Token gating: The next step for the media industry

Published on:

  • Token gating is an NFT-based system that gives the content creator complete control of their products.
  • In 2014, Kevin McCoy finally presented to the world the first-ever NFT.
  • NFT-based systems have brought about the most significant change; digital ownership.
  • A content creator can use this process by defining the specific NFT collections required to access their content.

The revolution of the Web3 ecosystem has brought about numerous inventions. Several industries, such as Media and entertainment, Finance, agriculture, the medical sector, and many more, have adopted blockchain technology to develop sophisticated and improved systems. The rapid growth of decentralized applications is significantly high, and their demand appears only to increase.

However, NFT-based systems have brought about the most significant change; digital ownership. This concept has revolutionized owning and earning from a digital asset. This article will focus on one NFT-based system, token gating, which has propelled content creators to new heights.

The potential of NFT-based system and digital ownership

NFT, or non-fungible Tokens, is a Web3 element that has redefined how we view digital assets. Initially, before coming to the team NFT, developers significantly defined its applications within Bitcoin, the first practical covet of the Web3 ecosystem.

A crypto user could claim and own a digital asset without fear of theft or alteration due to its underlying blockchain systems. This represented the first accurate application of digital ownership that did not need a cumbersome procedure such as a patent.

Fortunately, in 2014, Kevin McCoy finally presented to the world the first-ever NFT by isolating the immutable nature of cryptocurrency and applying it to a digital picture; the Quantum opened the world to an entirely new concept that paved the way for numerous inventions.

Also, Read Shopify adds token gating for NFTs.

Soon after, developers found new ways to develop NFT-based systems in numerous industries. Its first transformative feat was turning the art industry upside down. Artists and collectors met the concept of NFT artwork with mixed reactions. Fortunately, given its ability to provide better profits and a broader market, most artists soon let go of their brushes and canvas to dive into the Web3 ecosystem. 

The establishment of the Metaverse was the next high point for NFT-based systems. A virtual world with virtual land, retail shops and assets, providing an excellent need for digital ownership systems. NFTs soon became an integral part of the Metaverse, serving as an intricate cog in its functionalities.

Token gating is a concept that requires various web3 elements to ensure authentication and efficiency.[Photo/Medium]
The same occurs within the gaming industry as organizations such as Tamadoge and Dogecoin offer unique NFTs to loyal gamers. This heavily built the gaming industry and pioneered the need for more Web3-based games.

Aside from industries, digital ownership also plays an integral role in the governmental system. Its entire system can design new National IDs that tire a user to multiple services on a system. Furthermore, it offers the concept of digital IDs that users can carry around on their phones or use biometrics to access various services.

NFTs have steadily overthrown the need for patents by providing a more automatic approach to safeguard intangible assets. NFT-based systems can also facilitate trade finance instruments to move securely in a decentralized nature.

This enables seamless settlement and increases liquidity. In truth, governments are still a way of digital currency and crypto, but the applicability of NFT-based systems and blockchain technology has kept the Web3 ecosystem going.

Also, Read and Understand the importance of Web 2.0 to Web 3.0 transition.

However, the Media and Entertainment industry has profited more from these systems. Content creators have flooded BFT-based systems due to their direct benefits, and token gating is one.

 What is Token Gating 

With the world experiencing a massive digital transformation wave, most businesses opt for a more digital presence. This has led to the rapid growth of content creators from all over the world. To some extent, content creators are a lesser version of well-known artists, producers and actors.

Organizations such as YouTube, Instagram, and Snapchat have oped n the path for more digital content than the average album or movie industry. Today amateur or talented content creators can create an entire film with the proper equipment. Unfortunately, due to their unwillingness to sign with record labels or organizations, acquiring steady financing in ordinary web2 systems is cumbersome.

This led to the development of content gating. Content creators would essentially “gate” certain digital content and only allow specific community access after paying a certain amount. This approach soon gained much traction, and content creators started offering “premium content” to those willing to pay. Unfortunately, despite being a better alternative to signing under an organization, the hosting platforms still gained significant contributions earned in the form of service. 

Plagued with a never-ending cycle of earning less for your content, it led to the development of token gating. Token gating is a rather tricky concept, given that the content creator has the opportunity to a twice as much. Token gating is a mechanism that ties certain content to specific NFTs, a collection of NFTs. In its applicability, it uses tokens as a set of keys similar to those that access a user’s crypto wallet. Furthermore, content creators can control who can view, purchase or transfer their NFTs preventing piracy.

How it works

Token gating is an NFT-based system that gives the content creator complete control of their products. In some instances, token gating requires additional elements of the web3 ecosystem, such as a crypto wallet, but it depends on the content creators’ available tools.

The process of applying begins with signing up to a blockchain network. This feature can vary since some web3 websites require a crypto wallet to access the token-gated content. The wallet stores and manages users’ NFTs and validates their collection ownership.

Also, Read Revolutionizing social media: Blockchain technology redefines the Media Industry.

Remember, a content creator can use this process by defining the specific set of NFT collections required to access their content. They can also apply this method by creating a security token linked to their original NFT. The NFT-based system can use this token as a key to ace the NFT, and any view or fan must hold this token. 

Content creators can use alternative blockchain networks to create this secondary token while hosting their NFTs on a different decentralized network for security purposes.

The current creators can then distribute the secondary tokens via an Initial Coin Offering or by directly selling them to the subscribers. This directly benefits the content creators since, through its blockchain system, they gain direct control over who views their content. A smart contract can enforce the rules and set predetermined rules.

Benefits of token gating

Greater control

Using token gating, content creators and artists have greater control over their products. Its underlying blockchain technology can define how its products are accessed, how to collect recurring revenue and any secondary sale royalties. Propper application of these within the web3 ecosystem can also benefit third-party blockchain networks, which can help through the creation of NFTs or secondary tokens.


The fundamental concept within the web3 ecosystem is the lesser the availability, the higher the demand. This concept is the backbone of Bitcoin’s success since its limited coins have significantly aided its high value. This NFT-bassed system can apply the same principle by allowing the content creator to hand-pick the user s requirements.

The token gating is typically offered to anybody willing to pay for the cost. However, the content creator can define how many second tokens are available or use any criteria to determine the number of users they wish to have. It is human nature to desire the rest of the commodities, and the NFT marketplace has thrived from this desire. Token gating provides that same desire, further boosting the potential its system could earn.


NFT offers digital ownership and thus prevents fraudulent activities. The underlying blockchain technology of token gating ensures that o twi users can use the same token to gain access. Furthermore, developers can link crypto tokens since each user is eligible enough to afford the services pi divided by the content creator.


Throughout the years, blockchain developers have crafted the web3 ecosystem to empower its users directly. Establishing this NFT-based system ensures that the content creator gains most of the pay they have earned. Today Web3 music platforms have implemented this principle and thus allow artists to receive revenue directly from loyal fans.

Also, Read Spotify creates a “token-enabled playlists” feature on the platform.

 Through token gathering, content creators spend less increasing their NFTs and digital assets compared to signing with a record label on a Social media platform. Furthermore, they can sell the secondary token while still earning recurring revenue for accessing from their viewers. 


Token gating is an upcoming trend that many organizations are considering. Unfortunately, it directly competes with powerhouses such as Youtube, Twitch and other social platforms. Despite this, there are a few existing token-gating platforms, such as;

These platforms have showcased that NFT is the next evolution for content creators.


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Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.
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