How will tokenization change users' online experience?
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How will tokenization change users' online experience?
Smart contracts exist to enable token operations and allow them to be displayed on websites.
Navigating Web3 tides with focused insightsAuthor: Weiwu Zhang, CTO of Smart Token Labs
In this blog post, we invite Weiwu Zhang, CTO of Smart Token Labs, to share how tokens will transform online experiences. As a seasoned expert in blockchain technology and research, he has spent the past five years with the Smart Token Labs team exploring the nature of tokens and their real-world applications—delivering numerous successful projects along the way, such as creating attestation-based NFT tickets for events hosted by the Ethereum Foundation and launching an NFT collection in collaboration with luxury brand La Prairie.
Below, I’ve compiled the full conversation into a Q&A format for your reading.
Host: Which first caught your attention—crypto markets, blockchain, or Web3?
Weiwu: As an early investor, I bought my first Bitcoin back in 2010. Around 2012, I lost it when the exchange I used shut down. I bought again, only to lose it the same way. The third time, I made sure not to repeat that mistake—and eventually benefited from its growth. It was then that I realized many people believed in blockchain’s value and practicality because the technology enabled decentralized money in a way never seen before, suggesting even greater potential. Vitalik said something similar at the time. But rather than trust it based on rhetoric like others did—which could let it “do whatever it wants”—I wanted to understand it in tangible, real-world terms. Instead of focusing on making blockchains programmable, I focused on understanding what blockchain meant for industries. That’s why I joined CBA (Commonwealth Bank of Australia) as a blockchain architect, later joining R3’s Global Architect Office. Working on diverse business use cases was the most exciting part of that role.
After engaging in multiple case studies and commercial discussions, I realized tokens were the central element—smart contracts existed primarily to support token operations and enable them to be displayed on websites. This insight became my focus and ultimately led to founding Smart Token Labs. We possess all the technologies around tokens and firmly believe tokens are the sole gateway into Web3.
Host: How has your five-year journey been? What’s the current state, and which trends have shaped your business?
Weiwu: In our early days, our first major project was a tokenized ticketing proof-of-attendance initiative with FIFA. The experiment showed that ticket holders could verify identity on-chain, resell tickets on secondary markets for profit, and issuers could benefit more efficiently and at lower cost. Ticket holders could also use them on websites—for example, receiving discounts on Booking.com or quickly accessing event-related information. This was the vision we delivered for FIFA’s event in Russia. Following this collaboration, our team gained media exposure and recognition from FIFA. More importantly, we noticed a key difference: while the crypto community often discussed token economics and revenue-sharing models, our approach was different. We weren’t creating economic incentives—we were tokenizing the actual rights embedded in the ticket: entry to the venue, complimentary drinks, hotel booking discounts. These tangible benefits formed the economic value, which was unconventional at the time, as most people didn’t think this way.
Between 2018 and 2019, whether discussing FIFA tickets or credit card systems, people mostly talked about incentive mechanisms rather than core economic drivers. It was like focusing on earning more money instead of considering what you actually want to buy with it—like food or drinks.
The emergence of NFTs changed everything. After the NFT market exploded in 2021, people began seeing tokens differently—NFTs proved tokens could represent unique, meaningful assets. From then on, it became much easier to explain our core ideas: how smart tokens reduce friction and allow seamless integration, enabling a Web3 experience without synchronization points. It was a celebratory moment—not just for industry leaders like Mark Cuban, one of our investors, but for broader understanding.
Host: However, the NFT market saw significant shifts in 2021, especially price crashes in 2022. Part of this stemmed from speculative behavior. Long-term, speculation isn’t healthy for ecosystem growth. Do you think people are now recognizing the real utility and value behind NFTs, or is speculation still dominant?
Weiwu: Speculation and wealth-generation attract people initially, but as they dive deeper, their perception of tokens (ERC-721) evolves. They develop awareness—even seeking professional-level understanding—something previously absent. The biggest value here is shifting mindsets. Our team works with various brands to maximize their value. For instance, we provided a solution for international beauty brand La Prairie, allowing them to recognize and verify users’ identities on their website to deliver exclusive benefits. This was powered by our Brand Extender project—an initiative only possible due to the surge in NFT demand.
On the other hand, after moving past the speculative phase, if people remain unaware of what NFTs and tokens can do—and hold negative views—it may take two to three years to educate them. I don’t believe we can single-handedly shift public perception, but we can strengthen our capabilities and gradually empower real-world applications through partnerships. As more people recognize tokens, appreciate their advantages, and adopt a neutral stance, we’ll have more opportunities to help brands and companies implement practical solutions.
