Loyalty Program Using Blockchain

Abstract

The traditional loyalty systems usually offer people benefits in a specific sector. The users usually need to stay within the loyalty system for a long time and accumulate points in order to win rewards which may not be very interesting for them most of the time. Additionally, users usually do not prefer to share their personal information to join these loyalty systems due to privacy concerns. It has, therefore, been observed that the number of customers in the loyalty systems is decreasing day by day. To reduce these drawbacks a loyalty program which complies with ERC20 standards was proposed in this study using tokens based on the Ethereum blockchain. Using this new generation loyalty system, users can convert their earned tokens to Ether in the market and they can receive services or products with the accumulated tokens according to their interests from any supplier that has been contracted by the manufacturer. Additionally, users in the designed system do not need to carry many different cards, it is adequate to have only one Ethereum wallet. Furthermore, users do not need to share any personal data to join the loyalty system. Suppliers can also request Ether from the manufacturer for the tokens they have accumulated from the members of the loyalty system. The proposed loyalty system has been implemented and presented in this study.