Apple adding NFT apps to its iOS store takes away the beauty of Web3 assets being decentralized
Apple adding NFTs to its app store is the new hot topic. But, after all the efforts made for creating a decentralized, Web3 world, is it worth relying on a centralized organization to reach mass adoption?
Following this concern, many firms naturally turn their noses up at the new incentive—alongside the steep 30% transaction fee the multinational technology company charges for NFT applications to join its App Store.
Here’s the good, the bad, and the ugly regarding Apple adding NFTs to its iOS store.
The Good, the Bad and the Ugly – Apple vs. NFTs
One of the most significant perks of Apple adding NFT-related applications to its app store includes exposing more people to the big wide world of Web3.
“Even though that 30% is steep and folks are quick to get fixated on things like that, we have to consider the greater benefits to mass adoption. Apple analytics reports over 1 billion users have downloaded a game to their phone. That’s an unprecedented new market to tap into,”
says Steve Neigut, CMO at Charged Particles.
Neigut appreciates this new incentive will bring a ton of new people into Web3. Therefore, celebrates it as a win.
Nevertheless, other NFT start-ups can’t surpass the steep 30% transaction fee. According to The Information, the Solana-based NFT marketplace Magic Eden opted to withdraw from the App Store shortly after learning of the commission.
Not forgetting, transaction fees for NFT marketplaces are only around 2% to 3%.
“In much the same fashion we saw happen over and over again during the NFT boom of 2021, this move feels like another in a series of massive, Web 3.0-external companies missing the point and coopting the technology in a way that could be completely detrimental,”
comments Mango Dogwood, Creative Director at DefiNFT.
One of the most significant concerns is one of the largest centralized corporations taking away what Web3 builders have been creating for many years—a decentralized world.
Decentralization is more important than ever. It creates reliable projects, intensifies and improves local development, better ensures the rights of our population to have a voice, and better protects minorities.
“EXORBITANT fees and funneling users into centralized modalities are not what we are trying to achieve here. While I understand the excitement about onboarding more users, how this onboarding would happen worries me,”
continues Dogwood.
The whole idea of NFTs, crypto and blockchain is decentralization. That’s why compelling artists join Web3 in the first place.
Another key reason includes community. Many NFT projects have Decentralized Autonomous Organizations (DAOs)—community-led entities on the blockchain with no central authority. Members can decide who make vital decisions about an entity’s future. Therefore, NFT projects function the complete opposite way as centralized organizations like Apple.
“Apple wants to run this the same way as everything else—with a juggernaut userbase and applications to muscle out those doing real innovation and decentralization in the space. If we say, well yeah, it’s worth it for all those users, losing years of fighting for decentralization and governance in a matter of minutes,”
agrees Cybertooth Kat, Creative Director, Charged Particles and Dip DAO.
Despite NFTs selling in exchange for cryptocurrencies, all transactions made on the iOS store will include US dollars. Therefore, the exchange rate of cryptocurrencies may vary due to developers not having a set equivalent value of NFTs in USD.
Using fiat always takes away the perks of NFTs relying on decentralized transactions that are trustworthy and tamper-proof due to not needing intermediaries.
Final Thoughts
Many crypto firms find Apple taking away the beauty of decentralization and taking a hefty 30% cut of each transaction concerning.
Another major issue includes the multinational technology company not accepting cryptocurrencies despite many NFT projects only taking such currencies as forms of payment.
Nevertheless, if the transaction fee for Apple adding NFTs was lower, it would most likely garner more NFT companies and investors to distribute their products on its platform.
Subscribe to the NFT Lately newsletter to receive news covering the latest NFT drops, releases, reviews and more.
