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Blockchain and Loyalty Points

Published: 2017-01-01

Organization: Oliver Wyman-Velocity magazine

Overview: Blockchain may be the answer. Best known as the technology behind Bitcoin, blockchain enables a ledger of transactions to be shared across a network of participants. When a new transaction occurs (for example, a loyalty point is issued, redeemed, or exchanged), a unique token is created and assigned to that transaction. Tokens are grouped into blocks (for example, every ten minutes) and distributed across the network, updating every ledger at once. New transaction blocks are validated and linked to older blocks, creating a strong, secure, and verifiable record of all transactions, without the need for intermediaries or centralized databases.

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