The rise of token-gating
Tokengating is a form of access control that uses a token-based system, such as NFTs, to authenticate users and grant them access to an exclusive zone or digital space. This has very powerful applications in eCommerce, allowing merchants to create unique experiences for customers who are owners of the token. Shopify has taken a leadership position in this domain, with many brands already jumping on the bandwagon including Doodles and World of Women. Shopify currently has 12 different apps allowing merchants to introduce this feature.
Beyond token-gating: what is next?
While token-gating is an exciting way to create buzz and add a dimension of exclusivity for brands, it is only scratching the surface of what is possible with wallets and personalization.
Customer wallets are often filled with many tokens which, in aggregate, create meaningful insights about who they are as a person. For instance, a wallet may contain multiple gaming NFTs which means it likely belongs to a customer who loves games. A wallet with many DeFi tokens likely loves the thrill and reward of a financial crypto return. Instead of leveraging a single asset for a token-gated experience, why not tap into this on-chain data driven story telling and create 1:1 personalised experiences for your customers?
A few examples of powerful user demographic insights that could be derived from wallets:
Net-worth – Wallets typically hold a cryptocurrency like Ethereum or USDC. A customer with a high volume of ETH (i.e. more than $100k worth) may be considered a high net-worth customer.
Gender – Certain NFTs or DAO memberships have a more female demographic and a customer holding these credentials will likely belong to this profile.
Location – There are several approaches to using transaction data to deduce location. For instance, transaction data may be concentrated during a certain time of the day which indicates a timezone. Furthermore, a wallet owner may have repeated transactions with a smart contract belonging to a local centralized exchange, indicating a nationality and location.
‘Web3’ persona – Web3 has developed a series of subcultures roughly aligned with a users interests. For example, some wallet owners may have mostly interacted with cryptocurrency investment products and focus on getting yield on their assets. This group is more interested in DeFi (Decentralized Finance). Others may be more interested in gaming, art, DAOs, etc.
What events they attend – A very common wallet asset in Web3 is something called a “POAP” or “Proof of Attendance.” These are free-to-mint NFTs distributed to wallet owners who attend an event, such as a concert in Decentraland or even an in-real-life event. This, in turn, reveals insights into the user’s behavior and insights. See examples of POAPs below.
As wallets become more and more integrated with our digital experiences, experience owners will increasingly tap into these powerful insights to craft unique customer journeys. For eCommerce, this is especially enticing as it creates an immense opportunity to increase conversion and build revenue boosting personalized journeys for highly engaged Web3 audiences.
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