Token gating is a concept that allows for added value to be offered to non-fungible token (NFT) holders beyond just the digital asset itself. With token gating, NFT holders can receive exclusive access to communities, content, or even physical products that are not available to the general public. By doing so, token gating adds utility to an NFT and makes it more valuable.
There are many ways that token gating can be applied, which is one of the reasons why it is so exciting. NFT holders may receive perks like special discounts on new products, early access to store openings, or invitations to members-only events. The possibilities are endless, and it is up to the seller to come up with creative ideas that give added value to their customers upon the purchase of their NFT.
So, how does token gating work exactly? In order for NFT holders to receive access to token-gated perks, their ownership needs to be verified. Network users connect to blockchains using a unique public and private key pair, which is like having a really long and complicated username and password. This public-private key pair is called a wallet. If someone has your public key, they’re able to send tokens to your wallet, and they can see what’s in your wallet, but they can’t access your wallet’s tokens without your private key.
Knowing this, programmers are able to write software that looks into a wallet to see if they have a particular NFT. They’re also able to use that information to allow wallet access to do things based on whether it contains a particular NFT or not. This is called ‘token gating.’ Token gating works by peeking into your wallet to see if you have a particular NFT or not, and then essentially returns a value of yes or no.
One of the main benefits of token gating is improved security. Because NFT ownership is verified through the blockchain, there’s no way to forge token ownership. Therefore, only token holders have access to an NFT’s perks. This ensures that the perks offered through token gating remain exclusive and valuable.
Another benefit of token gating is its cost-effectiveness. NFTs, in general, put distribution and profits directly in the hands of NFT creators. Because there are few “middleman” costs associated with creating and selling NFTs, creators take home what they earn. Token gating takes this concept even further by allowing creators to offer added value to their customers at minimal cost.
Finally, token gating can help build buzz and create a sense of FOMO (fear of missing out) around NFTs. When done correctly, NFT projects can go viral with a great concept and utilize token gating. This can create word-of-mouth marketing that is invaluable for building hype around an NFT project.
To complement the sales and overall checkout experience, it’s essential to have a reliable crypto payment gateway like Paywong. Paywong is a non-custodial crypto payment gateway that enables businesses to accept cryptocurrency payments securely and efficiently in minutes. With Paywong, merchants can offer their customers a seamless and secure payment experience, enabling them to make purchases using their preferred cryptocurrency.
In summary, token gating and Paywong are two powerful tools that can help NFT creators and businesses enhance their customer’s experience and drive sales. By combining the benefits of token gating with the convenience of Paywong crypto payments, businesses can unlock new opportunities in the rapidly evolving world of NFTs and cryptocurrencies.
With Paywong, anyone can accept crypto payments, including stablecoins, from anywhere in the world with low transaction fees, with or without a website. The startup is also working with a third-party off-ramp solution to allow its users to convert crypto to fiat in real time. Paywong is a non-custodial crypto payment gateway which provides merchant services for businesses that cater to all kinds of customers. In addition, Paywong is also useful for individuals who are working as freelancers and want to get paid for their services in crypto via Paywong’s crypto invoicing service.
Paywong has launched a payment gateway that comes with an intuitive dashboard for managing funds, e-commerce integrations, and an invoicing system that generates a payment link that anyone can share. Book a demo to learn more, and you’ll be accepting cryptocurrency as payment from your customers in no time.
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About The Company
Paywong is a product of Walawong Solutions Pte Ltd — a Web3 startup based in Singapore. We are on a mission to simplify crypto payments for businesses by leveraging the power of blockchain technology.