Japanese gift card exchange platform Amaten has announced plans to expand its current operation using blockchain technology.
It has collaborated with cloud computing blockchain network aelf for the initiative.
With the use of new blockchain technology, Amaten aims to transform the way gift cards are issued, purchased and exchanged.
It will enable converting the conventional gift cards into digital assets managed and exchanged on blockchain.
The move is expected to eliminate the limitations of the physical cards and digital codes.
It will enable Amaten to trace the card to the original issuer and all exchanges between the end users providing added transparency to the process.
Additionally, blockchain will help to secure the digital codes, which are prone to malicious attacks.
Amaten chairman Tom Kanazawa said: “The current system and technology used for gift card is completely obsolete and dates all the way back to the mid 90s. It has never evolved to match today’s digital world. It still suffers from basic fundamental shortcomings and is very inconvenient.
“I believe that the gift card industry can be a perfect use case for blockchain. The two are a completely natural fit.
“We have chosen to partner with the best blockchain technology providers in the space, aelf, because they offer the scalability, dedicated sidechains and smart contract modules that we very much need to build our service rapidly and most cost effectively.”
Driving on the new technology, the company now plans to scale up its business in Japan. Additionally, it also aims to bolster international footprint with initial plans to expand to Korea and China.