Various blockchain startups, such as the Lichtenstein-based DigitalBits project, seek to use protocol tokens to reinvent loyalty programs.
Many start-ups are considering a market where loyalty points become a sort of cryptocurrency, exchangeable between loyalty programs offered by brands.
In most cases, brands should participate in the market, supposedly because it makes their rewards more interesting. Many loyalty points would not be redeemed.
But, says an expert of the loyalty program, such universal loyalty currencies are a bad idea for brands.
[Read the full article on MarTech Today.]