What are POAPs and why are they collected?

What are POAPs?

POAP (pronounced poh-ap) is an acronym for Proof of Attendance Protocol. These NFT badges are issued to prove participation in an event, regardless of whether the event occurs virtual or in the real world. Each badge is unique, which means that the only way to get a specific POAP is to participate in events. Collectors can quickly accumulate unique POAP collections that record their experiences and journeys in the encrypted space.

All POAPs are created using the ERC-721 standard, which is the most commonly used format for casting NFTs. However, to classify NFT as POAP, it needs to meet certain criteria. First, it must be minted through the official POAP smart contract. Second, it needs to contain metadata related to a specific time or date, up to a year. Finally, all POAPs must have an image associated with them.

Although POAP initially in Ethernet Square, the main cast online, but since October 2020, POAP has been created and distributed on an Ethernet Square pendant xDai. Since xDai is designed for fast and cheap transactions, issuers can mint POAP at very little cost. Therefore, POAPs are usually distributed free of charge to anyone who is eligible to receive them.

If users pay for gas, POAP can also be migrated from xDai to Ethereum. However, due to the high fees of Ethereum, most users choose to leave their POAPs on xDai so that they can view them on the POAP app. Although POAP will remain on xDai for the foreseeable future, Ethereum co-founder Vitalik Buterin hinted that they can be hosted on the second-tier network optimistic rollups in the future.

What are POAPs and why are they collected?

So far, POAP has been distributed in more than 100 Ethereum community events, such as EthGlobal, Dappcon, and the recent Ethereum community conference in Paris. More than 7,000 POAPs were claimed in these events, creating provable attendance records stored on the blockchain.

In addition, some online encryption communities are also using POAP to interact with their members. DAOs such as SushiSwap and ShapeShift distribute badges to attendees at weekly community meetings, AMA participants, and voters of governance proposals. Elsewhere, the popular meta-universe game Decentraland regularly issues POAPs to commemorate in-game events, such as the recent 10 million user party held by MetaMask .

The animated web series and NFT project Stoner Cats also use POAP. During the start of the project, many people who tried to mint Stoner Cat failed their transactions due to improperly written smart contracts, and users spent a total of US$790,000 in gas fees. In order to compensate those affected, the Stoner Cats team issued a limited Rekt Stoner Cats Minters POAP and refunded the gas cost of unsuccessful transactions.

Why collect POAPs?

Although collecting them is fun, these blockchain badges may also have greater untapped potential.

One example is that the participation and time of the community can be measured by the number of POAPs in the user’s wallet. Earlier this year, Bankless DAO used POAP to allocate funds to its users for airdrops. More POAP is equivalent to a larger share of airdrops.

What are POAPs and why are they collected?

Other communities that issue POAP are also working hard to inspire collectors. SushiSwap has begun to introduce benefits for POAP holders, such as being able to draw collaborative community artwork faster, and then distribute it to participants as a fragmented NFT. Although this does not seem to be much compared to a full-scale token airdrop, anyone who participates in its event can claim Sushi POAP, and Bankless DAO only distributes its POAP to paying subscribers.

Not only is participation measured by the number of badges collected, personal POAP collections can also be regarded as highly reliable and decentralized identities. To this end, the POAP issuer must ensure that everyone who participates in the event does not get more than one POAP, and prevent non-participants from receiving them. As long as the issuer acts as a reliable executor, each issued POAP will increase the strength and effectiveness of the collective identity of all POAPs.

By treating the POAP collection as a decentralized identity, users have already determined the actual application of the blockchain badge. For example, 0xTangle, the host of SushiSwap AMA, has discussed using POAP as a blockchain resume with members of the Sushi community. When hiring in the encryption field, employers can use the applicant’s POAP collection as a reliable record of their participation in the community. This has great value when hiring people into autonomous, community-driven entities (such as DAOs) that need to ensure that everyone working in them is aligned with the goals of the organization.

Since the project launched its current version on xDai in October 2020, the use of POAP has been steadily increasing. Users only touched on the possible uses of POAP, and suggested applications such as social graphs and mortgage loans have not yet been implemented. With unlimited applications and low barriers to entry, POAP has the potential to help redefine identity in cryptocurrency.

Original link: https://nftnewsinsider.com/what-are-poaps-and-why-should-you-collect-them/

 

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-are-poaps-and-why-are-they-collected/
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