Ethereum Merge: Nike, Gucci, and Adidas
Ethereum blockchain promises to solve one of the greatest obstacles to NFTs becoming mainstream. Extensively talked about for over a year now, Ethereum is transitioning into a proof-of-stake model that is massively less energy intensive.
The merge went live on September 15th and is being touted as one of the most paramount events in the history of crypto, with the blockchain-based software platform describing it as “a truly exciting step in realising the Ethereum vision – more scalability, security, and sustainability.”
The merge is intended to reduce energy use by more than 99 percent by removing the need for energy-intensive mining operations. For the many fashion companies with Ethereum-based NFTs, such as Adidas, Nike, and Gucci, there’s a lot on the line for their sustainability credentials. With environmental concerns no longer holding brands back, The merge allows brands to more freely examine community-building with NFTs and reward their most dedicated fans with new experiences.
Previously, every time there was a transaction on Ethereum, computers competed to validate it by racing each other to solve complex equations, requiring enormous processing power but yielding a reward for the winner. This former system was called (PoW) Proof-of-work which had an annual energy consumption that surpassed Australia and Argentina to process transactions.
The new system will absolve from this competition and instead involve investors “staking” ether the native currency of the Ethereum blockchain in a pool, entering them into a lottery that will select one to validate the transaction and claim the reward. The reduced environmental impacts will be immense, with some estimates of the carbon footprint putting PoS (proof of stake) at 2,000 times less impactful compared to PoW (proof of work).
With brands like Gucci, Louis Vuitton, Nike, Tiffany, and Puma finding early success with NFTs, it is certain that many other major brands will be hopping on board too. The Merge represents the beginning of a new era that could create a more interconnected culture between brands and their fans.
Nike specifically has been leading the race for digital transformation. Nikeland is Nike’s metaverse space designed on the Roblox platform. Since its launch in November 2021, Nikeland has seen more than 7 million visitors. Nike has also been an early adapter for NFTs, in December of last year Nike Purchased RTFKT studios, a maker of NFT collectibles. Nike went on to sell 600 pairs of NFT sneakers in just six minutes, for a grand total of $3.1 million.
AUTHENTIQUE, the app revolutionising authentication through the creation of NFTs is also creating a way for sustainable crypto-creation. This app creates a digital twin during the point-of-purchase of a physical product. This digital twin gets placed into the AUTHENTIQUE app for purchasers to have proof of purchase along with the metadata of the NFT.
This app is combatting the counterfeit industry by allowing for a more secure way of verification for luxury purchases through visual recognition software. This type of technological advancement within the scope of Web3 is projected to finally create a safe way to buy and sell physical luxury goods on the resale market with the creation of an NFT.
The old way of purchasing luxury goods required a physical authentication card given by the brand during the buying process. Unfortunately, issues stemmed from the falsification of these physical cards. AUTHENTIQUE allows for the creation of a safe-proof method for verification for these physical products through the creation of digital twins. Learn more about AUTHENTIQUE on our website.
