DigitalBits: A Blockchain Focused on Improving the Legacy Loyalty and Rewards Industry
By: Al Burgio, Founder, DigitalBits.io
Loyalty and rewards programs are a great way for shoppers to save money and gain perks, but what good are they if no one actually uses them? One-third of loyalty points go unclaimed.
Due to issues with legacy technologies, consumers experience significant challenges trying to redeem their rewards. These issues and challenges also affect the liquidity of today’s loyalty programs. Not to mention, they’re costly for businesses to support and can leave customers’ personally identifiable data exposed to security threats.
Loyalty program systems often include a centralized database that maintains custody of critical customer data that could be hacked by a threat actor or accessed with inappropriate use of login information. Panera Bread is just one example of a company that unfortunately learned this the hard way. Panera was hit with a data breach that left millions of customers’ data exposed, including loyalty card numbers.
DigitalBits is a low-cost and secure open source global transaction network that was forked from Stellar blockchain software. DigitalBits is for anyone to use, including businesses with loyalty and rewards programs and their members.
Portable, low cost and secure
When enterprises tokenize their loyalty points on the DigitalBits blockchain, their loyalty program members are awarded points that are recorded on a decentralized ledger. These tokenized loyalty points are 100 percent portable / transferable across the DigitalBits decentralized ledger/blockchain. In addition, users are able to trade these digital assets (e.g. tokenized points A for tokenized points B) directly on-chain for loyalty perks (or other assets) they actually want, within the decentralized DigitalBits blockchain.
By tokenizing on the DigitalBits blockchain, these reward programs have the potential to enhance the perceived value of many of their loyalty point and rewards. Frictionless on-chain transfer and trading between digital assets helps solve the liquidity problem loyalty programs face today. And, because there is no middle man to impose excessive fees, DigitalBits can quickly and inexpensively resolve transactions on the networks. As such, DigitalBits is ideal for a transaction of any size that requires a near real-time response.
The DigitalBits blockchain network is also good news for loyalty programs when it comes to security. Logins aren’t required to access a centralized system operated by the loyalty program operator, as is the case with legacy loyalty and rewards programs. The user has direct custody and access to their blockchain account where loyalty points are deposited by the loyalty program operator. Therefore, even if their private key was misplaced, only that single user would be affected, rather than a breach affecting millions. What’s more, because blockchain uses cryptography, a hack that changed the historical records of a single ledger node wouldn’t impact the entire blockchain system.
Reviving the loyalty industry
DigitalBits is perfectly positioned to help enhance the value of loyalty points and rewards. It’s time both consumers and businesses benefit from more secure, portable and liquid loyalty programs. This is an exciting space, and DigitalBits believes that blockchain technology will be crucial to the next era of the industry.
If you’d like to learn more about DigitalBits, visit our website at DigitalBits.io or join our telegram group at t.me/digitalbits.