My work has a similar app called "High Five". These are great for three main reasons:
The earlier the reinforcement the better. If someone let's you know 5 minutes after you helped that they appreciated it, it matters more than if they do it 3 weeks later (if they remember)
It's not based upon hierarchy. Anyone can appreciate anyone, so it's not based upon your boss noticing or thinking your contribution was "better" than your other team members.
It's public. Someone telling you did a great job is great, but that's mostly between the two of you. Having an open space where you can see how everyone is thanking each other is great for two reasons. First, it gives it more visibility so it's more likely that other people know that that person X thinks you did a great job. Secondly, it promotes the whole idea of helping appreciating and valuing others which helps create a better team-based culture.
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My work has a similar app called "High Five". These are great for three main reasons: