Bitcoin Cash [BCH] proponent Faketoshi says IBM’s Hyperledger is a joke

On 17th September, the self-proclaimed Founder of Bitcoin, Craig Wright aka Faketoshi released an AMA [Ask-Me-Anything] wherein his apparent followers asked him 60 questions. The topics ranged from personal questions to launch of national cryptocurrencies by different countries. In his official AMA post, he stated:

“I have been asked to do an AMA and will answer the questions posed to me. In total, I have been given a list of 60 questions. I will answer these over a few posts starting from the top and working down.”

One of the questions asked revolved around the alleged case of Blockstream taking over the Bitcoin ecosystem. Blockstream is a blockchain security firm that has been in major conflicts with Bitcoin Cash and its proponents. Regarding Blockstream’s prime agenda behind doing so, Wright implied that the company is striving to attain power and control. He also mentioned BCH as a system of eternal equality.

Another question answered by Wright was about private permissioned blockchains, such as Hyperledger by IBM. Here, he stated the project as a joke and equated it to a “private permissioned internet”. Furthermore, he also referred to the 90s to narrate IBM’s failure in understanding the Internet and attempting to capture closed systems. According to Wright, the company is making the same mistake in the time of Bitcoin.

In the blockchain and cryptocurrency space, many have often alleged Craig Wright to be a con who has lied about his doctorate as well as his identity of being the real Satoshi Nakamoto. In a past article by Forbes, the author called Wright’s claims a hoax wherein he had been involved in technical fakery and several frauds.

Wright is also involved in the current conflict running between the two parties of the Bitcoin Cash community. The conflict is about BCH’s hard fork that is expected to arrive in November, this year. Coingeek owner Calvin Ayre is one of the supporters of Craig Wright whereas Bitmain Founder Jihan Wu and Bitcoin.com CEO Roger Ver are standing together on the issue. nChain implementation is being touted by Wright’s party against Bitmain’s creation of Wormhole protocol for Bitcoin Cash.

A Twitter user and cryptocurrency follower named realSatoshi, on Wright’s tweet wrote:

“Blindly following somebody who lied about his degrees is reckless”

Tioman_Island, another blockchain enthusiast and follower of the space commented:

“You guys will fight until BCH reaches $0. Will be a big satisfaction to win and have zero in your pockets.”


Subscribe to AMBCrypto’s Newsletter


loading…

Related:

  • No Related Posts

IBM Blockchain Joins HACERA Unbounded Registry As A Founding Member

IBM (NYSE: IBM) announced this week it has joined the HACERA Unbounded Registry as a founding member. According to IBM, the Unbounded Registry was built on blockchain technology, provides a decentralized means to register, look up, join and transact across a variety of blockchain solutions, built to interoperate with all of today’s popular distributed ledger technologies, which includes The Linux Foundation’s Hyperledger Fabric, Hyperledger Sawtooth, R3 Corda, EEA Quorum, and Stellar Network. IBM also revealed that Unbounded gives these network solutions a chance to be in the “yellow pages of blockchain” and be publicly visible.

IBM reported it has been working closely with HACERA on blockchain technology for a while, with HACERA being one of the first members of the IBM Blockchain ecosystem. Speaking about IBM’s blockchain developments, Jerry Cuomo, IBM Fellow and Vice President of Blockchain, stated:

Since IBM began our blockchain journey, we have been committed to the development and use of open technologies. We realized from the start that you cannot do blockchain on your own; you need a vibrant community and ecosystem of like-minded innovators who share the vision of helping to transform the way companies conduct business in the global economy. We initially joined Hyperledger, and contributed the initial code for Fabric, to collaborate on blockchain for business, then the Sovrin Foundation for decentralized identity and we have also participated in the Stellar network for global payments.”

It was also reported that IBM sees HACERA’s Unbounded Registry providing several key capabilities that addressed these common problems:

  • Reserved naming for networks, applications, and consortiums.
  • The discoverability of blockchain networks and applications.
  • A catalog of domain-specific functions and services.
  • An independent, open and shared blockchain backed platform to help us all with bootstrapping, launching and growing our communities.

