Blockchain-based Secure Platform for Coalition Loyalty Program Management

Publication Type:
Conference Proceeding
2021 IEEE Wireless Communications and Networking Conference (WCNC), 2021, 2021-March
Issue Date:
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In this paper, we propose a novel blockchain-based platform for the coalition loyalty program management. The platform allows the customers to freely exchange loyalty points from different existing blockchain-based loyalty programs by utilizing the sidechain technology. Moreover, by adopting the Proof-of-Stake consensus mechanism, we can further increase customer engagement by allowing the customers to participate in the consensus process to earn additional tokens. However, this might lead to situations where the customers centralize all tokens to a single chain/loyalty program if the chain offers more rewards for consensus participation. Through security and performance analyses, we show that such centralization of stakes poses a threat to the security and performance of the platform. Therefore, we develop a non-cooperative game model to analyze the rational behavior of the users. We reveal that the consensus participation rewards govern the user behavior and the decentralization of the system. Numerical experiments confirm our analytical results and show that the ratios between the consensus rewards have a significant impact on the system’s security and performance.
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