What is Token Gating, Its Benefits, Working and Future Prediction?

• These tokens act as a ticket pass to access any event, material or perks.
• Users can use third-party APIs, such as get Owner For Collection and get NFTs.

It is an act of limiting certain materials, perks or access to those who have tokens or NFTs. These tokens act as a set of keys to materials, perks or any event. Once these tokens are traded, the earlier token holder will lose ownership of them. 

These tokens act as a ticket pass to access any event, material or perks. Token gating is a thing where you pay fees before you access the material. Such tokens are simply purchased. 

Basically, to gain access to the material, one should have a set amount of crypto tokens or a number of NFTs

Benefits of Token Gating

• Exclusivity

Anyone can be part of the community by paying a certain amount. People are likely to spend on such tokens because of their exclusivity and it makes sense that as they are limited in number, people would like to bid high for it. 

NFTs are frequently issued in limited numbers, which drives their value. Over time, the value of these tokens gets reduced.   

• Authenticity

One can check the ownership history of tokens. Moreover, the tokens are held in a token wallet, which reduces the possibility of a fake history being recorded in the ownership history and there is also a very low probability that anyone will lose their wallet. 

• Cost-effective strategy

As it gives total control over the distribution, which gives inventors the authority to save on middleman expenses like manufacturing and selling NFTs. This is one of the important features of token gating that tends to attract inventors to it.

• Security

There is no way to breach the security of token gating, as all the ownership records are recorded on the blockchain. Tokens specifically give access to NFT owners only. 

• Ease of access

Because all the details of the owner are linked to the token gated website, individuals can access the content or data whenever they want. It can be a profitable method where the inventor can ask for a royalty or profit percentage of the sale.  

How token gating works

• Sign in to any bitcoin wallet: The process begins with sign-in in the Bitcoin wallet. There are a number of wallets like Metamask, Ledger and Trezor used for holding such NFTs.
• Authentication process by wallet: After sign-in a Bitcoin wallet, the wallet authenticates the owner. Confirming that they are the genuine owner of the wallet.
• After the authentication process, the platform grants access to the owner of the NFT collections that are present in the wallet.

Third-Party API for Token Gating

Users can use third party APIs and implement them at the endpoint. There are the following third party APIs:

• getOwnersForCollection
• isHolderOfCollection
• getNFTs

Examples of Token Gating:

• Friends with Benefits
• Stoner Cats
• VeeCon
• FlyFish Club

Conclusion

This is a method to restrict access to content or data and encourage people to spend a certain number of tokens. The NFTs or tokens act as an access key to restricted content and are authenticated by linking a crypto wallet. The technology is still in its initial stages, but many companies are adopting it as a subscription model.