for movement thereof. Straps 114, leather in this nonlimiting embodiment, are affixed to casing 102.

[0025] A watermark 112 is disposed on watch 100 at a position which can be easily viewed by a person and/or read by a machine. In this non limiting example the watermark is on the face 104 of watch 100 and is an artwork or logo. It is well within the scope of the invention that the watermark take the form of a celebrity likeness such as an athlete’s initials, face, or uniform. [0026] Reference is now also made to Figs. 2 and 3 in which the ecosystem and methodology for assembling a watch in accordance with the invention is provided. A tracker 206 for tracking information associated with each product, as will be described below, is associated with a database 208. Database 208 may be dedicated to tracker 206 or be in the cloud 220, with which tracker 206 communicates so that database 208 communicates with two or more trackers. Tracker 206 tracks the product constituent parts used by a manufacturer Mi 210 supplied by one or more suppliers SN and a unique source U 216 to create watch 100. Tracker 206 may record a host of information associated with watch 100 such as identity of each source S, date and time manufactured and shipped, sale price, or even non manufacture associated data such as carbon footprint and any contractual restrictions on use of the watch as a result of a smart contract associated with a specific supplied part.

[0027] Following the watch example, supplier Si 201 may supply the casing 102, supplier S2 202 supplies the movement, supplier S3203 supplies the hands 106, 108, 110, and supplier SN204 supplies the face 104. Each of supplier 201, 202, 203, 204 communicate with manufacturer Mi 210 through cloud 220. Lastly the unique source U 216, , such as an athlete or an artist, being the creator of a unique product may contribute a likeness to be incorporated into watch 100. By way of non limiting example a likeness may include a name, a signature, a photo, artwork, or a personal logo, associated with the originator of the likeness.

[0028] As seen from Fig. 3, in a step 302 a part such as the casing 102 is manufactured by casing supplier Si 202. This casing 102 is assigned a unique identifier, in a step 304, which is formed as a block chain and stored in cloud 200 at tracker T 206. The unique identifier may be associated with historical information regarding the casing 102, such as the identity of the manufacturer, the date and time of manufacture, the associated carbon use or “footprint” of the manufacturing step, or the like. Each block chain identifier is unique and follows only that casing 102. The unique identifier is affixed to the watch case in the form of a cyberlabel, in a preferred nonlimiting embodiment, as a an encrypted machine readable code. Cyberlabel as used herein means a machine readable encrypted watermark created by system 200 as described below, placed on a physical item, and tied to both the transactional blockchain associated with the item and an NFT associated with the item as discussed below.

[0029] In a step 306 an NFT 600 is created by tracker T 206 of system 200, or in some embodiment by suppler Si 201, and is also associated with the part, here watch case 102, and the block chain identifier provided on watch case 102 as a cyberlabel. The NFT 600 is a unique digital asset that represents ownership of the real world item; the watch case 102. More particularly, a private key is encrypted in the art of the NFT 600 (see Fig. la) which is registered on the block chain associated with the part. The NFT 600 and associated block chain identifier is transmitted to tracker T 205 to be stored in database 208, such that the NFT 600 and cyberlabel are linked.

[0030] In a step 310 it is determined whether this is the last input for watch 100. If it is not the last part to be assembled into watch 100, then the process returns to step 302 for the movement, face 104, hands 106, 108, 110 and straps 114 by way of example. If the last part to be processed is confirmed, then in a step 312 a unique input from creator 216 such as a likeness of a celebrity endorser, artwork, or company logo is added. This artwork can be a visible logo 112, brand, or the like, but can also be a machine readable component, such as a block chain identifier or NFT. It should be noted that visible logos and associated cyber labels from a unique source U 216 may also be utilized for constituent parts, such as leather from Gucci, casings made from an alloy developed for NASA, or the like. In this case the cyberlabel to be affixed to constituent supplied part readily confirms not just authenticity but the value add of the unique source.

