Blockchain technology in the few years that it has been around for has truly taken the world by storm. This new technology which utilises what we call a “distributed ledger” offers decentralization, privacy, smart contract functionality and one of the most efficient transaction systems in many sectors around the globe.

One sector, which we will be discussing today is quite a new and dynamic sector in its own rights. The sector is known as “Loyalty Programs, which are of course utilised by many e-commerce stores such as Amazon and the likes.

Not Sure What A Loyalty Program Is?

In a nutshell, a loyal program is a system in which e-commerce store owners employ as a business strategy which uses incentives in order to ensure repeat customers are returning to your online store. With thousands upon thousands of online stores available to the consumer, this is a great way to stand apart from the noise.

An example of a simple loyalty program could involve consumers being required to register for the program and in return, they can accumulate points whenever they shop via your portal.

When consumers have accumulated a certain number of points, they could be eligible to redeem rewards, discounts or perhaps prizes. In theory and this a strategy that works for many e-commerce sites, this is how you retain your customer base and ensure that make repeat purchases.

The harsh reality in these loyalty programs is the fact that many consumers sign up to multiple loyalty programs and many programs also take quite some time to allow their consumers to claim rewards.

A recent study by Colloquy Loyalty Census Report back last year revealed that loyalty programs were at the height of their success back in 2015 but have since dwindled in their effectiveness.

This is due of course to the fact that there are so many. They’re, to put it simply, becoming excessive in number. Consumers have begun to wise up to constant tedious reminders to utilise them on every site they visit when they’re interested in purchasing an item in a hurry.

Where are we going with this? Well, the latest form of loyalty programs and the next big thing is blockchain loyalty rewards programs. Blockchain-based rewards programs can create better value for retailers, consumers and of course investors across many platforms.

As we mentioned earlier, blockchain technology bares amazing decentralization aspects and this, of course, applies to loyalty programs as it can streamline the fragmented loyalty rewards space and offer lucrative rewards points.

Loyalty Programs, Rewards & Blockchain, How Would This Work?

Let’s make this easy by using a practical example. So you have an e-commerce portal that sells the latest in fashion staples. Sneakers, jeans, the works. You wish to set up a rewards system for your target market.

But how would a company like Blocknode facilitate this? With Blocknode, the consumer has to purchase a certain amount of BND tokens to qualify for a masternode. Blocknode comes in and helps your e-commerce store set up a customized wallet using their Masternode server.

Take note, that after the initial tokens generated, your portal can generate tokens endlessly and eventually possibly acquire a second Masternode once generating the total of 100, 000 tokens.

You as the e-commerce site owner, can set your own reward rate and send consumers their tokens to their own BND wallets. The token generation will continue perpetually and this means your reward percentage to traditional cash-back incentives can be high. With Blocknode you’re even able to feature discounts on your site when consumers utilise BND. What does this mean? It means consumers will feel obliged to create wallets and use BND to purchase more and ultimately they’re earning loyalty reward tokens that are far more valuable than just a discount voucher as is the case with many ordinary loyalty rewards systems.

Reward Your Employees!

Here’s where it gets even more innovative. So you’re a bigshot entrepreneur with a small team of let’s say, ten employees. You love your employees and see the bigger picture when it comes to rewarding them. A happy employee is a hardworking employee, right?

Why not create a rewards system using Blocknode? The first step would be for you as employer/e-commerce site owner to invest the Blocknode Masternode and 100 000 BND tokens to start.

You’ll then need to set up a custom business wallet as well as the Masternode server which the Blocknode team will assist with. Now you can begin generating those perpetual tokens. In lieu of this, your employees will set up their own Blocknode wallets in order for them to receive their rewards. When you, the employer has generated enough tokens, you can decide when to reward your staff by sending BND tokens to each of them instantaneously!

Your employees now have the choice of either keeping these tokens in their wallets or generating more tokens. How? This is done through the “Proof Of Stake” mechanism. (We’ll get to this in a bit). Employees also have the option of trading their tokens for Bitcoin or traditional fiat currencies.

Are you beginning to agree with us that is a classic win-win situation?

Your consumers and employees now have a far better incentive and it saves you the business owner money! Decentralized rewards are clearly the way forward and Blocknode has another feature that makes more lucrative: POS mining.

Not Sure What Proof Of Stake Is? This Should Help:

Proof Of Stake, in a nutshell, means that token owners can verify transactions on a blockchain network using their wallets. BND tokens, when left in a wallet, will mature for staking once 101 confirmations have taken place in your wallet.

Whereas, proof of work, which is found in the Bitcoin transaction verification system, competing nodes try to add blocks to the blockchain network. Every computer on the network verifies the transactions, but the reward of BTC only comes once a block is successfully added to the network. As we know, these nodes or computers solve complex mathematical problems to score these rewards and of course, this is imperative in order to keep the network operating. We also know, however, that the more the network grows the more issues arise which makes mining challenging.

Coin owners/holders earn transaction fees for every transaction that is validated which makes POS a clever way to ensure users keep coins in their wallets. With POS, the creator of the next block is chosen by way of certain combinations which take into account random selection, network age and network weight. Thus, this form of mining is far more energy efficient and ultimately sustainable. This decentralized form of mining consensus becomes more cost effective to your network.

Why Blocknode? What Advantages Are There?

To sum it up they are:

Firstly, and we think this is the true selling factor, the BND tokens are far more valuable than traditional loyalty rewards as customers can use their tokens to trade for BTC or even purchase items at discounted rates through retailers that accept BND. Instant cross-platform transactions! Setting up a rewards system on the Blocknode blockchain is a truly productive approach for any business offering incentives. As an e-commerce site, you’ll be able to send rewards instantly to customers around the world directly to their wallets which is both convenient and cost effective! Lastly, the decentralized governance of the rewards system equals more efficiency and you’ll be able to budget better in the long run with your incentives for both consumers and employees should wish to reward them.

What is Blocknode?

Want to implement a rewards system in your business? Instead of leaving funds aside in a low interest bearing account for employee bonuses or loyalty rewards: setup a Blocknode masternode to start generating BND tokens. These tokens can be traded for Bitcoin on an exchange or could be accepted back by the partner business as a discount.

This is real world value, accepted the world over and not just a points system. By positioning the customer as the most important person in this system and yet still supporting the end goal of the business, Blocknode offer a simple and flexible solution: saving costs and increasing productivity.

Chances are if you’re still reading, that means you’re an e-commerce site owner or investor who might be interested. If you’re still asking “what’s in it for me?” it’s simple. When you invest in a Masternode, you will constantly generate more tokens due to the fact that this is the token priority for the project at 80% of tokens.

As a business owner, investing in Blocknode as your rewards system will bring efficiency and help you save on costs found with other loyalty programs. The coin will grow exponentially as Blocknode features an all-star team with experience in real-world application and value.

If you’re a business owner who already dabbles in cryptocurrency, this is the perfect system for you to utilize in order to earn valuable cryptocurrency.

If you’re interested in learning more about how to set up your own Masternode server or to acquire your own Blocknode, drop a comment below. Alternatively, visit their site here: BLOCKNODE

Follow CoinBeat on Facebook, Twitter & Telegram

Subscribe to our CoinBeat Newsletter

Submit an article to CoinBeat

View live Marketcap Prices here