Blockchain technology is transforming the world in ways we could never imagine. The distributed ledger innovation brings decentralization, smart contract functionality and transaction efficiency to many sectors. One of these sectors, in and of itself a dynamic sector, is the loyalty programs deployed by many online stores
A loyalty program is a business strategy to incentivize customers to come back and shop in your store. A typical program involves customers registering on the program and accumulating loyalty points for shopping. Eventually, the customers can redeem or get rewards on account of their loyalty. All this is meant to retain customers. Well, at least in theory.
The reality is that a lot of times customers are part of multiple loyalty programs and can take several months to access the loyalty reward. A study by Colloquy Loyalty Census Report in 2017 showed that loyalty programs were at their peak in 2015 but the effectiveness waned with successive years.
The reality is that these programs are becoming redundant and each one is pretty much a version of the other not to mention the tedious and sometimes annoying task of reminding customers to keep using them.
This brings us to the next big thing in loyalty rewards; the blockchain. Blockchain-based rewards schemes can create more value for retailers, consumers and investors in the platforms.
The blockchain can decentralize and streamline the fragmented loyalty rewards space and having profitable rewards points.
How Blocknode Rewards Scheme Works
Let’s use practical examples to illustrate this.
The first is an online store rewards system. Say you own an online store selling the latest apparel and wish to have a rewards system for loyal customers.
How can Blocknode facilitate this? You initially have to purchase enough BND tokens for a Masternode. Pursuant to this, the Blocknode team can help you set up a customized wallet using the Masternode server. It is important to note that after the initial tokens, you can generate tokens perpetually and even get a second Masternode on generating another 100, 000 tokens.
You can set the reward rate to send tokens to your customers on their own software BND wallets. Since token generation continues on the Masternode, you can afford to have a higher reward percentage to mainstream cash-back incentive schemes. Additionally, you can place discounts on BND purchases on your website. This will incentivize customers to create BND wallets and purchase often. The customers have loyalty reward tokens which are valuable compared to ordinary loyalty points.
Rewards System for Employees
The second example,
Suppose a successful entrepreneur has about 10 employees and wishes to have a rewards system for them. The boss decides to use Blocknode platform to effect the same. The basic step would be for the employer to invest in a Blocknode Masternode and 100000 BND tokens as collateral.
He then sets up a customized business wallet and Masternode server with the help of the Blocknode team. This makes it possible to begin generating tokens. Correspondingly, the employees set up their own Blocknode online wallets. This is for the purpose of getting the rewards. Therefore, each time the employer has generated enough tokens, he or she can decide to reward the employees by sending BND tokens to each employee instantaneously.
These employees have the option of either keeping their tokens in their wallets or generate more tokens. This is achieved through the proof of stake mechanism. There is the additional option of trading the tokens for Bitcoin and then fiat.
Notably, the employer still has the original investment in his or her Masternode wallet and is rewarding employees using the new tokens.
From the above, it is clear that Blocknode rewards are a win-win. Customers have a more solid loyalty program while it actually saves the business owner money. Decentralized loyalty rewards are definitely the way to go. Blocknode has something else that makes it more lucrative; POS mining.
The Proof of Stake Mechanism
The proof of stake essentially means that token holders verify transactions on a blockchain network using their wallets. Of course, it’s a little more complicated, but the functional difference from proof of work is pretty much that. BND tokens in a wallet mature for staking after 101 confirmations in your wallet.
In proof of work, like Bitcoin transaction verification, competing nodes try to add blocks to the network. Each computer in the network verifies the transactions but the reward in the form of minted Bitcoin is for adding a block to the network. The nodes (computers) perform complex mathematical problems to win the rewards. This is vital to keep the network going. However, as the network grows, serious issues emerge making mining more and more difficult.
Coin holders earn transaction fees for validating transactions. POS, therefore, is an ingenious incentive for users to keep their coins in their wallets long term. In POS, the creator of the next block is picked through certain combinations that take into account random selection, network weight & age. This mining process is energy efficient and sustainable. The decentralized mining consensus is much more effective for the network.
1. Instant cross-border transaction- Implementing a rewards system on the Blocknode blockchain is efficient since you can execute rewards instantly to customers the world over directly to their wallets. This is convenient and saves money.
2. Decentralized governance of the rewards system brings greater efficiency. Additionally, you can budget effectively.
3. The BND tokens mean that customers have rewards which are actually valuable. This value is because you can use the tokens to exchange for BTC or purchase discounted goods for retailers who accept BND.
Investing in Blocknode
If you are an investor, the basic question would be; what’s in it for me? Well, for one, investing in a Masternode means you get to constantly generate tokens since this is the token priority for the project at 80% of tokens.
If you are a business owner seeking to invest in Blocknode as your rewards system of choice; this brings efficiency and saves on costs. It goes without saying that this coin can grow exponentially as it has a solid team with real-world application and value. In conclusion, it is time to introduce your business to the Blocknode blockchain and experience the future of rewards.