It would be impossible to ever go wrong with gift cards as a gift. Fast, uncomplicated, and to be honest, a real savior especially when you don’t know what to gift. But here’s the thing; they’re not perfect. Yeah, I bet you’ve probably lost one before, right? Or have come across one that is hidden in some drawer with a remaining balance which one hardly noticed has expired or almost empty. Such a buzzkill.
Let’s consider the new kind of gift card for a moment. This one is valid forever and applicable to multiple outlets and can be split or transferred anyway you desire. Sounds unreal? Actually, it is the magic of blockchain that is making this possible.
Why the Gift Card Industry Needs a Makeover
The gift card market is huge. But it’s not perfect. Fraud, lost cards, unused balances and difficulties of card operations for redemption, are some of the issues that for years have been associated with the system. For instance, can you imagine that there are billions of dollars in checkable gift card balances unused? It’s money being thrown down the drain or into a bottomless pit for both the consumer and retailer or manufacturer.
But the issues dont stop here and then we have the fraud issue. The current gifting involves code imprints on physical cards that can be easily hacked or pirated and in short they are fraudster playground. But here enters blockchain that is based on decentralized and secure network is ready to turn the tide. It is equivalent to giving the entire gift card industry a much needed security upgrade protecting the sellers and buyers.
So, What Can Blockchain Do for Gift Cards?
Knowing the fact that your gift card cannot be hacked, lost or duplicated is such a great thing. Sounds magical, right? And that is why people start talking about blockchain. A blockchain, which is typically decentralized, is employed to store details of each gift card, including the issuance or transfer of a gift card and the redemption of a gift card. If a gift card is established on a blockchain, it’ll be associated to an address that only the authentic owner can transact with.
To begin with, blockchain says no to intermediaries. Now, there are no worries about sketchy distributors or cumbersome processors. Moreover, transactions are also fast, cheap, and to our most importance, safe. We can see that Coingate Gift Cards are already on this path as well. They are providing users with what is probably the best possible level of control and freedom. It’s also time to bid farewell to those common problems like ‘your card is invalid.’
No Strings, Just Possibilities
The great thing about blockchain gift cards? They’re as versatile as it gets. Use them wherever you want. Transfers balances from one card to another. Exchange them for the better. Honestly, this gets one thinking why this has not been in existence from the very start.
Let’s say, you have a couple of bucks on a gift voucher, which is not enough for the item you desire. And with blockchain, what you have in that balance can be shared with another card or exchanged for something else. More options, less stress.
Respect of Privacy
Alright, let’s consider privacy, or rather the lack of it. Traditional e-gift cards and digital wallets often come with a catch: your data. Every retailer you have ever bought anything from studies your buying patterns and then sells your data to other third parties. It still gives a kind of a creepy look, does it not?
Blockchain changes that. Your operations are associated not with your name and address but with public addresses of your wallets. Therefore, even if data leaks out, it’s just numbers, your name or your credit card information is not exposed. You are able to shop with such privacy without having to worry about your privacy being invaded.
Why This Matters for Retailers Too
This is not only the consumers who will benefit from this. For the retailers, gift cards based on the distributed ledger technology are cheaper and have higher customer interaction. Say goodbye to the days when you were still using printed cards or worrying about expensive charges every time you transacted.
And for businesses? This opens many doors to opportunities. They can create promotions where you get gifts immediately depending on your credit score in the blockchain. The sky’s the limit!
Final Words
Blockchain is not just a hype but it has potential to transform gift card industry. Who would not want the advanced security, flexibility, cost reduction, and privacy that come with cloud computing?
That is the beauty of it for you, as a consumer you have no more misplaced cards, forgotten balances, and inconvenient restrictions. But what you will receive is a smooth and unproblematic operating experience which will blend in perfectly with your digital devices. Gift cards are also changing, and with blockchain as the driving force in development, the future is only promising.
