Skip to content

Store vouchers are a good example of using corporate blockchain

May 15, 2020

After talking about Hedera’s consensus-as-a-service model in the first part of the Cointelegraph interview, Meder Harmon, CEO of Hedera, mentioned a special use case of the corporate blockchain to organize cooperation in industry.

As with public blockchains, Business solutions are a way to coordinate participants in an ecosystem who cannot trust each other.

When asked about specific examples of industries that benefit from blockchain, Harmon referred to one of his customers, the Coupon Bureau.

Blockchain secured vouchers

Store vouchers are a good example of using corporate blockchain
Store vouchers are a good example of using corporate blockchain

The Coupon Bureau is a non-profit organization that Harmon describes as “the heart of the US coupon industry”.. It is supported by major American retailers such as Target and General Mills through various other corporate associations and committees.

Harmon then explained that the Coupon Bureau provides a central database for all companies involved in the system, be it retail stores or product manufacturers. He continued:

“When they go to the store, consumers have a voucher, perhaps on their cell phones. […] You use it at the point of sale. This transaction goes to the Hedera Consensus Service, receives a consensus timestamp and flows from there to the Coupon Bureau. “

The office then updates its registration with a consensus-based entry to ensure that the voucher is never used again. This system has two main advantages, as Harmon explained.

The first is where consumer analysis The digital coupon system enables manufacturers to track which coupons out of the $ 250 billion that are issued annually in the United States are used. USA they are actually used.

The second reason is the type of organization: It unites many companies into one unit, some of which may be competitors. The problem of trust becomes key, as Harmon said:

“The industry does not want to have to trust the Coupon Office in order not to disappoint them.”

Why aren’t public blockchains ideal for the company?

Hedera Hashgraph’s consensus model is fairly centralized through cryptocurrency standards, as nodes in the network are managed by business units. In this sense, It is similar to the existing governance mechanisms for industrial consortia.

From Harmon’s perspective, public companies will not introduce public blockchains for which no one can be held responsible. Companies are used to signing service level agreements that define specific quality standards. He added:

If you take your app seriously, you need to call someone if the infrastructure isn’t working properly. How do you do that with Ethereum? You can’t, not really. “

According to Harmon, the Hedera model allows this “decentralized and reliable in a global public network”while responding to the practical concerns of its customers.

Receive Breaking News !

Enable Notifications    Ok No thanks