Shopify is eagerly waiting for the next crypto rebound as its blockchain team recently released a guide to help developers build a token gated storefront. It is one of the major updates announced recently by the e-commerce giant. Other updates include publishing Shopify Ventures, removing 15,000 fake reviews, releasing Shopify Collabs for merchants and creators based in the United Kingdom, testing one-page checkout and shipping Shopify Marketing Tools.
CEO Tobi Lutke took to Twitter to announce Shopify’s new vision on token gated commerce. “The blockchain team at Shopify did a fantastic job creating a new tutorial for how to build a token-gated Shopify storefront from scratch,” he tweeted.
“Using Shopify functions, Remix, Hydrogen, Wallet-connect. Great time to build for the next crypto rebound!”
The blockchain team at Shopify did a fantastic job creating a new tutorial for how to build a token-gated Shopify storefront from scratch.
— tobi lutke (@tobi) June 29, 2023
Using Shopify functions, Remix, Hydrogen, Wallet-connect. Great time to build for the next crypto rebound !
https://t.co/TlYWaLpGaD
How it Works?
Shopify allows developers to use token gating to help merchants “create exclusive access and unlockable discounts” for visitors and loyal customers. Apart from rewarding the most loyal customers, blockchain helps merchants persuade another brand’s token holders. Shopify released two easy tutorials for developers to build “end-to-end token gating experiences with Headless and Hydrogen storefronts”.
The tutorial series teaches developers about the right usage of the “Gates API to read gates on products”. It comes with a connected crypto wallet that helps merchants check wallet contents against gates and react accordingly. “The end result is an end-to-end gated customer experience that applies discounts to the cart automatically using Shopify Functions,” the company states on Shopify.dev.
To build a token gated storefront, Shopify advises developers to use the Gates API and create gates. Developers are then asked to apply a gated discount using Shopify Function.
The tutorial series comprises four parts — getting started, saving a connected wallet to session storage, reading and evaluating gates and writing gate context to cart attributes.
What is Token Gating?
Token gating is a method of digital ownership secured by blockchain to offer utility to the target community. It helps merchants offer the NFT holders exclusive access to gated products, content, discounts and experiences.
NFT or non-fungible token is a type of digital asset that represents ownership of a unique item or object. Unlike other types of digital assets such as cryptocurrency, which are interchangeable and can be easily exchanged for other assets of the same type, NFTs are unique and cannot be exchanged for other assets in a one-to-one manner.
NFTs are often used to represent ownership of digital art, collectibles and other types of digital media.
Shopify believes that Web3 technologies are the future of commerce. Web3 refers to the third generation of the World Wide Web, which includes technologies such as blockchain, decentralized applications and cryptocurrencies. Even though it is still relatively new and rapidly evolving, many experts believe that Web3 has the potential to revolutionize commerce and transform the way we do business.
About Web3
Web3 is decentralized, a feature that makes it secure, transparent and efficient for transactions. Blockchain technology is a core component of Web3. It enables secure and immutable record-keeping, which can help prevent fraud and improve accountability. The technology also provides new opportunities for creators and entrepreneurs to monetize their digital content and services through the use of cryptocurrencies and decentralized marketplaces. It will not only empower individuals and small businesses but also compete on a more level playing field with large corporations.
In March last year, Shopify partnered with London-based startup Thirdweb to help develop a Web3 Project Commercekit. According to the United States Census Bureau, online retail is currently 13 percent of all retail sales. Web3 technologies are expected to change the landscape of e-commerce by roping in a bigger-than-ever crypto-native community. Web3 technologies just require superior promotional tools and reward systems.
Shopify and Thirdweb co-created the Commercekit to offer high-performing tools essential for Web3 initiatives. It not only serves the commercial sector but also merges proprietary software with the Web3 framework to attract investors and customers alike. Besides providing multiple services to investors and customers, Commercekit helps Shopify merchants in marketing communication and distributing NFTs to users.
It is still difficult to predict the exact future of commerce, though it is clear that Web3 is a rapidly growing and innovative technology. It has the potential to significantly impact the way we do business in the coming years.
