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What Is a Loyalty Program?
The idea of a loyalty program is designed as a marketing technique.
Merchants use this technique as an encouragement to customers to patronize their products or services. Loyalty programs usually require customers to register so they can gain commitment points in every purchase or usage in merchants’ services. Some loyalty programs allows the customers to use their acquired points on accessing new services and products. It can also be used for discounts and even get free merchandise. Other loyalty points can also be used as regular flier miles of airlines, hotel points and restaurant points.
Why it is important?
Loyalty program helps any business on keeping their customers to continue patronizing their product or service.
It is more costly if business focuses on getting a new client than selling products or service to the current customers. As the figure shows, it is between 5 and 25 times more expensive. Therefore, offering rewards like loyalty programs is a good idea to pleased existing customers.
Are loyalty points important?
Yes they are.
According to 2017 Colloquy Loyalty Census Report, sign-ups in loyalty programs increased by 15% between 2015 and 2017. This development rate that was recorded in 2015 is 26% therefore, subscription sign-ups progressing slowly. Professionals concluded that abundance is the main reason of decreasing interest of customers. Having a lot of loyalty programs makes an average consumer to hardly monitor each loyalty program they sign-ups. In this case, consumers had the difficulty on acquiring enough points to get the benefit of the loyalty program. Based on Maritz Loyalty Marketing report, 70% of consumers quit on loyalty programs because of the very slow progress on accumulating enough points for redemption.
Consumers found loyalty points not urgently important and don`t mind not coming back. In this case, this will lead to more expense in selling their products and services. Guaranteed increase in consumers retention rate can be possible if making reward points more critical to consumers that it will be easy for them to actively take part.
So Blockchain can include them worth?
Sure it can! Blockchain can decentralize and put back together the broken loyalty benefits gap. As a decentralized network, a good result is still expected on benefit points.
Elements, a new cryptocurrency is aiming to do such. Element cryptocurrency is using X11, a chained hashing algorithm that works for “Proof of Work” calculations. This new cryptocurrency has the main goal to pleased various merchants as the mainly loyalty cryptocurrency.
Elements as a “proof-of-work” cryptocurrency, can be mined with someone who has a system in a computer that has required processing power to do such. Miners can use their accumulated loyalty coins for shopping and buying tickets.
How do merchants benefit from it?
Basically, loyalty coins make it easy for a business to build interaction on their clients.
Merchants that are giving commitment points for consumers can somehow lead them to be valuable. Consumers will find those points helpful and will actively participate to accumulate points. Competitors will take in consideration on how they will encourage consumers to sign-up and the value of loyalty coins they can offer.
Universal commitment cryptocurrency can help merchants to lessen their loyalty liability. Liability is what a company’s obligation to other services or individuals. This is one of the entries in its balance sheet . Commitment points will be recorded as a liability because it is like a promised lesser rates and complimentary items to consumers. If each consumer always redeem their points, it will badly affects the company’s financial books. Since Mining is open to everyone, like in Elements coins, merchants could mine as well and provide loyalty coins to consumers. They can also benefits from the commitment coins of other merchants.
If you spend a traditional commitment points, merchants will consider this as no value. Therefore, merchants can take more advantage because a Blockchain-based currency can be exchanged for a fiat currency that will help them recover with loyalty points’ few sales.
How is this valuable to miners?
Rewards are also given to miners.
Scientists at Research and Markets predict that by 20123, the market size of the loyalty management market would reach its worth at $6.2 bln. Cryptocurrencies monetary value and great benefits might make consumers accept it at once and will definitely increase its worth.
What are a soft fork and a hard fork?
They are both changes in protocol.
Soft Fork
A modification to the software protocol is a soft fork when previously legitimate blocks/transactions are made void. It is a backwards-compatible because old nodes will recognized the brand-new blocks as valid.
Hard Fork
On the other hand, a hard fork is a protocol’s basic change that makes previously void blocks/transactions valid. All nodes or users should upgrade to the updated version of the procedure software application. It is a permanent change from its previous version of the Blockchain. In this case, nodes with previous versions will no longer acceptable.
What are UASF and UAHF?
UASF represents User Activated Soft Fork
UASF is a system where the soft forks’ time of activation occurs on a required date by full nodes. It is considered as the economic majority. This system needs full support and coordination from the industry. SegWit activation in the BIP148 proposal was unified with UASF idea.