Cuomo then added:

By working with HACERA and other members of Unbounded Registry, we see a future where consumers and providers of blockchain services will be able to discover each other and begin transacting in a more secure way and where technology providers and consumers can innovate and integrate to create limitless and unbounded possibilities.”

Related:

  • No Related Posts

IBM Partner With Hacera to Create Blockchain Registry

IBM have teamed up with blockchain startup Hacera as a founder member of the firm’s new blockchain registry. The concept, called the “Unbounded Registry”, will act like a blockchain yellow pages, listing a range of decentralized platforms across different network. The concept is designed to provide firms and investors with the opportunity to get a better overview of the projects they could potentially participate in. It will also give private listings a chance to raise their profiles.

In a blog post yesterday (September 13th), IBM Vice President Jerry Cuomo wrote:

Today, I am proud and excited to announce that we have joined the HACERA Unbounded Registry as a founding member. As the number of blockchain consortiums, networks and applications continues to grow we need a means to list them and make them known to the world, in order to unleash the power of blockchain. The Unbounded Registry, built on blockchain technology, provides a decentralized means to register, look up, join and transact across a variety of blockchain solutions, built to interoperate with all of today’s popular distributed ledger technologies, including The Linux Foundation’s Hyperledger Fabric, Hyperledger Sawtooth, R3 Corda, EEA Quorum, Stellar Network and more.

The registry is already live, listing a wide range of projects from giants such as Huawei, Hitachi and Intel. Information provided about each project currently takes the form of a descriptive overview and a latest news tab, with the option to create an account to create a watch list, join projects and even contact the project owners directly. On the future of this projet, Cuomo said, “By working with HACERA and other members of Unbounded Registry, we see a future where consumers and providers of blockchain services will be able to discover each other and begin transacting in a more secure way and where technology providers and consumers can innovate and integrate to create limitless and unbounded possibilities.”

Image Credit: Deposit Photos

Related:

  • No Related Posts

Preparing for a career in the growing enterprise blockchain industry

Blockchain and distributed ledger technologies are creating transformations in many different industries and sectors – far beyond the cryptocurrencies blockchain is usually associated with.

The technology can be of use when multiple parties need to exchange information in a way which is both permanent (immutable) and secure. Blockchain technology achieves this by storing the records on a distributed network without a central entity or servers and using encryption to ensure that unauthorized changes do not go unnoticed. Use cases for enterprise blockchain involve parties from multiple organizations who wish to exchange and share information securely. This could be anything including education, energy, insurance, logistics, real estate, retail and more.

Increasing the talent pool

With this technology being so new and changing so rapidly, there is a shortage of individuals with the knowledge and skills necessary to implement it. This is why The Linux Foundation, the home of the Hyperledger project, has released a series of training courses designed to increase the talent pool.

Hyperledger Fabric is an open source framework that was built through the collaboration of several organizations, vendors and developers to allow business users and organizations to use distributed ledger technology across this broad set of use cases. In addition to the ability to distribute shared data, Hyperledger Fabric provides the components and layers that guarantee that data are verified and consented upon and that the agreed upon information will not be tampered with, either in transit or at a later point in time. And by using an open source development model, this and related blockchain technologies are able to advance and innovate more quickly and efficiently.

The free Blockchain: Understanding Its Uses and Implications (LFS170) and Introduction to Hyperledger Technologies (LFS171) courses are a great starting point, curated for both nontechnical and technical audiences. LFS170 covers the main concepts of what blockchain is at a beginner level. LFS171 then examines blockchains for the enterprise and a number of pertinent use cases from Hyperledger, a global cross-industry community of communities hosted by The Linux Foundation and advancing business blockchain technologies.

The all new Hyperledger Fabric Fundamentals (LFD271) course is an intermediate step that covers the core architecture and components that make up typical decentralized Hyperledger Fabric applications. This course includes a set of hands-on lab exercises that guide students towards setting up a Hyperledger Fabric business network and walk them through the various stages in the lifecycle of a decentralized Hyperledger Fabric-based application.

