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Marketing company wants 90% of Japanese population on Web3: KBW 2023

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Proof-of-stake (PoS) blockchain platform Avalanche is expecting 5-10 million transactions on a subnet as a Japanese loyalty program company that claims to have 100 million users has partnered with the network to bring their mass-scale loyalty rewards program into a blockchain.

Cointelegraph’s Andrew Fenton interviewed Nick Mussallem, Ava Labs’ head of product at the Korea Blockchain Week 2023, held in Seoul, South Korea. The duo spoke about various topics including the recently announced partnership with blockchain services provider PlayThink and Japanese points service provider Loyalty Marketing to onboard more than 100 million users into the Web3 space.

Nick Mussallem at the Avalanche House area of the Korea Blockchain Week 2023. Source: Cointelegraph

According to Mussallem, Loyalty Marketing is expecting up to 10 million mints for its nonfungible token (NFT) program as it targets onboarding its entire user base into a Web3 system. On its website, the company claims to have around 280,000 partner stores across Japan and 112.6 million users, which is almost 90% of the entire population of the East Asian country. He explained:

“With this deal, they are committed to trying to get the entire user base. They’re taking the system that they have right now, and migrating the entire thing over in phases, to a Web3 system that’s going to run on their subnet.”

Mussallem also highlighted that there are two areas where blockchain makes sense for the company. The Ava Labs executive explained that there’s a composability aspect for onboarding merchants and an engagement aspect for users.

According to the executive, merchants being onboarded into the company’s system could be very tricky as they would have to get into their data systems and “figure out how it works.” However, the case is different for blockchains.

“When it’s a blockchain, it’s just the asset, especially in the way they run on subnets. It’s very composable,” Mussallem explained. The executive also highlighted that this takes away the overhead that comes with onboarding new vendors and adding interoperability.

When it comes to users, the executive believes that the benefits lie within engagement. Mussallem believes that the move is about giving them something “a bit more interesting.” This includes ownership of assets and the ability to spend their loyalty points across different types of stores.

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