Whatever your feelings about NFTs, there’s no denying that NFTs are versatile and have practical applications across a variety of industries. One of these is “token gating”, which is set to become one of the most enduring use cases for NFTs.
What is Token Gating?
As the name suggests, token gating essentially means gatekeeping access to a particular product, service, experience, etc., granting access only to people holding a particular token (in this case, an NFT). increase.
Since these digital assets are based on blockchain technology, tracking and verifying their transfer and ownership is much easier and transparent. This is why we’ve seen some of the world’s top brands offer access to perks via NFTs.
Spotify is reportedly testing special playlists that can only be unlocked by owners of certain NFTs. The development was announced by Kingship, a virtual band made up of NFTs.
We at KINGSHIP always strive to be at the forefront of technology and music.
Now, we’re taking this commitment one step further by launching a new token-enabled playlist. @Spotify!
This is a specially curated playlist exclusively for KINGSHIP Key Card (NFT) holders. 🧵 pic.twitter.com/5ftjk8OgC6
— KINGSHIP (@therealkingship) February 22, 2023
this is coming in a few months CoachellaIt is one of the most popular music festivals in the world.
Even the restaurant industry is starting to get involved with NFTs. Popular New York-based restaurant Take Dame offers access to its Affable Hospitality Club through NFT. At this club, a member can receive a table within her 24 hours at a restaurant that typically has a 12-week waiting list. Needless to say, her NFT applications go beyond music and entertainment.
what this means
Companies offering special perks to certain categories of users are not a completely new concept. From loyalty schemes that reward users with points, to pop stars who give fan club members the first choice for his tickets to concerts, this has long been a vehicle for community engagement and rewards. But NFTs are about to change this whole process as they become more widely used.
This is because, unlike its more “traditional” predecessor, NFT Token Gating is powered by blockchain technology. First, this means that the record of that ownership and what this ownership transfer has taken place will be permanently recorded on the blockchain. As a result, especially for high-profile perks that are gate-kept, it’s very unlikely that something fake or cheated will enter the market.
NFTs also mean easier collection, security, and verification of assets used to unlock rewards. Physical tickets are lost, but NFTs stored in secure wallets are easily accessible at any time, with few restrictions on transfers based on physical location.
A quick look at the application of NFT token gating will tell you what perhaps its greatest strength is. community engagement. Nearly every corporate brand, from music festivals to restaurants to users of streaming apps, has made the note that the best way to ensure continued advocacy is to create communities where customers feel connected online. I have received
However, for corporate brands, the challenge is creating incentives to participate. While the benefits for pop star fan clubs are clear, businesses and consumer brands are looking for something that can be easily distributed online to attendees and offer uniqueness while offering tangible benefits to their owners. I need it. Like…NFT!
Therein lies the truly disruptive nature of token-gating NFTs. They don’t just offer material perks, they offer the opportunity to build active communities around these perks. Given the success of early iterations of this, we can expect a lot more.
It should be noted that even though the corporate world is going full steam ahead with NFT token gating and exploring the benefits it can offer consumers, some challenges still exist. Most of these challenges are blockchain-specific and apply to other decentralized assets as well.
For example, the security of these assets can be tricky if not based on self-management. Consider the Coachella NFT stuck on the now defunct FTX exchange after last year’s collapse. As of this writing, the property has not been recovered and the buyer is still on the loose. Of course, this means that corporate brands leveraging NFTs will need to do their due diligence and provide some sort of workaround to avoid a recurrence of the incident.
Needless to say, NFT token gating is about to change the world, but there is still work to be done.
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*All investment/financial opinions expressed by NFT PLAZA are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
Tokoni Uti has written extensively on blockchain and cryptocurrencies over the years. Her work has been featured on sites such as BTCmanager and Blockchain Reporter. She has a degree in Corporate Communications.