TokenLink: a secure loyalty point exchange system powered by smart contracts

Abstract

Loyalty initiatives refer to the rewards offered by a business to customers who make recurring purchases. Traditional loyalty programmes, on the other hand, have numerous disadvantages, including low redemption rates, expired points, high user acquisition costs, and the difficulty of administering multiple loyalty programmes. Several of these issues can be addressed by utilizing blockchain technology. This paper examines the shortcomings of current loyalty programs and the potential applications of blockchain technology to resolve them. In an effort to improve customer benefits and retention rates while making it simpler for businesses to operate their own loyalty programmes, author proposes a blockchain-powered global loyalty network. This platform intends to combine multiple loyalty programs into a single system to facilitate the transmission of loyalty points between users and to promote co-branding among numerous businesses with global locations.