Big moves are being made in the aviation industry as it embraces blockchain technology, particularly cryptocurrencies and non-fungible tokens (NFTs). Case in point: The United Arab Emirates national airline, Etihad Airways, is soon to release a new, 300-edition expansion to its Polygon-based EY-ZERO1 NFT collection. This collection will provide holders with access to an array of benefits such as priority check-in, Etihad Guest Silver Tier Status, lounge access, and even the ability to stake their assets to receive miles.
Launched on August 1, this limited-edition release features the eleventh 3D aircraft to be added to the EY-ZERO1 NFT collection that first took flight in July 2022. The NFTs are designed to resemble the Boeing 787 Dreamliner that was decked out in Mission: Impossible-branding for a promotional tour for the “Mission: Impossible – Dead Reckoning Part One” movie.
Etihad’s NFT approach extends the runway for both digital and real-world rewards, innovating the traditional concepts of customer loyalty and engagement. In addition to an encompassing array of benefits, the September plans include the Web3 loyalty program “Horizon Club,” which proposes a staking-for-miles program. The platform will allow community members to lock their NFTs and in return earn Etihad Guest Miles, which can then be used for a wide range of perks, such as flights and upgrades.
This crafting of NFTs sprouts from a partnership with real-world asset tokenization firm Arcube. Also involved is infrastructure firm Crossmint, which is responsible for facilitating transaction payments in cryptocurrencies or credit cards.
However, there could be potential downsides that companies might need to address. The adoption of this new technology could potentially alienate some customers who are not familiar with or trustful of cryptocurrencies and NFTs. Moreover, payment processing for such businesses might face challenges due to fluctuations in the value of cryptocurrencies.
Nevertheless, Etihad featuring as a significant player in the web3 loyalty programs indicates a promising direction for blockchain-based rewards in the airline industry. Other airlines, such as low-cost Argentinian carrier Flybondi, Spanish airline Air Europa, and Japanese airline group All Nippon Airways (ANA), have also expanded their blockchain-based offerings, indicating that the growth of this technology within the aviation industry appears to be more than just a passing trend.
Source: Coindesk
