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Unlock has launched the first-ever mechanism that enables recurring billing through non-fungible tokens (NFTs). The move plans to bring billing into the decentralized sector and lower the dominance of centralized payment processing firms.
Unlock has shown great commitment toward Web3. The firm is integrating new ways that creators can earn money from their content by promoting a decentralized access control system. Unlock relies on an open-source framework, and it is based on the Ethereum network.
Unlock supports recurring billing using NFTs
Unlock is an NFT-based protocol that allows creators and communities to create direct relationships online. It has now created the first-ever mechanism supporting recurring billing using NFTs.
This notable development by the Unlock protocol could see it secure a strategic position in being one of the most reputable subscription systems that integrate centralized payment processors via a decentralized Web3 model.
The Unlock protocol has so far cemented its position in the Web3 sector. The protocol can be used to publish paywalls, newsletters, software licenses, and even access the physical world systems like transportation. Unlock seeks to make these sectors economically viable to achieve the desired growth.
Unlock presents a sought-after solution that can be used by content creators that are yet to move from the Web2 model. Through Unlock, creators can get over the confines of centralized organizations and connect with their audiences, and move to new online sectors without the need for communities to create new logins.
Unlock removes the need for users to log in to websites. This protects user data and ensures it cannot be harvested by website owners and later used to send them targeted advertisements.
To access websites, a user will only need to hold unique NFTs on their website and reach content whenever it is published. NFTs have already been adopted as access passes for a wide range of areas, including Coachella NFTs, that offer the holder lifetime access to this festival.
Reducing the dominance of Web2 firms
Most website content has been monetized through subscriptions. However, most audiences do not prefer paying lifetime or one-off passes to content. Therefore, the existing NFT avenues in the market are yet to disrupt the Web2 business models dully.
Over the years, big tech giants have been responsible for the content consumed by online audiences. Through Unlock, consumers of online content have hope that the future will be free of these centralized business organizations. Without censorship, users can read, listen to, watch, and experience interesting topics, not what has been advertised.
Creators using Unlock can avoid falling for clickbaits and content promoted by algorithms. Internet users can therefore access content that they want and not content put forward by an algorithm.
The founder and CEO of Unlock, Julien Genestoux, noted,
From news to music to shows, there are many good reasons why subscriptions have become the default business model. But having a handful of Big Tech platforms acting as middlemen and locking in creators and their audiences is far from ideal. That’s why we’re launching NFT-based subscriptions. Now creators using Unlock can exercise full control to flexibly monetize their content in the ways that best suit them and their communities.
Through the Unlock recurring billing NFTs, users can adopt a novel smart contract design that is the first one in the sector. This will bring the recurring revenue model created by the early SaaS companies into a decentralized web3 world. A user can start a subscription by agreeing to the details of a smart contract transaction that recurs each month, and the user membership NFT will maintain its validity each time the payment happens.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.