SEE ALSO: Why you should consider applying for blockchain jobs

In addition to having ways to gain the knowledge necessary to success in a blockchain career, it is important that professionals be able to demonstrate their skills and knowledge, and employers have a means of verifying that. This is why The Linux Foundation also offers a Blockchain for Business professional certificate program in conjunction with edX, which requires completion of LFS170 and LFS171.

For those looking to demonstrate more advanced skills, later this year we will begin offering a Certified Hyperledger Fabric Administrator Exam, which requires professionals to demonstrate the ability to install, configure, operate, manage, and troubleshoot the nodes on the Hyperledger Fabric network. A similar exam will also be offered for the Hyperledger Sawtooth project, which is a modular platform for building, deploying, and running distributed ledgers.

As enterprises continue to increase blockchain and distributed ledger adoption, it is essential that we ensure there is a qualified workforce in place to implement and administer these technologies. These training courses and certifications are only the beginning, and continued involvement from the broader open source and business communities will be necessary to ensure enterprises are equipped for the continued changes ahead.

    Blockchain Whitepaper 2018

    Free: Blockchain Technology Whitepaper

    If building a blockchain from scratch is beyond your current scope, the blockchain technology whitepaper is worth a look. Experts from the field share their know-how, tips and tricks, development advice, and strategy for becoming a blockchain master.

asap

Related:

  • No Related Posts

Going to Hyperledger school

Hyperledger (or the Hyperledger project) is an umbrella project of open source blockchains and related tools.

The project was founded by the Linux Foundation at the end of 2015 with the intention of encouraging the collaborative development of blockchain-based distributed ledgers.

Download this free guide

The future of UK tech: Cloudy with a chance of Artificial Intelligence

The forecast for the future is in and, in typical British fashion, it looks like it’s going to be cloudy. Our IT Priorities survey has revealed that organisations are planning on making the most of the cloud in the future. Download our IT Priorities results for more insights into where the IT industry is going.

In a play to help developers learn how to use this technology, the Linux Foundation has now announced the LFD271 – Hyperledger Fabric Fundamentals training course.

Additionally, Certified Hyperledger Fabric Administrator and Certified Hyperledger Sawtooth Administrator exams will be released later in 2018.

“Blockchain technology adoption is increasing at a rapid pace [media reports suggest that] blockchain jobs are the second-fastest growing in today’s labour market – leading to a shortage of professionals who are qualified to implement and manage it on an enterprise scale,” said Linux Foundation general manager for training & certification Clyde Seepersad.

Seepersad says that after seeing more than 100,000 students take the foundation’s free introductory Hyperledger course, they knew it was time for more advanced training options and certification exams to demonstrate the extent of professionals’ knowledge.

The Hyperledger Fabric Fundamentals course introduces the fundamental concepts of blockchain and distributed ledger technologies, as well as the core architecture and components that make up typical decentralised Hyperledger Fabric applications.

The course is designed for application developers to learn how business logic is implemented in Hyperledger Fabric through chaincode (Hyperledger Fabric’s smart contracts) and review the various transaction types used to read from and write to the distributed ledger.

Application developers will be shown how their applications can invoke transactions using the Hyperledger Fabric JavaScript SDK.

Related:

  • No Related Posts

Hacera creates directory to make blockchain projects more searchable

In the 1990s when the web was young, companies like Yahoo, created directories of web pages to help make them more discoverable. Hacera wants to bring that same idea to blockchain, and today it announced the launch of the Hacera Network Registry.

CEO Jonathan Levi says that blockchains being established today risk being isolated because people simply can’t find them. If you have a project like the IBM -Maersk supply chain blockchain announced last month, how does an interested party like a supplier or customs authority find it and ask to participate? Up until the creation of this registry, there was no easy way to search for projects.

Early participants include heavy hitters like Microsoft, Hitachi, Huawei, IBM, SAP and Oracle, who are linking to projects being created on their platforms. The registry supports projects based on major digital ledger communities including Hyperledger, Quorum, Cosmos, Ethereum and Corda. The Hacera Network Registry is built on Hyperledger Fabric, and the code is open source. (Levi was Risk Manager for Hyperledger Fabric 1.0.)

