The Proof of Attendance Protocol (POAP) technology has attracted the attention of a lot of people in crypto-circles. It’s a protocol that enables a digital collectible through which anyone can commemorate a specific event.
Through POAPs, people will typically be reminded of an event, seminar, conference, or another gathering they’ve attended that’s permanently recorded on top of the blockchain. These are non-fungible tokens (NFTs) that prove a specific individual has indeed attended an in-person or virtual event.
They are sent between crypto wallets as a reward and have been a major part of the Web3 space recently. In this article, we look at what POAP is, its use cases, users, and what kind of value they provide in different industries.
The Proof of Address Protocol (POAP) is minted through a smart contract in the form of an NFT. Typically, this is conducted on top of the Ethereum (ETH) blockchain, as its the largest network that enables this functionality. In addition, each one of them follows the ERC-721 token standard.
According to data from Etherscan.io, the blockchain experienced 972,839 daily transactions on August 12, 2023. The highest number of transactions on the Ethereum network occurred on December 9, 2022 at 1,932,711.
Moreover, each unique NFT is given out completely for free to anyone who visits a specific event. As a result, they serve the role of being verifiable proof that the individual in question did indeed attend. These can be compared to tickets for a concert, for example. However, unlike those, these are digital and can always be verified.
When we look at the functionality of a Proof of Address Protocol (POAP), it’s clear that they are mainly intended to establish verifiable evidence or proof that an individual has attended a specific event or completed a specific activity. Every POAP, as a result, gets represented in the form of a token or badge.
According to the official POAP website 6,751,949 POAPs have been minted with 36,674Issuers and 6 daily drops.
Each one of these also features a unique serial number. At the point in time when a person attends a specific event, the blockchain will create an attendance record that features a timestamp that’s recorded through a smart contract.
POAP NFTs are then required to get minted under the POAP smart contract address. Moreover, they must feature an image that’s directly associated with the protocol in question.
Subsequently, each POAP can be distributed digitally and in physical formats. Digital distribution, however, requires participants to connect their crypto wallets and then claim their badges. This occurs in accordance with what has been determined on the event. In terms of physical distribution, it is also possible and done through QR codes.
In terms of the origins behind these POAPs, they were originally minted and distributed on Ethereum for the very first time. They were originally created throughout the ETHDenver Convention that was organized in 2019. In fact, they were developed to reward attending hackers who participated in the event. It was a hackathon. The aim of the convention was to essentially showcase what Ethereum can do and how powerful it was as a network.
PHOTO
The badges of attendance were a perfect example of its technological prowess. However, there were still some issues, like speed and cost-effectiveness, and things needed to change as a direct result.
Additionally, in October of the following year, POAPs ended up migrating towards an Ethereum sidechain known as Gnosis Chain, formerly known as xDai. This was chosen as it offers a much higher speed and lower costs for each transaction.
Moreover, it allows users the opportunity to mint them with very little cost. In addition, POAPs are much cheaper and quicker to create and, as a result, have seen use cases in far more events.
Consequently, they will likely be integrated into competing chains in the future, but for the time being, Ethereum remains a leader in this regard. Aside from this, firms like Fidelity are still bullish on the future of the network, and it’s likely that it will remain on top for a prolonged period of time.
There are a lot of use cases that surround Proof of Attendance Protocols. However, some of the most notable ones include attendance confirmation and invitations to private events. They can serve as a means of accessing a specific, virtual, or physical event and, as such, can lead to a higher level of exclusivity.
Moreover, they can also be used as initiations to vote on protocols, join specific meetups, or to take participation in charts that are private. They are also typically kept by collectors in their NFT wallets as collectibles.
However, the users behind these POAP NFTs can be split across two distinctive categories. Where are the event organizers. For example, these can apply for POAPs entry tickets that can be used throughout specific event activities. In addition, they can also be used as a means of rewarding users who attended their events. Additionally, the second type of users are the actual attendees.
These use POAPs as proof that is verified, in which they can provide 100% authentic data that they participated in a specific conference, event, or meetup. They can also trade them on the NFT marketplace as they retain value. These are just a few of the most common POAP use cases, but as the technology evolves, its use cases can increase.
POAP, by definition, is known as the Proof of Attendance Protocol. Subsequently, NFTs stand for non-fungible tokens. With that in mind, an NFT is a unique collectible that’s fully digital. In comparison, a PAOP NFT is an NFT that’s purpose-built to serve a specific role. It’s a form of an NFT, which is run by the official service responsible for minting the token on a specific blockchain.
