Starbucks will launch an NFT-based loyalty program based on Polygon Blockchain technology.
Starbucks (SBUX) plans to launch a non-fungible token (NFT)-based loyalty program using Polygon’s blockchain technology. Customers can purchase and earn digital collectible stamps in the form of an NFT from Starbucks Odyssey, which will provide benefits and immersive experiences. Polygon’s proof-of-stake network, a scaling tool that sits on top of the Ethereum network, will be used to build the program. Applications running on Polygon and other scalers can avoid some high costs and slow transaction speeds caused by Ethereum’s main network congestion. Starbucks hinted at a Web3 experience in May, when it announced plans to launch a series of NFT collections that would provide “unique experiences, community building, and customer engagement.” Customers can now sign up for a waitlist to gain access to Starbucks Odyssey. MATIC, Polygon’s native token, reacted positively to Starbucks’ announcement, trading at $0.93 at the time of writing, up 3.37% on the day.
Non-fungible tokens (NFTs) are a type of crypto asset that allows holders to prove ownership of either real or digital items – preferably the latter. These intangible items can range from virtual real estate plots in games like The Sandbox and Decentraland to digital artwork like Beeple’s Everyday – The 2020 collection and even cartoon ape images. While this may appear unimpressive to the average person, you must understand that in today’s ever-increasing digital world, it is extremely difficult to authenticate or assert ownership over things that anyone can simply screenshot, copy, or download. Consider yourself a concept artist who creates digital artwork for companies such as Ubisoft or Treyarch.
Consider going it alone and selling your digital artwork online. To accomplish this, you’d need to devise a method of marking and tracking ownership of your pieces so that purchasers could demonstrate they had original pieces rather than a screenshot. Otherwise, why would you spend your money on it? This is where NFTs come into play. As with all assets, supply and demand are the primary market drivers for price. People are often willing to pay a high price for NFTs due to their scarcity and high demand from gamers, collectors, and investors. Some NFTs have the potential to be extremely profitable for their owners. For example, on the Decentraland virtual land platform, one gamer purchased 64 lots and combined them into a single estate. It sold for $80,000 because of its desirable location and road access, and was dubbed “The Secrets of Satoshi’s Tea Garden.”