[0031] In a step 314 a product NFT is created as function of the blockchain information discussed above. The product NFT is a unique to each product in that it is created on a product by product basis and is linked to the supply chain block chain identifiers discussed above, and may be the NFT associated with the supplied unique identifier discussed above, so that the NFT is an industrial NFT which acts not only as the home for the unique attribute (the likeness or the artwork) of the product, but also as the link to the previously stored block chain information associated with each constituent part of watch 100; watch 100 as a whole. The NFT can be formed as part of watermark 112, or any other graphical indication, in machine readable form. Like the watermark, the NFT may include a name, a signature, a photo, artwork, or a personal logo, associated with the originator of the NFT. It may be the same as the watermark or have a different graphic expression entirely.

[0032] In each, or any one of, steps 302-314 the NFT is operational/functional in that it uses data such as a spread sheet or a check list to create an NFT which reflects a current state in the lifecycle of the product. One manner in which to confirm the quality of the good is to perform the process of the good in a manner that results in the NFT exhibiting, through image, or even change of color that the process has been performed in accordance with the manufacturer/supplier standards. One manner of doing this is to create NFTs as a result of process checklists, input to the a supplier computer or tracker computer which converts the input check list to an NFT. The NFT reflects the status of the good as a function of the checklist. [0033] Another non limiting embodiment to ensure that the standards are complied with is to observe the operation with a camera. The camera inputting the image of the operation to a computer capable of determining which images of the manufacturing process conform to the quality standards of the manufacturer. If the standards comply then the camera causes a first NFT to be produced in association with the suppled part or end product. If the standards are not determined to be complied with, the product may still be manufactured, but the NFT would have a second, different image, indicating the status. In this way the NFT act as a buyer beware indicator that a component, or the entire shoe itself may not live up to the standards of the manufacturer.

[0034] As a result a system for tracking a product is provided which includes a first supplier. The first supplier provides a first component product and a first block chain associated with the first component product. A link to the blockchain stored information is formed as a cyberlabel on the first component. A first non fungible token is operatively linked with the first supplied component and, through the cyberlabel, the first the first block chain. A second supplier provides a second component product. A second block chain is associated with the second component product. A link to the blockchain stored information is formed as a second cyberlabel on the first component. A second non fungible token is operatively linked with the second component. A manufacturer creates the product from at least the first supplied component and the second component product and creates a third block chain operatively linked to the product, the third block chain including the first block chain and the second block chain. A link to the third block chain is formed as a cyberlabel disposed on the product and a third non fungible token associated with the third block chain. [0035] A private key is encrypted in the art work of the NFT and is registered on the block chain for the finished product, and preferably the same block chain containing the information for each constituent part. As a result of the inventive process and structure, each watch 100 manufactured as above carries an NFT linked with a unique block chain associated database. As a result the NFT for an individual watch 100 can be used to verify the source of the watch 100 and its constituent parts as a function of the block chain information associated with the NFT. A single NFT now does the job of several.

[0036] It follows that NFTs 600, are functional as well as ornamental, created in accordance with the present invention can exhibit many visual features, including features which indicate where in the manufacture process the product currently exist. By way of example each NFT from suppliers SI-SN will each have their own different characteristics to indicate source, but all may be monochromatic or gray to indicate premanufacture status. Then once manufacturer Mi 210 indicates to Tracker T 205 that manufacture is complete, Tracker 205 will create an NFT that is in color. This provides a simple optically viewable NFT to indicate not only that manufacture is complete, but that customer Ci 212 is the first purchaser. Each of these NFTs is linked to a single blockchain associated with the product being manufactured. The NFT becomes an indicator of compliance and a tell tale for the stage of manufacture.

[0037] Additionally, another manner in which the NFT constructed in accordance with invention enhances the robustness of the supply chain, the authenticity of the good, and the value is by linking the NFT to the intellectual property rights of the manufacturer, or any value add entity on the supply and resale chain, by linking the NFT, through the blockchain to proof of the intellectual property rights. This may include a real time link to the United States Patent and Trademark Office or the Library of Congress(copyrights), or copies of the respective certificates associated with the product or the brand. In this way, an NFT and/or product owner can be sure of the authenticity. [0038] Additionally the NFT 600 will be unique to each watch 100 because the information stored with the NFT will be unique to each watch. It is also well within the scope of the invention to build the single NFT during the manufacturing process, by moving step 314 ahead of step 310 in the process, so that initially the single NFT would be the same as the NFT for casing 102. However when the process incorporates placing the movement within the casing a new NFT incorporating information about the casing 102 and the movement would be created, until each of the steps is completed in the process. It is understood that it is also contemplated within the invention that the block chain changes as a function of each of these steps, but additionally the NFT may be able to exhibit a different color for the same image at each stage of manufacture so that the reading the NFT causes a color to be displayed, giving a quick eyeball check on the current stage of the process.

