How does MiL.k work?
Details about MiL.k platform
Features of MiL.k platform
Before getting into detailed explanations, let me review MiL.k platform’s features mentioned in the previous post.
With MiL.k, customers can
- transfer their reward points into other service points,
- exchange them for cash,
- purchase more if needed,
- gather points together with family and friends,
- and give each other the points as gifts,
and the exchange rate and point price would be set and changed with the agreements of customers.
As for service companies, MiL.k platform provides following features.
- provides each company its own brand token(Same as reward point),
- enables point integrations without needs for the settlements between companies,
- provides data credibility,
- enables companies to expand their partnerships domestically and globally,
- and manages to do all these without additional burdens.
MiL.k is a reward point integration platform doing all these for customers and service companies.
How is it possible?
Some of you might have noticed that MiL.k is a platform well-established with key features of block chain technology.
<The scheme of existing point integration programs>
User “a” can use his/her reward points from Company A at Company B.
After User “a” uses his/her points (from Company A) at Company B, Company B will send the settlement information to Company A, and Company A will consider/process the points ‘used’ and send cash to Company B.
There are many questions with this simple process.
“How much shall be paid as the settling cash? How about the value difference between the companies’ points? Is settlement data credible? Isn’t Company A benefiting Company B without getting anything?”
In addition, there is an obstacle of system deployment cost, and so, integrating points between companies is not as simple as it seems.
<The scheme of MiL.k point integration>
MiL.k is a platform that enables customers with various service points to trade them with each other. You will notice a huge difference in this scheme.
“Nothing goes on between Company A and B?”
You are right. Since the trade is between customers and their points, there is no need for inter-company settlements.
In other words, the trade is a mere shift of the point ownership.
Then how do customers benefit from it?
In the existing point integration programs, Company A and B arbitrarily set the exchange rate between their points, and there have always been issues and complaints about the rate among customers. Companies as well, had troubles when customers rushed into a certain company, not throughout the whole partnership program.
On MiL.k platform, customer “a” and “b” get to trade their points in the rate of trading market, the platform, and there will be no complaints about the rate because the point price keeps changing according to its supply and demand.
<MiL.k platform’s role>
MiL.k platform manages each company’s reward points data and ① when a transaction occurs, ② it records information about the point ownership shifts. ③ Then it interfaces each company’s reward points data.
The interface is not one way basis. Information about point accumulations and usages are coming from each company to MiL.k, and information about current balance and transaction history are moving the other way around.
Here, how does a company trust the information coming from MiL.k platform? How does it validate whether User “a” and “b” actually had a transaction?
To solve this issue, MiL.k team has built the platform on block chain so that all the information about the transaction is recorded and verified on the block chain.
<The core of MiL.k platform: MiL.k Coin>
As I have said so far, MiL.k platform is a trading market where various service companies’ reward points are being traded. So, the points are like products.
Then what currency is being used for buying/selling the products?
It is MiL.k Coin (MLK), the fiat currency of MiL.k platform.
Using MLK has several benefits for customers.
- It enables them to easily make transactions on the platform,
- cash their points at the connected external crypto exchange,
- and buy MLK and use it for buying reward points with discount.
Why is there discount? Same theory as buying coupons on the e-Bay for less price than its real value.
Being as a crypto currency, MLK can be (and will be) traded in global crypto exchanges, and this means that global service companies can easily join the platform without worrying about currency differences.
<Convenient wallet app of MiL.k>
MiL.k App is the wallet to manage and trade MLK and other points.
The wallet address can be connected to multiple reward points within the same service.
For example, if User “a” and “b” are family, they can gather their Company A points together even though each of them has own accounts.
And of course, transferring MLK between users is easy.
So far, I have talked about MiL.k platform’s features and how it works. On the next posting, I will talk further on how the platform operates in real businesses.