Blockchain-based Application Of Reward Point Exchange

Loyalty programs are very popular among different brands,companies,sellers,etc.They are based on various approaches.One of the adopted methods is the reward points system,which provides incremental points mechanism for loyal consumers.Large organizations are increasingly attracted to the notion of reward points as a form of loyalty giveaway.However,for current markets,these points can be redeemed only within the organizational domain.In general exchange,valuable assets are exchanged through intermediaries.Currently,there is no concept of interoperability or exchangeability of these points exists among crossorganization users in a decentralized manner.The centralized database approach for reward point exchange brings in data tampering issue as well as the possibility of single point failure.The decentralized and immutable blockchain technology can be of great use to solve the problems.But,there is also a technical problem when using blockchain as a whole system of reward point management and Exchange Application.Blockchain is an ever-growing immutable database that gets huge in size over time.Ultimately the huge database size turns out to be a great problem in terms of management and interaction.To address this issue we need to optimize the blockchain database size.To this end,we propose using Hyperledger Fabric Blockchain and Hyperledger Composer as the smart contract framework.The platform has a trusted mechanism,in order to attract cross-organization consumers and sellers.The exchange platform is kind of an autonomous intermediary.As long as no individual can be trusted for maintaining the records-decentralized,secure and trusted ledger is needed for keeping records of exchange.The underlying technology of the platform-blockchain gives the promise to achieve the trust.It also provides the ease of having synchronized ledger of different organizational point balances.The blockchain,chain of blocks securely stores the data in the ledger on a secure network.Each user's activity inside the system is identified by digital signature they will sign while recording transactions in the ledger of the blockchain.This recorded data is immutable,which means no one can alter them.That way we will provide legitimate data on blockchain for reporting and audit issues.In this study,we developed a blockchain-based Reawrd Point Exchange Application(RPEA).We also presented a model and implementation of a framework for exchanging assets in a secure and access-controlled environment.We tested how a peer-to-peer blockchain network and distributed ledger could open up an excellent opportunity for endusers and organizations to transfer assets and manage user data.Directly “redeeming” points is not possible in an RPEA.Instead,the system can extend the participating organizations' existing reward-offering systems by which the points can only be exchanged.This approach can also extend existing off-chain organization management systems instead of requiring a whole new system both for users and organizations.This approach also limits the problem of the ever-increasing size of blockchain databse.As of being decentralized system,an RPEA removes the risk of data tampering and single point of failiure.In the blockchain ledger,we saved two types of data.First,the initial transfer of points from the embeded organization system to exchange platform,which will be a proof of ownership.The second type of data is transactional,which is going to proceed after all participants of trade will agree on the exchange.Each transaction describes one exchange.