[0039] Reference is now made to Fig. 4 wherein the methodology for creating and processing watermark 112 is provided. As discussed above manufacturer Mi 210 creates a watermark 112 upon completion of the manufacturing process. The visible watermark 112 and the underlying cyberlabel ties an NFT to a blockchain identifier as well as tying the NFT to information about the watch 100 upon which watermark 112 resides. However, as described above the associated NFT need not be static and can be used to store new information during different life cycle stages.

[0040] In accordance with the invention, as discussed above, in a step 402 manufacturer will descramble the information it has received from all of the parties involved in supplying the watch parts and subassembly thereof, including the input of the unique item from U 216 to be incorporated onto the watch as a visible component and as part of the NFT. In step 404, manufacturer Mi 210 will create the water mark for the watch, in machine readable form as a cyberlabel, and visual if desired, as a function of this Mi data. In step 406 the watermark 112 is applied to the product; watch 100. [0041] In a step 408 the watermark 112 through the cyberlabel is associated with an encrypted traceable block chain identifier. This serves as an authentication of the watch 100. As discussed above the identifier is also associated with all of the manufacturing data associated with the block chain including any associated smart contract. When the cyberlabel of watermark 114 is read, all of the associated data may be accessed.

[0042] As can be seen from the above because each NFT and associated block chain identifier is unique to each watch the information follows the watch 100 for its lifetime. As a result when manufacturer Mi 210 sells the watch to a customer Ci 212 the date, place and price can be recorded and associated with the block chain identifier. Intellectual property rights may be transferred by way of a smart contract associated with the blockchain underlying the cyberlabel.

[0043] Additionally, as discussed below, if other characteristics, such as the winner of Wimbledon was wearing the watch the day customer Ci 212 purchased the watch as a limited edition at Wimbledon, this fact is stored with the associated block chain as a self-contained authentication. As result the value of the watch may be increased. For the purposes of this discussion customer C1212 and customer C2 214 are the devices, computer, tablet, or phone used by real world customers to participate with system 200 to display NFTs, and make the transactions discussed above and below.

[0044] Furthermore successive sales can be recorded and traced as a block chain transaction associated with the unique identifier and NFT. As a result when the identifier is read in a step 410 anyone will be able to confirm the authenticity of the product down to its constituent parts, to confirming any claims about the product (bought at Wimbledon on a particular day); all serving to enhance the value of such limited edition products. [0045] Conversely, the use of an encrypted traceable block chain identifier, such as the cyberlabel and NFT lends itself to a verifiable audit trail. This not only protects the next downstream purchaser C2 214 from forgeries, but prevents the use of blood diamonds, or sweatshop laborers. This is because the block chain information stored in association with the NFT includes the manufacturing history as provided by suppliers SN, ensuring not only authenticity, but prevents the hiding of objectionable practices to any particular buyer.

[0046] Lastly, utilizing the disclosed system and method, one can track any change in value for an item between a first consumer Ci 212 and a second consumer C2214. Second purchasers are now incentivized to record private sales with Tracker T 206 to demonstrate to later purchasers the authenticity of the product they are selling. In this way when first consumer Ci 212 sells watch 100 to second consumer C2 214 the sale becomes part of the block chain associated with the product NFT. Additionally the time, date, and place of the sale can all be recorded and later authenticated along with the sales price. In this way the value, particularly if watch 100 becomes a collectable, can be tracked over time. This process can be repeated until the item being tracked is destroyed or has no value.

