Bitcoin, Ethereum, NFTs, and crypto. These words have been shoved into our vocabulary over the last few years. Shopify is joining the team by now offering tokengated commerce. These are fairly new concepts to us and many people are just discovering the potential of crypto. So, when your eCommerce platform comes out with new features like this it’s important to understand the basics, the lingo, and how it can benefit you and your brand.
In this post we will discuss:
NFT or “Non-Fungible Token” is a unique digital asset. They are purchased and sold online and have some form of visual representation. Although some of the artwork appears identical, each individual NFT is digitally unique and cannot be replicated. That is why they are special. They are found and used in many forms including video, art, in-game items, and much more.
Think of NFTs like trading cards. Some are rarer than others because of the amount created. With trading cards, you can own them, exchange them, and sell them just like an NFT. The rarer and more popular the NFT the more money it costs to purchase it. But unlike trading cards, it’s not limited to games or sports. There is digital artwork, virtual avatars, digital sneakers, music and much more.
In this blog we will focus on NFT tokengating. Tokengating simply put is allowing a certain individual who hold a token to gain “exclusive” access to content, community, information, or other exclusive items/opportunities. There are many forms of tokengating, and each are customizable to the brands needs and desires. You pick and choose what form the token is in, the number that are produced, what it looks like and what it enables once owned.
Here is an example of what this could look like:
Say Nike is releasing a new pair of shoes. With a purchase of these shoes, you also get a digital version of them in the form on an NFT. So, for the first 100 people who purchase these shoes they also get the NFT. Now the utility of the token. With this NFT you could offer; early access to future products, access to exclusive events, future discount codes, etc. The list is endless. So instead of just releasing a new pair of shoes, you are also able to offer much more.
With Shopify’s new update you now have the ability to activate these NFTs. Shopify isn’t a place where you can sell them or mint (create) them, but instead Shopify acts as a space to activate its use for your store. Shopify merchants have already created amazing communities for their brands and are always looking for more ways to connect with consumers. “Now, tokengated commerce offers a fundamentally new way to deepen those connections, and reward true fans and VIPs, by giving NFT holders exclusive access to products, perks, and experiences.”
.png?width=418&name=Untitled%20(1080%20%C3%97%20700%20px).png)
All the consumer has to do is connect their crypto wallet to a Shopify online store and they can start to use their NFTs to access the brand exclusive experiences or help drive business to your sister stores.
Expanding on this concept Shopify also explains that “Tokengated commerce can also be multiplayer. One brand can gate its storefront to a collaborating brand’s NFT holders, opening opportunities for brands to invite each other to a shared experience. Through tokengated commerce, we’re accelerating community commerce, inviting crossover, and introducing customers to their favorite brands they haven’t met yet, all while delighting them in the process.”
There is so much potential in this new world of NFTs and crypto that businesses are just understanding and implementing.
Flyfish Club is one of the many brands already using Shopify’s new tokengating feature. It's a membership program that can be joined with a single purchase of an NFT. Flyfish Club is special. It is the first NFT restaurant. Only members of this club can dine at the exclusive NYC restaurant.
Other benefits include:
The flyfish club also has a password protected members only merchandise store run through Shopify. That is where the specific tokengating feature on Shopify comes into play. Without it the products would be available to the public instead of in an exclusive marketplace full of the most loyal fans of the brand.
With the Release of Token gating Shopify and their stores are entering a fun new world. There is so much opportunity to increase your online experience and brand loyalty. We are looking forward to staying up to date as we see more stores embrace this new tool. Click here to stay updated on our latest findings. With every business decision you make you are taking a risk. Using NFTs is no different. The cryptocurrency market can be extremely volatile and is a risk to become tied to. So do your research beforehand and learn as much as you can. If you feel it is right for you and your business, tokengating with Shopify is easier than ever.
Sources:
https://www.shopify.com/retail/token-gating
https://www.shopify.com/editions/summer2022#tokengated-commerce
BUKU Marketing: Sep 21, 2023 1:47:41 PM
The supply chain is a term used to describe all the components required to transport goods from beginning to end, from production to the end...
BUKU Marketing: Sep 13, 2023 1:00:00 PM
A smart warehouse is a large building where raw materials and other consumer goods are stored using machines, computers, comprehensive software, and...
BUKU Marketing: Sep 6, 2023 1:00:00 PM
Direct-to-consumer (DTC) fulfillment is a strategy that helps brands sell and deliver their products directly to customers more efficiently while...
BUKU Marketing
