An Update

I will be using Radio Frequency Identification (RFIDs), instead of the Augmented Reality technology. RFIDs don't require the markers on the block itself, they can be embedded within the cube. They also have quite a large range, so while putting the blocks together, they don't necessarily have to be touching each other, unlike Augmented Reality. This makes the interface more flexible, and easier to play with.

Each block will have 4 working faces, with an RFID Tag embedded inside each face. The table surface will have an RFID Reader embedded under it, so it reads the Tag(s) of the faces which are placed on the table (The side of the cude  that faces down).

Flowchart: 
Mapping the flow for all the permutations and combinations between 2 blocks to begin with.Once this is coded, the program can be modified to work for all the blocks.

Visual Style:
I am currently working on the visual treatment, data visualization, and fixing upon the all the characters. After this is done, I will start animating. The following image is work in progress.