Digitalbits

What started as a messaging service has become a strong platform for communication, service and payment. WeChat has effectively replaced cash and credit cards in China - acting as a department store for everything, from ordering food to paying electricity bills. As a daily operations center, 900 million people use WeChat for daily transactions, amounting to around 10 trillion dollars in transactions a year.

Can DigitalBits have a similar impact on the Loyalty & Prize Points industry? Can he succeed in mobilizing billions of dollars in underutilized points into his own dynamic economy?

DigitalBits & Economic Points

The DigitalBits Project branched off the Stellar blockchain in 2017, and has since launched MainNet in March 2018. This protocol supports asset tokensization, and transfers and trades digital assets on chains - However, the team has chosen Economic Points as the DigitalBits' first targeted use case. Loyalty infrastructure is currently dated by technological and social standards - producing friction affecting parties around the world:

Problems faced by consumers:

Programs are in silos and don't communicate with each other. Transferability and portability are difficult, making consumers have points that apply to offers they don't want.

Changing rules and requirements makes it difficult to collect and redeem points.

Problems faced by producers:

High costs for creating and maintaining a loyalty program.

The underlying program infrastructure is not conducive to interoperability.

In the United States alone, $ 48 billion points are accumulated in Travel & Hospitality, Financial Services, and Retail every year. Of this amount, more than 33%, $ 16 billion is not used, can never be redeemed. This unused value has been obtained and owned by consumers, but the lack of utility and liquidity makes it an obligation on the corporate balance sheet.

DigitalBits proposes a blockchain-based solution to mobilize capital currently locked in economic points. But what are the economic point relations with WeChat?

When $ 1 is here worth more than $ 1 there

Ted Livingston, CEO of Kik Interactive, is not new to the chat platform, and has more than once praised WeChat's innovation and success. In its response to Facebook entering the blockchain industry, "Facebook does not pursue Bitcoin. This Goes After Dollars, "he elaborated" WeChat Playbook. "

• Make it interesting for people to bring their money to the courier.
• Make it easy for them to move their money.
• Make more and more reasons for them to save their money in the courier.

In China, people will soon be able to bring anything except their smartphone (and clothes, maybe) when they leave, and the only application they need to download is WeChat - Quartz, Zheping Huang

In accordance with the guidebook, the application must provide more and more reasons to save funds in the ecosystem. This is the case with WeChat, which provides so many services that have replaced cash and credit cards - money has more utilities in the application! $ 1 on WeChat is worth more than $ 1 without!

DigitalBits Multi-Hop DEX - Increase Value in Points Economy

DigitalBits provides a framework for integrating existing loyalty programs and creating new ones. By providing standard tokens, these points can be interconnected with each other, facilitating the transfer of cross-program values ​​that are lacking in current loyalty solutions. When DigitalBits develops into other industries, on-chain assets will diversify beyond fair loyalty. But that was another discussion later.

DigitalBits' built-in decentralized exchange uses multi-hop technology to better support on-chain asset liquidity. Multi-hop allows trades to be completed up to 6 hop intermediaries, allowing assets to trade freely, even without a direct market. Imagine you want to trade asset A for asset E, but this particular asset pair has no liquidity. DEX DigitalBits combine all other order pairs in the ecosystem, and maybe for example trading assets A for B, B for D, and D for E - ultimately satisfying the initial proposition, A for E. This allows almost all proposed pairs of assets to be filled , increasing asset liquidity and bringing on-chain assets such as loyalty points closer to the role of "digital cash.

WeChat Playbook Fulfilled - DigitalBits & Loyalty

• Points experience an increase in liquidity and utility from integration with DigitalBits - when they enter an ecosystem where value can be applied to a broader range of offers.
• DigitalBits supports high speed (10,000+ TPS) and low latency (2-5 confirmations), allowing values to be easily transferred between parties.
• As more programs enter the DigitalBits ecosystem, the network becomes stronger, and the value of points can be applied to the increasing list of offers. Points are getting closer to the role of "digital money.

Why are Loyalty Points?

Loyalty points are the existing class of digital assets in millions of pockets around the world - billions of dollars have been ruled out for lack of utilities. Users are familiar with these programs, and the process of accumulating and spending points. In addition, users already have this point, they have got it through their purchases and activities.

A common obstacle with cryptocurrency today is that they do not have utilities, in many cases, usable fiat is traded for "utility" tokens which in fact have little use. These tokens are seen as more investment and less as utility tokens as they should be. The amazing thing about loyalty points is that users already have these digital assets, in some cases, they have many assets.

Wouldn't it be better if the value gathered by people all this time could be used immediately? Yes, that's what we want to do.

For more information about DigitalBits:

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Author : assyfa

Eth: 0xCa53A32ab48cF8bA4eC4A494bA4e95ceC26Fe71d