FLYcoin: How Blockchain is Paving the Way for New Ways to Travel
Cryptocurrency has frequently been criticized for its lack of ability to purchase goods or services. Although crypto has plenty of use cases in under-the-table situations where peer-to-peer transactions are more casual, it still has not found its way into mainstream storefronts.
Besides NFTs, which are a native blockchain-based product, there simply aren’t enough real world use cases for crypto payments outside of specific countries like El Salvador where bitcoin has become legal tender.
Fortunately, many companies are starting to acknowledge the existence of blockchain technology and want to incorporate it into their business models. Companies like RAVN Alaska, an airline business based in Anchorage, Alaska, is one of these companies that is paving the way for new customer rewards programs by partnering with FLYcoin.
Covid-19 and Chapter 11 Bankruptcy
As many already know, the impact from Covid-19 on the travel industry was massive. Travel restrictions became extremely strict around the world as borders were closed. Small airlines like RAVN Alaska carried the brunt of the burden and were forced to go out of business or declare bankruptcy.
In RAVN’s case, they had to file for chapter 11 bankruptcy which required them to devise a new plan in order for the company to remerge as a profitable business again. Fortunately for them, they were able to survive the pandemic, were acquired by another company with a different management team, and implemented new ideas involving the FLYcoin blockchain.
What is Flycoin?
Flycoin, is one of the first cryptos centered around travel which acts like a rewards program for frequent flyers. It is a standalone company which serves a variety of different travel and hospitality businesses including RAVN Alaska. The company rewards passengers with a certain amount of Flycoins depending on the length of their flight and where the flight occurred (flights within Alaska earn higher rates for RAVN Alaska passengers than flights leaving the state). The concept is beneficial for Alaskans because a majority of the state requires aviation for access due to its terrain.
At the end of every flight, passengers are rewarded with FlyCoins which can be exchanged for vouchers that are used for flights and other services; thus providing a product to be purchased with crypto. While the system is exciting for blockchain enthusiasts, some may still wonder how this differentiates from regular web2 frequent flyer miles.
The benefit here is that many airlines offer miles as rewards which include an expiration date. However, because FLYcoin is on a blockchain, it is impossible for these tokens to expire.
Further, because of decentralization, these coins can be used widely across different airlines partnered with the blockchain company. This allows airlines that are working in partnership to accept the use of FLYcoin, allowing for frequent flyer rewards to become interoperable with different airlines through the redeemable vouchers purchased with FLYcoin.
Moreover, while FLYcoins can’t be redeemed for cash yet, their website does say that it will become a feature later on. This opens the doors for rewards to passengers who might not fly frequently enough to see any use in the program, but still want to receive some sort of cashback reward for their patronage.
