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What is Virtual (Web3) Gifting?

Author: Aviv Katz

Date: 2022-Jun-11

Web3’s fundamental characteristic is decentralization. With blockchain, tokenization and smart contracts at its core, Web3 stands to revolutionize existing financial and economic ecosystems with faster, more efficient, trustworthy and transparent processes.

Web3 commerce, as opposed to existing Web2 online stores, will be based on decentralized SAAS solutions that will make extensive use of blockchain-based BAAS technologies. Web3 ready merchants will serve both existing shopping formats and virtual metaverse worlds. This methodology will change the way online sites and eCommerce stores choose and display products, keep users’ information, and process payments, transactions and services.

Web 3.0 will also accelerate the use of big data and artificial intelligence (AI), which will make users’ online journeys more personalized, animated and real. A key feature of Web3 today is the use of digital wallets and cryptocurrency, which will probably replace the use of logins and fiat currency to a great extent. Purchasing procedures in Web3 will be based on personal digital wallets rather than credit cards and other Web2 payment methods. Increased reliance on blockchain-based technologies will enhance transparency, security and privacy of transactions and payments that allow anyone to participate without monetizing their personal data, payment information and shopping history.

Web3 Virtual Gifting - the Future of Gifting

A "Web3 (virtual) gift" is a present that is registered and tokenized on blockchain and all of its assets are listed on the chain as well. These virtual items, which can be purchased and transferred via digital wallets, make perfect gifts between individuals, and can even be presented by users to avatars and vice versa. They are easy to send and process using both 2D and 3D technologies and media such as AR and VR.

Web3 gifting includes virtual gifts such as cryptocurrency coins sets, many types of NFTs, virtual real estate, fashion and wearable items, sport and game collectibles, virtual tours and experiences, virtual giveaways and much more, all of which are registered on the blockchain in the buyer’s name. These gifts cannot be replicated or sold by anyone other than the owner. Virtual gifts can be made up of fractions of ERC-20 tokens or Non Fungible Tokens (NFTs) such as ERC-721 or ERC-1155 (the most popular tokens used by most NFT creators and marketplaces), ERC-4907 (the NFT rental standard) or ERC2981 (the NFT royalty standard tokens), and more types that will evolve in the future like EIP-4885, subscription NFTs, multi tokens and other developing technologies.

Web3 Gifting Opens New Horizons for Online Merchants

Since Web3 also opens up the Internet to the metaverse, eCommerce businesses can offer an entirely new range of virtual products and currencies as gifts to multi-dimensional worlds. Instead of having one store that serves a specific type of traffic, user and flow, merchants and brands can now co-exist in several formats and serve a wide variety of users in multiple locations. Multi-chain support, integration and interoperability will become crucial for running a retail or online sales business, especially if growth and scaleup are the target. Products that can be sold on different chains and support multiple technologies will star in the bestseller lists.

Digital gifting and gift cards have already earned a central place in Web2. They’re easy to send, eliminate the need for physical shopping, and enable the recipient to choose their own gift. Web3 gifting offers even greater advantages for all the parties involved, from the online merchant to the gift buyer and the gift recipient.

The Benefits of Virtual (Web3) Gifting

For the online merchant:
  • Web3 gifts eliminate the need for physical inventory
  • Virtual gifts are easily created and uploaded to the eCommerce store
  • Every gift is unique, authenticated and secure on the blockchain
  • Almost no investment is required to start a virtual gift business - no need for storage, office space, manpower or shipping costs
  • Easy creation of bespoke gifts for holidays and special events
For the gift buyer:
  • The gift, wrapping and greeting last forever - this is a true unforgettable gift
  • A Web3 gift is a unique and trendy way of saying “I care” to someone important
  • Purchasing is easy and quick
  • The gift is automatically transferred to the recipient’s wallet, with no shipping headaches
  • Web3 gifting resolves last minute gifting “emergencies”
  • Delivery is generally within minutes
For the gift recipient:
  • Virtual gifts remain on the blockchain forever, making them eternal
  • The gifts are registered in the recipients’ name, giving them sole ownership
  • Web3 gifts are exceptional and memorable due to their virtual qualities
  • The gift recipient may sell the gift at any time, perhaps at a profit
  • The recipient may purchase similar items and build collections

It’s Win-Win All the Way Around

Web3 is clearly the future, and Web3 gifting is an inseparable part of it. Giftoin is the future of gifting. As an online merchant, you were wise enough to hop on to Web2. It’s time to be a trendsetter and become a leader in Web3 gifting because very soon it’s where it will all be happening.

Giftoin provides online merchants with an advanced solution (a SAAS + BAAS technological platform) that processes virtual gift transactions and payments, transfers cryptocurrencies, and enables end-to-end management and monitoring of all activities.

The author of this article is Aviv Katz, founder and inventor of Giftoin, the leading trendsetter in virtual gifting.

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