[0047] Additionally the use of an NFT in accordance with the invention gives the original creator of the NFT or underlying good a structure to share in the downstream income derived from their creation. In one nonlimiting example, a smart contract of sale is associated with the first block chain and associated NFT. The contract of sale requires in part that each downstream seller can only sell the product or NFT to a buyer willing to abide by the contract. The contract has a clause that 5% of each follow on sale be paid to the creator of the unique logo/likeness NFT, in our examples that would be either Mi 210 and/or the creator of the unique content U 216; an artist, celebrity, venue or the like. The system and method even facilitates payment of a portion of the sale to previous owners. [0048] Reference is now made to Fig. 5 in which the method utilized by system 200 for tracking a lifecycle of the product is provided. The sale of the underlying item, watch 100, associated with the NFT is made in a step 502. The sale is recorded in step 504 by tracker T 206. The information regarding the sale, such as sales price, date, new owner, place of purchase, or the like is added to the block chain associated with watch 100 by tracker 206 in a step 506. It may include the transaction specific information such as purchased at Wimbledon, at a certain event as discussed above.

[0049] In a step 508 a new NFT, associated with watch 100 by the watch’s blockchain is created by tracker T 206 . The new NFT may be the previous NFT changed slightly, such as in color, to indicate a life stage of the watch 100. It may be a new NFT created as a function of information contained in, or associated with, the blockchain of either the cyberlabel or the NFT.

[0050] When watch 100 is resold in step 510, then the sale is reported to tracker T 206 to be recorded as part of the item’s block chained information in database 208 in a step 512. As a result of the use of the NFT and the associated blockchain the buyer is incentivized to record the transaction as a confirmation of authenticity and to preserve the value of both the item, watch 100, and the associated NFT. Optionally, the buyer and/or seller may allow system 200 to create a new NFT to reflect the new status or maintain the original NFT.

[0051] As a result of the cyberlabeled use of the block chain and NFT associated with watch 100, information about watch 100, both original and added, follows watch 100. Sellers add information such as purchase and sale information as discussed above. As discussed above one type of information may be a contract of sale such as a smart contract. The smart contract may have terms for downstream revenue sharing with the original creators of the intellecual property rights (patent, copyright, trademark) embedded in watch 100 with each proceeding owner and the provider U 216 of the unique value add component.

[0052] In a step 514 the reseller adds a smart contract which is electronically executed by the buyer in a step 516 as a condition of sale. The terms of the smart contract are recorded in a step 518 with tracker T 206 for recording in database 208 to become part of the information associated with the blockchain of the cyberlabel and/or NFT.

[0053] With fee sharing type clauses, the funds during the purchase are transmitted to a third party, such as tracker T 206 in a step 520 in this example. In a step 522 tracker T 206 arranges for payment to itself, the seller/reseller C 212 or M 210, dependent on the terms of the contract. In one exemplary embodiment U 216 may be an artist whose artwork forms the basis forthe NFT, an athlete who endorses watch 100, or the venue associated with watch 100; Wimbledon. In a step 524 tracker T 206 creates a new NFT 600 to indicate the current status of watch 100 and NFT 600 is added to the block chain associated with watch 100. Pursuant to a new smart contract, Wimbledon, the venue may now be entitled to a royalty payment from each subsequent sale. Steps 512- 524 are repeated for each subsequent sale.

[0054] Many goods, such as watches, have value not only in their use, but as a collectable show piece as well. The same is true of NFTs. Therefore it may be in the interest of the downstream purchaser to decouple the NFT 600 from the watch 100 to maximize the overall value. It should be understood that the NFT 600 associated with a durable good such as a watch 100 may obtain intrinsic and monetary value apart from the durable good watch 100, or the like with which it was originally associated. The NFT 600 itself may become a collectible, particularly if it takes the form of unique identifier from a celebrity or an artwork or one of a kind logo. Reference is now made to Fig. 6 in which a method for bifurcating the value of the NFT 600 and its associated good is provided. [0055] In a step 602 the owner of watch 100 and associated NFT 600 monitors social media and other outlets regarding watch 100. As known in the art a product owner may monitor on line influencers for product mentions, Facebook^ posts, retweets, shares, associated therewith or other on line member platforms to not only determine mentions, but buzzwords indicative of sentiment. This monitoring may also include monitoring meta data. Monitored metadata may be compared to known influencers recognition of the product. Different inputs may be weighed differently so that one source or influencer does not overly skew the results.

[0056] In a step 604, a current owner tracks resale value by monitoring sales as recorded for similar watches 100. Tracking will include sales price, but may also account for where sold as a function of geographical area, growth of the geographical area, the nature of the population: urban versus suburban.

