The Possibility of Using Consumer BlockchainBased Tokens to Collect Loyalty Points by Airdrops

Abstract

Loyalty points can be used to encourage customers to make new purchases and play an important role in maintaining the existing customer base. In essence, this is a discount system, using which consumers can receive reward points after shopping or purchasing certain products. Loyalty points are a virtual currency that can be earned through certain shopping activities. According to a modern approach, loyalty points could also be exchanged for tokens based on blockchain technology. Tokens can be customized according to business needs, thus increasing the effectiveness of marketing. Since the tokens are created in the blockchain network, they are unforgeable, thus excluding the possibility of fraud or abuse. The purpose of the research is to examine whether “traditional” loyalty points can be transferred to modern NFT-based tokens, thereby conveying uniqueness and unforgeability to consumers. As part of the practical implementation, the smart contract will be written using NFT (Non-Fungible Token) elements and the ERC 721 standard. However, to deliver consumer NFTs to their target, a smart contract-based airdrop-sending solution is also needed, which will be written in the research. On the company side, consumer NFTs are stored in an Ethereum-based sidechain before sending. As a further part of the practical implementation, a blockchain called PBTN (Private Blockchain Token Network) will be created by creating its genesis block. Until now, such a joint DAO-NFT(Decentralized Autonomous Organization) solution has not yet been implemented. The token loyalty point-based reward created in the crypto space is certainly a novelty these days.