This project creates a primitive subscription management Non-Fungible Tokens (NFTs) to manage access to a variety of online and real world subscription-based services. These Access tokens can be used to access a particular service, they can be traded in secondary market, used as a souvenir, rented for a certain period and so much more.
Consider a user named Alice. She subscribes to a service - let's say a monthly gourmet food delivery. Alice's subscription is represented as an NFT, which she purchases using Ethereum (ETH).
Each time Alice accesses her subscription, the service provider checks two key factors using blockchain technology:
- NFT Ownership: Does Alice hold the NFT that allows access to this specific subscription?
- Subscription Validity: Is the subscription linked to the NFT still active?
If both criteria are satisfied, Alice can enjoy her gourmet food delivery.
Now, imagine Alice wants to switch her subscription. She can sell her NFT in a secondary market, thus transferring the remaining subscription period to another user, like Bob. Bob can then enjoy the service for the remaining subscription period, perhaps at a discounted rate.
Alice can also rent the NFT for a certain period of time, after which the access automatically comes back to Alice.
- Diverse Subscription Offerings: Providers can create a variety of subscriptions, each linked to a unique NFT.
- No Password Sharing: At a time only one wallet can hodl an NFT, and wallet sharing comes with it's own problems. This makes NFTs great tools for access management.
- Royalty Income: Providers earn a royalty fee whenever a subscription NFT is resold.
- Stronger Connect with Customer: User holds NFT even after expiry of service. Service Provider can create experiences around NFTs to keep the user within their ecosystem. eg. Netflix makes a few movies available for the NFT holders even if their subscription is over.
Service providers can easily integrate this protocol by:
- Installing a specific SDK in their backend/Frontend.
This system is designed for ease of use, allowing providers, even those unfamiliar with Smart Contracts, NFTs, or Web3, to adopt it. Assistance with setting up a crypto address is also provided if necessary.
The second phase involves creating a marketplace for buying, selling, and renting subscription NFTs across various online and real world services.
- Trading Options: Users can buy, sell, or rent subscription NFTs, offering flexibility and a dynamic pricing model.
- Transparent Transactions: Blockchain technology ensures that each transaction is transparent and secure.
- Royalties for Original Providers: Original providers earn royalties on secondary market transactions.
- User Feedback Mechanism: Ratings and reviews help guide users in making informed choices.
- Smart Contract Automation: The marketplace uses smart contracts for seamless and secure transactions.
Market Overview: Our NFT-based subscription access protocol operates at the intersection of two rapidly expanding markets: the Non-Fungible Token (NFT) market and the online subscription services market.
NFT Market Dynamics:
- Current Valuation and Growth: The NFT market, valued at USD 26.98 billion in 2023, is anticipated to skyrocket to USD 211.72 billion by 2030, advancing at a CAGR of 34.2%.
- Dominant Segments: Key drivers include digital art and gaming, marking areas of substantial opportunity.
- Geographical Trends: North America shows strong market dominance, while Asia demonstrates vast potential for growth.
Online Subscription Services Insights:
- Diverse Models: This market encompasses replenishment, curation, and access subscriptions, with a significant lead by curation subscriptions due to their personalized nature.
- Key Sectors: Sectors like health and fitness, food and beverages, apparel, entertainment, and especially beauty and personal care (the largest market share) present vast opportunities.
- Digital Subscription Evolution: With sectors like banking, retail, media, and entertainment contributing, the digital subscription space is poised for significant growth, especially in North America and Europe, along with a rapid expansion in the Asia Pacific region.
Estimating TAM for Our Service: Our service strategically situates within these booming markets, targeting the lucrative intersection of NFTs and digital subscriptions. The TAM for our NFT-based subscription protocol is, therefore, a considerable subset of these combined markets. This positions us uniquely to exploit the rapid growth in both the NFT sector and the burgeoning digital subscription space.
Strategic Focus:
- Target Segments: Given our unique offering, we will focus on segments like entertainment, health and fitness, and personalized digital services, which are key growth areas in the subscription services market.