[0057] In a step 606, if an owner has proven to themselves that there is sufficient value in the product, and more importantly an aftermarket, then tracker T 206 creates an NFT as a function of the social media response. The new token may be a version of the original NFT, but have a different color to show rising value, or a third color to show falling value. Or it may be an independent NFT linked to the cyberlabel but having its own intrinsic value. In step 608 a product owner decouples the product from the NFT.

[0058] In a step 610, the owner of the NFT offers the NFT for sale. Utilizing the blockchain associated with the NFT, ownership is now tracked for the NFT 600 in a step 612. The new owner would then monitor social media and like sales of the NFT 600 to determine the value of the NFT 600. Similarly, the watch 100 still has value apart from the NFT 600 and can be resold in a step 614 as a collectable or in the normal stream of commerce. The new owner would then track the value of the watch 100 in a step 616. The process steps 612 and 616 are repeated until there is no longer interest/value in the respective things being tracked.

[0059] It is possible to reduce the financial risk of manufacture by raising funds ahead of manufacture utilizing a second class of token associated with the durable good. As seen in Fig. 7 in a step 702 manufacturer Mi 210 creates a trustee such as tracker T 206 to track funding received from parties interested in funding the proposed project. In a step 704 Tracker T 206 issues the second class of token, linked, in step 706, to the to be manufactured good, or even the intellectual property right associated with the good, such as brand, construct or the like to each funder. The token may be a sperate NFT from the one discussed above or a fungible good like a block chain based limited crypto currency.

[0060] In a step 708 each token is linked to a smart contract. Because tracker T 206 tracks the durable good across its lifetime, as result of each sale and NFT change being recorded as described above during manufacture and after, at least one clause of the smart contract is for each holder of a token from the second class of tokens to receive a portion of any sales proceeds associated with the goods. The clause applies to any sale of the good downstream; the token and the rights represented thereby follows the good.

[0061] As a result of the operation of tracker T 206 the token, like other investments, will have a value apart from the durable good, and may be sold along with its right to the smart contract. The smart contract may provide for downstream share in the proceeds, a return, for the token holder, the manufacturer Mi 210, and any IP rights holder 216 in the durable good, maximizing a return on the manufacturing investment of each party while spreading the risk to the manufacturer of funding the product in its entirety. [0062] The above descriptions were made with the exemplary embodiment of the watch. However, the invention can be applied to clothing such as sneakers, shirts, particularly t-shirts associated with specific events, cars or the like.

[0063] Reference is now made to Fig. 8 in which a manufactured product, such as a team jersey 800 is provided. Jersey 800 may include a sponsor or manufacturer logo 802 and team symbol 804. An encrypted cyberlabel 900 is also placed on the jersey 800. The cyberlabel 900 includes a watermark 902 and other information of authenticity, but acts as an optical code to link to an NFT 1000 associated by a blockchain with the final product as discussed above. NFT 1000 may be the key (linked) to a unique image or video. NFT 1000 may also be linked by the blockchain to a smart contract causing some of the purchase funds for jersey 800 to be sent to the team as the license holder, back to the manufacturer as a realty, to investors as discussed below, or trigger an airdrop to a charity such as supporting cyber connectivity in rural nations.

[0064] Reference is now made to Fig. 9 in which a system for utilizing an NFT in accordance with the invention is provided. As described above a branded manufacturer 210 creates a real world hard product such as jersey 800 by way of non limiting example. Furthermore as described above an industrial NFT is created and associated with real world product 800. In a preferred nonlimiting embodiment the non fungible token is created in accordance with the ERC 721 protocol and is also linked to the hard good cyber label 900 associated with jersey 800.

[0065] A branded token 930 having the brand of branded manufacturer 210 is created and has the same brand as the branded manufacturer. Investors 950 invest in branded tokens 930 with real currency such as dollars or with other cryptocurrency. A smart contract associated with NFT 1000 and linked to jersey 800 by the block chain associated with NFT 1000 and by cyber label 900 causes a portion of sales of jersey

800 to be paid to branded manufacturer 210 and investors 950 in branded fungible tokens.

