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How to add unlockable content to your NFT collection

In this article, we describe what unlockable content is, how it works, and how to add it to your NFT collection correctly.

After a spectacular run in 2021, almost everyone at least superficially knows what nonfungible tokens (NFTs) are. Although not many people are aware that NFTs constantly get new entrancing functionality and use cases.

This article will highlight the role of an exciting feature: unlockable content in NFTs. We will break down for you its advantages and use cases and show how to add unlockables to your NFT collection.

What is an NFT?

Traditionally, NFTs are described as unique cryptographic digital assets on a blockchain that can be bought and sold online. They could be nearly anything, including digital pictures, songs, videos, in-game items, real estate or even personal genomes.

Most notably, NFTs provide advantages for artists, such as decentralization, verification and management of ownership, ease of transferability and trade, rarity and scarcity. Most important of all, NFTs construct a completely new creator economy, with the possibility for creators to earn royalties from secondary sales without the mediation of any third party by setting up smart contracts.

Yet despite the apparent advantages of NFTs for artists and the community itself, a lot of people are still convinced that they are just a temporary craze. NFT skeptics keep repeating over and over that such clumsy digital NFT art on a blockchain, in reality, has very little to do with true art.

For sure, the majority of NFTs exist as various static items on blockchains available for purchasing and selling on online marketplaces. And since there is no mediator, they can be totally anything, including low-quality content as well. 

However, the community must not forget that the NFT phenomenon encompasses not only digital art and trendy overpriced collectibles because the underlying technology enables creators to do much more than standalone JPEGs or GIFs. 

NFTs enable dozens of use cases. For instance, by their nature, NFTs represent unique tokens that can be “owned” by users, meaning that any NFT can also act as a form of proof, a certificate or a key. The spectrum of new innovative ways to use this form of “access control” to provide value to people is limited only by the imagination of creators. This is precisely where the unlockable content concept comes into play.

What is unlockable content in NFTs?

NFTs have a huge amount of inventiveness that artists can use to diversify their functionality. Unlockable content is one such element that can add real-world value to the NFT outside of the digital token and bring creativity to it, thereby enhancing the trading experience. Basically, unlockable content is a key to exclusive stuff and services that can only be accessed by the NFT holder. It becomes visible to the buyer of an NFT after the purchase. 

Although unlockable content may be anything exclusive, more often, unlockables are presented by links to higher resolution files of NFTs or opportunities to purchase its physical copy with shipping details or the artist’s contacts. On top of that, unlockable content is a useful tool to add value to an NFT collection and a great way to create attraction on the secondary market. 

For artists, unlockable content is an opportunity to respect and honor the collectors of their NFTs by offering them something original that has value in the real world. In that way, unlockables create the effect of enlarged rarity and demand for NFTs.

Use cases of unlockable content in NFTs

There is a wide scope of ways to use unlockable content in NFTs, and its examples are practically endless. It can be nearly anything from higher resolution versions of digital images and additional video content to access to private communities or certificates.

Use cases of unlockable content in NFTs

For instance, musicians can use NFTs with unlockable content to ship a physical copy of their records or distribute tickets to provide fans access to their shows. What’s more, artists can add special behind-the-scenes content for the lucky collectors who buy their NFT pieces.

Which marketplaces support unlockable content?

Even though unlockable content can open up many moving new ideas, NFT marketplaces that support it can be counted on one hand. This is mainly due to the fact that NFT marketplaces face two main challenges. 

First and foremost, there is a storage issue. NFT platforms do not offer storage on-chain because it would potentially lead to huge costs. Thus, usually, NFTs are stored in distributed file systems, such as IPFS, Arweave or even in centralized ones.

Then, if unlockable content is not actually stored on-chain, it becomes very platform-specific. This limits the ideas of creating custom unlockable content and the possibilities of adding it to NFT collections. However, there are a few NFT platforms that have already implemented unlockable content for NFTs on their platform — OpenSea, Solsea, Rarible and Mintable.

How to create NFTs with unlockable content

Generally, for artists, the option to add unlockable content is available on NFT marketplaces when setting up NFTs. In other words, artists can attach unlockables while creating or editing them. So, how to add unlockable content to your NFT collection?

There is not much difference between adding unlockable content on OpenSea, Solsea or any other platform that supports this. The scheme is approximately the same. Unlockables are limited to plain-text content. NFT platforms provide a large text area for adding any content artists prefer, like a story of the work, a thank you message or a certificate of authenticity.

