Seamless cross-promotions between businesses are not easy to build without a trusted third party facilitating the alliance. Tracking of rewards earned and transferred across participating businesses is limited because of this centralized nature that introduces several challenges.
- Build a separate platform that will track conversions.
- Need a trusted third party to build an accurate platform.
- Reconciliation at all participating entities to successfully implement a joint reward program.
Overall, these challenges make facilitating the reward alliance a long and time-consuming process.
Blockchain technology enables realizing the rewards alliance in a decentralized fashion that allows a lot more flexibility in terms of business partners joining and leaving the alliance and offers that are made available can be more dynamic in nature. Blockchain also eliminates the need of having a trusted third party in the picture and reconciliation of reward points as all businesses share the same view of the data.
At Persistent we built a blockchain-based distributed rewards alliance prototype using the Hyperledger platform.
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Blockchain is not the most efficient way of doing things when there is trust in the system: Dr Pandurang Kamat