[0066] Reference is now also made to Fig. 10 in which a process for utilizing privately branded tokens is provided. In a step 1110 branded manufacturer 210 creates a private labeled (branded) crypto currency 930. At the same time, or asynchronously, manufacturer 210 creates an NFT 1000 to be associated with a manufactured good, such as jersey 800 in a step 1122 and with a smart contract controlling future sales. In a step 1124 manufacturer 210 creates a cyberlabel 900 to be placed on manufactured good 800; the cyber label 900 having a machine readable watermark 900, or other machine readable link, to NFT 1000.

[0067] In a step 1126 the labeled good 800 and its associated cyberlabel 900 is sold to a retailer 920. The sale is recorded as part of the blockchain associated with good 800 as described above. As a result NFT 1000 travels with good 800, unless the NFT is sold separately as discussed above. The sale may be in currency or in branded tokens. In a step 1128 the labeled good is sold to a customer 940. Customer 940 is required to purchase the goods in branded tokens, and in accordance with the associated smart contract. As a result, a portion of the purchase price is paid back to branded manufacturer 210 in a step 1130 and/or to unique source 216 as discussed above.

[0068] The branded tokens are issued to the general public by manufacturer 210. In this way there is some liquidity in the branded tokens, and the public at large is able to use the branded tokens to purchase the goods. The use of branded tokens also enables manufacturer 210 to reduce the product launch risk by raising funds by selling branded cryptocurrency to an investor pool in a step 1142. This enables investors to invest in the branded cryptocurrency as an asset. Additionally, in step 1142 the investor pool may be entitled to funds from after sale of the cyberlabeled product pursuant to a smart contract linked to NFT 1000 linked to goods 800. The payment would be in branded cryptocurrency. This gives rise to a potential return on investment as the value of the branded crypto currency rises and form the income stream from sales of the goods 800 under the smart contracts with manufacturer 210.

[0069] Such a payment, as with many cryptocurrencies, is that it is relatively illiquid. It may be hard to “cash out”. One must find a buyer willing to buy a seller’s branded cryptocurrency in dollars. To increase potential liquidity, in a step 1140, the branded cryptocurrency is directly converted into a second branded cryptocurrency tied to goods as above. This is accomplished by establishing an exchange rate as a function of goodwill in the branded cryptocurrency.

[0070] While the value of some crypto currencies such as Bitcoin or Ethereum have dollar values, branded cryptocurrencies which only have value for specified goods may not have a ready market. Therefore their value may be determined as a function of the retail sale price of the good 800 less the cost to the retailer 920 of the good 800. It can be attributed to the value of the associated intellectual property and/or goodwill.

[0071] As a result of the above described system and method, it becomes possible to associate an NFT with a real world object. Furthermore, the NFT can change from one form to another, through updating or replacement, as lifecycle events occur. This can be “prenatal”, during manufacture, to post birth as the product changes ownership hands. The NFT starts to change to reflect each life step of the NFT and associated product as discussed above. The system and method above enable non fungible tokens to be issued as a function of consumer sentiment as well as lifecycle transitions.

[0072] By utilizing the tracker to track information associated with each lifecycle stage and using blockchain to track these lifecycle events, ensures that the value of both the product and the NFT are secured for the life of the product. Additionally cybersecurity is provided utilizing the private key encrypted in the watermark to form the cyberlabel. This provides protected access to biometrics, special information (geography), venue and event, Product manufacture data, social media data, supply chain data, and other data analytics linked to the watch and NFT by the tracker in the system.

[0073] The system and method transform the NFT from artwork to a functional thing in the virtual world, having an operational purpose in product owners, to provide information about the associated product in real time, to leverage analytics as a function of the information sorted by the tracker to create derivatives of the products based on market appreciation and unique market dynamics for the NFT both joined with the underlaying product and apart from the underlying product. As result real world assets are also provided with a synthetic asset, the NFT, which has value apart from and separate from the value of the underlying real world asset. In accordance with the invention, the two may be decoupled from each other.

