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> The sweet spot would seem that it enables already trusted big brands to make their own de-facto corporate currencies. Sort of like a next generation loyalty p

> The sweet spot would seem that it enables already trusted big brands to make their own de-facto corporate currencies. Sort of like a next generation loyalty program/gift card/airline miles program on steroids. I don't see any problem NFTs solve that these loyalty problems don't. > Unlike airline miles, the ledger is openly tracked and the companies can't devalue them every year like airlines do. Are you picturing the cryptocurrency being tied to the dollar? Otherwise, Nike could make things cost more Nikecoin than dollars over time which would effectively be the thing as devaluing Nikecoin. They still control the currency because they control the economy they can be spent into. > At the extreme end I could see an application where Nike lets people trade Nike sneaker futures. Nike would actually store the physical Nikes in some climate controlled warehouse. So they would store the shoes on a centralized location that they control? What problem does a decentralized system have here? Why not just have the storage warehouse keep track of who owns what and allow ownership transfer? This reminds me of the people who store their alleged decentralized currency with a centralized bank.

somethoughts 5y ago
I don't see any problem NFTs solve that these loyalty problems don't. - Primarily the trust problem. For loyalty rewards programs its basically free money the brand provides based on miles traveled/products bought. You'd never actually convert large sums of solvent USD (>$25K) into the Nike rewards program though because then you have to start thinking about whether Nike be around in 25 years, do I trust Nike's backend unaudited IT systems to not screw up, if Nike stops making cool stuff my $25K is stuck in their rewards program. However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinbase, etc.) were validating the Nikecoin ledger and could convert from Nikecoin back to USD there's more trust that could be developed. - Another scenario is transferring Nikecoin between friends without Nike having to manage the transfer - And perhaps group/syndicate buying - i.e. Constitution DAO style? - In-game tokens? Imagine you could wander around PokemonGo/Roblox to find Nikecoins at which point you could redeem them for sneaker coupons or jump through hoops to convert to USD. Are you picturing the cryptocurrency being tied to the dollar? Otherwise, Nike could make things cost more Nikecoin than dollars over time which would effectively be the thing as devaluing Nikecoin. They still control the currency because they control the economy they can be spent into. - Just spitballing but yes I'm picturing it the same way BTC/Dogecoin/Shibacoins are tied to the USD in that you as Nikecoin holder you could freely convert back and forth at the going exchange rate and the number of Nikecoins is run with a predefined supply algorithm. - I could also picture a standard set of Nikes always tied to a set Nikecoin price so Nike can provide some stablecoin like price stability. So they would store the shoes on a centralized location that they control? What problem does a decentralized system have here? - Traders can trade the digital version ad naseum until the final owner is found. The final owner is the one who wants to have the physical version be shipped to their home address for actual consumption/wearing. - There are probably more traders than final owners for most Nikes. There are also more people who would know how to bid for collector grade Nikes using virtual Nikecoin than know how to store a collector grade Nikes in a climate controlled warehouse.
- choward 5y ago
  > if Nike stops making cool stuff my $25K is stuck in their rewards program. > > However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinbase, etc.) were validating the Nikecoin ledger and could convert from Nikecoin back to USD there's more trust that could be developed. I don't follow your logic here. Why would Nikecoin have any value of Nike went out of business? > Just spitballing but yes I'm picturing it the same way BTC/Dogecoin/Shibacoins are tied to the USD in that you as Nikecoin holder you could freely convert back and forth at the going exchange rate and the number of Nikecoins is run with a predefined supply algorithm. My bad. I should have specified I meant a fixed exchange rate but you're saying it's a floating exchange rate. This means what I said before is true. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. > I could also picture a standard set of Nikes always tied to a set Nikecoin price so Nike can provide some stablecoin like price stability. Yeah, but now you're back to trusting Nike.
  - somethoughts 5y ago
    Why would Nikecoin have any value of Nike went out of business? - Because it's its own coin. Just like Dogecoin/Shibacoin will still have some value even if the original developers move on, Nikecoin could potentially have some similar value to Dogecoin if some other maintainers pop up to pick up where Nike left off. Nike reward points on the other hand will go to zero if Nike ever shuts down its servers. Generally cryptocoins presumably are designed from the ground up to be maintained by multiple weakly trusted parties where as internal reward point CRUD systems are typically designed to require full trust by all maintainers at all times. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. - Because there's less lock in with the exchange rate publicly available and you can convert to USD at any time, Nike would be motivated to maintain a healthy ecosystem. And perhaps I come from a Charlie Munger type place where I don't see as much value in crytocoins in general and this is the only potential use case I can come up with :).