Hacera Network Registry page

While early sponsors of the project include IBM and Hyperledger Fabric, Levi stressed the network is open to all. Blockchain projects can create information pages, not unlike a personal LinkedIn page, and Hacera verifies the data before adding it to the registry. There are currently more than 70 networks in the registry, and Hacera is hoping this is just the beginning.

Jerry Cuomo, VP of blockchain technologies at IBM, says for blockchain to grow it will require a way to register, lookup, join and transact across a variety of blockchain solutions. “As the number of blockchain consortiums, networks and applications continues to grow we need a means to list them and make them known to the world, in order to unleash the power of blockchain,” Cuomo told TechCrunch. Hacera is solving that problem.

This is exactly the kind of underlying infrastructure that the blockchain requires to expand as a technology. Cuomo certainly recognizes this.”We realized from the start that you cannot do blockchain on your own; you need a vibrant community and ecosystem of like-minded innovators who share the vision of helping to transform the way companies conduct business in the global economy,” he said.

Hacera understands that every cloud vendor wants people using their blockchain service. Yet they also see that to move the technology forward, there need to be some standard ways of conducting business, and they want to provide that layer. Levi has a broader vision for the network beyond pure discoverability. He hopes eventually to provide the means to share data through the registry.

Related:

  • No Related Posts

A Hitchhiker’s Guide to Deploying Hyperledger Fabric on Kubernetes

Deploying a multi-component system like Hyperledger Fabric to production is challenging. Join us Wednesday, September 26, 2018 9:00 a.m. Pacific for an introductory webinar, presented by Alejandro (Sasha) Vicente Grabovetsky and Nicola Paoli of AID:Tech.

Why should you care?

Hyperledger Fabric is rather awesome, but deploying a distributed network has been known to give headaches and even migraines. In this talk, we will not be providing you with a guillotine that forever gets rid of these headaches, but instead we will talk you through some tools that can help you deploy a functioning, production-ready Hyperledger Fabric network on a Kubernetes cluster.

Who should attend?

Ideally, you are a Dev, an Ops or a DevOps interested in learning more about how to deploy Hyperledger Fabric to Kubernetes.

You might know a little bit about Hyperledger Fabric and about Docker containers and Kubernetes. We assume limited knowledge and will do our best to as possible and explain and demystify all the components along the way.

Read more at The Linux Foundation

Related:

  • No Related Posts

What is Proof of Elapsed Time Consensus? (PoET) Complete Beginner’s Guide

Ever since Bitcoin’s inception and the recognition of its proof of work (PoW) consensus model as the mechanism for a blockchain network’s legitimacy as a distributed ledger, numerous other consensus mechanisms have been experimented with and introduced. These new consensus mechanisms are based on Byzantine Fault Tolerance and primarily focus on reducing the energy inefficiencies associated with proof of work’s mining intensive process.

Proof of Elapsed Time

Proof of Elapsed Time (PoET) is one of these consensus mechanisms, designed to improve upon proof of work consensus and provide a fresh alternative for permissioned blockchain networks.

Background

PoET was developed by chip manufacturing giant Intel back in 2016 as an efficient consensus mechanism primarily for permissioned blockchain networks. PoET is now the consensus model of choice for Hyperledger Sawtooth’s modular framework and is a popular tool for implementing and experimenting with distributed ledger systems.

What is Hyperledger

Read: Hyperledger: Open Source Blockchain Project

A critical component of PoET consensus is the innovative technology that it works in conjunction with to perform the way that it does, Intel’s hyped Software Guard Extensions (SGX) programming reference manual. Introduced in 2015 with Intel’s 6th generation Core Processors, SGX functions as a Trusted Execution Environment (TEE), which allows select, trusted code to run independently of the application that it runs in.

Before understanding how the overall consensus of PoET works, it is essential to understand a little bit about how SGX functions.

What is SGX?

SGX is a sophisticated technology, but at its core, it is effectively a set of instructions for a CPU that is used by applications to isolate specific, trusted regions of code and data. It provides a secure enclave for developers to protect sensitive data or code from outside interference or inspection.