Unlockable content addition settings limited to the text format mean that NFT creators cannot upload any files they want in the form of an image or a video. Alternatively, they can simply add links to the needed files hosted in other storage solutions they like, which they have to organize themselves. Therefore, the responsibility for ensuring that the unlockable content remains available for a long time belongs to the authors.

To add unlockable content to your NFT_ follow these steps

Related: How to create an NFT: A guide to creating a nonfungible token

Toward the future

2021 was a pivotal year for NFTs, a year of laying the foundation and adoption. Now, in 2022, it is time to think about diversifying use cases and strengthening the position of NFT as a digital phenomenon. And unlockable content features are becoming one of the important steps in this direction.

Expanding the functionality of NFTs, unlockable content for NFTs is the boundless field of artists’ creativity — simply boosting it. The importance of it is hard to overestimate. Furthermore, unlockables add utility to NFTs. With hidden unlockable content that only NFT owners can view, for fans and followers, purchasing NFTs is becoming an interactive experience with the element of surprise on a new layer of engagement. In that sense, unlockables have the potential to flourish in the crypto industry and benefit artists and their communities.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Degenheim, Kiwami, Pesky Penguins, VOX Collectibles: Town Star and more collections added to Kraken NFT

We’re thrilled to announce that we have added ten new NFT collections to Kraken NFT for our current beta testers to explore, collect and trade. After revealing the first 70 collections earlier this year, and dozens more over the past few weeks, we carefully selected…

The post Degenheim, Kiwami, Pesky Penguins, VOX Collectibles: Town Star and more collections added to Kraken NFT appeared first on Kraken Blog.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Russian Social Media Giant Vkontakte Launches NFT Service

Russian Social Media Giant Vkontakte Launches NFT ServiceRussia’s largest social network, Vkontakte, has launched a feature allowing users to upload digital collectibles to the platform. Account holders will also be able to buy and sell them in the future as the company intends to establish a marketplace for non-fungible tokens. Vkontakte Users to Showcase Their NFTs, Set Them as Avatars The leading […]

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Comic-Con guru says storytelling is the key component for successful NFT projects

Kumite NFT founder Gareb Shamus chats with NFT Steez about how NFT projects can engage with their respective communities through storytelling.

NFT Steez, a new weekly Cointelegraph podcast exploring nonfungible tokens and Web3 projects, spoke to Comic-Con legend Gareb Shamus about how he has used storytelling to build engagement and a “maker world” that grows and strengthens communities.

What started off as a newsletter about comics — Shamus’ passion project — ultimately became known to the world as Wizard magazine. According to Shamus, Wizard was an outlet where he could “create a voice” and share with his friends the things he had discovered that excited him.

Shamus touched on the importance of building elements of engagement and not limiting creativity within communities to further “unite them around what they love.” More importantly, he explained how building engagement allowed him to reach billions of people around the world in a way that made it “fun to be a fan of culture.”

According to him, there’s a natural synergy between comics and NFTs.

“We need to promote storytelling”

When asked about the role storytelling will play in the Kumite NFT project, Shamus explained that Web3 allows for greater participation and engagement whereby multiple stories, from multiple points of view, can be told and expressed. Shamus described Kumite NFT as bringing the hero’s journey to holders, and in this way, “everyone can be a hero in their journey.” 

Regarding sustainability, Shamus said it was essential for Kumite to develop a “gaming mechanic” from day one — one that enables holders to not only participate but recognize that the story is not linear, as the community can participate and have a say as to how the story will progress.

Pondering future trends for Web3

When asked about future trends for NFTs, community and Web3, Shamus went out on a limb and suggested that there certainly has to be a semblance of a “morality guideline,” but the ultimate goal in exploring these uncharted territories of Web3 is to allow people to “explore their creativity.”

Shamus believes it would be a “mistake” to assume the team behind Kumite will take full control of the project’s lore. Instead, holders can create and develop the story of their respective characters, as according to Shamus, the fans can very well “create better stories” than the team can.

Placing restraints on creativity is the way “it’s always been,” said Shamus and Web3, and NFTs have unlocked the means to tap into “global creativity,” especially when it comes to storytelling. The most exciting element of limitless creativity, said Shamus, is that “you don’t know where it’s going to go” — and therein lies the fun.

For more on the chat with Shamus, make sure to listen to the full episode of NFT Steez on the new Cointelegraph Podcast page or on Spotify, Apple Podcasts, Google Podcasts or TuneIn.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Alien Frens, Critters Cult, Fluf World, Killer GF and more collections added to Kraken NFT

We’re thrilled to announce that we have added eleven new NFT collections to Kraken NFT for our current beta testers to explore, collect and trade. After revealing the first 70 collections earlier this year, and dozens more over the past few weeks, we carefully selected…

The post Alien Frens, Critters Cult, Fluf World, Killer GF and more collections added to Kraken NFT appeared first on Kraken Blog.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Apple to allow third-party app stores in windfall for NFTs and crypto

In a win for crypto app developers, incoming EU laws will force Apple to permit alternative app stores and apps without the need to go through its App Store.