somethoughts 5y ago

I don't see any problem NFTs solve that these loyalty problems don't. - Primarily the trust problem. For loyalty rewards programs its basically free money the brand provides based on miles traveled/products bought. You'd never actually convert large sums of solvent USD (>$25K) into the Nike rewards program though because then you have to start thinking about whether Nike be around in 25 years, do I trust Nike's backend unaudited IT systems to not screw up, if Nike stops making cool stuff my $25K is stuck in their rewards program. However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinbase, etc.) were validating the Nikecoin ledger and could convert from Nikecoin back to USD there's more trust that could be developed. - Another scenario is transferring Nikecoin between friends without Nike having to manage the transfer - And perhaps group/syndicate buying - i.e. Constitution DAO style? - In-game tokens? Imagine you could wander around PokemonGo/Roblox to find Nikecoins at which point you could redeem them for sneaker coupons or jump through hoops to convert to USD. Are you picturing the cryptocurrency being tied to the dollar? Otherwise, Nike could make things cost more Nikecoin than dollars over time which would effectively be the thing as devaluing Nikecoin. They still control the currency because they control the economy they can be spent into. - Just spitballing but yes I'm picturing it the same way BTC/Dogecoin/Shibacoins are tied to the USD in that you as Nikecoin holder you could freely convert back and forth at the going exchange rate and the number of Nikecoins is run with a predefined supply algorithm. - I could also picture a standard set of Nikes always tied to a set Nikecoin price so Nike can provide some stablecoin like price stability. So they would store the shoes on a centralized location that they control? What problem does a decentralized system have here? - Traders can trade the digital version ad naseum until the final owner is found. The final owner is the one who wants to have the physical version be shipped to their home address for actual consumption/wearing. - There are probably more traders than final owners for most Nikes. There are also more people who would know how to bid for collector grade Nikes using virtual Nikecoin than know how to store a collector grade Nikes in a climate controlled warehouse.

choward 5y ago
> if Nike stops making cool stuff my $25K is stuck in their rewards program. > > However, with a Nikecoin if you knew multiple 3rd parties (i.e. Citibank, Coinbase, etc.) were validating the Nikecoin ledger and could convert from Nikecoin back to USD there's more trust that could be developed. I don't follow your logic here. Why would Nikecoin have any value of Nike went out of business? > Just spitballing but yes I'm picturing it the same way BTC/Dogecoin/Shibacoins are tied to the USD in that you as Nikecoin holder you could freely convert back and forth at the going exchange rate and the number of Nikecoins is run with a predefined supply algorithm. My bad. I should have specified I meant a fixed exchange rate but you're saying it's a floating exchange rate. This means what I said before is true. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. > I could also picture a standard set of Nikes always tied to a set Nikecoin price so Nike can provide some stablecoin like price stability. Yeah, but now you're back to trusting Nike.
- somethoughts 5y ago
  Why would Nikecoin have any value of Nike went out of business? - Because it's its own coin. Just like Dogecoin/Shibacoin will still have some value even if the original developers move on, Nikecoin could potentially have some similar value to Dogecoin if some other maintainers pop up to pick up where Nike left off. Nike reward points on the other hand will go to zero if Nike ever shuts down its servers. Generally cryptocoins presumably are designed from the ground up to be maintained by multiple weakly trusted parties where as internal reward point CRUD systems are typically designed to require full trust by all maintainers at all times. Nike will have to price their items in terms of both dollars and Nikecoin which means they could use that to manipulate the value of Nikecoin. - Because there's less lock in with the exchange rate publicly available and you can convert to USD at any time, Nike would be motivated to maintain a healthy ecosystem. And perhaps I come from a Charlie Munger type place where I don't see as much value in crytocoins in general and this is the only potential use case I can come up with :).