Host: Before these use cases become widespread, what are you most looking forward to seeing?
Weiwu: I’m most excited about smart things. Imagine owning a smart car that anyone can book to use. If you don’t need it on weekends, you could authorize a platform to rent it out during idle times. Or picture a smart table that people can reserve directly online.
Traditionally, fulfilling such needs requires heavy integration across users and data systems. For example, renting a car involves placing an order via a platform or third party, followed by manual verification and matching—a process that, while seemingly smooth, introduces friction. Same with restaurant reservations: success depends on human review. These small frictions add up. Ideally, you’d set preferences once, and the system automatically matches based on your criteria. If powered by AI-driven data, apps could seamlessly match buyers and sellers—just like token transactions could automate restaurant bookings. Data would integrate and push updates upon login. Crucially, once you own a reservable service token, you gain immediate access rights—an enormous advantage that eliminates friction.
To expand: you wouldn’t need to manually book hotels or tables. Your calendar app could integrate with service platforms, automatically matching rooms based on your schedule. Tokens empower everyone—and I look forward to a day when programmable smart tables, cars, or other objects become commonplace.
Host: To summarize, from what you've described, booking hotels, restaurants, or cars would require integration through a single token. Is this akin to bundling all services into one seamless experience, rather than using each individually?
Weiwu: Yes, exactly—but only if the token has programmable interfaces and those interfaces are usable. Both conditions are essential.
Host: Beyond token potential, many individuals and organizations remain skeptical of blockchain and Web3. What advice do you have for those who doubt its utility?
Weiwu: I don’t really have advice for them. It’s fine if they don’t believe in tokenization or its future. The future of tokenization doesn’t depend on individual beliefs—it’s driven by economic benefits for users and providers. Because tokenization enables innovations impossible under centralized systems, people will eventually adopt it, regardless of initial skepticism.
Take traditional internet: I remember my father saying no one would use email because sharing usernames and passwords seemed risky. “We’re not geniuses or spies—how can we remember passwords?” But as we know, everyone now logs into email with credentials because the benefits outweighed the concerns. Similarly, I believe skeptics of tokenization will, within about two years of improved user experiences, stop resisting. They’ll start using tokens and tell others: “I once opposed it, but now it’s the right time—join me.”
Host: Currently, what do you see as the biggest barrier to wider adoption? Is it on the user side, the industry side, or something else entirely?
Weiwu: Everything takes time, and problems become clear only when they arise. The first issue was insufficient wallets in the market. But NFTs dramatically changed that—now most people have NFT wallets. The next step is better wallets: current NFT wallets don’t let users download token code—they’re managed by websites. So users demand improvement. Our team is actively working on this.
Businesses must recognize that as broader markets and users enter, they’ll need to offer more goods and services—and thus have strong incentives to adopt tokens. Tech providers like Microsoft and IBM must see the need to design systems around tokens. This means websites shouldn’t just expose APIs; they should allow users to hold tokens and connect them via protocols (e.g., proof of admission), triggering dynamic changes—like adjusting UI elements or unlocking features. For example, holding a blue-chip NFT might simplify a webpage’s design. We can build such sites, but they must link to business functions. If you hold a car token, the site could authorize access to view and learn how to drive it.
In short: users need better wallets; companies must see demand and issue tokens to expand service offerings; and tech providers must advance token-first technical architectures.
Host: Given that, some high-profile brands and web companies—like Nike and GUCCI—have launched NFT initiatives. Do you see them as genuinely pioneering the future, or are they still in experimental mode regarding usage and awareness?
Weiwu: I think both perspectives are valid. What they’re doing is correct—tokens can stand alone, offering users priority privileges beyond collectibles: exclusive ownership rights and access to services. They’re heading in the right direction. Are they still experimenting? Yes—because tokens can do far more, and evolution takes time. Consider privacy: could a token let me prove I hold over 1,000 karma tokens on a forum without revealing my identity? Not yet, but it will happen. Demand for token functionality will grow, and tokens will evolve into privacy-compatible “containers” of verified claims—akin to digital academic records. When you enter a site with a token, it knows your holdings, privileges, and preferences. But first, we must try things that might be right. So yes, they’re doing the right thing—and still experimenting.
Host: Are there any use cases where tokens are unsuitable? Why?
Weiwu: Yes, many token use cases seem meaningless to me—especially internal tokens designed solely for user incentives. For example, rewarding frequent platform users with tokens and discounts. If tokens are too easy to earn, there’s no need to run them on blockchain. Worse, if everyone gets discounts effortlessly, they’ll stop using the tokenized services altogether.
