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BlockNews
Home BUSINESS

Shopify Launches Suite of Blockchain Commerce Tools for Merchants

BlockNews Team by BlockNews Team
February 14, 2023
in BUSINESS, FINANCE, NFT, TECHNOLOGY
Reading Time: 3 mins read
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Shopify NFT merchants can now control which token holders can access premium goods, NFT drops, and bonuses by using “tokengating” capabilities.

  • To improve user experience, Shopify has introduced a set of blockchain commerce tools.
  • The sign-in with Ethereum (SIWE) protocol, led by the Ethereum Name Service, has been incorporated (ENS).

Announcement

The crypto-friendly e-commerce behemoth Shopify has introduced a set of blockchain commerce tools to improve the user experience of their Web3-focused stores hosted by the platform. “We’ve published some new tools to help you build token-gating apps for Shopify merchants,” said @ryancreatescopy, a designer for the Shopify blockchain team, in a tweet announcing the change on February 9.

Highlighted enhancements include “token-gating” application programming interface (API) tools, and improved crypto wallet connect functionality. Before June 2022, only a small number of merchants could access the latter, which is now in the early access beta model. With the help of token-gating, any qualified Shopify merchants may now configure their businesses to limit which token holders may or may not access premium goods, nonfungible token (NFT) drops, and advantages.

SIWE Protocol

The technology, which confirms user eligibility through their connected wallet, is being marketed as a practical way for NFT merchants to reward particular users or grant exclusivity for specific products. Shopify has merged with the sign-in with Ethereum (SIWE) protocol run by the Ethereum Name Service (ENS) and the Ethereum Foundation to provide enhanced support for crypto wallets.

SIWE allows for secure user sign-ins and verification of Ethereum accounts and ENS domains without disclosing personal information to outside parties such as names, phone numbers, and addresses.

Private User Information

Private user information has historically caused Shopify some trouble. Regarding a significant breach of customer data in 2020, a group of angry users sued the company and hardware wallet manufacturer Ledger in April 2022 in a class-action lawsuit. To the joy of certain members of the Ethereum community, ENS Labs community advocate @sadaf.eth tweeted about the SIWE integration with Shopify on February 9 and provided links to developer papers outlining how to integrate the tool into Shopify businesses.

Users can modify the statement in a message asking them to sign in using Ethereum using the statement generator prop. According to the document, the function obtains the wallet’s address when it connects, enabling users to expand and modify their message statements to reflect their brand better.

How to get Started?

Vendors have two options for getting started: either add the feature in-store or immediately create a token-gate shop on the Shopify app. Then, to purchase gated goods or gain admission to special events, customers must connect their cryptocurrency wallet and prove they are the owners of the necessary nonfungible tokens or NFTs. The feature acts as a bridge for NFT communities and consumer brands on the platform. 

Vendors can collaborate with other brands for upcoming NFT releases and with Shopify’s merchandising partners to create premium goods. Additionally, businesses can create their own NFTs on well-known blockchains like Flow, Polygon, Solana, and Ethereum (FLOW). They can then list and sell them directly from their store.

Only a few merchants with an NFT collection have access to the beta upon invitation. Neither the seller nor the buyer is required to pay for NFTs with cryptocurrency. Examples of payment gateways include crypto payment gateways, credit or debit cards, Shopify Payments, and Shop Pay. Buyers can add their NFTs immediately to their wallets after claiming them via email.

Users should be able to click a “sign-in with Ethereum” button to link their addresses via SIWE’s partnered middlemen, such as Coinbase, Fortmatic, WalletConnect, Portis, and Torus, once a retailer has set up the SIWE feature on Shopify wallet connect.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BlockchainBusinessNFTNFTsShopify
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