In this episode of Lightspeed, host Jack Cubc welcomes Ben Leventhal, co-founder of Blackbird, and Jesse Walden from Variant Fund. They delve into how Blackbird is revolutionizing the restaurant industry by leveraging blockchain technology to enhance loyalty programs and payment systems. With a focus on creating seamless consumer experiences, the discussion highlights the potential of blockchain to transform traditional business models.
Blackbird's Blockchain Revolution
- "Blackbird is a loyalty and payments company for the restaurant industry, making restaurants more economically sustainable and independent."
- "Anything that happens on Blackbird, any transaction, any check-in, is now being memorialized on chain on Flynet."
- Blackbird aims to cut out middlemen in the restaurant industry, reducing costs and increasing profitability for restaurants.
- Flynet, Blackbird's blockchain, ensures transparency and independence from legacy systems, promising a transformative impact on restaurant economics.
- The Fly token serves as a native rewards currency, encouraging consumer engagement and loyalty.
- Blackbird's approach is to abstract blockchain technology, focusing on delivering a magical consumer experience without overt crypto elements.
The Role of Ownership and Governance
- "The founding thesis for Variant is to make a billion users owners."
- "By making the stakeholders in the industry owners of the underlying network, we cut out the middleman."
- Variant Fund's investment in Blackbird aligns with their vision of democratizing ownership through blockchain.
- Blackbird's strategy includes distributing F2 tokens to users, granting them a stake in the network and aligning interests.
- The separation of Fly points and F2 tokens allows for distinct value accrual mechanisms, enhancing both consumer loyalty and network governance.
- The model of user ownership is seen as a critical differentiator from traditional loyalty programs.
Challenges and Opportunities in Crypto Loyalty Programs
- "It's about real-world value and delivering a great consumer product."
- "The users of the network are going to own the network, which is a big difference from prior programs."
- Previous attempts at on-chain loyalty programs have struggled due to a lack of consumer-centric design and execution.
- Blackbird's focus on real-world value and seamless user experience sets it apart from failed initiatives like Starbucks' NFT program.
- The incremental, blockchain-last approach ensures that technology enhances rather than hinders consumer engagement.
- Ownership of the network by users is a novel approach that could redefine loyalty programs across industries.
Key Takeaways:
- Blackbird is pioneering a blockchain-based loyalty and payment system that could redefine restaurant economics by eliminating costly intermediaries.
- The dual-token system of Fly and F2 ensures both consumer engagement and network governance, offering a unique value proposition.
- For developers and investors, Blackbird exemplifies how blockchain can be leveraged to create real-world value and user ownership, setting a precedent for future applications.
For further insights and detailed discussions, watch the full episode: Link
