Why Apple’s Recent Decision on NFTs in the App Store is Wrong

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Image Source: FreeImages‍

In December 2021, Apple announced a new set of guidelines for app developers. Apps that use non-standard user interface elements to create interactive experiences will be rejected from the App Store. This decision has a major impact on the adoption of virtual or augmented reality (VR/AR) apps, which heavily rely on non-standard UI elements like cameras, sensors, and gestures to create immersive experiences. However, these restrictions are only applicable to apps that use Non-Fiction Virtual Objects, a subset of non-standard UI elements used in VR/AR applications. These NFTs include markers and tags, computer vision (for detecting specific visual elements in images), and other types of digital information coded onto physical objects or printed documents.

Last week, in October 2022, Apple made this decision worse when it rolled out new guidelines for the App Store, which functionally bans NFT utility and subjects users to a 30 percent “Apple Tax.”

Why NFTs are Important to AR/VR Apps

NFTs are a way of embedding digital information about objects into the real world. The term “NFT” stands for non-fiction virtual objects, and the digital content associated with an NFT can be accessed through an app running on a smartphone or a VR/AR headset. NFTs can be applied to any object, including everyday items like books, toys, and food packages. NFTs can enhance the experience of VR/AR apps in several ways. For instance, a museum app can use NFTs to provide visitors with additional information about the paintings they’re viewing. A toy app can use NFTs to allow children to interact with characters in the app using toys they already own. A packaged food app can use NFTs to provide customers with nutritional information and a list of ingredients.

Why Apple’s Decision is Wrong

In its announcement, Apple specified that only apps that use NFTs in “inappropriate or offensive” ways will be rejected from the App Store. While this is a good rule for protecting users from offensive content, it’s a bad rule for protecting developers who create useful and engaging AR/VR apps. Apple’s new decision will prevent developers from using NFTs in their apps, and it will limit creative innovation in the AR/VR space. There are a few reasons Apple’s decision is wrong. First, the terms “inappropriate” and “offensive” are hard to define and difficult to enforce. Apple might not be able to consistently screen and approve every app that uses NFTs. Second, the new decision will stop the adoption of AR/VR apps that use NFTs in creative ways. The VR/AR app market is still in its infancy and developers are just beginning to explore the full potential of the medium. Lastly, the most recent addition of the 30 percent Apple Tax, and the guidelines impact on NFT utility could have a centralized and controlling impact on the digital asset marketplace.

How Apple’s Decision Could be Wrong

Since Apple’s new decision will apply only to apps that use NFTs, developers can work around these restrictions by using other types of non-standard UI elements. For instance, apps that use computer vision to detect specific visual elements in images can use non-standard UI elements like pop-ups, cards, swipes, and menus. Apple has already approved many AR/VR apps that use non-standard UI elements other than NFTs. For example, the app “Wizards” uses computer vision to detect specific visual elements in images. However, Wizards doesn’t use any NFTs and it doesn’t require any physical objects. As a result, Apple’s policies will likely render NFTs purely digital collectibles on iOS, which would impact token-gated communities and airdrops.

What Developers Should Do Instead

Developers who want to create engaging AR/VR apps can work around Apple’s new decision by using non-standard UI elements other than NFTs. However, if Apple’s decision remains in place, developers will eventually have to move away from NFTs entirely. In the long run, developers who want to create immersive AR/VR apps will have to move away from NFTs and towards other types of non-standard UI elements. To make this transition easier, VR/AR app developers should start working with computer vision to detect specific visual elements in images.

Conclusion

NFTs are a powerful tool for creating engaging AR/VR apps, but Apple’s new decision will prevent developers from using this tool in their apps. By restricting the use of NFTs, Apple might be hurting the adoption of AR/VR apps. Fortunately, developers can work around these restrictions by using non-standard UI elements other than NFTs. In the long run, VR/AR app developers will have to move away from NFTs and to