Tech giant Apple is gearing up to permit third-party app stores on its devices to comply with new anti-monopolistic requirements from the European Union (EU), which could be seen as a huge win for crypto and NFT app developers, at least in Europe.

Under the new rules, European customers would be able to download alternative app marketplaces outside of Apple’s proprietary App Store, thus allowing them to download apps that skirt Apple’s 30% commissions and app restrictions according to a Dec. 13 Bloomberg report citing those familiar with the matter.

Currently, Apple has stringent rules for NFT apps that practically force users to go through in-app purchases subject to Apple’s 30% commission, while apps are not permitted to support cryptocurrency payments.

Apple’s enforcement of its rule led to a block of Coinbase’s self-custody wallet app update on Dec. 1 as Apple wanted to “collect 30% of the gas fee” through in-app purchases, something that is “clearly not possible” according to Coinbase.

It then claimed Apple wanted the wallet to disable NFT transactions if they couldn’t be done through its in-app purchase system.

Alex Salnikov, co-founder of NFT marketplace Rarible tweeted on Dec. 13 in response to the news that a “crypto app store” could be built and would be a “great candidate” for a venture capital-backed startup.

Apple’s move to open its ecosystem is in response to the EU’s Digital Markets Act aiming to regulate so-called “gatekeepers” and ensure platforms behave fairly with part of the measures allowing “third parties to inter-operate with the gatekeeper’s own services.”

It will be applicable starting May 2023 with businesses needing to fully comply by 2024.

Apple hasn’t decided if it will comply with a part of the Act allowing developers to install alternative payment systems within apps that don’t involve Apple. if it does comply, it could open up payment systems that allow cryptocurrencies.

Related: LBRY alleges Apple forced it to censor certain terms amid COVID-19 pandemic

Under consideration by the tech giant is mandating security requirements for software outside of its store, such as verification from Apple, in a bid to protect users against unsafe apps.

The changes to Apple’s closed ecosystem would apply only within the EU, other regions would need to pass similar laws such as the proposed Open App Markets Act in the United States Congress from Senators Marsha Blackburn and Richard Blumenthal.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Is DeFi back? GMX rallies toward all-time high and LOOKS price gains 30%

GMX and LOOKS price pulled off double-digit rallies in the last week as former BitMEX CEO Arthur Hayes revealed his investment thesis for both projects.

In a recent blog post, cryptocurrency legend and former BitMEX CEO Arthur Hayes mentioned he holds sizable bags of GMX and LOOKS tokens. According to Hayes, his main reasoning for investing in both tokens was their platform revenue and the potential of both assets to outperform standard treasury bills. 

Let’s take a brief look at on-chain data and compare GMX and LOOKS to competitors to determine whether Arthur’s assumption will work out. 

GMX usage cooling after a strong November

The week prior to Nov. 16 provided decentralized Finance (DeFi) with a significant influx in fees after the centralized exchange (CEX) exodus triggered by FTX’s bankruptcy. The temporary high inflows to DeFi propelled GMX to outperform Uniswap in protocol fees.

On Nov. 28, GMX earned about $1.15 million in daily trading fees, which surpassed Uniswap’s $1.06 million in trading fees on the same day.

GMX fees and daily active users. Source: Token Terminal

While usage of GMX may be decreasing, the token is outperforming the industry. The GMX token is only 8% away from an all-time high after gaining 59% in the past 30-days.

GMX token performance. Source: Delphi Digital

Since Uniswap is the closest competitor to GMX, comparing the two protocols can show which users prefer to use for trading. Aside from Nov. 28 where the fee flip is noticed, Uniswap continues to outperform GMX in terms of fee revenue and daily active users. Unlike Uniswap, GMX distributes fees to stakers of various GMX and GLP tokens.

The 90-day peak for Uniswap fees is $5.9 million whereas GMX’s high in daily fees is only $1.4 million. The major difference in peak fees may show that GMX has reached capacity when it comes to platform usage.

The fees that GMX accrues are split 30% to GMX token holders and 70% to GLP holders. The current homepage for GMX cites the estimated APY on the GMX tokens is around 10% and for GLP tokens, 20%. While GLP would fit Hayes’ 20% annual yield goal, liquidity providers are susceptible to impairment loss and price declines making it difficult to ensure success against the conservative treasury bill strategy.