UAHF means User Activated Hard Fork
A needed rule set is added to change the node software. The changes can make previous invalid blocks to be valid after being flagged. Establishing this action doesn`t need a majority of hash power. Bitmain, a mining company, introduced UAHF as a contingency strategy against UASF.
How UASF vs. UAHF decision started?
For a long period of time, bitcoin has known for some powerlessness.
Some users and mining companies like Bitmain and Bitcoin Unlimited do not uphold this idea. They accept new requirements but others can still use the former version of the Bitcoin code. To avoid such and save a Blockchain of transactions, many versions are used.
Are there any precedents of soft forks and hard forks?
They are visible every day to all users of cryptocurrencies.
The Blockchain is where every transaction gets in. Different individuals use a different chain of operations in the time of mining. There’s a fork in a string before the longest chain is carried out.
History of Ethereum considered the most meaningful example of UASF and UAHF application.
Ethereum started the DAO task last April-May, 2006, after a month when a hacker snapped up the cash of a holder.
- Accepting the theft and not doing anything
- Blockchain will be rolling back to a period before the theft or hard fork
- Hacker`s wallets incorrect transactions will be accepted and will return the money, or soft fork
The task was not appreciated by some users. They accepted the theft, therefore, it enables the 2nd Blockchain’s appearance.
How will the implementation of UASF or UAHF modification Bitcoin?
There is a great number of possible situations.
The next innovations will depend on users and miners if one of the strategies is chosen. Based on the percentage of provided classifications, the first possible circumstances are:
Many miners and users agree on the said plan. This right situation includes no fork and only one branch exists.
A lot of users accept the strategy and miners don`t do any move. If users are more than 51 %, one branch will be okay. But if it is lesser than 51%, two branches will be needed which are Users’ fork and Miners’ fork. If the number of users increases to more than 51%, Miners are removed.
Since users and miners can`t reach plan, a bigger group can attack the smaller one. Smaller group’s transactions are not safe since they can be removed.
Situations like that have different effects such as smaller group can protect and alter algorithms and procedures.
Hydro mining is a method of cryptocurrency mining. Hydroelectric power and water cooling systems are where hydro mining relies on. They depend on that power and cooling system to come up with a mining operation which is energy-efficient and highly-profitable.
Simultaneously, cryptocurrency mining generates new digital coins and confirming these transactions. The blockchain is a network where cryptocurrencies like Bitcoin are being sent by users.
The Blockchain network collected all transactions during a particular duration of time into a “block” for monitoring. The miner`s role is to verify transactions and put them in a public ledger through solving uneasy mathematical equations.
Great computing power is needed for the process to burns big amount of electrical energy.
How is cryptocurrency mining changed?
The extent of operations is really significant though it has the same process.
Cryptocurrency mining is no compare in usage with non-specialized hardware. But as the growth of the marketplace, miners find effective systems and graphics cards to favourably process computations.
Before, users were really productive to mine cryptocurrencies on a desktop computer. But it becomes large-scale mining farms that use a big amount of energy. For single miners at home, this change has become expensive and results to not a good choice anymore.
Cryptocurrency mining becomes bigger as time goes by, this means it requires more electrical power for big mining farms. If it continues using exhaustible non-renewable fuel sources, it will cause pollution and greenhouse gases that can damage the environment.
What is the importance of hydro-mining on cryptocurrency mining?
Hydro mining gives an energy source which is environment-friendly.
People who are environmentally conscious is not pleased with cryptocurrency mining since it uses large quantities of electricity.
The most critical cryptocurrencies like Mining Bitcoin and Ethereum are using the same amount of energy as Morocco. Morocco is a country with a huge population of almost 36 million.
One transaction in Ethereum uses 53 kWh and a dishwashing machine uses 88 kWh a year. This means that for only 5 Ethereum transactions is equivalent to a whole year usage of a dishwashing machine.
Based on the collected data of Digiconomist, one transaction on Ethereum network is equal to the power usage of American home for 1 and half days. Bitcoin uses more energy at 5.5 days per transaction.
The chart below shows the increase in Bitcoin mining energy usage in one month.
Bitcoin Energy Consumption Index Chart
Blockchain technology fails to keep its main advantage without cryptography. This main advantage is security.
