Update 2

I'm made some progress on the Kingdom flag for the top of the mast.

Above is a preview render of the flag, it's almost ready to be attached to the mast of the ship! except for maybe a few texture adjustments.

(I know I should have put it a flag pole on the preview to make it look more realisitic.)

Here is a screenshot of the setup.

I use a cloth simulator in Blender, which calculates movement of cloth.

I set up wind "Fields" that affect the shape of the cloth.

That's all for now, keep watching for updates!