How blockchain loyalty programs a boon for growing industries?

Well, customer loyalty points serve as biggest drivers of growth for retail companies. Such programs let corporations enhance their engagement with customers. They are also being utilised across various industries such as retail, travel, banks, hotels and lot more.

Some of the issues being faced by existing loyalty programs are:

  • It’s quite time consuming to get the customer sign-up for a new loyalty program on the on-going process
  • Different types of paperwork are involved which increases the overhead cost
  • Lack of interoperability between systems of different organisations. Integration is done either manually or through some sort of API hooking the systems up.

Luckily, blockchain overcomes all the above discussed limitations. The system is a distributed ledger present with each of the participating organisations. Good news is that the problem of interoperability is reduced to a large extent as each participant has access to the same shared data and thereby verifies and sees transactions for them.

Decentralised system forming a blockchain loyalty program would cut down disputes to almost nothing. Moreover, it would be a seamless experience for the customer who doesn’t have to manage their points across different programmes anymore.

There is one digital wallet which contains loyalty points and can be used across programmes of all participating partners. It is to note that smart contracts can be used to distribute redemption of loyalty points based on a pre-decided algorithm. All this would eliminate the need for excess paperwork and the hassles of current API integration.

As and when a transaction occurs, it gets stored in the ledger in the form of blocks and each block refers to the previous block. However, if a block is committed to the ledger, it can no longer be altered. And the immutability of the ledger keeps the user away from any kind of fraud and the history of transactions can be traced down to the initial level.

Transactions on a blockchain platform is absolutely secured, cryptographically signed and stored in an encrypted manner. There is very little risk of hacking with blockchain. Even if ahacker wants to tamper with the ledger on a blockchain successfully, he would have to hack millions of computers at the same time which is nearly impossible. It is difficult to bring a blockchain network down and he or she need to shut down every single computer in a network of computers distributed world-wide.

A High performance blockchain based platform for loyalty programmes solve two major issues of  such as identity theft and data protection. Data is stored into an encrypted block that can be verified by blockchain network whenever identity proof is required. So, bring transparency and security in your loyalty programs with blockchain now!!!

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