Once a POAP NFT is minted, it needs to be approved, and then it can be released. Afterward, users can claim these NFTs. To summarize, NFTs are unique cryptographic tokens that exist on top of a blockchain and cannot be replicated. They can represent digital or real-world items, like artworks, real estate, and more.
POAPs are just a representation of NFTs, intended to ensure that a person has a certificate of attendance for a specific event they went to or a specific activity they did. For example, if they complete a hackathon, they can receive a POAP. Late on throughout their professional career, they will always have this as a form of evidence that they attended.
POAPs serve more of a role of being digital memorabilia for individuals that indeed attended a specific event. Their intention is primarily to help each individual record an important event in their life.
However, there are additional benefits to that. POAPs also provide holders with exclusive access to specific private communities, communication channels, or events. An event organizer, for example, could set things up in a way where the more POAPs a person collects, the more power they will have in community polls.
As a result, these POAP collectors will have an advantage when compared to those who do not; POAPs can also assist when it comes to creating a good reputation within a community.
This is done through the development of a provable record of all past conferences, meetups, and events that were attended by an individual. As a result, technically speaking, POAPs can be considered a status symbol in many communities.
To truly understand how Proof of Attendance Protocol NFTs see real-world usage, we will need to go over real examples and explore the different ways in which organizations manage their POAPs.
One of the largest virtual worlds within the DeFi space is Decentraland. This project offers numerous POAPs as evidence that players that explore these worlds can receive. They are an indication that each player underwent specific events. They receive POAPs, typically upon fulfilling a special challenge.
This use case is typically categorized as a gaming tournament-related case. A notable event in this regard was “POAP x Stellar Gate = CAT – A new POAP delivery system!” that occurred on August 1, 2022.
Photo
In addition, POAP NFTs are also used for events and conferences to verify that people actually committed time and attention to them. Event organizers ensure that their attendees are motivated to participate and can also provide valuable data for sponsors aiming to evaluate the success of a specific event and see how many people did legitimately engage.
They are also used for community engagement. For example, PAOP NFTs can be received exclusively for those who contribute knowledge or complete specific tasks during an event. They can also provide attendees with exclusive perks and special rewards.
There are numerous reasons why an individual might be interested in collecting POAP NFTs. This can be a rewarding and fun experience for anyone new or experienced within the DeFi Space.
They are unique and custom-designed for every single event or activity a person engages with. This can make them specifically valuable and collectible among different circles. They serve as a tangible reminder as well for a specific event.
Through the procedure of collecting PAOPs, anyone can demonstrate that they are a person who engages and participates within a specific community and, as a result, reach a higher status in their specific circle. By collecting badges for events, or projects the individual cares about, they showcase their involvement and support.
In addition, each POAP can also feature monetary value. Some of them, depending on their rarity or the severity of the event, can become highly sought-after by numerous collectors. This can ultimately lead to a much higher level of demand and value throughout the span of time.
Moreover, it can also provide an additional incentive for specific collectors to seek out and buy rare or unique badges that they missed out on the opportunity to get themselves.
It is important to understand that POAP is an open-source and community-owned protocol that runs on top of the Ethereum blockchain. Its purpose is to provide users with the opportunity to create tokens that prove a specific user attended an event.
However, due to the fact that they rely on the underlying Ethereum blockchain and its token standard, any compromises to it could potentially find their way to these NFTs. Historically, Ethereum has proven to be a resilient network, but it’s still important to understand that there is always some level of risk.
In addition, these badges are typically linked to a person’s crypto wallet. While no information is recorded, the wallet address could potentially get exposed if entered into the wrong website, such as a phishing website, for example.
The POAP NFTs themselves are secure, but the way through which they are gained and put into a person’s wallet could potentially be at risk in some specific cases if bad actors are involved.
POAPs get created through the official smart contract. As a result, they are required to contain metadata related to a specific date or period. This can be up to one year long. In addition, they must feature an image that’s associated with a specific event.
Once an event organizer creates these POAP NFTs, the next step is distribution. One of the key ways through which this is done is through QR codes that attendees can scan and download.
Additionally, the organizers can individually send links with download links to users. Each user simply clicks on a “Claim” button or another custom button in order to begin the transfer process. Once the NFT is claimed, it gets transferred to the supported Ethereum wallet.
