Loyalty Points Distribution on Blockchain

Loyalty Points Distribution on Blockchain

System Overview:

System Foundation: The system is based on blockchain technology and uses smart contracts and decentralized loyalty IDs to process loyalty points.

Component Composition: It includes computing devices, blockchains, API hosts, consensus participants, loyalty alliance members, etc.

Decentralized Loyalty ID:

ID Distribution: The system distributes decentralized loyalty IDs to users, which are generated based on public keys and associated with the user's transaction account.

Storage and Query: Loyalty IDs are stored on the blockchain, allowing users to query their loyalty points through login credentials.

Point Distribution and Recording:

Reward Event Triggering: When a user completes a transaction or behavior event, a reward event is triggered, which in turn distributes loyalty points.

Points Write to Blockchain: The system writes the points distribution record to the private or semi-private ledger of the blockchain to ensure the transparency and immutability of the points distribution.

Multi-Merchant Loyalty Partnership:

Relationship Establishment: Merchants can create and join multi-merchant loyalty partnerships through the loyalty portal, set cooperation parameters and reward conditions.

Reward Execution: When a user completes a purchase or meets other conditions at a partner merchant, the system will allocate loyalty points according to the set reward conditions.

Points Redemption and Payment:

Points Redemption: Users can use loyalty points to pay or redeem goods and services at partner merchants.

Balance Update: After each point redemption, the system will update the points balance on the blockchain and notify the relevant merchants and users.

Blockchain Technology and Security:

Blockchain Features: The immutability and consensus mechanism of the blockchain are used to ensure the security and credibility of point allocation and transaction records.

Encryption and Verification: The system uses encryption technology to protect sensitive information and ensures the authenticity of user identity and transactions through verification mechanisms.

User Interface and Interaction:

User Interface: The system provides a user interface (such as loyalty iFrame) for users to select loyalty providers and enter login credentials.

Interaction Process: Users trigger reward events, query point balances, and select point redemption through the interface, and the system implements corresponding functions through APIs and smart contracts.

The following is a short-answer summary of the core content of the document "US20220351232A1":

What is the core function of the system?

A: The core function of the system is to use blockchain technology to achieve the allocation, storage, recording, redemption and payment of loyalty points through decentralized loyalty IDs.

How are decentralized loyalty IDs generated and used?

A: Decentralized loyalty IDs are generated based on the user's public key and are associated with the user's transaction account. These IDs are stored on the blockchain, and users query and use their loyalty points by providing login credentials.

How do reward events trigger the allocation of loyalty points?

A: Reward events are triggered when users complete transactions or behavioral events (such as shopping, participating in surveys, etc.). The system allocates loyalty points based on these events and writes the allocation records to the private or semi-private ledger of the blockchain.

How do multi-merchant loyalty partnerships work?

A: Merchants can create and join multi-merchant loyalty partnerships through the loyalty portal, set cooperation parameters and reward conditions. When users complete purchases or meet other conditions at partner merchants, the system will allocate loyalty points according to the set reward conditions.

How do users redeem and pay points?

Answer: Users can use loyalty points to pay or redeem goods and services at partner merchants. After each point redemption, the system will update the point balance on the blockchain and notify the relevant merchants and users.

What role does blockchain technology play in the system?

Answer: Blockchain technology plays a key role in the system, using its immutability and consensus mechanism to ensure the security and credibility of point allocation and transaction records. At the same time, encryption technology is used to protect sensitive information, and verification mechanisms ensure the authenticity of user identity and transactions.

What is the role of the user interface in the system?

Answer: The user interface (such as the loyalty iFrame) plays a role in interacting with users in the system. Users trigger reward events, query point balances, and choose point redemption through the interface, and the system implements the corresponding functions through APIs and smart contracts.