There’s an expectation: when a service issues a token, it should unlock greater value and rights. But if the underlying service lacks intrinsic value, issuing a token becomes exploitative—potentially harmful to the industry. Any token issuance aimed purely at monetization, rather than enabling new possibilities, is unhealthy.
Host: A good example might be a loyalty program that tokenizes user attention within a closed system. Could this evolve into a robust, public-ledger-based loyalty scheme?
Weiwu: I think there are two viable approaches to tokenizing loyalty programs on a public ledger. One is non-transferable tokens, similar to the concept of soulbound tokens—though currently more theoretical than implemented, with details closely resembling existing loyalty structures.
Host: You mentioned soulbound tokens, which Vitalik also discussed. Can you elaborate?
Weiwu: I’ve read many papers on this—though not all—and most treat it as conceptual, not yet technically realized. Soulbound tokens aren’t tradable and carry no monetary state. If you could buy an ERC-20 token representing someone’s soulbound credential, the system would collapse—you’d become rich overnight. But soulbound tokens aren’t meant to be traded; they’re trust anchors aggregating multiple attributes. For example, a university degree is a soulbound token—you can’t sell your education to someone else; everyone must learn independently. But you can combine this soulbound degree with other tokens to create a verifiable, trustworthy resume for job applications. Employers could run smart contracts to validate qualifications automatically.
Another example: if you’ve repaid multiple loans, building a track record of financial responsibility, lenders (like U.S. firms) recognize you as a reliable borrower. Here, the soulbound token acts as a proof of creditworthiness—a badge worn proudly, like on a T-shirt.
Returning to privilege tokens, there are two viable paths. First, issue them as soulbound tokens—non-transferable but granting access to exclusive spaces (e.g., websites). They don’t need to be issued on-chain, but doing so provides cryptographic proof of ownership—a trust anchor on the blockchain—that other smart contracts can verify. For example, a brand issuing privilege tokens to gold-tier customers could issue attestations (verifiable proofs). They don’t need blockchain expertise; issuing a trust anchor functions similarly to a smart contract. Users holding attestations can trigger verification functions, and smart contracts can confirm redemption by the issuer.
Moreover, these attestations are valid across other smart contracts. For instance, users with privilege or gold-tier status could access special features in a server or service. This is why a blockchain-based trust anchor is valuable.
The second method is tokenizing loyalty points. But here’s the problem: if current privilege holders receive transferable points, others may prefer trading them on secondary markets rather than paying for services. Conversely, if points aren’t transferable, there’s little reason to issue them on blockchain. This limits the model. The solution lies in adding programmability to the token container—exactly what our TokenScript framework enables. With TokenScript, users can use tokens under specific conditions. For example, if you hold a $1,000 privilege token and a points token, you might be allowed to spend 20% of the privilege value on shoes. In that scenario, buying shoes activates the privilege token, and points are checked to verify eligibility—enabling conditional transfers while preserving the purpose behind the transaction.
This increases utility: privilege tokens can be verified via smart contracts or websites, serve as blockchain trust anchors, and allow point accumulation—enabling cross-scenario usage via TokenScript integration. This significantly enhances token economies.
Host: We’ve touched on various visions for the next decade. Where do you see tokens and mainstream apps in 10 years, and what roles will they play?
Weiwu: We’ll see abundant token use cases. Every smart device—cars, suitcases, meeting rooms—will have a token interface. Individuals will tokenize their time, enabling apps to automatically match bookings via tokenized markets. We’ll also see integrated subscription services: subscribe once to a category of books or films and enjoy special discounts, eliminating the need to pay extra or sign up elsewhere for premium content—greatly reducing market friction.
Everyone will use wallets; browsers will embed wallets as default containers. Chrome and Firefox once hesitated over becoming Web3 browsers connected to blockchains—because they didn’t see how it would change user experience. But that will change. They’ll realize they’re not connecting to blockchains per se, but to the tokens serving their users. Service providers will offer wallets, hiding blockchain complexity. Both users and websites will seamlessly use tokens.
In ten years, I believe we’ll have enough smart tokens that instead of websites asking users to accept all or only essential cookies, pop-ups will appear for privacy-related, personal data and preference cookies. Users will customize settings across sites based on their needs.
Host: What are your key focus areas and plans moving forward?
Weiwu: As CTO, my current focus is enhancing our programming frameworks so that attestations work as smoothly as tokens. Long-term, we aim to rebuild web services around tokenization.
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