Japanese giant GMO Internet has announced the release of ‘Region Token’ – an open source blockchain solution for local communities to issue their own crypto coins or points. The developers say that this will help municipalities, local companies and shopping districts to revitalize commerce.
GMO explains that for enterprises to operate their own point services, it is usually necessary to build highly dedicated servers that can withstand the complicated processing needed for the construction and operation of the systems, distribution management, and maintenance. Also, contractor services are usually required. However, if commissioned to such contractor services, in addition to the costs of servers and databases, various additional operational costs are incurred, including labor costs, management costs, etc.
By using this new program, municipalities and enterprises can easily issue and operate tokens that act as points that can be used within a merchant’s affiliated stores. Since the process is automated according to prescribed logic, it is possible to construct an autonomous and permanent point system that incurs only the recording processing cost on the blockchain.
The Region Token runs on the Ethereum environment and it conforms to the token standard specification ERC20 advocated by Ethereum.
Since the service provider (such as municipality and shopping district) can prepay the cost of recording in the blockchain collectively in fiat, the users, the merchant and the municipality may use the system without having to hold or pay in cryptocurrency.
Recently GMO-Z.com Coin, the cryptocurrency trading and wallet arm of the GMO Internet, went through a major re-branding.