Restaurant loyalty and payment platform Blackbird is demonstrating exactly how blockchain can create seamless experiences in the real world. Built using Arbitrum technology, which enables developers to create customizable blockchains tailored to specific use cases, Blackbird is designed for restaurant lovers and allows diners to earn points, rewards, and insider perks whenever they visit participating restaurants. 

In a conversation with Jeffrey Blanchette, the lead crypto engineer at Blackbird, Blanchette shared that the platform has distributed over 239 million $FLY tokens, growing by 100 million in less than a year, processed over 1 million network transactions, and averaged 3,780 transactions daily. 

With over 100,000 self-custodial wallets and 600+ restaurants live across New York, San Francisco, and Charleston, Blackbird has created an experience where blockchain is not the afterthought but the essential architecture that makes it all possible.

The Restaurant Problem

The restaurant industry has had a challenging few years; the COVID-19 pandemic created enormous economic pressure for restaurants to stay open. According to Blanchette, beyond pandemic challenges, restaurants faced ongoing issues with payment processors. 

"Restaurants get onboarded with payment platforms at a reasonable rate for a year or two, but as time goes by, they become entrenched in those systems, and then the rates go up," Blanchette said. Changing payment systems becomes nearly impossible for restaurants that create exceptional dining experiences. "It's not feasible for a restaurant busy cooking world-class food to change out their entire payment system.” Meanwhile, loyalty programs across the industry remained fragmented and challenging to implement effectively.

Blackbird was founded to address these challenges and create a unified loyalty and payments platform on the blockchain.

Blackbird’s Approach

At the heart of Blackbird's solution is an app that seamlessly connects the physical restaurant experience with digital loyalty and payments. The company developed an innovative NFC (near-field communication) technology that verifies a customer's physical presence at a restaurant once they check in using the application. This verification is crucial because it eliminates the possibility of gaming the system and ensures that loyalty rewards are genuinely earned.

According to Blanchette, the magic happens when this check-in process evolves into the payment experience. “We know who you are when we checked you in, so that when you go to check out, you don't need to wait for the server to interact with you or bring you your check. What we've done is we've digitized that experience and instead of signing a paper check with a pen, you are now signing that check with your [onchain] wallet."

Making Blackbird’s application a reality required a sophisticated token model. Blackbird quickly realized that using a single token with variable pricing would create problems similar to the infamous "Bitcoin pizza problem," where the value of tokens used for purchases could appreciate dramatically over time. Their solution was to implement a dual-token model: "$FLY," a stablecoin with a fixed redemption price for payments, and "$F2," a custom gas token that powers their ecosystem.

So why Arbitrum Technology?

After exploring numerous blockchain options, Blackbird found that Arbitrum offered the ideal combination of features for their consumer-facing application. Several key factors drove Blackbird's selection of Arbitrum technology:

Dedicated Throughput

Arbitrum technology isolates Blackbird's transaction space, ensuring consistent performance without competing for resources with other applications.

EVM Compatibility

The compatibility of the Ethereum Virtual Machine enables interoperability with different ecosystems, making it seamless to move between chains, particularly Arbitrum chains.

Custom Gas Token Capabilities 

One of the most significant advantages was the ability to create $F2, their custom gas token. This allows Blackbird to:

• Provide consistent, fast, and affordable transaction fees
• Eliminate the need for users to acquire specific cryptocurrencies to pay for gas
• Create a better user experience by removing complicated fee estimation

Customization Options

Arbitrum's technology allowed Blackbird to customize many aspects of their chain:

• Sequencer configuration for transaction processing
• Extremely fast (~100-250ms)block times
• Progressive decentralization approach as they onboard customers

Blackbird also plans to leverage upcoming Arbitrum features to enhance their platform, stay tuned. These capabilities will further strengthen reliability and consistency for consumer transactions, reinforcing Blackbird's commitment to making the technology invisible to the user while providing a seamless experience.

Results and Growth

Blackbird’s application has seen impressive growth since its launch. According to Blanchette, the team has distributed over 240 million $FLY tokens and processed over 1 million network transactions (including testnet transactions). In just four weeks after their mainnet launch in late February, they surpassed 300,000 transactions.

Their user base is growing and actively engaging with the platform. With over 100,000 self-custodial wallets created and an average of 3.4 transactions per wallet, Blackbird is demonstrating that users find genuine value in their service. The company has partnered with more than 500 restaurants across key markets, including New York, San Francisco, and Charleston, and plans to expand to additional cities.

This is Just the Beginning

Blackbird is just at the beginning of transforming the restaurant experience. The company is already working on new features to enhance the experience, including solutions for diners who forget to check in when they arrive at a restaurant. 

By building on Arbitrum's technology, Blackbird has positioned itself as the leader in bringing blockchain benefits to everyday consumer experiences. The Blackbird app would not have existed without blockchain technology, demonstrating how crypto can solve real-world problems when implemented thoughtfully. 

As one of the first truly consumer-focused blockchain applications in the restaurant space, Blackbird represents a new direction guiding crypto innovation: prioritizing utility and user experience over speculation.

Blackbird’s partnership with Arbitrum and its use of Arbitrum technology have made this approach possible. They prove that with the right technology foundation, blockchain can enhance even the most traditional industries.