Fees earned by Uniswap and GMX. Source: TokenTerminal

OpenSea usage continues to dominate LooksRare

LooksRare, which is also the home of the LOOKS token, was also mentioned by Hayes due to the fees the NFT protocol earns. To date, NFT marketplaces, including Coinbase, have struggled to chip away at OpenSea’s market dominance.

While OpenSea seems to have a natural flow of daily active users between 35,000 and 50,000, LooksRare has a small range of 350 to 500 users. Using this metric, OpenSea is 100 times bigger than LooksRare and the trend does not seem to change over a 90-day timeframe.

Further difference between the two protocols is that OpenSea does not have a token that emits rewards through staking and inflationary minting. The rewards emission may hit Hayes’ 20% goal, but it should also be noted that LooksRare is notorious for wash trading. The primary objective of these wash trader is to gain more LOOKS tokens, but this could have the effect of diluting the price.

Daily active users of LooksRare and OpenSea. Source: TokenTerminal

The recently announced UniSwap NFT aggregator could help propel LooksRare to gain more “authentic” transactions since users can purchase LooksRare NFTs without ever visiting the site.

The current fee distribution is heavily concentrated toward OpenSea. Over the past 90-days, OpenSea reached a peak of $2.5 million in daily fees, whereas during the same period LooksRare only earned over $200,000 in daily fees once.

Fees earned by LooksRare and OpenSea. Source: TokenTerminal

Investigating the protocol fundamentals mentioned by Hayes are an important first step when considering investing in DeFi and altcoin. Looking at the competitive landscape for both LooksRare and GMX, it would take much more adoption for either protocol to overtake the current leaders. Furthermore, the 20% goal Hayes sets out might be a stretch when analyzing inflated emissions and token prices.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

NFT project blocks Chinese Twitter comments citing the need for ‘North American expansion’

NFT artist SHHAN previously told users to "switch to English" in the community chat, which went largely unfollowed.

According to a Twitter post dated Dec. 11, SHHAN, creator of the black cats nonfungible tokens (NFT) collection Mimic Shhans, explained to users why he was blocking posts on community social pages written in the Chinese language. The move came after users condemned the new measures as discriminatory. According to SHHAN, who is based in South Korea, but created a Chinese post to specifically address the issue: 

"It is because I previously announced on Twitter and Discord that my team is trying to enter the North American market. Therefore, I recommended everyone to use English when responding to Twitter posts. Why do this? Because when I spoke with North American holders [of our NFTs], they told us comments on the Mimic Twitter page are almost exclusively in Chinese, so it was very hard for them to feel the culture of the Mimic community."

SHHAN elaborated that he previously posted in the community Discord recommending users speak English but that "the vast majority of people did not appear to follow it." The artist then reiterated that he saw the European and North American consumer markets as vital for the upcoming Shhan Metaverse dubbed "Shhanverse" and wished users "turned to the more internationalized English language to talk about the project."

Launched in October, Mimic Shhans features "playful black cat" NFTs dressed in various costumes and is minted on the Ethereum blockchain. SHHAN revealed that the collection is very popular in China, with the vast majority of NFT holders based in the country. The project currently has 2,001 holders on OpenSea with 285 Ether (ETH) in volume traded since inception.

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Crypto Exchange Bybit to Add New Restrictions for Unverified Users, Update Withdrawal Limits

Crypto Exchange Bybit to Add New Restrictions for Unverified Users, Update Withdrawal LimitsCryptocurrency exchange Bybit has announced upcoming changes to its know-your-customer (KYC) policy that will limit certain operations for unverified customers. The stricter requirements concern coin purchases with fiat money, NFT transactions, and withdrawal limits. Bybit to Limit Services for Traders Who Have Not Passed Identity Verification Crypto exchange Bybit will restrict some services that are […]

Ripple lawyer slams SEC use of ‘crypto asset security’ 

Starbucks Rolls Out Beta Testing on New Polygon-Powered NFT Rewards Program

Starbucks Rolls Out Beta Testing on New Polygon-Powered NFT Rewards Program

US coffee giant Starbucks is launching the beta version of a new rewards program that allows members to earn and buy non-fungible tokens (NFTs) minted on the Polygon (MATIC) blockchain. In a recent statement, the world’s largest coffeehouse chain says that it is rolling out Starbucks Odyssey, a loyalty program for customers, employees, and partners […]

The post Starbucks Rolls Out Beta Testing on New Polygon-Powered NFT Rewards Program appeared first on The Daily Hodl.

Ripple lawyer slams SEC use of ‘crypto asset security’