To ensure the security and integrity of three dimensional point clouds model during transmission in the network, according to their own characteristics, after the pretreatment of PCA (Primary Component Analysis), three dimensional point clouds watermarking embedding algorithm based on sphere degenerated octree was proposed, and the octree that contained the original point clouds model was subdivided multilevel from top to bottom, and the nodes of the octree were ordered. And three dimensional point clouds watermarking extraction algorithm was proposed, and the original point clouds model and the watermarked model were registered accurately, and the occurrence of synchronization error was avoided. Experimental results showed that the presented algorithm was robust to many attacks such as rotation, translation, uniform scaling, vertices reordering, simplifying, noise and cropping under blind detection.