Amazon NFT marketplace will be on a private blockchain

Amazon NFT marketplace will be on a private blockchain

According to sources familiar with the matter, Amazon is in the final stages of launching its private NFT marketplace. The platform will initially run on a private and permissioned blockchain controlled by Amazon, but multichain compatibility has not yet been ruled out.

Featuring artwork from Beeple

The blockchain in question will be gasless and read-only, with strict restrictions placed on NFT creators, partners, and customers.

While private blockchains go against the ethos of cryptocurrencies and decentralization, the plans are not yet set in stone. Amazon might decide to make its blockchain public or implement multichain functionality further down the line.

The exact launch date has not been confirmed, but Amazon has told product partners that Artifact Labs and Proof Collective will be involved, alongside day-one partnerships with Beeple and Pudgy Penguins creators.

Twitch has been tapped to promote the initiative, while The Fabricant has agreed to participate in the marketplace’s fashion vertical. Amazon’s hosted digital collectibles will be heavily promoted on Prime Day, with customers able to buy NFTs just as they would any other product. While Amazon’s 300 million active customers are expected to support the platform, there are no plans at launch to include multichain functionality.

Information taken from official documents

According to confidential documents reviewed by crypto publication Blockworks, Amazon Web Services (AWS) has been a significant contributor to the creation of the private blockchain. AWS is already responsible for hosting a large share of nodes from blockchains like Ethereum and Solana.

Sources familiar with the platform’s formation say Amazon has shifted its launch timeline several times, and the company has imposed strict non-disclosure agreements on its dealings with current and potential Web3 partners. Seven sources with direct knowledge of the matter agreed to discuss sensitive business dealings with anonymity.

Beeple and Pudgy Penguins are yet to confirm the rumors

While representatives for Beeple and Pudgy Penguins creators were not immediately available for comment, multiple sources have confirmed that several crypto gaming companies have either discussed or signed partnerships with Amazon to sell NFTs tied to their titles on the marketplace. The Fabricant, which has its own partnerships with major fashion brands and an NFT marketplace featuring digital collectibles tied to real-world experiences, is said to be an anchor participant in the fashion vertical.

Multiple sources have suggested that other planned use cases on the marketplace could include exclusive drops of music, ebooks, movies, or TV shows, access to a private club, behind-the-scenes meet and greets with musicians or celebrities, and physical goods shipped after an Amazon customer buys an NFT. Amazon has reportedly emphasized that its platform would result in Web3 adoption for its 300 million active customers.

While the company’s NFT platform was expected to hit the market as early as the fourth quarter of 2022, it has been repeatedly delayed. Three sources with direct knowledge of the matter confirmed that there are no plans at launch to include multichain functionality that would allow Amazon NFT buyers to move or transact their digital wares off Amazon’s blockchain. However, sources offered conflicting accounts of whether there may be future plans for such functionality.

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