Blockchain technology allows us to accomplish many great things, and we have only just started to discover the tip of the iceberg of its full potential. As we discover these new use cases for the blockchain, our society can evolve towards a more digital form, which is a situation we have been in for some years now. Gyft.com, one of the leading fit card platforms, has involved blockchain-powered gift cards.
Gift Cards Are Good, But…
Gift cards have always been a great tool to surprise friends, family and loved ones. Rather than buying a present they may or may not like, giving them a gift card for a place they frequently visit allows them to treat themselves to something useful. And it causes fewer headaches for the person giving the card as well.
But there is a big problem with the current system of gift cards we have all gotten accustomed to over the past few years. All of these gift card codes are stored in databases, which are not only prone to being hacked, but also to being leaked to the internet due to human error.
Just a few weeks ago, popular chain Woolworths had to recall a few thousand gift card vouchers because they had been leaked via email. Apparently, one of their staff members sent out an email – by accident – to a few hundred people, containing over a million USD worth of voucher codes. All of these codes had to be destroyed and re-issued, costing Woolworths quite a chunk of money.
This just goes to prove that we need a new system of not only issuing gift cards, but also preserving their value and protecting them from any harm. And what better way to do that than by using a public, transparent ledger that is powering the most disruptive and popular digital currency this world has ever seen.
A New Breed of Technology
Gyft.com announced their plans to issue a blockchain-based gift card during MoneyConf in Belfast, Ireland. The service is called Gyft Block, which is the first step along the way of digitizing gift cards so they can be traded by using Bitcoin’s blockchain. Eventually, Gyft Block will hopefully solve the inherent issues plaguing the gift card industry.
“Consumers can redeem different forms of digital value in a single transaction: for example, a consumer can buy a cup of coffee by combining a gift card, branded reward point, and coupon, since all blockchain-based digital assets operate on the same open standards.” – Gyft.com Spokesperson
Gift cards have always proven to be a more suitable form of payment or gifts, compared to traditional means such as credit and debit card payments. Rather than relying on an infrastructure between hundreds – or even thousands – of financial institutions, gift cards only require the infrastructure of the same merchant who issued the card.
To take the issuing of gift cards to a new level, Gyft Block’s whitepaper also mentions how providers will be able to issue their cards on the blockchain. And the best part is this process will be programmatically compliant with any local laws you may encounter. Plus, by implementing multi-signature technology, necessary rules could be enforced if needed.
“Ultimately, intelligent wallets will be able to connect to marketplaces, identify arbitrage opportunities and perform in the background complex chains of trade that maximizes the consumer’s purchasing power without compromising their privacy or control.”
Source: Gyft Block Whitepaper
Images courtesy of Shutterstock and Gyft