[jameshart]

If you built the coupon system you describe - one where any retailer can redeem the coupon at face value without a preexisting trust relationship with the coupon’s backer - you would not have ‘solved coupon fraud’, you would have created a cash alternative.

And a cash alternative has a bunch of problems of its own - most notably, money laundering and its utility in conducting fraud and getting payouts for extortion rackets like ransom ware.

These are issues that centralized coupons have. Trustless ones would have it even worse.

Are you sure the retail industry, or consumers, are crying out for a trustless coupon solution?

[bytelines]

The technology doesn't have to solve all problems to have economic value. Arguably the "cash alternative" problem is a fundamental problem of coupons themselves. And as you point out, these are not new problems, and does an immutable public ledger makes such activity easier to audit and prosecute? I would argue 'yes' and that web3 has not made the problem worse but in fact better. The authorities do not need to request your books for starters. And as a retailer you do not need to maintain the books. Its already in a trusted ledger. This is a market efficiency. Inefficiency is not a way to secure things.

As far as doubt whether customers are asking for this - I mean, again you can listen above but yes a number of large retailers and vendors like Wal-mart and P&G are going live with this use-case this year.

And who are we to decide what is economically viable and what isn't? Let the market decide.

[bytelines]

Maybe a key distinction here is that TCB itself is not trustless - it requires KYC, etc. But where data is stored and redeemed is on the trustless, decentralized Hedera network. It functions as an automated, secure ledger.

You could replace Hedera with a private blockchain or another ledger - likely not a public one due to unpredictable transaction fees or high time to consensus - the value is the same.