Marc Serafino
Beyond moving money from one account the other, blockchain technology has other uses cases, including enabling smart contracts, which is one of Ethereum’s key selling points.
Also, it could be used for loyalty programs, in which a public ledger would store all transactions, while enabling a certain level of transparency for the users.
Which leads us to our story…
The WhopperCoin
Burger King, one of the largest burger chains in the world, has decided to launch what we think is the first blockchain-enabled loyalty program for a fast food chain. The company is kicking off the program in Russia though we expect to see similar offerings launching throughout Burger King’s global network.
Dubbed “WhopperCoin,” the initiative will see customers receiving one blockchain-based token for each ruble they spend in-store. Once they hit 1,700 WhopperCoins, they can redeem them for a free burger.
But there won’t be unlimited number of these WhopperCoins; the company has opted for Bitcoin-like restrictive monetary policy with only 1 billion WhopperCoins set to be created and distributed.
The technology, in case you wonder, relies on the Waves token creation platform, and will also enable users to turn on their smartphones (iOS and Android) to check out their WhopperCoin balances.
“Now, [the Whopper] is not just a burger, which is loved in more than 90 countries, but also a tool for investment,” Ivan Shestov, communications director of Burger King Russia, said in a statement. “Experts predict a rapid increase in the cost of cryptocurrency. Therefore, eating [a Whopper] today — a reserve for financial well-being tomorrow.”
Blockchain-based loyalty programs could be a thing…
One of the firms looking at this trend is the technology consulting firm Capgemini. In a bid to increase its investment in blockchain tech, it has recently announced a partnership with Ascribe that would find it using the startup’s solutions to create a real-time rewards system.
Under the deal, the two companies will be working on prototypes using Ascribe’s recently released BigchainDB platform.
Mahendra Nambiar, global insurance head of solutions at Capgemini said the effort attempts to prove that blockchain isn’t a technology just for the “sophisticated” but that it can solve simple issues for everyday consumers.
For what it matters, other consulting firms are also on board with the idea of using blockchain for business, including Accenture, PwC and KPMG.
More efficient and cost-effective…
Adding to the roaster of consulting firms is Deloitte, which recent report explored how blockchain could be used in loyalty rewards programs.
Said reports argues that most loyalty programs offered by US companies are underutilized and have high management costs. On the other hand, many users of these programs are likely to leave them due to a perceived lack of convenience.
Blockchain, Deloitte argues, could come to help, offering a mechanism by which a loyalty program would function similarly to digital currency. For instance, customers could receive reward points that can be redeemed for, say, an upgrade to a plane ticket.
There are also some problems with this sort of programs though, with the report’s authors speculating that “blockchain could take millions of dollars of unused loyalty point liabilities off of balance sheets”, and regulators might not be so comfortable giving their approval for this new state of affairs.
Ultimately, the success of blockchain-based loyalty programs depends on whether enough companies actually adopt the technology in a meaningful way. In that sense, seeing Burger King launching the WhopperCoin is a promising step forward.
