One trend that should be positive for investors regardless of where cryptocurrencies take off in 2022 is the growing number of companies exploring ways to leverage blockchain’s potential. In contrast to Web2, which relied on a small number of huge technology firms, Web3 is a growing decentralized internet, and this week saw the entry of another prominent company into this space.
The sportswear company Nike (NKE 0.64%) released a press release announcing the availability of its Web3 platform.
To digitize clothes
Nike’s digital apparel and assets are being consolidated with the release of. Swoosh. Users will be able to outfit their Web3-friendly avatars in Nike gear. Additionally, the site will sell non-fungible tokens (NFTs) of a limited supply. Users will also be able to meet elite athletes and get real-world perks like gear.
Those who have been following the development of Nike’s digital activities since December 2021, when Nike repurchased RTFKT (another Web3 startup with a similar role), may find the introduction of. Swoosh perplexing. An RTFKT representative said that the company will work with Nike on Web3 expansion on an exclusive basis, so it appears that RTFKT and Swoosh will be separate platforms.
Nike is a pioneer in both the fashion and sports industries, so it stands to reason that it would take advantage of Web3’s capabilities. Nike cares about what its customers want, given the company’s efforts to offer both digital assets and clothing. Even though it seems strange to buy clothes for a virtual character, people are spending more time than ever online, and Nike sees the potential for profit as this trend continues to grow.
The universal blockchain that makes everything possible
Nike needed a blockchain. swoosh operations to work. The blockchain will use this polygon (Matic -0.68%). Companies implementing Web3 technology are rapidly adopting this blockchain, making it a frontrunner in the blockchain space. companies with a lot of clout such as Coca-Cola, Meta, and J.P. Morgan As well as Disney By the year 2022, everybody will have used polygons for something.
providing both low costs and high speeds. Polygon is a layer-2 sidechain that has gained popularity due to its low transaction fees and high transaction speeds, as well as its compatibility with Ethereum (ETH 0.09%). Ethereum’s flexible, programmable blockchain makes it possible for developers to make a wide range of apps, making it the de facto standard for web3 businesses. In terms of centralization, it is up there with the best blockchains.
The Ethereum network, however, might become sluggish and expensive under heavy load. Here, Polygon comes into play. With Polygon, clients have the best of both worlds: minimum costs, Ethereum compatibility, and rapid transaction times.
In addition, Nike claimed that collaborating with Blockchain to become carbon neutral by 2022 was a no-brainer because of Polygon’s “sustainability-minded mindset.”
With the aforementioned considerations in mind, investors face a wide range of options. Start with some stock in Nike, the undisputed leader in sportswear. The company’s long-term promise is tough to ignore, despite ongoing supply chain issues. Among the world’s most recognizable brands, Nike enjoys a significant competitive edge, accounting for more than 12% of the global $380 billion sportswear sector.
Those looking to take a somewhat different route, with potentially higher benefits but also higher risk, might put their money into Web3 companies that support blockchain technology. The value of blockchains should increase in price as their use expands to cover more use cases. Ethereum and Polygon are two of the few blockchains that can handle the volume and variety of transactions in this crowded market.