Blockchain technology is poised to create a major disruption in the loyalty space by radically reducing friction and frustration when creating, redeeming or exchanging points.
Best known as the backbone behind the virtual currency Bitcoin, blockchain technology enables an entire ledger of transactions to be shared across all participants in the platform – basically eliminating the need for a middleman or clearinghouse mechanism. Applied to loyalty partnerships, blockchain could allow numerous participating programs to instantaneously and securely approve all currency creation, redemption, and exchanges thus giving customers greater choice of exchanges options through a single wallet for loyal programs points.