“Non-fungible token” is NFT. Additionally, “fungible” assets can be swapped for others, like physical money and cryptocurrencies, which are fungible, implying they can be traded or exchanged for one another. Every NFT contains a digital signature, which makes each one unique.

Non-fungible tokens make things interesting. Blockchain technology makes many previously unfeasible ideas possible. A non-fungible token can generate a digital asset certificate.

This allows you to verify digital content for sale, ownership, or trade. As a result, since these tokens are maintained on an open and distributed blockchain (like Ethereum), any Internet-connected node may verify their information and transaction history. This means that everyone knows which digital wallets store which tokens.

This has absolutely endless consequences, and we’ve only begun to scratch the surface of what’s possible. One way that initiatives and businesses are giving NFT ownership more significance is through token gating.

What is token gating?

A token, sometimes known as a social token, is a blockchain-secured way of digital ownership. Moreover, in other words, token-gating is the use of blockchain to restrict and provide access to a digital asset (as opposed to paying with traditional payments). Social tokens and NFT tokens can be created and traded.

How does token gating work

Token-gated benefits are easy to access. Most Defi applications ask you to sign or connect your crypto wallet to prove token ownership. This step makes claiming benefits easier.

Project teams build specific token-gating schemes. Token gating lets PROOF Collective members access certain content, You, as a token holder connect your wallet to their internet gateway to access more.

Wallet security is the most crucial aspect of token gating. In most cases, you must connect your wallet to receive token-gated features. Before joining or signing in with your wallet, always triple-check links.

Why do projects use token gating?

Projects gate tokens for various reasons. The goal is to create value for token holders. Token gating distributes special content, tickets, airdrops, and products. Another example of how you can utilise token gating in your community,

You have an event coming up and you created a token as a ticket for the event, only those that have purchased your token will be able to join your event.

Conclusion

Token gating is a token economy that grants token holders exclusive items, experiences, and events. This prevents abuse and adds value by acknowledging meaningful contributors. 

Moreover, if a project announces an event or claim involving token gating, always take your time to check multiple sources and official project channels before interacting with any sites. This will help you verify the legitimacy of the event and avoid potential scams or fraudulent activities.This precaution is crucial to avoid falling victim to potential scams or phishing attempts. Most projects will never conduct any surprise mints or claims. Be cautious and take your time!