Nike intends to use the Ethereum blockchain network to generate a unique digital asset for limited edition shoes. It got a patent to tokenize footwear on the Ethereum blockchain network.
Nike is responsible for the design, development, marketing, and sale of footwear, apparel, equipment, accessories, and services for athletes. The Company’s operating segments include North America, Europe, Japan, China, and Emerging Markets. Its brand portfolio includes NIKE, Jordan, Hurley, and Converse brands.
Nike to Use Ethereum Blockchain Network (ERC 721 Token)
Nike intended to generate unique IDs and create ERC 721 tokens for particular shoes. On December 10, it stated that in a document published on the U.S. Patent and Trademark Office. People can “unlock” these tokens by buying physical shoes, and these tokens can then be associated with unique owner IDs to signify the property.
In addition to representing a digital shoe, the token can also record the genotype information of a digital shoe. That includes specific attributes, colors, styles, backgrounds.
The patent could likely allow users to exercise greater control over their shoes and footwear models. For example, the application emphasizes that homeowners can set limits on the number of copies of their fashionable shoes. That can be cloned and produced. There are also “surrogacy features” to give others the right to mix shoe designs. And “education and guarding features” allow others to take care of shoes.
Besides, one or more manufacturing restrictions may govern the reproduction rights of a digital shoe in the real world. The ownership rights for each successive generation of digital shoes may also be related to the original shoe in the real world. That is via encryption key to the originally associated virtual product, stated the patent.
Nike is Gaining Traction in China
It is not surprising that Nike is trying to symbolize shoes. In China, Nike saw its quarterly sales increase by 22% in September. Moreover, the limited-edition shoes produced by the named brands are creating a real frenzy.
Earlier this year, the Chinese news site Xinhua.net reported that used sneaker trading platforms are gaining ground in China. People can buy limited edition shoes and resell them to pocket the difference in there. “The fashionable shoes also have already acquired characteristics of stocks and futures markets,” wrote the media.