Loyalty Points on the Blockchain
Business and Management Studies 4(3), 80-92.
16 Pages Posted: 29 Sep 2018 Last revised: 9 Sep 2019
Date Written: September 8, 2018
Although some organizations are contemplating the potential impact of blockchain technology in today’s economy, blockchain, itself, is quickly emerging to be a disruptive force. This is especially true in the circumstance of loyalty programs.
Blockchain is a public, digital, and distributed database solution providing decentralized management of transactional data. This technology is transforming society in ways that were previously unimaginable. Whether it be the way individuals use their phones, cars, or the healthcare system, blockchain is applicable for a variety of economic sectors and transactions. Although many may argue that blockchain is in its early development stage, it still possesses the power to revolutionize industries and consumer habits at a global scale. Through implementation of blockchain for loyalty networks, companies eliminate the limitations and inefficiencies while elevating the customer experience with secure and immediate redemption options from a variety of vendors. Despite evolving rapidly, its implementations provide better security, privacy, performance, usability, data integrity, and scalability, to name a few. Hence, blockchain is likely to entice any individual for instantaneous incentives for every purchase.
This paper aims to analyze the current, traditional loyalty programs and the challenges associated with them. It highlights how blockchain can resolve these challenges and provide a better experience. This report further explores the various types of loyalty programs that currently exist in the blockchain ecosystem and provides potential future implementations. Finally, the paper analyzes the implementation of coupons in comparison with loyalty points programs, highlighting the vast spread of blockchain implementation.
Keywords: loyalty program, blockchain, technology, decentralized database
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