Blockchain-based reward point exchange systems

Large organizations are increasingly attracted to the notion of reward points as a form of loyalty giveaway. However, for current markets, these points can be redeemed only within the organizational domain. No concept of interoperability or exchangeability of these points exists among cross-organization users in a decentralized manner. To address this challenge, this study proposes a solution for exchanging user-earned reward points using blockchain technology. The solution aims at a decentralized peer-to-peer exchange network wherein participants can directly exchange points through web/mobile apps of point-offering organizations. To this end, we propose using Hyperledger Fabric Blockchain and Hyperledger Composer, which will synchronize the initial data from off-chain apps, and after the exchanges are done on-chain, sync the data back to them. This approach extends existing off-chain organization management systems instead of requiring a whole new system both for users and organizations and also optimizes the ever growing blockchain database size.