What is NFT Whitelisting?

NFT whitelisting is a technique for securing crypto assets to a single account. This can be used in a variety of ways, but the most popular is to demonstrate that you own specific crypto assets. The NFT whitelist mechanism does away with gas limit settings and stops users from transferring tokens to addresses that do not support the ERC721 standard.
Projects can also use whitelisting to limit who can obtain specific tokens. For example, if an ICO ran out of tokens for an airdrop campaign and users kept claiming their tokens, the project could simply whitelist the user’s account address and give them the remaining tokens.

Why are NFT Whitelists Used?

Preventing Spam

Projects can prohibit spam from non-whitelisted addresses by establishing whitelist users. Additionally, the whitelisting procedure ensures that bulk account registration is not approved. Spam accounts should not be authorized to view presale minting since they can slow down performance of the network and drive prices up.

Avoiding Gas Wars

Avoiding Gas Wars As public NFT sales do not require whitelisting, a lot of consumers interacting with the smart contract at the same time can skyrocket transaction fees. This occurs when users compete to have their minting transactions validated first, causing gas prices to rise and culminating in “gas wars.”

Whitelist registration, on the other hand, authorizes only a relatively small number of wallet addresses to mint NFTs prior to the public sale, decreasing the likelihood of network traffic and gas wars. Another efficient strategy for whitelists to avoid gas difficulties is to set a predetermined timeframe for the production of NFTs. It’s worthy of note that the gas price will range depending on the overall activity on the blockchain network. Other minting sales or external factors might also effect a whitelist sale. A silver lining of the whitelisting concept for NFT projects is that if there is a significant desire to join the whitelist, it fosters excitement and awareness about the release, project, and possible future releases.

Rewarding Supporters

The whitelist is a way for a relative handful of members of the community to get early access to a new NFT version. Some projects may offer whitelisted users complimentary NFTs and exclusive content, while others may offer discounted early access; all whitelist offers vary considerably on the NFT project.

Whitelist registration requirements differ from project to project. Some may require the submission of a set of tasks or a specific wallet hold of the project’s asset. There is no set process for whitelisting; some projects may even provide pre-approval without having a formal submission if you are actively engaging in community events and discussions.

Benefits of NFT Whitelisting

Early Access

While drawing a large user base is a sign of a good NFT project, it also means that minting NFTs will be more complicated. Whitelisted users frequently have exclusive or guaranteed access to mint NFTs, avoiding competition, on-chain traffic, and skyrocketing gas expenses. For instance, a project might authorize only its whitelisted users to mint NFTs at any point within a 48-hour period. As previously stated, certain projects may even provide early adopters with special NFTs as a show of appreciation.

Stay-free of Fraud

When someone buys and sells their assets repeatedly to unfairly raise prices, this is an example of fraud. This activity, known as wash trading, is one of various market manipulation strategies used by unethical actors.

The likelihood of fraudulent conduct is ostensibly lowered because users must normally pass whitelist standards before being allowed access to the NFT presale. Bad actors may be discouraged from attempting to control the project’s NFT market by capping the mint time.