In the past year or so, you might have come across words like bitcoin, cryptocurrency, blockchain, etc. The phenomenon of cryptocurrency kickstarted due to the security and decentralization of the blockchain technology. Blockchain was used as a peer-to-peer network where people dabbled in cryptocurrencies and databases. Now, blockchain has long since evolved into something more powerful. Blockchain is the reason people can digitally exchange money, contracts and assets. Where the internet is used to transfer information, blockchain transfers ownership. Like the internet, blockchain technology opened doors to opportunities many didn’t even think were possible.
Today, I will delve into one of the main uses of blockchain technology: points exchange. Finterra is an example of a corporation that offers this service. What it does is that the process converts loyalty points to digital coins or tokens like FIN. The loyalty points of one outlet can then be exchanged for the loyalty points of another. After the exchange, people can use their points where they need it more.
Most of the time, loyalty points go unused until they’ve exceeded past their expiration dates. For users holding a bunch of loyalty programs, blockchain can provide immediate exchange for multiple different loyalty points on one platform. Users would not have to search for each program’s options and exchange rules. They can find it all on a single platform such as Finterra.
The appealing part of it all is the fact that the control is in your hands. Blockchain technology has made loyalty network more streamlined. That’s why without costly middlemen, the blockchain technology creates a secure and transparent record of all transactions.