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This is a Hypertext version of the Patent Pending
by iterations of the Taylor System and Method

SYSTEM AND METHOD FOR AUGMENTING KNOWLEDGE COMMERCE

Subsystem 5 Summary
System and Method for Structuring and Facilitating Value Exchange among Agents Forming Real and Virtual Economies

Overview of the Patent Application

System and Method The present invention further includes objected oriented system and method for exchanging a value and objects that serve as a medium of exchange or a measure of value and/or a means of transacting value. In this system, objects, preferably computer software and/or firmware objects, are created to represent the value of various items within the system. Thus, for example, an object could be created to represent the value of a tangible object such as a boat, an object can be created to represent the value of one persons service and so on. Objects can also be created to represent the value of ones future earnings. Each object within the system has certain characteristics. Foremost among the characteristics of each object is an ownership characteristic, which is establishes who, within the system, has ownership with control of the value represented by the object. It is, naturally, critically important that the integrity of the ownership characteristic be maintained. In other words, it is important that one person within the system cannot misappropriate the ownership characteristic from others within the system. Thus, it is contemplated that the ownership characteristic be linked to unique characteristics of the individuals within the system. Examples of appropriate and unique characteristics can include fingerprint patterns, iris patterns, DNA patters and, encrypted code values. Thus, an object "knows" that it is linked to the person having a certain, unique, DNA pattern or fingerprint. Like the transportation Sub-System, the system for determining the value of objects makes it possible to achieve increased utilization of objects that have value. These can include objects that are physical objects (a boat) or metaphysical objects (the future value of services that can be rendered). At its most basic level, the system includes objects that have value. The system is connected with data resources capable of evaluating or ascertaining the "value" of an object at any particular time. In addition, the objects location is always known and its status (health or condition) is always known. Reporting on location can be done with GPS technology or other similar devices that can ascertain a location precisely. Circuits and chips that measure conditions that are believed to be significant factors in the value of the object can be used to ascertain "status" or "health." In the simple case of a boat, for example, a chips would report whether the boat is afloat or sunk and the status of its major sub-systems. Initially, the object within the system should be very simple, but should operate through recursion and iteration to refine the predictiveness of the system. Thus, through experience, for example, it will be learned that certain factors affect the value of the objects. The system must be adjusted accordingly. The key it that feedback is used to refine as experience is gained. Thus, using the system of the present invention, anything that has value to some people can be a commodity. Any commodity in this sense can be a tradable instrument. This allows much greater utilization of assets (for example, future value of services rendered that might otherwise not be used at all). This system preferably includes a third party agent or enforcement agent, which under current systems could be courts, a legal process generally to enforce rules of exchange and ownership, for example. This system is useful on an extremely large macroscale and for discrete, definable groups of persons that have a common interest. Thus, it is possible with this system to have multiple, distinct economies. It is contemplated that it will be necessary to include within the system some form of interface with other economies. This Sub-System of the present invention plainly opens doors to even greater utilization of assets to field the economy. Thus, the present invention offers the opportunity to create tremendous wealth since most assets of the economy are, at any given time, inactive because of the inherent limitations of the second wave economy. It is further contemplated that the system includes means for modeling, sampling, and verifying the current value, preferably in a real time basis, of the objects within the system. Thus, for example, the physical objects that are represented by the software objects within the system could, for example, report signals indicative of their current state to a monitoring system. In the case of a boat, for example, the boat would continuously report its location and that all systems were in order. As long as these signals were received the system would recognize the value of the object representing the boat. However, once the system failed to receive an indication that the boat reported the boats location and function, it would no longer recognize the value of the object value associated with the object representing the boat. There are, of course, other ways of verifying the values of the objects represented within the system. For example, in the case of tangible objects such as boats and automobiles, there is the conventional techniques for establishing a "blue book value" could be used. It should be appreciated, however, that because of the digital nature of the system and method of the present invention, it is possible, with sufficient input to much more accurately model real world values and their fluctuation due to specific variable conditions. The fact or/of ownership and control of the physical object could be continuously verified, but this seems to be unduly complicated using current technology and on the granular level necessary for significant gain, impossible with the methods and means available. Thus, it is preferred that the system operate, to some extent, on an "honor system" that is enforced through periodic verification or spot checking as well as by a credit report type system whereby participants within the system can lose the ability to participate within the system if they fail to report or file misleading or fraudulent reports. In accordance with a preferred embodiment, Biometric verification, in which an individuals identity is checked by examining unique physical characteristics such as fingerprints, eye retinas, palm prints and voice signatures is used to establish and verify ownership. In addition, it is contemplated that the virtual agents themselves can be configurated is such a way that they behave as "genes." With this method, certain agents will naturally "hook" together while others will fail to "see" the existence of those agents outside of their umbaldt. Economies built on tools of this kind behave more like living systems and natural ecologies than simple, even complex, machines. This is one reason why as these new tools are introduced into the existing structure of the Industrial (Second Wave - ToA) economy that it becomes increasingly unstable. Therefore, these tools have to be constructed and employed in such a way so as to build, incrementally, a Knowledge Economy (ToA) as they are used. The System ad Method of the present invention facilitate this whereas existing methods do not (sub-system 6).

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posted June 1, 2000

revised June 1, 2000
• 20000601.140637.mt •

(note: this document is about 5% finished)