Blockchain Loyalty Coin Miner for Transparent Transaction Tracking
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Solution Overview
Problem
Existing customer loyalty programs lack an efficient and transparent mechanism to track customer transactions and reward loyal customers, leading to inefficiencies in data management and customer engagement.
Innovation Solution
A distributed ledger technology (blockchain) network is established with customer and entity nodes, where transactions are recorded on a decentralized ledger, and loyalty coins/credits are provided based on customer purchases, enabling transparent and secure tracking and rewarding of customer loyalty.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a traditional centralized system is used to manage customer loyalty programs, then implementation and control are simpler, but transparency and security in tracking customer transactions are insufficient
Solution Approach 1:
The patent introduces a blockchain network as an intermediary layer between customers and the loyalty program system. This blockchain intermediary provides transparent and secure transaction tracking through its distributed ledger, while the smart contracts automate reward distribution. The intermediary resolves the contradiction by providing the needed transparency and security without requiring the entire system architecture to become equally complex, as the blockchain handles the complex trust and verification functions independently.
2Productivity
If manual processes are used to track customer transactions and distribute rewards, then system complexity is lower, but efficiency and automation level are insufficient
Solution Approach 1:
The patent implements self-service through smart contracts that automatically execute reward distribution based on predefined conditions. When a customer makes a purchase, the smart contract automatically detects the transaction, calculates the appropriate reward, and distributes loyalty coins without human intervention. This self-service mechanism dramatically improves transaction processing efficiency while the automation complexity is contained within the smart contract code rather than requiring complex external management systems.
Solution Approach 2:
The system implements automated feedback loops where transaction data is continuously monitored, analyzed, and used to trigger automatic reward distributions. The blockchain network provides real-time feedback on transaction status, and smart contracts automatically respond to qualifying transactions by distributing rewards. This feedback mechanism enables high productivity through automation while keeping the system complexity manageable through rule-based automated responses.
3Reliability
If centralized data management is used, then data control is more straightforward, but data security and customer trust are compromised
Solution Approach 1:
The patent segments the data management structure by distributing transaction data across multiple nodes in the blockchain network rather than centralizing it. Each node holds a copy of the ledger, and transactions are verified by multiple participants. This segmentation provides enhanced security and trust because no single entity controls all the data, while the modular nature of blockchain nodes keeps the complexity manageable through standardized protocols and independent node operations.
Data Source
AI summary
A system, method, and computer-readable medium are disclosed for management of a distributed ledger technology customer loyalty program, by establishing a distributed ledger technology network of customer and entity nodes. The entity nodes support products and/or services purchased by customers, providing a distributed ledger technology platform accessible by the nodes. Transactions between nodes go through the distributed ledger technology platform. A distributed ledger technology ledger which tracks the transactions. Coins/credits are provided to customers based on their transactions.