Flipkart is looking to go deeper into its Web3 initiative FireDrops, and to do this, the e-commerce giant has partnered with the Polygon blockchain network. With the help of Polygon's CDK-implemented Layer 2 chain, Flipkart plans to boost its Web3 loyalty program. Launched earlier this year, Flipkart is looking to expand its portfolio of offerings from physical items to virtual assets. The e-commerce platform had originally chosen Polygon to launch its FireDrops initiative.
With FireDrops, Flipkart is looking to bring a new twist to its strategies to increase user engagement on its platform. Several brands selling their products on Flipkart are driving brand loyalty through gamification, giving their users fresher experiences of reward through virtual goodies instead of physical ones.
“Flipkart leverages Polygon CDK to build an Ethereum-based Zero Knowledge (ZK) Layer 2 network dedicated to the service and can ensure future growth. It gives Flipkart a number of customization options, including a refined onboarding experience, dedicated blockspace, and low transaction fees for its users. Future upgrades to Polygon CDK will also bring improved privacy for transaction data, the ability to run the chain without a token or use a central bank digital currency, and access to liquidity in the larger Polygon and Ethereum ecosystems ,” Polygon Labs wrote in an official blog post.
Arun Phillips, the Chief Marketing Officer at Polygon, announced this development at the Polygon Connect India event this week.
On FireDrops' official website, Flipkart says existing rewards programs feel “complex, boring and broken.”
Since its launch earlier this year, FireDrops has managed to generate 3.3 million wallets with at least one NFT that its users may have collected as part of a branded reward.
From mystery boxes and special badges to discount perks, early access and freebies, the FireDrops rewards program also allows users to earn money by buying and selling rewards. This is what Flipkart is marketing as 'the future of rewards'.
Internationally, several other brands are also taking an immersive, virtual approach to give their rewards programs a Web3 twist and usher in a new era of customer engagement. These brands include Starbucks, Lufthansa Airlines and clothing brand Lacoste.