Code that runs in a TEE using SGX can produce a signed attestation from within a platform or application that is rooted in the processor and provides authentication that the code has been correctly initialized in a trusted environment. This feature has significant implications for the functionality of PoET consensus, but also creates an inherent barrier to entry and limitation to its uses.

The memory where the protected code is stored in SGX is even safe from malicious users who control physical access to a platform and have the highest authentication to access its memory. As a security feature, SGX was received with significant expectations due to the potential security afforded by this ability.

In the context of PoET consensus, SGX functions as the mechanism for participants to join the network and verify that they are running the trusted code necessary for the PoET consensus execution.

How PoET Works

PoET consensus is an efficient form of proof of work that removes the need for the mining-intensive process and replaces it with a randomized timer system for network participants. Basically, each network participant is given a random timer object and the first timer to expire “wakes up” that participant who becomes the block leader and produces the new block.

In regards to Byzantine Fault Tolerance, this provides a necessary and efficiently randomized solution for the “Random Leader Selection Problem.” Essentially, this problem is how to determine the leader of a round of consensus in Byzantine Fault Tolerant systems. For instance, Practical Byzantine Fault Tolerance uses a round-robin style format while Bitcoin’s proof of work uses Nakamoto consensus, where the leader is selected by whoever solves the computationally intensive cryptographic puzzle of each block round.

Practical Byzantine Fault Tolerance

Read: What is Practical Byzantine Fault Tolerance? Complete Beginner’s Guide

PoET consensus can be broken down into 2 phases, joining the network and verification of the TEE using SGX attestations and the actual mining lottery elapsed time round.

Network Verification and SGX

This is the initial phase of the consensus and is where SGX plays an important role. As mentioned earlier, when using SGX, you can produce a signed attestation that you are running the trusted code that was correctly set up in the TEE.

In PoET, a potential participant in the network downloads the trusted code and propagates a “join” message to the network with the signed attestation from SGX, which has produced a public/private key pair. The network of nodes then either accept or reject the attestation. If accepted, the participant joins the network and can participate in the elapsed time, randomized lottery selection process.

The Elapsed Time Lottery Random Selection

This is the second and final phase of the consensus mechanism. In each round of consensus, network participants receive a signed timer object from the trusted code which is completely randomized. The idea is to mitigate any potential malicious actor from gaming the system and attempting to consistently receive a shorter timer so that they can produce more blocks.

Each participant subsequently waits for their randomized timer to expire. The network participant’s timer that is the first to expire propagates a signed certificate to the network indicating that they are the randomized block leader for that round. The message is authenticated, and the block is produced. The round then restarts.

The propagation of the signed certification actually occurs with all of the network participants, even if they did not win. This is to ensure 2 things primarily:

  1. Each node was actually given a randomized object timer from the trusted code.
  2. The node waited for the specified time period given by the object.

As you can see, the process is entirely random, and the integration with SGX technology ensures that there is no manipulation of the trusted code that the protocol runs on. There are several other security features such as an algorithm to watch for suspicious nodes winning the lottery consistently or consistently having shorter timers where a pattern emerges.

The PoET consensus mechanism is highly efficient and is capable of scaling to thousands of nodes without breaking a sweat. The concerns are that it relies heavily on SGX for the foundation of the protocol and very recently, those concerns have been amplified.

Earlier this month, the Large-Scale Data & Systems (LSDS) group at the Imperial College of London discovered a critical vulnerability in SGX known as “Foreshadow” that can be used to attack the secure enclave of SGX.

You are probably already familiar with the origin of the attack, as there were global concerns covered extensively by mainstream media about the “Spectre” vulnerability that was discovered in modern chip processors earlier this year. The Foreshadow attack was elucidated earlier this month by the LSDS team and is an adapted version of the Spectre vulnerability. Still a developing story, it is important to keep an eye on for numerous reasons, including the integrity of PoET consensus.