Here, a user has the opportunity to showcase the NFT on any platform that supports the technology, similarly as they would showcase any image or artwork-related NFT that has been historically available. As a result, they are displaying and showcasing it. In addition, each NFT can also get traded or sold on top of a variety of different marketplaces.
Any event organizer has the opportunity to create a POAP, and the process itself is simple. They need to go to the official POAP platform. Then, they can select the “Create New POAP” button. Now, they need to enter specific data that will make the POAP feature all of the required elements for its minting.
First, a user would need to insert data such as the title, metadata related to the NFT, the location of the event in question, the start date, the end date, and the POAP NFT expiration date.
This will then be followed by a link to their website. Now, users can upload a graphic file to the POAP art. It needs to feature the correct dimensions and be in PNG format. Now, they can copy the edit code somewhere, typically in a safe location. If a user loses this code, they can’t make edits in the event at a later point in time.
Now, they just need to enter the email address where they want to receive the claim codes. Following this, they can enter the number of links needed, assuming this is the way they will distribute the POAPs. This can be left blank, assuming the distribution method is done through a QR code or a secret phrase.
According to data from NFTpricefloor.com, POAP NFTs have a floor price of 0.00095 ETH each, and a market cap of 329. In addition, there is a total supply of 34,680 items.
Collecting POAP badges can indeed provide monetary value to a lot of people. This is because collectors are always looking for specific ones missing in their collections. However, there are also badges that can increase in value over time, directly dependent on their rarity or desirability.
POAPs are also unique to each event and to each community. As a result some might become much more sought-after by collectors. As more people become aware of this technology, the potential demand and value can go up.
As POAP badges are also fully transferable and tradable, any collector can buy, sell or trade them on secondary NFT marketplaces or through Peer-to-Peer (P2P) transactions. As a result, each POAP NFT does have value, but it’s dependent on how rare, desirable, and unique it is.
POAPs are essentially non-fungible tokens (NFTs) in terms of their underlying technology. As a result, they follow Ethereum’s ERC-721 protocol. This protocol is also followed by many other NFTs created for different use cases.
As a direct result of this, they can be bought, sold, traded, or gifted to other collectors or attendees of a specific event. There’s also a dedicated secondary marketplace for POAPs in which collectors can find what they are looking for in order to complete their collection.
However, when we take a look at their individual value, it is dependent on factors such as the rarity of the badge itself, the importance and popularity of the event in question, and the number of badges that have been issued. Some collectors might want to pay a higher price if there is a POAP that they have been looking for throughout a prolonged time period.
With the current state of the cryptocurrency market and the overall increased level of growth in mainstream adoption, the future of POAP seems solid. More events and communities have begun not only to recognize but also to implement this technology. In fact, NFT trading volume spiked by 130% in Q1 of 2023 according to data from Nansen.
Each user can now have an NFT in which they can verify their attendance and their participation in a specific event. Moreover, as NFTs get implemented in different platforms and events and grow in popularity as time moves on, POAPs could become the new go-to way in which anyone can verify attendance and participation.
This can eventually make its way to concerts, sports events, festivals, conferences, and so on. They can even be used during physical events through the usage of QR codes, making them a simple, effective, and cheap alternative to real-world counterpart solutions.
POAP as a technology can also expand beyond these use cases. They can also be used for verification of specific educational courses or academies, another certification program, or any other professional development path that a person aims to take.
They can, later on, utilize them in CVs when applying for a specific job or position. In addition, we could see the integration of smart contracts and DeFi, which would enable an even more seamless process when it comes to managing POAPs.
Now that we know what POAPs are, it’s only a matter of time before more businesses, individual influencers, academies, or anyone curious about making their event memorable implements them within their regular activities.
These Proof of Attendance Protocol (POAP) NFTs represent an exciting new approach and application of blockchain technology and will allow event organizers to create truly unique, verifiable digital collectibles for any attendees.
In addition, they offer a truly secure and decentralized way through which anyone can represent their attendance and participation while also becoming an attractive marketing tool that can attract new people and build loyalty to a specific brand.
As blockchain technology matures even further and gets mainstream endorsement, the usage of POAPs will become more widespread. As a result, they will increase in demand, value, and overall appeal even to those outside of Web3 circles. POAP represents a promising development that will only evolve further as time moves on and reward community participation like never before.