Blockchain is a decentralized technology that has many possible applications in industry. Findings published by Strategy Analytics’ User Experience Strategies (UXS) group in its recent report, “Blockchain: Incentivizing User Engagement,” suggest that for the end user, it is a potentially revolutionary technology that can offer higher quality online communities, eliminate unnecessary intermediaries and provide flexible rewards.
Key report findings:
- The ability to store and retain records like receipts and warranty information in a decentralized database could reduce the need for third parties, saving users’ money in unpaid fees and allowing them to buy and sell products with confidence.
- By encouraging users to engage with platforms in a positive way for real monetary rewards, blockchain-based communities offer a higher quality alternative to the sometimes vitriolic online communities found elsewhere.
- Cryptocurrency rewards issued by a blockchain can be cashed out or reinvested. It empowers the user to do more with what they earn.
Mathew Alton, Senior Analyst and report author commented, “Blockchain as a technology is potentially too complex to be truly understood by the majority of users, so the ability to separate the technicalities and present only the benefits is a clear way to remove some of the stigma and on-board users.”
Continued Alton, “As an example, by registering receipts on a blockchain, users would have a single point of reference for their product history. This would also allow them to pass on ownership of their product(s) while retaining important documents such as warranties or proof of value. This could be very lucrative when selling luxury vehicles or antiquities without an intermediary.”
Added Chris Schreiner, Director, Syndicated Research UXIP, “But despite concerns, and by virtue of the fact that it is an open source technology, it is clear that blockchain will continue to be deployed across a broad spectrum of industries in the near future.”