Nike is Launching a Web3 Platform for Its Virtual Products

Despite the hacks, implosions, and insolvency experienced in the crypto space in 2022, companies have not slowed their interest in exploring the innovations that Web3 could bring. Institutional investors alike have maintained a high level of interest in adopting digital assets and incorporating Web3 technology into their businesses.

Sportswear giant Nike has been an active explorer and adopter of distributed layer technology and the Web3 technology stack. One of Nike’s biggest entrance into the world of Web3 was when it acquired the metaverse platform RTFKT (pronounced artifact) for an undisclosed sum, in December 2021. Nike has also patented tokenized shoes, minted as Non-Fungible Tokens (NFTs) on the blockchain. The patent titled “System and method for providing cryptographically secured digital assets” covers both physical and virtual NFT-based footwear. The patent describes a system for minting and exchanging cryptographic digital assets in the form of digital footwear, which can be linked to real-world footwear.

Nike’s latest Web3 release is .Swoosh (dot Swoosh), a blockchain-powered digital collectible platform where Nike’s virtual creations will be launched and traded. .Swoosh is slated to launch on November 18; the first collection is expected to drop in early 2023. Nike says it aims to foster an inclusive digital economy for its consumers. Nike virtual creations will include sneakers, apparel, accessories and other collectibles that users can wear in virtual games and other immersive experiences.

The Race to Dominate the Virtual World

With the rise in the popularity of NFTs, the fashion industry is set to transition into a whole new market. Consumers of luxury brands now have a new way to show off their serialized luxury collections online. Inherent features of NFTs such as traceability and serialization of products are leveraged to connect the virtual world with the physical world, thereby forming a hybrid of both worlds. Luxury items in the virtual world are collectors items just like they are in the physical world. When Nike launched its Nike Dunk Genesis Cryptokicks collection containing 20,000 sneakers NFT, some bids were as high as $100,000 for a pair of Nike virtual sneakers. Nike has already accrued $185 million in revenue through Web3 products, according to Vogue Business. RTFKT studios recently released a sneak peek of the real-life Cryptokicks sneakers. It is rumored that ownership of a RTFKT NFT is mandatory to own a pair of real-life Cryptokicks.

Nike is not the only apparel brand with its eyes on Web3. Adidas has also ventured into the Web3 world. In December 2021, Adidas collaborated with top builders in the NFT space, including Bored Ape Yacht Club and Pixel Vault, to launch its NFT collection titled “Into the Metaverse.” The collection consisted of 30,000 NFTs.

In September, Puma also stepped foot into the Web3 space with the release of Black Station, its 3D spatial playground. Puma’s Black Station features exclusive limited edition NFTs linked to redeemable physical sneakers. Puma says Black Station will enable its followers and NFT community to experience the brand like never before.

These apparel brands are bringing their competition in the apparel and sportswear industry into the metaverse, wanting a piece of the metaverse pie.

Web3, Beyond Fashion

Web3 adoption has gone beyond art and fashion. The automobile industry, sports bodies, and payment networks, among others, are all integrating some form of Web3 technology into their products and services.

Alfa Romeo, the Italian luxury car manufacturer, introduced NFTs in its new subcompact SUV, the Tonale, to track and store maintenance records. The Tonale NFT certifies the car upon purchase, and then records and stores data during the car’s lifecycle. The NFT stores this data on the blockchain, which makes vital vehicle data, such as maintenance records, become tamper-proof. In the used car market, for example, a buyer of a pre-owned vehicle that has its records stored on the blockchain can rest assured that none of the car’s data has been altered, as blockchain records are immutable.

Payment network Visa believes that NFTs will shape the future of digital commerce. Visa purchased an NFT from Cryptopunk, one of the most popular NFT collections. Visa said it purchased the NFT to gain a firsthand understanding of what it entails for a global brand to purchase, store, and leverage NFTs in its business.

Sports bodies have equally hopped on the Web3 trend. FIFA, soccer’s world governing body, announced a partnership with blockchain company Algorand, in May. FIFA launched the FIFA+ Collect NFT platform on the Algorand blockchain. The FIFA+ Collect NFT platform will allow soccer fans to collect and own digital collectibles from the most iconic moments in the upcoming FIFA event, including the World Cup.

Countless firms across all types of industries have joined the Web3 trend. The dreadful crypto-related incidents of the year – hacks and ecosystem collapse – have not altered the broader perspective of companies exploring and adopting Web3 technology. The foundation of Web3 has been laid; some of the best digital products will be built on this foundation.

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