The benefits of blockchain in loyalty programs — Part Three

3 min readFeb 3, 2021


Benefits of Blockchain

Think of a railroad company. We buy tickets through the app or the web. The credit card company will withdraw some of the money we pay to process the transaction. By using blockchain, the railway operator can not only save on credit card processing costs but can also transfer the entire ticket sales process to the blockchain. The two parties to the transaction are the railway and the passenger company. A ticket is a block that is added to the ticket blockchain. Just as a blockchain money transaction is a unique, verifiable, and non-fraudulent record (like Bitcoin), so can your ticket. The final ticket blockchain also includes the recording of all transactions, for example for a specific train route or even the entire train network, which includes every ticket sold and every trip made so far.

But the key point here is that this app is free. Not only can blockchain transfer or store money, but it can replace all the processes and business models that rely on cost per transaction. (Or any other transaction between the two parties)

Here is another example: Gig Economy Hub Fivver costs $ 0.5 for 5 transactions between people for sales service. But using blockchain for transactions is still free. Ergo Fivver will no longer exist. Auctioned homes and any other commercial entity will be based on the market building principle.

Even newcomers like Uber and Airbnb are threatened by blockchain. All you have to do is encrypt the transaction information for, say, a car or overnight stay, and again, you have a completely secure way of disrupting the business model of companies that are just starting to challenge the traditional economy. We not only eliminate the middleman of the cost processing but also eliminate the need for a platform to find the item that matches our request.

Since blockchain transactions are free, you can charge small amounts, such as 1/100%, to display a video or article read. If I can pay for each article on Facebook or my favorite Facebook chat app, why should I pay for an annual subscription to The Economist or National Geographic? Again, remember that blockchain transactions are free of charge. With Blockchain, you can get paid without worrying about losing third party profits.

Blockchain may make the sale of recorded music profitable for artists again by cutting off the involvement of music companies and distributors (who own the copyright) such as Apple or Spotify. Your purchased music can even be encoded in the blockchain itself, making it a cloud archive for any purchased song. Because recharged amounts can be very small, subscription and distribution services become useless.

The benefits of blockchain continue. Blockchain codes can be embedded in e-books. Instead of Amazon deducting your expenses from your payments and the credit card company earning its sales revenue, these books are published in encrypted form, a successful blockchain transaction transfers money to the author, and the book is unlocked. With blockchain, all money will be transferred to the author, not just a small royalty. You can do this on a book review website like Goodreads or on your own website. After that, using Amazon becomes unnecessary. Using blockchain can even include reviews and other third-party information about the book.

Mehdi Estavi




CEO and Member of the Board of directors of Dadehpardaz Pooyaye Sharif Knowledge-Based Company