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Clothing Giant, Nike Gets Patent to Tokenize Shoes
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Clothing Giant, Nike Gets Patent to Tokenize Shoes

In a document posted on the U.S. Patent and Trademark Office and dated Dec. 10, Nike stated that it intends to generate unique IDs and create ERC 721 tokens for some shoes.

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The patent outlines a system whereby blockchain can be used to attach cryptographically secured digital assets to a physical product, in this case a sports shoe.

People can “unlock” these tokens by purchasing physical shoes and these tokens can then be linked with unique owner IDs to signify ownership. Besides representing a digital shoe, the token can also record the so-call genotype information of a digital shoe, including specific attributes, colors, styles, backgrounds.

Nike‘s platform will also track the ownership and verify the authenticity of sneakers using the blockchain-based system. For example, the application highlights that owners can set limits on how many copies of their proprietary shoes can be cloned and produced. There are also “surrogacy features” to grant others the right to mix shoe designs and “parenting/nannying features” to allow third parties to take care of the shoes.

Apt Tokenization of Shoes

“When a consumer buys a genuine pair of shoes a digital representation of a show may be generated, linked with the consumer, and assigned a cryptographic token, where the digital shoe and cryptographic token collectively represent a ‘CryptoKick,’” the patent reads.

In addition, “‘breeding rights’ for a digital shoe may be governed by one or more real-world manufacturing restrictions; ownership rights for each successive generation of a digital shoe may be tied back to the original, real-world shoe (e.g., wholly or partially; by percentage of genotypic contribution, etc.) via encryption key to the originally associated virtual product,” stated the patent.

When sneakers are sold to someone else, ownership can be transferred by trading both real shoe and/or associated digital assets. These digital assets can be stored in what’s being called a “Digital Locker,” a cryptocurrency wallet type app. The patent could presumably allow users to exert more control over their shoes and shoe designs.

There’s more in the offing. It seems someone at Nike has been playing CryptoKitties, as owners of “CryptoKicks” will be able to “intermingle or breed the digital shoe with another digital shoe to create ‘shoe offspring’ and have the offspring made as a new, tangible pair of shoes.”

Buy the Original

The shoe company is offering 3 percent cash back to Apple Card users when a Nike product is purchased using Apple Pay. The deal applies to all Nike products when purchases are made using the Apple Card through the Nike website, retail stores, Nike Training Club and more. Nike joins Uber/Uber Eats, Walgreens/Duane Reade and T-Mobile stores in offering the top-tier cash back of 3 percent.

Earlier this year Chinese news site Xinhua.net reported that second-hand sneaker trading platforms are gaining traction in China, where people can buy limit edition shoes and resell to pocket the difference. “Fashionable shoes have already acquired traits of stocks and futures,” the news wrote.

It is not surprising that Nike is looking to tokenize footwear. In China, where Nike saw a 22% quarterly revenue jump in September, limited-edition footwear produced by named brands are creating a frenzy.

 

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