Footwear Giant Nike Patents a System and Method for Tokenizing Shoes on Ethereum’s Blockchain

Nike patented shoes that are tokenized as a non-fungible token (NFT) on the Ethereum blockchain, dubbed CryptoKicks.

The patent which was dated Dec. 10 recounts a digital asset for footwear and ways to use it. One implementation of the technology described in the document is an Ethereum ERC721 or ERC1155 token used to authenticate and transact a physical shoe.

Nike shoes on the blockchain

The token would be “unlocked” with the purchase of a corresponding physical shoe by linking a 10-digit shoe identification code with the owner identification code. The system apparently aims to furnish a way to ensure the authenticity of the goods, as described in the patent:

“Prospective and current owners […] may buy and sell digital assets through one or more blockchain ledgers operating on the decentralized computing system. […] By way of example, and not limitation, a user may buy a new pair of highly sought after sneakers from a verified vendor who may provide authenticated provenance records for the sneakers. […] After receiving the shoe box containing the purchased sneakers, the user scans the box UPC with a barcode scan feature in a sneakers app operating on the user’s smartphone.”

Nike also insinuates that token creation may be linked to sales of shoes, which would also allow for the verification of the scarcity of the shoes in circulation. The patent reads:

“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.’”

Ownership of the digital token can be passed on alongside the physical product, when the footwear is sold. The property of those tokens would be managed in a dedicated app, also looking to enhance brand engagement.

Footwear Giant Nike to allow Breeding shoes on blockchain

The patent takes ideas from CryptoKitties, the popular blockchain collectible cats game. Exactly, it suggests that the shoes can be bred:

“Using the digital asset, the buyer is enabled to securely trade or sell the tangible pair of shoes, trade or sell the digital shoe, store the digital shoe in a cryptocurrency wallet or other digital blockchain locker, intermingle or “breed” the digital shoe with another digital shoe to create “shoe offspring,” and, based on rules of acceptable shoe manufacturability, have the newly bred shoe offspring custom made as a new, tangible pair of shoes.”

As blockchain begins to be more mature and big companies engage with the technology more, development in the industry is driven. Still, experts warn that this is an industry in which the United States is not at the forefront.

Latest reports said that in terms to the number of patent applications in the blockchain space, China is handily outpacing other countries, including the United States.

 

Photo www.hongkonghustle.com

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