NFTs, Tokengated Commerce

Tokengated Commerce and Crypto Wallets

Crypto wallets are an interesting space. They require a maniacal focus on user experience that I suspect few companies have. That said, if something goes into a crypto wallet, that ‘something’ needs to connect to Web2 and combine on-chain and off-chain capabilities to maximize app performance. That’s where BCware can help.

by David Bressler - Jun 29, 2022

Crypto wallets are the digital spaces that contain the different elements of a composable identity.

In plain English:

Your wallet might contain a variety of "things" that serve to identify who you are:

  • your Starbucks' loyalty card,
  • a collectible you're proud of,
  • an achievement you share, and
  • your work ID.

We're going to compose the things in our Web3 wallets to reflect our personalities. And, brands that recognize this, will help their customers identify with them through innovative Web3 loyalty expressions that manifest in these wallets.

Many of the things in the list above can be stored in the wallets that exist today (like Apple Wallet).

But these wallets are "dumb" containers. They're functional and not expressive.

What gets interesting about crypto wallets is two bits:

  1. What's in Web3 wallets doesn't need an intermediary to the technology that stores the "thing" you're putting in the wallet. It's not just about money, but if I complete a class on Swift UI Programming, and that course certificate is minted on-chain, my wallet can display it. What's gained over an Apple Wallet like solution? Provenance. Proof that what's in your wallet is yours. This may not matter for a collectible (one that you're not trying to sell) but may matter for a credential.
  2. The other interesting thing is that Crypto Wallets are 'smart-contract' enabled, which is like having little apps in the wallet that enables capabilities on top of the composable item.

Connecting on-chain innovations to off-chain infrastructure

I'm going to share two articles on what's driving the current interest in wallets, but before I do, I want you to consider one thing.

Let's say Starbucks allows me to mint an NFT that represents my loyalty card, to store in a crypto wallet.

Do you think that even Starbucks will be able to tell customers what wallet and chain they need to download to access the NFT?

Or, will Starbucks need to find their community of users on the chains that these users have chosen for themselves with the wallets that their members are familiar with?

Do you think Starbucks wants to put every loyalty transaction on-chain, starting from scratch to build a new loyalty system based on a Web3 technology stack... or, do you think Starbucks will need to connect their existing loyalty Web2 systems into this new Web3 stack, to combine the best of on-chain and off-chain capabilities in order to deliver innovative solutions?

(Hint, it's the second choice.)

Just to be clear, I'm using Starbucks as an example that we can all relate to, not because I have any inside information into what they're doing. I only know that they're exploring a "digital third place" based on public information they've shared.

Learn More

If you're curious, and want to start from the User Experience to understand the benefits of Web3, Identity in Web3, and how wallets play a part, please read these two articles:

  1. Simon Taylor's "Why is everyone doing a Web3 wallet?"
  2. The Crypto Wallet, Unlocking Digital Identity

In last week's Tokengated Commerce announcement, Shopify talked about C2C as an expansion of B2C. B2C is "business to consumer", while C2C is "connect to consumer".

The wallet is the container in which businesses will connect to their consumers, and that's why, as Simon asks, "everyone is building a Web3 wallet".

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