Why Apple needs to embrace crypto, NFTs, and the Web3

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The biggest long-term threat to Apple (AAPL 2.80%) isn’t a competitor making a better smartphone or even new devices designed for the Metaverse. Just as the PC that was modernized four decades ago is still a staple for hundreds of millions of people around the world, the smartphone – and by extension Apple – will likely be at the heart of our digital experience for decades to come.

But threats remain, namely the innovations underway around crypto-currencies. Not only is crypto trying to disrupt traditional fiat (or traditional government-issued) trading methods, it is also breaking new ground in the ownership of digital assets. Apple could either accept this disruption and address it, or it could combat it, opening up an opportunity for device makers who embrace this booming business.

Image source: Getty Images.

Why the iPhone could be the center of our digital future

The development of cryptocurrencies, tokens, and NFT projects has grown rapidly over the past two years, with some NFTs now worth over $ 100,000 – and their usefulness is quickly being incorporated. Until now, the utility has been little more than access to a specific online store or website, but we’re starting to see this grow rapidly.

As more real and digital use cases hit the market, Apple products could either be a catalyst or a barrier to use. Not all crypto wallets are available in the Apple App Store, and even those that are often flawed and limited to a certain protocol, like Ethereum (ETH 3.51%), which means users would need to multiple wallets to access multiple cryptocurrency ecosystems.

Imagine buying an NFT that grants you access to a special event, only to find out that you need to use a specific wallet on Apple devices, which may be different from the wallet used to acquire the NFT. On Solana (SOL 1.01%), this is often the case today.

To fix this, Apple could allow more wallets, or even launch its own wallet that uses the secure enclave to protect people’s data. And it could enable interoperability and set standards that would make NFTs and cryptography more smartphone-friendly.

Apple hasn’t been developer friendly in the past

There is reason to believe, however, that Apple will not follow the path of opening up NFTs and crypto. He has a habit of trying to squeeze developers for high fees on the App Store. It is fighting Epic Games in court to maintain a 30% fee for users who buy gems and tokens in games, so it could also try to fight for a similar fee for users who buy NFTs or tokens. via applications on its platform.

For Apple, fighting for fees on transactions made on its platform could be the best way to get a competitor to build solutions that are easier to use. It could be on Android or through a new device.

What I think is clear is that customers don’t want a new device. They want their wallets and NFT to work easily on Apple devices. I think it’s in the best interests of the company to make this as transparent as possible.

Crypto, NFT, and Web3 need their “Apple Moment”

Looking back, the reason smartphones ultimately became a mass market device is because Apple made them easy to use. We often speak of “Apple moment”.

Crypto, NFT, and Web3 products in general are complicated to use and confusing – and for first-time users, it’s a feature, not a bug. But to achieve mass adoption, the industry will need its own “Apple Moment”. The question now is whether Apple or another company will make this moment possible.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Questioning an investment thesis – even our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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