“Cryptokick”-Nike token shoes on Ethereum blockchain

Overview:

Nike, one of the largest shoe manufacturers in the world, has just received a patent for the tokenization of shoes.

The patent comes from the U.S.Patent and Trademark Office and includes the use of Ethereum Blockchain.

According to the patent from 10.December 2019, Nike plans to token ownership of exclusive shoes.

Nike & Ethereum – Tokenisierung schreitet vorran

Now the Nike brand also uses blockchain technology and announced the shoe "Cryptocick".When buying, the shoes are linked to an owner, this link is listed on the Ethereum blockchain.The patent states that the owners are also given the opportunity to "breed" individual shoes, which can then be produced as tangible, real product.

Nike tokenization of shoes - how does it work?

This is how it works: Whenever shoes are bought, tokens are unlocked.To facilitate this activation, a 10-digit shoe identification code is linked to an owner identification code that effectively connects an owner to the shoe.

The tokens use the ERC 721 non-fungable tokens (NFT) Standard.All "links" are recorded on the Ethereum blockchain.The patent says:

But the patent not only represents the possession of shoes, but will also enable a number of other functions.The NFT tokens can capture certain "genotype" information for each shoe, such as Z.B.Colors, designs and various style attributes.

The patent suggests that the owners receive an additional element of control over their shoes.For example, the owners can limit the number of copies to be produced.You can also assign rights to third parties that can then mix shoe designs.

Nike enters the footsteps of the cryptokitties

Similar to cryptokitties, owners can also "breed" shoes in which a digital shoe is combined with another.This process will be associated with actual restrictions on production in which the property rights are connected to the original shoe in every subsequent generation.

Token to combat counterfeits?

The transition from Nike to tokenization is probably also an attempt to combat counterfeits.Exclusive shoes are very popular in the markets around the globe.The sales are stable worldwide and even rising depending on the region.Limited specimens, especially sneakers, are often traded on secondary sleeves.

The sometimes very high prices create the motivation in criminal gangs to fake these shoes and sell them on the secondary sleeves.Property rights/original evidence secured on the blockchain prevent this to a certain extent.

What is the ERC-721 token standard?

The ERC-721 TOKEN is a little further developed than the ERC-20.Every token of this kind is unique and is often used as a collective object.The prominent example of this are the cryptokitties that caused a sensation in the crypto scene some time ago.

Basically breeding, selling and managing the players digital cats.The digital animals are certainly unique.If you have never heard of it, imagine it like baseball collecting cards on the blockchain.

Uniqueness in the main feature of the ERC721 token, which it does not make fun: An object cannot be replaced by another equivalent object.The fact that ERC-721 tokens are unique means that the tokens can be traded on any stock exchange, but the value of each token is linked to its rarity and its properties.

In the case of Nike, each ERC721 token represents an individual shoe.

Conclusion: tokenization is progressing

I am happy to see that more and more companies start to perceive the potentials and uses of blockchain technology.Nike is a big name and can ensure that the topic of blockchain and smart contracts is carried into the masses.