Advantages & Disadvantages of Using PoET

PoET is highly efficient and not nearly as resource intensive as proof of work systems, but it also has some concerns surrounding it. So what are the general advantages and disadvantages of its use as a consensus mechanism for distributed ledger networks?

Advantages

PoET is a substantial improvement in the efficiency of proof of work systems. Simultaneously, it also provides a great solution to the “Random Leader Selection Problem” without being resource intensive or requiring complex staking mechanics and incentive structures necessary with proof of stake consensus.

PoET is also an excellent consensus mechanism for permissioned networks, which is why it is the go-to consensus mechanism for Hyperledger Sawtooth. On top of that, it scales efficiently and can be used as a “plug and play” model for testing environments with Hyperledger Sawtooth.

Disadvantages

SGX is a lauded and innovative technology, but recent developments are clearly a cause for concern regarding its use with PoET consensus. Intel will likely be able to fix the issue regarding the critical vulnerability, but the disadvantage here is the obvious and necessary reliance on a specialized hardware’s security.

Not only that, but SGX is manufactured entirely by Intel, so the reliance of the consensus model extends to Intel as a company, a third party. The notion of such a reliance runs against the new paradigm that cryptocurrencies are attempting to achieve with blockchain networks, removal of trust in intermediaries.

Conclusion

PoET represents another crack at providing Byzantine Fault Tolerance consensus mechanisms for distributed ledger systems. It is highly efficient and works with another novel technology itself, SGX.

Moving forward, watching the developments surrounding SGX will have a major impact on PoET as a sustainable consensus model. For now, it is an excellent tool for Hyperledger Sawtooth and plays a vital role in experimentation and developments within modular blockchain frameworks.

Related:

  • No Related Posts

IBM’s Plan To Deploy Blockchain In Commerce

It has been around four years, IBM’s Jerry Cuomo and subordinate technologists began studying the blockchain, thanks to the exceptional ascend of Bitcoin and Ethereum like cryptocurrencies that are based on a decentralized ledger and are safe and transparent.

Now Cuomo is VP of IBM Blockchain and interacts with more than 1,500 Big Blue Blockchain experts. Functioning with the Linux Foundation, IBM created its own rapid and secure Hyperledger Fabric to build a stronger version of the blockchain that can be adapted according to the requirements of contemporary commerce and the millions of transactions per second. Hyperledger Fabric is becoming increasingly important as a reliable network infrastructure designed for a wide range of industries. Earlier this week, IBM said that it is offering IBM Blockchain Platform with Hu-manity.co use blockchain, enabling consumers to work out on control over the use of their personal information.

And Cuomo spread the word about the benefits blockchain offers for all kinds of industries. Recently, IBM has signed an agreement with the giant Maersk shipbuilding to make a blockchain-based supply chain, where one can immediately outline the source of products to the original source within seconds to make them signed. So far, 94 companies have connected to the effort.

IBM is working with Walmart and others to identify contaminated food sources for the authorized source to lessen death counts of hundreds of thousands annually. Big Blue is working with the US Food and Drug Administration to investigate how the blockchain can receive patient consent for the health data transfer.

Following this move, technology companies have now taken the blockchain technology adoption and execution to the next level. Microsoft being among the top torch-bearers is ought to change the whole process of financial transaction in respect to multiple sector wise.

Related:

  • No Related Posts

Securing Evidence in the UK Could Become Easier with Blockchain

By Gabriele Giancola, CEO and Co-founder of qiibee, the Swiss loyalty token protocol helping brands around the world run their loyalty programs on the blockchain.

With Singapore Airlines and Delta Air Lines having recently introduced a blockchain-based loyalty program and replacing its airmiles with cryptocurrency respectively, it shows that blockchain stands to radically transform traditional loyalty programs as we know them, making them more useful, accessible and cost-effective for both brands and customers alike.

So how is blockchain increasing customer loyalty and revitalizing traditional rewards programs?

1. Blockchain introduces cost-cutting efficiencies, including cutting out high customer acquisition costs for brands.

From the technical implementation right through to the costs of the rewards themselves, loyalty programs can be both expensive and tedious to set up and demand a significant investment of time and money.

