Forget Starbucks Rewards, A Coffee NFT Loyalty Program Is Coming
Starbucks is joining in on the cryptocurrency and non-fungible token (NFT) hype with a collection of NFTs that will function similarly to their current Starbucks Rewards loyalty program later this year. NFTs serve as a way of digitally verifying the ownership and authenticity of a given item, from art pieces to the first ever Tweet. In theory, someone could easily forge a fraudulent Starbucks Rewards card or even hack into a user's loyalty account. However, the use of NFTs make fraud and scams significantly more difficult. While it is possible to use NFTs to back physical items of high value, the technology has been primarily used to secure digital assets thus far.
NFTs are backed by the blockchain, which a technology that has been in development for decades, and has uses far beyond the scope of cryptocurrencies and collectibles. It is the same network that supports popular cryptocurrencies like Bitcoin, and tracks the movement of the coin across users and digital wallets. The blockchain stores interconnected data that is difficult to hack, and in the realm of cryptocurrency and NFTs, it validates the ownership and authenticity of the item. Data is encrypted and layered with each added block, so each sector can be individually validated. For this reason, it's easy to see who currently owns an NFT, who has previously owned it, and whether it is authentic. Starbucks is now looking to use that same technology for its membership and loyalty program.
Related: Amazon Digital Currency: The Potential Benefits & How It Might Work
Starbucks plans to launch its own collection of branded NFTs later this year that have unique membership and loyalty benefits connected to them, the company said in a press release. It offered no
Read more on screenrant.com
