As blockchain is gaining a foothold both as an innovative and reliable technology, interest in it is growing. However, the Internet is pervaded with misinformation; and there is a need to educate people about all the good blockchain can do for the world.
Blockchain is not just about trading cryptocurrencies and NFTs. It offers a whole lot more and can be utilized to revolutionize businesses across many different industries. And marketing is one industry that serves to benefit from blockchain. On the last day of the recently concluded BSV Global Blockchain Convention in Dubai, a panel was held wherein marketing experts explore how blockchain can innovate loyalty programs in the marketing industry.
Chad Anderson, president of investment firm Oceanside Digital Assets, Joe DePinto, co-founder and CMO of gaming platform Haste Arcade, social marketplace Phuong Dinh, chief strategy and purpose officer of Mijem Inc., and Luke Rohenaz, co-founder and CEO of promotional marketplace TonicPow, make up the panel of experts who discussed the many executions that can be done by putting loyalty programs on the blockchain.
The panel is moderated by Martin Coxall, marketing head of Switzerland-based BSV Blockchain Association, a global industry organization advancing the adoption of the BSV Blockchain. It is the largest public blockchain that has the ability to scale without limits, which is crucial to building efficient and practical platforms on a global scale.
Global Blockchain Convention
The difference between an unscalable and scalable blockchain can better be seen in numbers. BTC and ETH are both highly popular within the cryptocurrency and blockchain spaces; however, their numbers show how inefficient they are.
BTC has a 1MB data block limit, a throughput of seven transactions per second (tps), and a current average fee of $1.4 per transaction. ETH has a higher throughput at about 70 tps, but its transaction fees are currently averaging at $10.06. It is not practical for businesses that have thousands of daily transactions to pay even $1 per transaction.
Aside from being impractical, an unscalable blockchain simply cannot cope with high traffic. Surge in transactions often results in latency, failed transactions, and even outages—all of which cost precious time and money.
The BSV Blockchain is currently handling 4GB data blocks at 50,000 to 100,000 tps. It has recently broken world records at 10 million transactions in one day. Fees range 1/20 to 1/100 of a cent per transaction. These numbers will only improve as the network scales, and it would not be an exaggeration to say that terabyte-sized blocks and billions of tps are possible in the years to come.
Global Convention Livestream
“The reason why we chose BSV is because it’s very sustainable relative to other cryptocurrencies where it doesn’t consume too much power. It’s scalable and it’s very low in transaction fees. And how that plays out with trends in blockchain, and I think one of the most interesting trends today with blockchain is the ability of the application when it comes to verification and record-keeping. I think that with today’s modern consumers where people are pivoting more towards ESG, making sure that they’re consuming legit drugs or want to know that a certain luxury good they’re consuming is valid or whatever. This is where blockchain provides that public ledger where records can be on a chain. But we need a chain that’s very cheap to do that functionality.” —Dinh stated
With the combination of an efficient blockchain that can handle an extremely high number of transactions and big data at the lowest possible fees, marketing strategists can be as creative as they want with their executions.
“I think as far as user retention and stuff like this, I’m a huge fan of gamification. I think the blockchain and micropayments fit with this so perfectly. If you use TonicPow, you see really good examples of this. There are all sorts of achievements on the platform. We incentivize all the things we just want users to do.” — Rohenaz stated
“You go on Instagram, you get a ‘like,’ that’s like a dopamine hit. And that keeps you coming back. It keeps them wanting to post. With us, we’re using micropayments as that kind of dopamine hit where you play a game in our arcade; you make the leaderboard; you’re going to start getting these micropayments at fractions of a penny. Sent instantly, you get a notification on your phone. That becomes addictive.” — DePinto added
According to Anderson, who used to be a strategic marketing consultant for myspace.com during its heyday, a scalable blockchain would be perfect for keeping track of attendance at events, which would then be the basis for people getting rewards.
“One of the things that we would be doing in today’s world is something called proof of attendance protocol. And that’s something that a lot of people are doing in the NFT space now, where you come in and you scan in with your QR code. And then, this would be something that people could earn rewards on from attending multiple events and get into different tiers the more they attend.” — Anderson explained
The powerful capabilities of a scalable blockchain open up a whole new world of loyalty programs. Being able to send very small amounts of money or tiny fractions of a token as rewards makes for a highly practical and effective solution to customer retention.
“The fact that we’re putting loyalty points and things like this on a blockchain now, they can take new forms. They could be more useful than they were before. They can be interoperable with other companies. You can easily make a deal with some partner that is a really good compliment to you. You can redeem points over here and vice versa because we have a universal database that we can check it against. Whereas before, they were all independent systems.” — Rohenaz stated