[0074] In summary, as a result of the inventive linking of the cyberlabel and NFT, any seller of a product that wants to be assured of its authenticity or any buyer that wants to know that what is being bought is authentic can be assured by the interaction of the cyberlabel and NFT as described above. In addition, through the use of block chained information accessible through the cyberlabel, the creator of an object or unique intellectual property contributed to the product or associated NFT can participate in a percentage of any subsequent sales because of the tracked and blockchained sales transactions. The coupling of the cyberlabel and NFT permits “digitization” of physical products. Lastly, by utilizing cyberlabeling each object and keeping a blockchained ledger of both the product and associated NFT the accurate and timely complete price history for unique and or expensive products and/or associated NFTs will provide unique insights for brands and consumers. [0075] It will thus be seen that the objects set forth above, among those made apparent from the preceding description, are efficiently attained and, since certain changes may be made in carrying out the above method and in the construction set forth without departing from the spirit and scope of the invention, it is intended that all matter contained in the above description and shown in the accompanying drawings shall be interpreted as illustrative and not in a limiting sense.

[0076] It is also to be understood that the following claims are intended to cover all of the generic and specific features of the invention herein described, and all statements of the scope of the invention which, as a matter of language, might be said to fall therebetween.

Claims

1. A system for tracking a product comprising: a first supplier providing a first component product; a first block chain associated with the first component product accessed through an encrypted cyberlabel; and a first non fungible token operatively linked with the first supplied component and the first block chain; a second supplier providing a second component product; a second block chain associated with the second component product accessed through a second encrypted cyberlabel; a second non fungible token operatively linked with the second component and first the first block chain; and a manufacturer creating the product from at least the first supplied component and the second component product; and creating a third block chain operatively linked to the product accessed through a third encrypted cyberlabel, the third block chain including the first block chain and the second block chain, and a third non fungible token associated with the third block chain, the third non fungible token having an encrypted private key which forms part of the block chain.

2. The system of claim 1, further comprising a unique source providing a unique product, the non fungible token exhibiting the unique product.

3. The system of claim 1, further comprising a tracker, the tracker recording each sale of the product and information associated with the sale, the tracker creating an updated NFT as a function of at least the third block chain, the third nonfungible token and the information associated with the sale.

4. The system of claim 3, further comprising a unique source providing a unique product, the non fungible token exhibiting the unique product, and wherein the tracker receives funds from the sale of the product, and distributes the funds among at least one of the manufacturer, the unique source and a seller.

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5. The system of claim 3, further comprising a trustee issuing a second class of block chain based tokens, each token being associated with a yet to be manufactured product; a smart contract associated with the second class of block chain based tokens, a clause of the contract entitling an owner of a token from the second class of block chain based tokens to proceeds from at least one sale of the durable good.

6. The system for tracking a product of claim 1, further comprising a branded fungible token created by the manufacturer, a smart contract connected to the third block chain, the smart contract causing the manufactured product to be purchased with the branded fungible token.

7. The system for tracking a product of claim 6, wherein the branded fungible token is exchangeable for a second fungible token having a different brand, the exchange rate being a function of the value of the goodwill of the branded fungible token and the second fungible token.

8. A system for tracking a physical product at a plurality of stages in a lifecycle of the physical product comprising: a first encrypted cyberlabel affixed to a first network connected component of the physical product; the first network connected component associating the first encrypted cyberlabel and a first non fungible token, the first non fungible token being associated with a block chain; at least a second encrypted cyberlabel affixed to a second network connected component of the physical product; the at least second network connected component associating the second encrypted cyberlabel and a second non fungible token, the second non fungible token being associated with the block chain; a network connected final product encrypted cyberlabel affixed to a final product, the final product having the first network connected product, the at least second network component; and the network connected final product associating the final product encrypted cyberlabel and a final product non fungible token, the final product non fungible token being associated with the block chain.

9. The system of claim 8, further comprising a network connected tracker for recording the association between the first non fungible token, the at least second non fungible token and the final product non fungible token.

10. The system of claim 8, further comprising a network connected smart contract, the smart contract being associated with the block chain and governing the terms of the resale of network connected final product.

11. The system of claim 8, wherein at least one of the first non fungible token, at least second non fungible token; and the final product non fungible token is associated with a carbon footprint of the first network connected component, the second network connected component, and the final product non fungible token.

12. The system of claim 8, further comprising a network connected trustee, the network connected trustee issuing a second class of block chain based tokens, each token of second class of block chain based tokens being associated with a yet to be manufactured product; a smart contract associated with the second class of block chain based tokens; wherein a clause of the smart contract entitling an owner of a token from the second class of block chain based tokens to proceeds from at least one sale of the network connected final product .