Changyou, the tokenization of points on blockchain is on the way

Points, as an important means of customer loyalty programs, are being used by more and more merchants. For ordinary users, there may be credit card points, airline points, hotel points, supermarket points, communication points... But at the same time, points are a kind of rights that customers do not feel very strongly about: "It's better to have it; it doesn't matter if you don't have it." This is a key reason why the current domestic point redemption rate is only 12%. How to improve the utilization rate of users' points and allow the point issuer to implement customer loyalty programs at the lowest cost, there is no doubt that the points alliance is one of the best options.

As a pioneer of the domestic points alliance and the pioneer of the points operation 3.0 model, the points platform Changyou relies on the original cross-industry alliance business model and the strong strength of shareholders such as Bank of China, China Mobile and China Eastern Airlines to bring together users' scattered points for unified management and use, bringing new and more choices to the vast number of points users across the country. In less than a year since its launch, Changyou has quickly accumulated more than 20 million users.

At the same time, Changyou has been trying to use blockchain technology to solve many problems encountered in the points operation. The traditional points operation model has the following pain points:

1. It is difficult to integrate the points of different point issuers and to guide and centrally manage them;

2. The issuance of points is not transparent, and the settlement of points reserve funds for B-side merchants is complicated;

3. If the points operation platform adopts a centralized architecture, the business functions will become extremely complicated, such as the traceability and settlement of points during consumption and settlement;

4. Settlement issues caused by multiple transfers of points;

5. Points activities can be easily swiped and cashed out by hackers;

6. The settlement cycle with the points issuing merchants and consumer-end merchants is long.

Changyou has built the Changyou Points Blockchain Platform based on its own points operation advantages, and is committed to using blockchain technology to solve the pain points of points operation in the current centralized system. Currently, the first phase of the Changyou Points Blockchain Platform has been officially launched, and 600,000+ user transaction data from 2 platforms have been connected online.

The first phase of Changyou Points Blockchain Platform is an innovative attempt to use blockchain technology in the field of points. For Changyou's cooperation platform, the online platform greatly reduces the complexity of partner access and fundamentally solves the trust problem between partners in the settlement of points consumption fees. At the user level, blockchain technology enhances the liquidity of user points and expands the offline consumption scenarios of user points.

The Changyou blockchain platform has the following features:

1. Points are initiated by the point issuer. The entire point transaction process is recorded on the blockchain, and the data is transparent and cannot be tampered with;

2. The entire points operation platform is decentralized. Merchants who need to use the points loyalty program can easily join the alliance node, and the issuance and use of points are simple;

3. Points consumption is settled in real time.

In addition to the Changyou points operation blockchain platform that has been launched, blockchain technology has more applicable scenarios in the upstream and downstream of points operation, such as invoice issuance and tracking in consumption scenarios between points issuers and downstream merchants, settlement tracing after multiple transfers of points, etc., broadening points consumption channels, and simplifying the reserve fund management mechanism of points issuers.

One of the advantages of the Points Blockchain Alliance is that it breaks down the barriers to point usage scenarios for point issuing merchants, allowing the same user's points from different merchants to be used in all merchant point consumption scenarios within the alliance, and realizing the tokenized circulation of points - this not only broadens the consumption channels for merchant points, but also helps to enhance users' desire to consume points. For the point issuer, joining the Points Blockchain Alliance simplifies the process of reserve fund management and settlement, and achieves real-time settlement. The issuer can purchase points from the Alliance Foundation by pre-charging, that is, replenish the reserve fund. When it is necessary to issue points to users, the point issuer can directly transfer points from its own reserve fund account to the user account, that is, record a B2C point transfer transaction on the blockchain platform.

In the future, Changyou will gradually enhance the application of blockchain technology. From the perspective of user experience, it will maximize the use of blockchain characteristics, expand the source of user points and consumption channels, realize the closed loop of points business, and truly reflect the value of points.

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