Transaction costs related to the issuance and redemption of reward tokens are much lower on the blockchain since they do not require a third-party. Blockchain also significantly reduces system management costs, thanks to smart contracts that automize processes, all while reducing costs related to instances of error.

On top of this, brands themselves benefit from having access to an ecosystem of already loyal customers, which again reduces acquisition costs.

2. Blockchain encourages increased customer engagement and points redemption.

Loyalty programs are not only difficult to set up, but it is difficult for brands to attract new customers by means of a loyalty program. Blockchain is flipping this on its head by introducing loyalty at the start of the customer journey, as opposed to at the point of purchase.

In other words, loyalty points are no longer an afterthought when they can be exchanged within the brand, with other brands, or for cryptocurrencies or fiat. Better still, the potential for loyalty points to rise in value and get the customer more attractive rewards creates excitement that was never before a part of the loyalty program experience.

Customers are also then driven to check their loyalty programs more frequently since the reward options are more varied, thanks to an ecosystem connecting different programs.

3. Blockchain increases security and therefore encourages loyalty.

All transactions recorded on the blockchain are cryptographically secured, meaning that participants of the network have their own private keys (akin to their own personal digital signature). Blockchain’s immutable and tamper-proof nature also means that every transaction is traceable, which eliminates the potential for fraud or other misuses of the system (which is, again, connected to costs).

Additionally, as there is no single point of failure, customers no longer have to worry about the storage of their private data with large retail companies. On the blockchain, data is stored across the network, which makes it inaccessible via a single entry point. All of these features make customers more comfortable with sharing their details, as well as executing transactions on the blockchain.

4. Blockchain offers a one-stop shop for customers to collect and redeem points.

Customers often suffer from ‘loyalty program fatigue’ due to the vast number of programs available, which subsequently leads to loyalty program inactivity. Blockchain provides a frictionless system, whereby customers can conveniently store all of their collected points in a digital wallet and use the same to make transactions, therefore encouraging engagement.

Blockchain also connects different owners of loyalty programs and makes the points they distribute interoperable: customers no longer have to keep track of dozens of different programs and can do so from their respective wallets. Customers can also exchange their loyalty points with other users, which again increases their utility.

5. Blockchain offers real value outside of the brand context.

Customers often complain about the lack of reward options available with loyalty programs, and along with the lack of cohesiveness it’s easy to see why customers would abandon their loyalty programs. With blockchain, tokens that brands give out are tied to other digital assets which renders them valuable in another sense: customers are no longer forced to spend their loyalty points with a specific brand, or even other brands within the ecosystem, as they can choose to sell their tokens for fiat and spend the money in the real world!

More importantly, these tokens can rise in value without any further investment from the customer.

In conclusion, blockchain’s merits are manifold and effective for tackling the loyalty market’s inherent issues: for brands, blockchain significantly reduces costs, tackles security issues, and increases customer engagement, while for customers, this means a convenient use of different loyalty programs in one go while profiting from a myriad of redemption options, which ensures that they will stick around in the long run.


About Gabriele Giancola

Gabriele Giancola is the Co-founder and Chief Executive Officer of qiibee, the Swiss loyalty token protocol helping brands around the world run their loyalty programs on the blockchain. A serial entrepreneur, Gabriele has co-founded multiple companies including gratis-auto.ch, a start-up focused on mobile outdoor advertising, and a mining farm with around 60 miners.

Gabriele holds a Masters in Business Management from the University of St. Gallen in Switzerland, one of the world’s top ten universities for business management.

About qiibee

qiibee, the Swiss loyalty token protocol, helps brands around the world run their loyalty programs on the blockchain. Founded in 2015 by Gabriele Giancola and Gianluca Giancola, qiibee builds on strong expertise, existing partnerships, and in-depth knowledge of the loyalty sector.

qiibee’s blockchain plug-and-play solution supports businesses, giving them full flexibility to create their own loyalty programs on qiibee’s protocol.

For more information, visit https://qiibee.com.

  • Facebook

  • Twitter

  • Buffer

  • reddit

  • LinkedIn

Related:

  • No Related Posts