But to solve the uneasy algorithms for a better understanding of cryptography, it needs a big quantity of electricity. Most of the time, it is from non-renewable energy sources.
HydroMiner uses hydropower for its mining operations. Hydropower is the cheapest and most efficient renewable resource resources in the world. It is also environment-friendly.
And using water to cool mining equipment can lessen the cost by 85% compared to Europe’s average cost of electrical energy.
Cryptocurrency mining change to an energy source which more environmentally friendly, not only to reduce the cost but also reduce the carbon emission of such activity.
What are the advantages of cryptocurrency hydro mining?
Hydro mining is not only environment-friendly but also reduce the cost, increased dependability, and enhanced performance.
Cryptocurrency mining experience unsuccessful operation due to overheating. This is because the computer system device needs to work continually for the whole day with high loads.
Each time there is a downtime, it also means a loss of money.
Using water-cooling systems in the hydro-mining procedure warrants that devices are in safe operating temperature at a reduced cost. In that case, this kind of mining environment will definitely enhance performance.
Like HydroMiner, which is using an enhanced cooling system, it consistently, maintain a lower temperature at a high density. As a result, it also gives enhanced performance.
Electrical power is really important in any mining operation.
Using hydropower as electrical energy is probably a good choice than traditional mining farms. It is affordable and environment-friendly. Lower energy consumptions also mean higher profit since it also saves expenses.
What are provably fair games?
An online game is provably fair when a system in location is present. This system in location will allow the gamers to verify the procedure`s fairness in a video game.
The idea of “provably reasonable” is related to the growth of online cryptocurrency betting such as casinos and lottery games and online games.
Provably fair games started as soon after the appearance of Bitcoins. These games guarantee fairness as one of their main selling points, in contrast to traditional online gaming that can be manipulated.
On the contrary, a Blockchain is reliable. All transactions are in a public ledger and can`t be fabricated. Smart contract platforms like Ethereum has program code that is controlling the whole game. That program code is impossible for anyone to manipulate.
A casino or a lottery video game doesn’t have such transactions and some processes are hidden from the users. But what makes it “provably reasonable” is providing tools to the players to verify the fairness of the procedures. Additionally, they also reveal information further – e.g. the process of presenting the winning numbers in Lotto.
How provably fair games possible?
Blockchain technology and goodwill of the video game organizers is what makes it possible.
Basically, it is hard to prove fairness if it is not reliable. A videogame can be made with a requirement for a specific basic level of fairness. The Blockchain innovation has that needed level because of being stable and transparent.
The Blockchain-based platform has an effective set that makes it impossible for the organizers to trick the gamers.
Owners of the said platforms guarantee that there is no space for cheating. They publish the source code in open access. And they provide confirmation tools for casino and lottery draws. These approaches are offered to prove the level of fairness.
How is the popularity of these games?
Provably reasonable games are growing in number that shows how in-demand it is.
Online gaming can be dangerous. Video games give the player a sense of excitement by winning an opportunity. It urges people to play these video games. Yet, having uncertain practices and intransparent games is not a good idea to make it difficult.
Imagine you win a video game but never receive a prize. You can`t justify to anyone that it’s a scam. A platform is a cheater because they make no payments for its gamers. But you can`t recognize such because they are good at tricking.
Situations mentioned above are not good for the users. To end those unpleasant situations, gamers will likely be transferring to a provably fair platform.
How to identify a fair game
First, the platform will have a list of methods to verify the claims of being provably reasonable.
Here`s a good example of that claim: the True Flip Blockchain lottery game. It has ongoing ICO project that is very successful. They preserve fairness and exceptional practices. Because of that, doing some research at True Flip is advantageous.
The main page has a link to the open source code of the lottery by Github. All the functions which govern the game can be found in the repository. It includes the procedure of drawing the winning numbers and making prize payments.
Owners of the platform must be aware that not everyone is programming professionals. Proving the fairness can be done in a few ways. For example, the True Flip is using a tool which anyone can confirm the winning numbers. They can use it through publicly available Bitcoin hash which owners of the platform have no way to manipulate it.
The examples presented are not just the ways of how online game organizers can show its fairness. The other elements of any video game can be used to cheat gamers. Provably fair can guarantee video games which is more transparent.
In conclusion, it is up to the player to identify a reasonable game to entrust their loan. Choose at your own risk and be mindful.