With the recent boom in cryptocurrencies, made popular by the meteoric rise of Bitcoin in 2017, there have been many discussions centered around crypto vs fiat currencies. One thing that isn’t often brought up, is how common non-fiat currencies are.
Take gift cards for example. Gift cards are not a fiat currency. Yet both consumers and businesses alike love using them. Businesses love gift cards because once a card is purchased, they are guaranteed to make the sale. Likewise consumers love gift cards because it guarantees them the ability to purchase a product.
Reward programs are also a form of non fiat payments. These can be as rudimentary as a punch card at your local donut shop, or as sophisticated as credit card points or airline miles. Either way, a company is rewarding you with store credit for frequent purchasing.
While this is an excellent system for businesses to adopt, it’s not without problems. For some companies, it’s too costly to manage and staff a rewards program. For consumers, it can become cumbersome to keep track of all their different point, miles and stars across multiple companies.
Blockchain and Reward Programs
Some have already been at work improving on these reward systems by combining them with the power of blockchain. Sandblock (SAT) is an example of this. Sandblock uses blockchain to shore up the typical problems with traditional reward programs. Reward and loyalty points can be transferred to crypto assets.
Because cryptocurrencies are based on a distributed network, known as blockchain, it cuts down the external interference and transaction fees. This is beneficial for the small business and helps them jump into the loyalty reward program when they might not be able to otherwise.
It’s also advantageous for the consumer because now they have something that is truly valuable. While some argue that crypto assets are too volatile, the risk is one worth taking if you are receiving crypto as a loyalty reward and didn’t pay directly for it.
Blockchain and Gift Cards
Loyalty reward points are a form of non-fiat currency. And Sandblock provides an example of how crypto can be used in place of this form of currency. Likewise, gift cards are another form of non-fiat currency that can be combined with blockchain.
Zeex (ZIX) is a blockchain that is doing just that. Through the Zeex app, you can deposit your crypto into your Zeex account. From there, the Zeex system converts your crypto into gift cards. This allows you to buy from any shop that is on the Zeex platform, paid for by your crypto-turned-gift card.
Zeex is the sister company to the popular Zeek, a company that changed the gift card landscape in just a couple of years. Zeek has worked with top brands like Nike, Adidas, and even Amazon. They’ve sold over one million gift cards in 2017 to a large variety of brands and product spheres.
Zeex takes the mindset and model from Zeek, but pairs it with blockchain in order to make it even better. While there are many reasons why we love using gift cards, a primary reason is the ease of use. Zeex is combining this with their user friendly app, providing an all around simple and inviting user experience. With only three taps on a phone, you can do everything from deposit crypto to purchasing products.
Blockchains like these are important because they are making crypto practical. Now users can spend their crypto on real world products, by transferring them to gift cards. Transferring crypto isn’t always easy. And it isn’t always cheap. But through blockchains like Zeex, the bridge between the crypto world and the fiat world is getting shorter and shorter.