Distributed Ledger Incentive Protocol for Flexible Reward Distribution
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Solution Overview
Problem
Conventional incentive programs lack flexibility in rewarding various activities and the realization of their value, reducing their effectiveness.
Innovation Solution
An incentive protocol system utilizing a distributed ledger/block chain network that allows for flexible and broad application of incentive units, which can be saved, invested, spent, or exchanged, and is associated with transactional and non-transactional behaviors, including a digital wallet with private keys and a transfer resource to modify token amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional incentive programs are used, then implementation is simple, but flexibility in rewarding various activities is limited
Solution Approach 1:
The distributed ledger system creates a universal incentive platform that can reward multiple types of activities (transactional and non-transactional behaviors) through a single infrastructure. The system uses tokens that can be earned through various means (purchases, reviews, referrals, social media engagement) and redeemed for different rewards, making the incentive program adaptable to diverse business needs without requiring separate systems for each activity type.
Solution Approach 2:
The patent introduces a centralized incentive management platform that acts as an intermediary between the distributed ledger network and participating businesses. This platform handles the complexity of token distribution, validation of incentive-eligible activities, and reward redemption, thereby simplifying the user experience while maintaining system flexibility. The intermediary manages the connection between traditional business operations and the blockchain-based incentive mechanism.
2Reliability
If incentive units are restricted in use, then program control is easier, but value realization is reduced
Solution Approach 1:
The incentive system implements dynamic control where the characteristics of tokens and their redeemability can change over time based on program objectives. The centralized platform can adjust token expiration dates, modify which rewards are available for redemption, and change the terms of incentive eligibility. This dynamic approach allows the program to maintain control while adapting to different business needs and market conditions, thereby realizing broader value without sacrificing reliability.
Solution Approach 2:
The system allows modification of key parameters such as token value, redemption options, and incentive eligibility criteria through the centralized management platform. These parameter changes enable the program to control incentive distribution while maintaining flexibility in how values are realized. For example, the system can adjust the conversion rate between tokens and rewards, add or remove reward categories, and modify the time windows for redemption, thereby balancing control and versatility.
3Adaptability or versatility
If distributed ledger technology is implemented, then incentive distribution flexibility is enhanced, but system complexity increases
Solution Approach 1:
The system architecture is segmented into distinct functional layers: a centralized incentive management platform that handles business logic and a distributed ledger network that handles secure token distribution and tracking. This segmentation allows the complex blockchain technology to be isolated in the background while presenting a simplified interface to users and businesses. The centralized platform manages the complexity of interacting with the distributed ledger, thereby enhancing incentive distribution flexibility without exposing the full system complexity to end users.
Data Source
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AI summary
In one aspect, a method to incentivize commerce comprises associating a digital wallet with a product or service. The wallet may include one or more private keys having an associated amount of tokens. A purchaser of the product or service receives the wallet as an incentive to purchase the product or service.